Insurance Office of America (IOA) has announced a new round of investment involving its own employees, private equity firm Madison Dearborn Partners (MDP), and Canadian brokerage Navacord, in a move designed to strengthen its position in the US insurance market.
The company said the investment will allow it to “enhance and strengthen” its industry presence as it continues to grow and expand through mergers and acquisitions. IOA will remain independent and continue to focus on organic growth, it added.
The Florida-based firm will continue to be led by Heath Ritenour as Chairman, Jeff Lagos as Chief Executive Officer, and Rob Motley as President. MDP and Navacord will join as shareholders in what the company described as its “next-generation ownership”.
Founded in 1988 by John and Valli Ritenour, IOA has grown into one of the largest privately held insurance brokerages in the United States, known for what it calls its entrepreneurial culture and client-focused approach.
“This new partnership with MDP and Navacord is an exciting next step in IOA’s growth journey,” said Chairman Heath Ritenour. “It is a ‘better and stronger together’ story as we enter into a collaborative partnership to extend IOA’s legacy and industry positioning, with an increased and compelling go-forward equity opportunity for our employees.”
Chief Executive Jeff Lagos added: “Partnership and strategic alignment with MDP and Navacord gives us the scale to compete at new levels and puts us on an accelerated trajectory of growth and impact. It is a collaboration that aligns perfectly with our long-term vision and commitment to delivering exceptional results for our people, our clients, and our industry partners.”
President Rob Motley said: “The client-first, people-centric culture at IOA is at the heart of everything we do. By partnering with MDP and Navacord, clients will benefit from an enhanced offering and increased scale, while team members will see even more opportunities for career advancement.”
From MDP, Matt Raino, Partner and Co-Head of Financial Services, said: “We are thrilled to partner with IOA, which has built an industry-leading business defined by the quality of its people and the exceptional service it provides to customers across the nation. Together with the IOA management team, its employee shareholders, and Navacord, we are confident we will be able to support IOA’s growth and continue delivering excellent outcomes for their diverse and growing client base.”
Navacord co-founders Shawn DeSantis and T. Marshall Sadd said: “IOA’s culture, leadership, and growth trajectory make them an ideal strategic partner for Navacord. This is the beginning of a powerful alliance for Navacord, IOA, and MDP that will unlock new opportunities for collaboration, innovation, and shared success across borders.”
Financial terms of the deal were not disclosed.
Reagan Consulting acted as exclusive financial adviser to IOA, with Foley & Lardner LLP serving as legal counsel. JP Morgan Securities advised MDP, with legal counsel provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Kirkland & Ellis LLP. Financing was supplied by Ares Credit funds.
