LHK Group, the Leinster based insurance and financial planning broker, has agreed to acquire Dublin-based insurance broker, Richardson Insurance Solutions, subject to regulatory approval.
LHK Group is a third-generation, Irish owned practitioner-led general insurance and financial planning broker in Leinster. Established in 1938, they are one of the oldest brokers on the island of Ireland and act as the insurance and financial planning partner of choice for owner-managers, entrepreneurs, sole traders, partnerships, and family businesses across multiple industry sectors. Colm Kelleher, a Chartered Insurance Broker, is the owner and Managing Director of LHK Group, started his insurance career with Aon London and returned to Ireland in 2007 to run the family brokerage MJ Kelleher and Sons.
Kelleher is delighted to welcome the Richardson’s team and their clients to LHK Group. He added, “In an era of increased foreign ownership of Irish Brokers we see our position in the market, as a locally owned and managed broker, being a key differentiator in an increasingly consolidated market. As proud members of the Guaranteed Irish community, we remain committed driving competition in order to deliver cost effective general insurance and financial planning solutions to our existing and prospective clients.”
Against the backdrop of increased consolidation in the industry by international publicly listed and private equity groups, LHK Group remains one of the few remaining independently owned brokers in the Irish market. Increased regulatory scrutiny, succession planning, and the continued expansion of international firms in Ireland has led many independently owned brokers to exit, selling to larger rivals, who have entered the Irish market following consolidation in the USA and UK.
Richardson Insurance Solutions, established in 1966 by Herbie Richardson, the father of Derek Richardson, Derek took over the running of the business at a young age and is well known for the development of 123.ie, one of the first and most successful online home and motoring insurance cover providers in Ireland. Richardson Insurance Solutions specialise in providing cover within niche markets such as leisure, hospitality, motor caravans, salons and trades insurance.
Derek Richardson commented “I have known Colm Kelleher as a friend and LHK Group as a competitor for many years. Like me, Colm took over the running of his father’s business at a relatively young age and I have always been impressed by the energy and attention he gives to his clients, staff and his business. I’m delighted to have the opportunity to agree terms for the LHK team to take over our business. Due to our shared values and culture, I am confident LHK will be a great home for the Richardson’s team and our clients, whose support over the last 56 years I am greatly appreciative of. I look forward to working with Colm and his team in the integration of our two businesses”.
Chief Executive Officer of Richardson Insurance Solutions, Eugene Carlin commented on the sale, “I have known the leadership team at LHK for many years. Their company ethos and values are an excellent strategic fit for our team and clients and will provide the perfect home for the future growth of our business. The combined experience and expertise of the LHK and Richardson’s teams will offer clients a greater breadth and depth of product and service. Our clients and staff are looking forward to the benefits associated with being part of a larger company.” Richardson Insurance Solutions is currently based in Dublin 18 and their team will remain with the company following the deal.
Dublin based Merry Mullen Accountants and Vincent and Beatty Solicitors advised LHK Group Ltd on this transaction, with JPA Brenson Lawlor corporate finance and tax departments and Beauchamps solicitors advising the sellers.
This deal comes shortly after LHK Group’s acquisition of The Insurance Shop Ltd. The Insurance Shop, founded in 1988 by Sean O’Connell and Tony Cunningham are high profile brokers providing a personalized service on a walk-in basis for both private individuals and business clients. Along with developing a large general insurance business in 1995 they spotted the need for a tailored retail shop insurance product and over the last 30 years have developed this into a market leading product for all symbol group shops. More recently, they have also developed a unique film production package providing cover flexibility which has grown rapidly into an industry standard.