Moody’s Affirms Brown & Brown’s Debt Rating, Lowers Outlook to Stable

Moody’s Ratings affirmed Brown & Brown’s Baa3 debt rating but revised its outlook to stable amid the company’s $9.83 billion acquisition of Accession Risk Management Group, highlighting increased financial leverage and integration risk.

Published on June 13, 2025

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Moody’s Ratings has affirmed the Baa3 rating for Brown & Brown Inc.’s (NYSE: BRO) senior unsecured debt as the company moves ahead with its $9.83 billion acquisition of Accession Risk Management Group. The agency also reaffirmed the provisional Baa3 rating on the company’s senior unsecured shelf.

Baa3 is the lowest tier in Moody’s investment-grade scale, indicating adequate creditworthiness and moderate credit risk. Moody’s said the affirmation reflects Brown & Brown’s financing strategy, which uses a balanced mix of debt and equity. The company’s history of strong organic and acquisition-driven growth also supported the rating decision.

Moody’s also assigned a Baa3 rating to the company’s proposed new senior unsecured notes.

However, the agency changed the outlook from positive to stable. It pointed to the expected increase in financial leverage and the challenges of integrating the Accession acquisition.

The deal is expected to significantly boost Brown & Brown’s revenue. It will also expand the company’s presence across industries and products in the United States. Moody’s noted that the financing will increase the company’s debt-to-EBITDA ratio, a key measure of financial leverage.

For the full announcement, visit Seeking Alpha.

Context: Acquisition of Risk Strategies

The pending acquisition involves Accession Risk Management Group, the parent company of insurance brokerage firms Risk Strategies and One80 Intermediaries. As reported by ProgramBusiness, Brown & Brown announced the deal as part of its efforts to enhance its position in the insurance distribution sector. The $9.8 billion transaction is expected to close in the third quarter of 2025. Upon completion, Risk Strategies and One80 will be integrated into Brown & Brown’s retail and newly created specialty distribution segments, respectively.

For more details, refer to the ProgramBusiness article.

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