Baldwin Group and CAC Group Merge to Form $2B U.S. Insurance Platform

The Baldwin Group and CAC Group, both leading independent insurance agencies in the U.S., have agreed to merge, forming one of the largest independent insurance advisory and distribution platforms nationally. The deal is valued at approximately $1.03 billion, comprising $438 million in cash and 23.2 million shares of Baldwin stock priced at $589 million, with additional post-closing performance-based and deferred payments. The merger is projected to complete in the first quarter of 2026. Combined, these agencies are expected to generate gross revenues of $2 billion by 2026, creating a significant footprint across all major U.S. insurance markets. The combined workforce of nearly 5,000 employees will serve diverse sectors including retail, specialty, reinsurance, and Managing General Agent (MGA) operations. This merger leverages CAC's specialty expertise in financial lines, transactional liability, cyber, and surety insurance, complementing Baldwin's strong middle-market distribution channels. Ownership post-merger will primarily reside with the colleagues of both firms, highlighting an employee-shareholder structure supportive of aligned interests. Leadership describes this merger as a strategic move to blend complementary cultures, business mixes, and geographic reach, enhancing competitive positioning within the U.S. insurance marketplace. The Baldwin Group, based in Tampa, Florida, ranks ninth on Insurance Journal's Top 100 Independent Property/Casualty Agencies for 2025, with $1.06 billion in property/casualty revenue, while CAC Group, headquartered in Birmingham, Alabama, ranks 22nd with $260 million in property/casualty revenue. Both firms bring recognized market positions and expertise which together expand product lines and industry focus, including sectors like natural resources, private equity, real estate, senior living, education, and construction. This merger is part of a broader trend in the insurance brokerage sector, characterized by significant consolidation and large-scale acquisitions. Recent notable deals include Arthur J. Gallagher & Co.'s $13.45 billion acquisition of AssuredPartners and Brown & Brown Inc.'s $9.8 billion purchase of Accession Risk Management. Such transactions signal ongoing reshaping of the independent insurance agency landscape, driven by scale, diversification, and enhanced service capabilities. These developments have implications for the broader insurance industry, suggesting increased market concentration and a shift toward integrated service platforms, which may influence competitive dynamics, regulatory considerations, and client engagement strategies. Industry observers should monitor how these large-scale mergers affect underwriting, distribution efficiency, and product innovation, especially as firms expand their service offerings across specialty and middle-market segments.