Florida Firm Buys Rhodes & Associates

by Arkansas Business staff  on Tuesday, Apr. 30, 2002 3:41 pm  

Brown & Brown Inc. of Daytona Beach and Tampa, Fla., said Tuesday that it is buying Rhodes & Associates Inc., RAI Inc. and RAI of Oklahoma Inc., all headquartered in Little Rock.

The deal between publicly traded Brown & Brown and the Little Rock insurance companies is effective Wednesday. The companies would not disclose the purchase price.

The Little Rock companies, led by President Martin M. Rhodes, have combined annual revenues of about $2.7 million.

In a news release, the companies said Rhodes and his staff will work from their current locations as Brown & Brown operations.

"We are very pleased to have Marty and his team of insurance professionals join our expanding Sun Belt presence," C. Roy Bridges, regional executive vice president of Brown & Brown, said. "Their addition represents our initial entry into Arkansas and brings us broadened expertise as well as the opportunities associated with entry into a new market."

Rhodes & Associates is a multi-line independent insurance agency that serves individuals and businesses. RAI is a managing general agency, offering coverages through standard carriers for agents in Arkansas. RAI of Oklahoma provides similar services in that state.

"It's getting tougher and tougher to survive as an independent agent in the insurance business," Doug Hudson, director of corporate communications for Brown, said. "They join us to get the clout of the largest base of being part of the Brown & Brown companies, but still pretty much maintain their autonomy."

Brown & Brown and its subsidiaries provide a range of insurance and reinsurance products and services as well as risk management, employee benefit administration and managed health care services throughout the United States.

Business Insurance magazine ranked Brown & Brown as the nation's eighth-largest independent insurance intermediary organization.



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