Horst Insurance, an independent insurance agency in Manheim Township, Lancaster County, has acquired Ruhl Insurance, a smaller brokerage based in Manheim borough.
The deal, which took effect March 1, returns Horst to the acquisition market after a pause of more than a decade. The firm’s last acquisition was in 2008, also involving a Lancaster-area brokerage, said David King, president and CEO of Horst Insurance.
“I think you’re going to see a return of local broker-to-broker activity,” King said in an interview with biznewsPA.
He declined to share the terms of the transaction with Ruhl.
Why is this happening: Private equity firms dominated the M&A market for insurance brokerages over the last decade, King said.
And they were generally willing to pay more than local agencies, he said.
But as interest rates rose and money became more expensive, private equity buyers became less active, giving other buyers a chance, he said.
Prior to its 2008 acquisition, Horst was making an acquisition roughly every 18 months, King said.
What’s next: Ruhl is retaining its name and staff.
Horst eventually shifts its acquisitions to its own name, King said.
Ruhl is known for specializing in farms and agribusinesses, so its name may remain for several years, King added.
The background: Founded in 1943 by Jacob Ruhl, Ruhl Insurance had been led until last year by his grandson, Nevin Dourte.
Dourte died unexpectedly in August, leading the firm to evaluate its future path, according to Dourte’s daughter, Megan Shumaker, who had become its president.
“After careful consideration of the best options to consider our mission while expanding our resources and capabilities, we decided to partner with Horst,” Shumaker said in a statement.
Ruhl manages insurance needs for more than 1,800 personal, commercial, farm and agri-business clients.
Horst has more than 7,000 personal and business clients and does business in 46 states. Since 1998, Horst has acquired 10 firms.
Horst Insurance is part of Horst Group, whose other units offer construction and management services.
