RISK & REWARD
Daytona Beach-based insurer focuses on growth as key to longevity
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G row or die ” has been a business mantra for a long time . And from the pace of merger and acquisition activity in 2021 , it remains a staple of the business landscape .
Charlie Lydecker
For Charlie Lydecker , the CEO of Foundation Risk Partners , it is an essential ingredient in the company ’ s success . But it ’ s not about getting bigger , it ’ s about getting better .
“ I believe you grow or die ,” Lydecker said . “ If you ’ re growing your company , that means you are able to increase income for team members , pay better bonuses for team members and make sure you provide the superior services for your clients .”
Lydecker said some companies eschew growth in favor of cost-cutting as a means to build a lasting business , but that strategy has its own pitfalls .
“ Sometimes I see companies that are not growing and their focus is in the wrong place ,” he said . “ It ’ s just a matter of time before you can ’ t cut anymore .”
In the case of Foundation Risk Partners , growth has been a central focus of the company from Day One .
The insurer launched in late 2017 and is a holding company of a number of insurance brands .
“ There are more than 30 different brands in 15 states that we own ,” he said , including some well-known local companies . And a big part of the acquisition strategy of Lydecker and the management team at Foundation Risk Partners is keeping the holding company in the background in favor of the new acquisitions .
“ Their names are just so valuable and connote trust and security and community commitment that we just never felt comfortable changing the names ,” he said .
That strategy has paid dividends for the company which will soon surpass $ 350 million in annualized revenue and is now ranked the 18 th largest insurance brokerage in the United States .
“ We have been one of the fastest-growing in the United States the last three years , and two years ago we were the fastest growing ,” he said . “ It exceeded our expectations and I ’ d be lying if I told you this was all part of a master plan .”
That may be true , but the execution of the company ’ s growth strategy has been masterful .
Among the earliest acquisitions by Foundation Risk Partners were local companies Mitchell Noel Insurance and Reames Employee Benefits Solutions .
by Aaron London
Mitchell Noel Insurance was a fixture in the local insurance market for more than 60 years . The business operated from 1956 until the merger with Foundation Risk Partners at which point it changed its name to Halifax Insurance Partners . The Reames ' history in local business circles stretches back even farther . Julie Reames said her husband , Bert , worked in the industry beginning
Julie Reames in 1955 until his passing earlier this year .
“ We couldn ’ t have made a better choice ,” Reames said . “ We were pleased with the vision they have , and continue to have , because it has taken our vision to a new level .”
Reames said she and her husband had been approached before by other large companies but never found a good fit – adding , a bad experience with a former partner made her wary of future deals . “ We attempted to bring in a partner and actually sold the business to him back in 2004 ,” she said . “ That did not work out well .”
Reames said once the non-compete clause they had signed as part of the deal expired “ we quickly knew we had to take the business back so we could control it .”
Rather than simply sell off the business , she and Bert saw the deal as an opportunity to grow Reames Employee Benefits Solutions .
“ It gave us a whole other area to go into ,” she said . “ It was a coming together of great minds and wanting to be successful and having the same thought processes that we had . ( Foundation Risk ) had the ability to do it even bigger and better .”
The partnership with Foundation Risk Partners offered a chance to work with a company that shared the Reames ’ customer-service philosophy .
“ My husband ’ s philosophy in taking care of the clients was ‘ You take care of the clients and the rest of the money will come ,’” Reames said . “ It ’ s very important that you develop and maintain those relationships . That ’ s why we thought Foundation Risk Partners would be such a good fit . They are community-minded too .”
Reames said the relationship also gives her the chance to stay active in the business .
“ Rather than kind of go away into the sunset , I can be as involved as I want to be ,” she said .
Lydecker said the idea for Foundation Risk Partners was to build a fully integrated agency system , which enabled the company to position itself in the insurance space in a much more technologically advanced way . And it was a plan that required the company and its
Left side , front to back : Alan Florez , National Sales Director / Executive VP of FRP ; Andy Thomas , Senior VP of FRP ; Lisa Farrah , Senior VP , Reames Employee Benefits Solutions ; Center , sitting : Julie and Bert Reames ; Right side , front to back : Charlie Lydecker , CEO of Foundation Risk Partners ; Alex Doberstein , Benefits VP , Acentria Insurance ; Rich Cooper , Executive VP of Halifax Insurance Partners .
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