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In its continued effort to enhance its product portfolio as well as solidify its market presence, Arthur J. Gallagher & Co. (AJG - Snapshot Report) announced the acquisition of R. W. Scobie, Inc. (Scobie).

Headquartered in Eau Claire, Wis. and founded in 1932, Scobie is a managing general agent and wholesale insurance broker, offering products and services to independent insurance agents and broker clients across the U.S.  It provides excess and surplus, property/casualty, professional business liability, and other specialty insurance products and services.

Addition of Scobie to Arthur J. Gallagher & Co.’s portfolio will augment the latter’s wholesale network.

However, the details of the transaction remain undisclosed.

Arthur J. Gallagher & Co. has been continually undertaking acquisitions to ramp up its growth profile. Last week, the insurance broker entered into an agreement to acquire London-based Giles Group of Companies (Giles) in an all cash transaction of £233 million ($366.4 million). The acquisition will inflate Arthur J. Gallagher & Co.’s client base in the middle-market and enhance its underwriting footprint via current underwriting business and increased retail distribution opportunities through broker networks. It will also expand the company’s footprint in England and Scotland and make a foray into Northern Ireland, Wales, Isle of Man and the Channel Islands.

Till date, in the third quarter, Arthur J. Gallagher & Co. has announced seven acquisitions. The company’s strong financial position continues to support its robust acquisition strategy.

Among other insurance brokers, Brown & Brown Inc. (BRO - Snapshot Report) closed its merger with Beecher Carlson Holdings, Inc. in July. Marsh, a subsidiary of Marsh & McLennan Companies, Inc. (MMC - Analyst Report) closed the acquisition of Rehder y Asociados Group, the leading insurance adviser in Peru, in June.

Arthur J. Gallagher & Co. presently carries a Zacks Rank #3 (Hold). The company has been continually witnessing rising earnings estimates. We expect the momentum to continue given its impressive inorganic growth story.

In the insurance space, Everest Re Group Ltd. (RE - Analyst Report)  with Zacks Rank #1 (Strong Buy) is worth considering.

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