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Arthur J. Gallagher Strengthens Foothold in South Central US
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Arthur J. Gallagher & Co. (AJG - Free Report) recently acquired Group Insurance Associates, Inc. to enhance and extend its employee benefits brokerage services in the South Central region of the U.S. The transaction amount remained undisclosed.
Metairie, LA-based Group Insurance Associates was established in 1983. The employee benefits insurance broker offers all lines of group benefit insurance products and caters to small and middle-market businesses as well as individual clients across the United States. The acquired company primarily focuses on health, life, dental and disability coverages.
We believe that the buyout would further boost the already robust inorganic growth portfolio of the acquirer. Post takeover, Group Insurance Associates will continue to operate from its current location.
We expect Group Insurance Associates’ in-depth group expertise, outstanding market relationships and quality service to be highly value accretive to the acquirer’s client portfolio. In addition, the acquiree’s team-based sales culture and strong South Central U.S. foothold will complement the acquirer’s insurance brokerage services.
The Zacks Rank #3 (Hold) insurance broker is known for improving its growth profile through acquisitions. Most of the buyouts by this company are within the brokerage segment. Nonetheless, Arthur J. Gallagher has increased purchases in the retail employee benefits brokerage and wholesale brokerage sectors. The brokerage service provider intends to pursue smaller tuck-in mergers in 2017.
Notably, shares of Arthur J. Gallagher gained 26.7% year to date, outperforming the Zacks categorized Insurance Broker industry’s growth of about 24.6%. Substantial improvement, both in the bottom line and top line, along with a robust liquidity position backed by strong cash flow generation contributed to the outperformance. Further, a strong capital position has not only helped increased the company’s shareholder value but also enabled it to invest in prudent initiatives, which in turn, has accelerated growth.
Alleghany Corporation deals with P&C reinsurance and insurance businesses in the United States and internationally. The company delivered positive surprises in three of the last four quarters with an average beat of 20.52%.
NMI Holdings offers private mortgage guaranty insurance services in the United States. The company delivered positive surprises in all of the last four quarters with an average beat of 62.80%.
Arch Capital offers property, casualty, and mortgage insurance and reinsurance products worldwide. It delivered positive surprises in all of the last four quarters with an average beat of 9.27%.
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Arthur J. Gallagher Strengthens Foothold in South Central US
Arthur J. Gallagher & Co. (AJG - Free Report) recently acquired Group Insurance Associates, Inc. to enhance and extend its employee benefits brokerage services in the South Central region of the U.S. The transaction amount remained undisclosed.
Metairie, LA-based Group Insurance Associates was established in 1983. The employee benefits insurance broker offers all lines of group benefit insurance products and caters to small and middle-market businesses as well as individual clients across the United States. The acquired company primarily focuses on health, life, dental and disability coverages.
We believe that the buyout would further boost the already robust inorganic growth portfolio of the acquirer. Post takeover, Group Insurance Associates will continue to operate from its current location.
We expect Group Insurance Associates’ in-depth group expertise, outstanding market relationships and quality service to be highly value accretive to the acquirer’s client portfolio. In addition, the acquiree’s team-based sales culture and strong South Central U.S. foothold will complement the acquirer’s insurance brokerage services.
The Zacks Rank #3 (Hold) insurance broker is known for improving its growth profile through acquisitions. Most of the buyouts by this company are within the brokerage segment. Nonetheless, Arthur J. Gallagher has increased purchases in the retail employee benefits brokerage and wholesale brokerage sectors. The brokerage service provider intends to pursue smaller tuck-in mergers in 2017.
Notably, shares of Arthur J. Gallagher gained 26.7% year to date, outperforming the Zacks categorized Insurance Broker industry’s growth of about 24.6%. Substantial improvement, both in the bottom line and top line, along with a robust liquidity position backed by strong cash flow generation contributed to the outperformance. Further, a strong capital position has not only helped increased the company’s shareholder value but also enabled it to invest in prudent initiatives, which in turn, has accelerated growth.
Stocks to Consider
Some better-ranked stocks from the insurance industry include Alleghany Corporation , NMI Holdings, Inc. (NMIH - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alleghany Corporation deals with P&C reinsurance and insurance businesses in the United States and internationally. The company delivered positive surprises in three of the last four quarters with an average beat of 20.52%.
NMI Holdings offers private mortgage guaranty insurance services in the United States. The company delivered positive surprises in all of the last four quarters with an average beat of 62.80%.
Arch Capital offers property, casualty, and mortgage insurance and reinsurance products worldwide. It delivered positive surprises in all of the last four quarters with an average beat of 9.27%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time? Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>