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Arthur J. Gallagher (AJG) Adds Kelly Financial to Portfolio
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Arthur J. Gallagher & Co. (AJG - Free Report) recently declared that it has purchased Kelly Financial, Inc. to enhance and extend its retirement consulting services in the North-central region of the U.S. The financial details of the transaction were kept under wraps.
Madison, WI-based Kelly Financial was established in 1957 and incorporated in 1994. The acquired company provides retirement plan management, wealth management and life insurance coverages to businesses and individuals. Also, it caters to the needs of businesses and individuals across the state of Wisconsin that would further boost the already robust inorganic growth portfolio of the acquirer. Post takeover, Kelly Financial will continue to operate from its current location.
We expect Kelly Financial’s outstanding team and in-depth expertise to be highly value accretive to the acquirer’s client portfolio. Moreover, Arthur J. Gallagher’s latest transaction will enable it to strengthen its foothold in the state of Wisconsin and Great Lakes region, thereby complementing employee benefits consultation and insurance brokerage services.
This Zacks Rank #3 (Hold) insurance broker is known for improving its growth profile through acquisitions. We note that, the company closed another 37 acquisitions with annualized revenues of over $137.9 million in 2016. In addition, though most of the company’s buyouts are within the brokerage segment, Arthur J. Gallagher has increased purchases in the retail employee benefits brokerage as well as wholesale brokerage sectors. It also intends to pursue smaller tuck-in mergers in 2017. Interestingly, Arthur J. Gallagher stated that its merger and acquisition pipeline remains strong with about $200 million of revenues.
Notably, shares of Arthur J. Gallagher increased 4.39% since the release of its fourth-quarter 2016 results slightly outperforming the Zacks categorized Insurance Broker industry’s gain of about 4.15%. Solid top-line growth and robust performance at both the Brokerage and Risk Management segments resulted in the outperformance. Furthermore, strategic acquisitions like these have improved the insurance broker’s inorganic portfolio as well as accelerated growth, which will also drive the stock higher in the near term.
American Financial offers P&C insurance products in the U.S. The company delivered positive surprises in three of the last four quarters with an average beat of 6.45%.
Everest Re offers reinsurance and insurance products. The company delivered positive surprises in three of the last four quarters with an average beat of 43.49%.
Selective Insurance provides insurance products and services in the U.S. The company delivered a positive surprise in one of the last four quarters, but with an average negative surprise of 4.53%.
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Arthur J. Gallagher (AJG) Adds Kelly Financial to Portfolio
Arthur J. Gallagher & Co. (AJG - Free Report) recently declared that it has purchased Kelly Financial, Inc. to enhance and extend its retirement consulting services in the North-central region of the U.S. The financial details of the transaction were kept under wraps.
Madison, WI-based Kelly Financial was established in 1957 and incorporated in 1994. The acquired company provides retirement plan management, wealth management and life insurance coverages to businesses and individuals. Also, it caters to the needs of businesses and individuals across the state of Wisconsin that would further boost the already robust inorganic growth portfolio of the acquirer. Post takeover, Kelly Financial will continue to operate from its current location.
We expect Kelly Financial’s outstanding team and in-depth expertise to be highly value accretive to the acquirer’s client portfolio. Moreover, Arthur J. Gallagher’s latest transaction will enable it to strengthen its foothold in the state of Wisconsin and Great Lakes region, thereby complementing employee benefits consultation and insurance brokerage services.
This Zacks Rank #3 (Hold) insurance broker is known for improving its growth profile through acquisitions. We note that, the company closed another 37 acquisitions with annualized revenues of over $137.9 million in 2016. In addition, though most of the company’s buyouts are within the brokerage segment, Arthur J. Gallagher has increased purchases in the retail employee benefits brokerage as well as wholesale brokerage sectors. It also intends to pursue smaller tuck-in mergers in 2017. Interestingly, Arthur J. Gallagher stated that its merger and acquisition pipeline remains strong with about $200 million of revenues.
Notably, shares of Arthur J. Gallagher increased 4.39% since the release of its fourth-quarter 2016 results slightly outperforming the Zacks categorized Insurance Broker industry’s gain of about 4.15%. Solid top-line growth and robust performance at both the Brokerage and Risk Management segments resulted in the outperformance. Furthermore, strategic acquisitions like these have improved the insurance broker’s inorganic portfolio as well as accelerated growth, which will also drive the stock higher in the near term.
Stocks to Consider
Some better-ranked stocks from the insurance industry include American Financial Group, Inc. (AFG - Free Report) , Everest Re Group, Ltd. and Selective Insurance Group, Inc. (SIGI - 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.
American Financial offers P&C insurance products in the U.S. The company delivered positive surprises in three of the last four quarters with an average beat of 6.45%.
Everest Re offers reinsurance and insurance products. The company delivered positive surprises in three of the last four quarters with an average beat of 43.49%.
Selective Insurance provides insurance products and services in the U.S. The company delivered a positive surprise in one of the last four quarters, but with an average negative surprise of 4.53%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>