We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arthur J. Gallagher & Co. Ramps Up Expansion with Buyouts
Read MoreHide Full Article
Arthur J. Gallagher & Co. (AJG - Free Report) has announced back-to-back acquisitions. The insurance broker recently took over Armstrong/Robitaille/Riegle, Inc., and Ann Arbor Business Advisors, LLC. in Michigan and Total Reward Group in England. Transaction details remained under wraps for both buyouts.
Kent, England-based Total Reward Group was established in 2005. The company provides remuneration support, executive search, interim placement and corporate training for reward professionals across the globe. It expects to leverage the acquired company’s compensation consulting expertise to enhance its own benefit capabilities.
Ann Arbor, Michigan-based Armstrong/Robitaille/Riegle, Inc. and Ann Arbor Business Advisors provides employee benefits, retirement planning, life insurance and human resource consulting, as well as commercial and personal property/casualty coverages. The company serves clients in Michigan and California. Hence, this acquisition is expected to add capabilities to the acquirer’s compelling portfolio.
Arthur J. Gallagher & Co.’s growth story looks impressive. The Zacks Rank #3 (Hold) insurance broker remains focused on international expansion through acquisitions and organic measures. The company’s international operations are primarily spread across Australia, Bermuda, Canada, the Caribbean, Singapore, New Zealand and the U.K.
Arthur J. Gallagher’s international operations accounts for 35% of the revenues. The company expects international contribution to total revenue to increase, given the number and size of non-U.S. acquisitions. The insurance broker’s merger and acquisition pipeline remains strong with $350 million of revenues.
Buyouts not only widen the company’s geographical footprints but also enhance its portfolio of services. Furthermore, such deals consolidate its position in retail and wholesale insurance brokerage services and risk management industries.
Shares of Arthur J. Gallagher gained 17.42% in a year’s time, outperforming the Zacks categorized Insurance Broker industry’s 15.99% increase. The company’s focus on international expansion, ramping up growth profile and strong capital position should continue to drive the shares higher.
eHealth provides private online health insurance services in the United States and China. The company posted a 596.15% positive surprise in last reported quarter. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aon offers risk management services, insurance and reinsurance brokerage, plus human resource consulting and outsourcing services worldwide. The company posted a 13.28% positive surprise in the last reported quarter. The stock carries a Zacks Rank #2 (Buy).
Torchmark provides annuities, whole and term life insurance, accidental death insurance, health insurance, Medicare supplements and long-term healthcare policies. The company delivered a 0.88% positive surprise in the last reported quarter. The stock carries a Zacks Rank #2.
3 Stocks to Ride a 588% Revenue ExplosionAt Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold... By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Arthur J. Gallagher & Co. Ramps Up Expansion with Buyouts
Arthur J. Gallagher & Co. (AJG - Free Report) has announced back-to-back acquisitions. The insurance broker recently took over Armstrong/Robitaille/Riegle, Inc., and Ann Arbor Business Advisors, LLC. in Michigan and Total Reward Group in England. Transaction details remained under wraps for both buyouts.
Kent, England-based Total Reward Group was established in 2005. The company provides remuneration support, executive search, interim placement and corporate training for reward professionals across the globe. It expects to leverage the acquired company’s compensation consulting expertise to enhance its own benefit capabilities.
Ann Arbor, Michigan-based Armstrong/Robitaille/Riegle, Inc. and Ann Arbor Business Advisors provides employee benefits, retirement planning, life insurance and human resource consulting, as well as commercial and personal property/casualty coverages. The company serves clients in Michigan and California. Hence, this acquisition is expected to add capabilities to the acquirer’s compelling portfolio.
Arthur J. Gallagher & Co.’s growth story looks impressive. The Zacks Rank #3 (Hold) insurance broker remains focused on international expansion through acquisitions and organic measures. The company’s international operations are primarily spread across Australia, Bermuda, Canada, the Caribbean, Singapore, New Zealand and the U.K.
Arthur J. Gallagher’s international operations accounts for 35% of the revenues. The company expects international contribution to total revenue to increase, given the number and size of non-U.S. acquisitions. The insurance broker’s merger and acquisition pipeline remains strong with $350 million of revenues.
Buyouts not only widen the company’s geographical footprints but also enhance its portfolio of services. Furthermore, such deals consolidate its position in retail and wholesale insurance brokerage services and risk management industries.
Shares of Arthur J. Gallagher gained 17.42% in a year’s time, outperforming the Zacks categorized Insurance Broker industry’s 15.99% increase. The company’s focus on international expansion, ramping up growth profile and strong capital position should continue to drive the shares higher.
Stocks to Consider
Better-ranked stocks from the insurance industry are eHealth, Inc. (EHTH - Free Report) , Aon plc (AON - Free Report) and ProAssurance Corporation (PRA - Free Report) .
eHealth provides private online health insurance services in the United States and China. The company posted a 596.15% positive surprise in last reported quarter. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aon offers risk management services, insurance and reinsurance brokerage, plus human resource consulting and outsourcing services worldwide. The company posted a 13.28% positive surprise in the last reported quarter. The stock carries a Zacks Rank #2 (Buy).
Torchmark provides annuities, whole and term life insurance, accidental death insurance, health insurance, Medicare supplements and long-term healthcare policies. The company delivered a 0.88% positive surprise in the last reported quarter. The stock carries a Zacks Rank #2.
3 Stocks to Ride a 588% Revenue ExplosionAt Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold... By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>