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Arthur J. Gallagher Grows in Nebraska With Lincoln Financial

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Arthur J. Gallagher & Co.(AJG - Free Report) recently acquired Nebraska-based Lincoln Financial Management, LLC. However, the financial details of the transaction have not yet been undisclosed.

The employee benefits consultant and brokerage firm, Lincoln Financial Management, offers an array of health and welfare products and services in the United States. It also offers retirement planning, qualified employee benefit programs, estate planning and investment opportunities and services to businesses and highly skilled individuals.

Lincoln Financial Management provides services in the field of banking, construction, real estate, accounting, law, medicine, dentistry, veterinary medicine, schools and colleges, hospitals, associations and insurance companies. It also provides disability income, dental insurance, life insurance and medical insurance to its clients.

Post takeover, Lincoln Financial Management will continue to operate from its present location, under the leadership of Jerry Roberts, head of Gallagher's Heartland Region, employee benefits consulting and brokerage operations. Its in-depth expertise and customer-oriented services are expected to be highly accretive to the acquirer’s portfolio.

Arthur J. Gallagher has been expanding its base in Nebraska. The recent one builds on its prior acquisition of Strong Financial Resources, Inc. in May. The company remains focused on strategic acquisitions that strengthen its portfolio. The company’s impressive growth (delivered positive organic growth for 23 straight quarters) is attributable to its organic sales as well as a string of mergers and acquisitions. This marks the company’s eighth acquisition in the ongoing quarter. In the year ago-quarter, the company made seven acquisitions with annualized revenues of $27.4 million. A solid capital position continues to support Arthur J. Gallagher’s in its strategic endeavors.

Zacks Rank and Share Price Movement

Arthur J Gallagher carries a Zacks Rank #3 (Hold). Shares of Arthur J Gallagher have outperformed the industry year to date. While Arthur J. Gallagher’s shares have increased 11%, the industry grew 7.2%. We expect the company’s diversified product offerings and strategic acquisitions to drive its shares in the near term.

 

Stocks to Consider

Some better-ranked stocks from the insurance industry are Atlas Financial Holdings, Inc , Markel Corporation (MKL - Free Report) and Mercury General Corporation (MCY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see  the complete list of today’s Zacks #1 Rank stocks here.

Atlas Financial Holdings engages in underwriting commercial automobile insurance policies in the United States. The company delivered a positive earnings surprise in two of the last four quarters, the average beat being 57.94%

Markel Corporation markets and underwrites specialty insurance products in the United States and internationally. The company delivered a positive earnings surprise in two of the last four quarters, the average beat being 21.06%

Mercury General Corporation engages in writing personal automobile insurance in the United States. The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 1.06%.

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