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.
Brown & Brown (BRO) Unit Buys Assets of C & C Risk Services
Read MoreHide Full Article
Brown & Brown, Inc.’s (BRO - Free Report) unit recently purchased essentially all the assets of C & C Risk Services, LLC. With this buyout, the company expects to boost its brokerage operations as well as fortify its footprint in Texas and Florida.
Established in 2013, C & C Risk Services operates as a managing general agent offering excess public entity insurance coverage to municipalities in Texas and Florida plus boasts generating annual revenues of about $1 million. On completion of this transaction, C & C Risk Services will be part of Brown & Brown’s Wholesale Brokerage Division operating across Texas and Florida locations.
The acquisition is anticipated to help improve the insurance broker’s services in the public entity insurance market through C & C Risk Services’ in-depth expertise in the same. Apart from expanding its base in Texas and Florida, the insurance broker expects the transaction to add some substantial value to its service portfolio.
Moreover, the consolidation is likely to enhance the acquirer’s service offering at Wholesale Brokerage business, dealing in excess and surplus commercial as well as personal lines insurance.
On May 14, 2018, the insurance broker’s arm, Brown & Brown of Kentucky, Inc., bought almost all the assets of Automotive Development Group, LLC. The integration will not only enable Brown & Brown to boost its presence but also propel growth in the auto warranty and Finance and Insurance (F&I) training domain.
Therefore, strategic buyouts and mergers have always aided Brown & Brown to fuel growth as well as spread its operations. Also, these tactical moves assisted Brown & Brown to increase its commissions and fees, which in turn drove revenue growth.
Zacks Rank and Share Price Movement
Brown & Brown currently holds a Zacks Rank #2 (Buy). Shares of the company have gained 10.4% year to date, outperforming the industry’s increase of 4.9%. We expect the company’s sustained operational performance, higher commissions and fees plus a solid capital position to push the stock higher in the near term.
Other Acquisitions in the Insurance Space
We have been observing insurers embracing inorganic means to build portfolio strength for over a period of time now. The insurance industry has been arresting attention of late with successive acquisitions on the back of its available capital resource, which remains at an all-time high.
Recently, The Navigators Group, Inc. closed the buyout of Bracht, Deckers & Mackelbert NV (BDM) as well as its affiliated insurance company, Assurances Continentales – Continentale Verzekeringen NV (ASCO). Also, Arthur J. Gallagher & Co. (AJG - Free Report) acquired Finergy Solutions Pty Ltd and Avantek Pty Ltd.
Further, Alleghany Capital Corporation, a wholly-owned subsidiary of Alleghany Corporation , announced that its subsidiary Jazwares, LLC has taken over Russ Berrie and Applause brands.
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Brown & Brown (BRO) Unit Buys Assets of C & C Risk Services
Brown & Brown, Inc.’s (BRO - Free Report) unit recently purchased essentially all the assets of C & C Risk Services, LLC. With this buyout, the company expects to boost its brokerage operations as well as fortify its footprint in Texas and Florida.
Established in 2013, C & C Risk Services operates as a managing general agent offering excess public entity insurance coverage to municipalities in Texas and Florida plus boasts generating annual revenues of about $1 million. On completion of this transaction, C & C Risk Services will be part of Brown & Brown’s Wholesale Brokerage Division operating across Texas and Florida locations.
The acquisition is anticipated to help improve the insurance broker’s services in the public entity insurance market through C & C Risk Services’ in-depth expertise in the same. Apart from expanding its base in Texas and Florida, the insurance broker expects the transaction to add some substantial value to its service portfolio.
Moreover, the consolidation is likely to enhance the acquirer’s service offering at Wholesale Brokerage business, dealing in excess and surplus commercial as well as personal lines insurance.
On May 14, 2018, the insurance broker’s arm, Brown & Brown of Kentucky, Inc., bought almost all the assets of Automotive Development Group, LLC. The integration will not only enable Brown & Brown to boost its presence but also propel growth in the auto warranty and Finance and Insurance (F&I) training domain.
Therefore, strategic buyouts and mergers have always aided Brown & Brown to fuel growth as well as spread its operations. Also, these tactical moves assisted Brown & Brown to increase its commissions and fees, which in turn drove revenue growth.
Zacks Rank and Share Price Movement
Brown & Brown currently holds a Zacks Rank #2 (Buy). Shares of the company have gained 10.4% year to date, outperforming the industry’s increase of 4.9%. We expect the company’s sustained operational performance, higher commissions and fees plus a solid capital position to push the stock higher in the near term.
Other Acquisitions in the Insurance Space
We have been observing insurers embracing inorganic means to build portfolio strength for over a period of time now. The insurance industry has been arresting attention of late with successive acquisitions on the back of its available capital resource, which remains at an all-time high.
Recently, The Navigators Group, Inc. closed the buyout of Bracht, Deckers & Mackelbert NV (BDM) as well as its affiliated insurance company, Assurances Continentales – Continentale Verzekeringen NV (ASCO). Also, Arthur J. Gallagher & Co. (AJG - Free Report) acquired Finergy Solutions Pty Ltd and Avantek Pty Ltd.
Further, Alleghany Capital Corporation, a wholly-owned subsidiary of Alleghany Corporation , announced that its subsidiary Jazwares, LLC has taken over Russ Berrie and Applause brands.
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>