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Brown & Brown Arm Buyout to Widen Base in Central Arkansas
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Brown & Brown, Inc.’s (BRO - Free Report) unit Brown & Brown of Arkansas, Inc. recently purchased all the assets of Coffman-Standridge Incorporated d/b/a CSI Insurance. Apart from strengthening capabilities to serve clients better, the buyout will help consolidate the acquirer’s foothold in Central Arkansas. The financial details of the acquisition have been kept undisclosed.
Established in 2010, CSI Insurance deals in property and casualty insurance products and services while generating annual revenues of about $1.5 million. The company caters to its clients throughout Arkansas and will now join Brown & Brown’s Greater Central Arkansas operations. The team at CSI Insurance will bring in strong expertise and skills to the table, which in turn, can aid the Brown & Brown to extend its operational presence in Central Arkansas. With this buyout, the insurance broker will attain a much better position when it comes to offering its esteemed clients with excellent service and products. Moreover, this consolidation will allow the acquirer to enhance its influence on the Russellville community.
The acquisition will prove to be a good strategic fit for CSI Insurance with the company being optimistic about channelizing its business into a new direction. Keeping pace with the long-term investment drive in the suite of services and products offered to clients and the team, the buyout seems a prudent decision on CSI Insurance’s part. The move is expected to be instrumental in enabling CSI Insurance to achieve its objective of offering a complete line of services and solutions to its existing and future customers.
The latest integration will not only fortify the buyer’s operations in the aforementioned region but also assist in ramping up inorganic growth profile and margin expansion. Moreover, the company is expected to gain traction from this transaction in terms of boosting its product and service portfolio.
The above-mentioned inorganic strategies have propped up the company to fuel growth as well as expand its scope of operations. Also, these tactical initiatives have bolstered Brown & Brown to increase its commissions and fees, which in turn, drove revenue growth. In fact, for 2018, the company projects to log revenues between $8 million and $11 million.
Zacks Rank and Share Price Movement
Currently, Brown & Brown holds a Zacks Rank #2 (Buy). Shares of the company have rallied 11.7% year to date, outperforming the industry’s 8% rise. 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 noticed insurers adopting the inorganic method to brace portfolio for a while now. The insurance industry has been grabbing eyeballs of late with hordes of acquisitions on the back of its all-time high available capital resource.
Recently, Arthur J. Gallagher & Co. (AJG - Free Report) acquired 100% equity interest in Reassurance Holdings, Inc., including Coverdell & Co., Inc. and Carefree Marketing, Inc. to bolster its insurance brokerage services as well as strengthen its affinity operations in the Northern region of the United States. Kemper Corporation (KMPR - Free Report) has purchased Infinity Property and Casualty Corporation for $1.6 billion, envisioning a market leading position in nonstandard auto insurance domain.
Last month, Assurant, Inc. (AIZ - Free Report) bought The Warranty Group to reinforce its footprint as an ace provider in the vehicle protection business.
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Brown & Brown Arm Buyout to Widen Base in Central Arkansas
Brown & Brown, Inc.’s (BRO - Free Report) unit Brown & Brown of Arkansas, Inc. recently purchased all the assets of Coffman-Standridge Incorporated d/b/a CSI Insurance. Apart from strengthening capabilities to serve clients better, the buyout will help consolidate the acquirer’s foothold in Central Arkansas. The financial details of the acquisition have been kept undisclosed.
Established in 2010, CSI Insurance deals in property and casualty insurance products and services while generating annual revenues of about $1.5 million. The company caters to its clients throughout Arkansas and will now join Brown & Brown’s Greater Central Arkansas operations.
The team at CSI Insurance will bring in strong expertise and skills to the table, which in turn, can aid the Brown & Brown to extend its operational presence in Central Arkansas. With this buyout, the insurance broker will attain a much better position when it comes to offering its esteemed clients with excellent service and products. Moreover, this consolidation will allow the acquirer to enhance its influence on the Russellville community.
The acquisition will prove to be a good strategic fit for CSI Insurance with the company being optimistic about channelizing its business into a new direction. Keeping pace with the long-term investment drive in the suite of services and products offered to clients and the team, the buyout seems a prudent decision on CSI Insurance’s part. The move is expected to be instrumental in enabling CSI Insurance to achieve its objective of offering a complete line of services and solutions to its existing and future customers.
The latest integration will not only fortify the buyer’s operations in the aforementioned region but also assist in ramping up inorganic growth profile and margin expansion. Moreover, the company is expected to gain traction from this transaction in terms of boosting its product and service portfolio.
The above-mentioned inorganic strategies have propped up the company to fuel growth as well as expand its scope of operations. Also, these tactical initiatives have bolstered Brown & Brown to increase its commissions and fees, which in turn, drove revenue growth. In fact, for 2018, the company projects to log revenues between $8 million and $11 million.
Zacks Rank and Share Price Movement
Currently, Brown & Brown holds a Zacks Rank #2 (Buy). Shares of the company have rallied 11.7% year to date, outperforming the industry’s 8% rise. 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 noticed insurers adopting the inorganic method to brace portfolio for a while now. The insurance industry has been grabbing eyeballs of late with hordes of acquisitions on the back of its all-time high available capital resource.
Recently, Arthur J. Gallagher & Co. (AJG - Free Report) acquired 100% equity interest in Reassurance Holdings, Inc., including Coverdell & Co., Inc. and Carefree Marketing, Inc. to bolster its insurance brokerage services as well as strengthen its affinity operations in the Northern region of the United States. Kemper Corporation (KMPR - Free Report) has purchased Infinity Property and Casualty Corporation for $1.6 billion, envisioning a market leading position in nonstandard auto insurance domain.
Last month, Assurant, Inc. (AIZ - Free Report) bought The Warranty Group to reinforce its footprint as an ace provider in the vehicle protection business.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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