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AJG Adds Bergvall Marine

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In its continuing effort to ramp up its inorganic growth story, Arthur J. Gallagher & Co. (AJG - Free Report) acquired Bergvall Marine for an undisclosed amount.

Based in Oslo, Norway and founded in 1896, Bergvall Marine, with annualized revenue of $5 million, offers marine insurance products and risk management insurance services across the globe.

Addition of Bergvall Marine to Arthur J. Gallagher & Co.’s portfolio will consolidate the latter’s foothold in marine insurance, besides adding to international capabilities.

The latest buyout marks sixth acquisition in the quarter to date. Last month, Arthur J. Gallagher & Co. closed the Giles acquisition along with Addison, Texas based Employee Benefits Analysis Corporation and The Parks Johnson Agency based in Lake City, Florida.

Arthur J. Gallagher & Co. has been consistently following the inorganic path to ramp up its growth profile. The company closed eight acquisitions with annualized revenues totaling $135.5 million. The company’s strong financial position continues to support its robust acquisition strategy.

Among other insurance brokers, Brown & Brown of Kentucky Inc. a subsidiary of Brown & Brown Inc. (BRO - Free Report) has agreed to acquire selected assets of O'Neil Financial Services, Agency Services Consolidated Inc. as well as certain assets of Preserve Extended Protection Plan Inc. in December. Yet Marsh & McLennan Agency LLC (MMA), a subsidiary of insurance broker Marsh & McLennan Companies, Inc. (MMC - Free Report) , announced the acquisition of Cambridge Property & Casualty, one of the largest property/casualty insurance agencies in Michigan in the same month.

There was no earnings momentum over the last 7 days. With optimism over Arthur J. Gallagher & Co.’s solid inorganic story, we expect analysts to pull their estimates, exerting upward pressure on the Zacks Rank.  Arthur J. Gallagher & Co. presently carries a Zacks Rank #3 (Hold).

In the insurance space, multi–line insurer Enstar Group Limited with Stone Point Capital jointly announced the acquisition of Atrium Underwriting Group Ltd. from Arden Holdings Ltd for $158 million.

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