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Brown & Brown (BRO) Boosts Ohio Presence With Berry Insurance

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Brown & Brown, Inc. (BRO - Free Report) subsidiary, Brown & Brown of Ohio, LLC has acquired substantially all Berry Insurance Group assets.

Terrace Park, OH-based Berry Insurance Group was founded in 2002. It offers clients with commercial and personal lines, surety, life, health, and benefits products. It is one of the most prominent insurance brokerage agencies in Ohio that furnishes commercial and personal insurance products for business and individual customers throughout the Cincinnati tri-state area.

With this acquisition, Brown & Brown will leverage the expertise of Berry Insurance Group in offering insurance solutions. The acquisition is expected to enhance and boost the acquirer’s retail presence in Ohio and its neighbouring regions.

With this buyout, members of Berry Insurance Group will get the opportunity to better serve risk management needs of customers and expand its footprint in the Ohio market.

Notably, this latest transaction marks the second buyout of the insurance broker in first-quarter 2021. In 2020, it closed 23 transactions.

Inorganic Growth Story

Brown & Brown along with its subsidiaries pursues frequent buyouts in order to achieve top-line growth. Its revenues have got a boost as a result of persistent focus on net new business growth and acquisitions.

Consistent investments and solid earnings will likely aid this Zacks Rank #2 (Buy) insurance broker in carrying out inorganic efforts. Acquisitions drive Brown & Brown’s commission and fees, which, in turn, boost revenue growth.

From 1993 through third-quarter 2020, the company acquired 552 insurance intermediary operations. It remains well positioned with its capital structure and has been able to access sufficient capital via $1.1-billion available cash to fund growth. Moreover, consistent operational results have helped Brown & Brown to generate solid cash flows to be deployed in strategic initiatives.

The stock has risen 17.3% in the past year, outperforming the industry’s growth of 1.2%. The company’s efforts to ramp up growth and capital position should continue to drive shares.

Other Acquisitions in the Same Space

There has been a host of acquisitions in the insurance space of late, given significant capital availability. Recently, Arthur J. Gallagher & Co. (AJG - Free Report) closed the buyout of Jacksonville, FL-based Harden & Associates, Inc. to boost its healthcare and real estate practices in the Southeast. Assurant (AIZ - Free Report) acquired EPG Insurance to consolidate its presence in the automotive service contract space. Marsh & McLennan Companies, Inc.’s (MMC - Free Report) unit, Marsh & McLennan Agency LLC (MMA) recently acquired an independent agency, INSPRO, in Nebraska.

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