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Stewart Information (STC) Expands in Michigan With Devon Buyout
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Stewart Information Services Corporation (STC - Free Report) has acquired Devon Title Agency to expand in Michigan. This Zacks Rank #2 (Buy) global real estate services aims to be the premier title services company. The recent acquisition is in line with this strategy.
Devon is one of the largest title agencies in Michigan, providing service to residential, commercial and lender customers across the state for more than decades. Thus, with its addition to Stewart Information’s portfolio, the Zacks Rank #2 (Buy) acquirer will emerge as one of the market leaders in Michigan.
Devon, on the other hand, stands to benefit from leveraging Stewart Information’s solid financial position and leading-edge technology to grow its business.
Stewart Information has a sizable merger and acquisition pipeline. In November, STC agreed to acquire PropStream, a leader in residential real estate data and analytics for investors, realtors, real estate agents, brokers and lenders. Stewart Information remains focused on improving operational efficiencies by adding scale, investing in priority markets and strengthening core business with real estate technology and services.
Stewart Information Services boasts a strong balance sheet with $585 million over regulatory requirements and $74 million on the existing line of credit facility supporting growth initiatives.
Shares of Stewart Information Services have rallied 55.6% year to date, outperforming the industry's increase of 13.2%. The company’s solid Title insurance business and sturdy financial position will help shares retain the momentum.
Image Source: Zacks Investment Research
Given the insurance industry’s adequate capital level, players like Arthur J. Gallagher & Co. (AJG - Free Report) , Brown & Brown, Inc. (BRO - Free Report) and Athene Holdings are pursuing strategic mergers and acquisitions.
Arthur J. Gallagher & Co. acquired Tave Risk Management, LLC. Arthur J. Gallagher boasts an impressive inorganic story. AJG’s merger and acquisition pipeline is quite strong with about $400 million revenues associated with nearly 50 term sheets either agreed upon or being prepared. The insurance broker estimates more than $2.5 billion for mergers and acquisitions consisting of $1 billion in cash, about $650 million of net cash generation in the second half of 2021, and $600 million to $700 million of borrowing capacity.
Brown & Brown’s subsidiary Brown & Brown of Florida, Inc. has acquired substantially all assets of Corporate Insurance Advisors. Brown & Brown intends to make consistent investments in boosting organic growth and margin expansion. BRO’s solid earnings have allowed it to expand its capabilities, with the buyouts extending its geographic footprint.
Athene and Apollo Global have agreed to buy a majority interest in Aqua Finance to boost Apollo’s $80 billion annual run-rate of asset origination across commercial and consumer lending platforms. Athene boasts impressive inorganic growth, driven by several buyouts and block reinsurance transactions with several companies. ATH expects its inorganic growth channel to continue to be an important driver in the future.
Shares of Arthur J. Gallagher, Brown & Brown and Athene have gained 32.9%, 38.9% and 86.8%, respectively, year to date.
Image: Bigstock
Stewart Information (STC) Expands in Michigan With Devon Buyout
Stewart Information Services Corporation (STC - Free Report) has acquired Devon Title Agency to expand in Michigan. This Zacks Rank #2 (Buy) global real estate services aims to be the premier title services company. The recent acquisition is in line with this strategy.
Devon is one of the largest title agencies in Michigan, providing service to residential, commercial and lender customers across the state for more than decades. Thus, with its addition to Stewart Information’s portfolio, the Zacks Rank #2 (Buy) acquirer will emerge as one of the market leaders in Michigan.
Devon, on the other hand, stands to benefit from leveraging Stewart Information’s solid financial position and leading-edge technology to grow its business.
Stewart Information has a sizable merger and acquisition pipeline. In November, STC agreed to acquire PropStream, a leader in residential real estate data and analytics for investors, realtors, real estate agents, brokers and lenders. Stewart Information remains focused on improving operational efficiencies by adding scale, investing in priority markets and strengthening core business with real estate technology and services.
Stewart Information Services boasts a strong balance sheet with $585 million over regulatory requirements and $74 million on the existing line of credit facility supporting growth initiatives.
Shares of Stewart Information Services have rallied 55.6% year to date, outperforming the industry's increase of 13.2%. The company’s solid Title insurance business and sturdy financial position will help shares retain the momentum.
Given the insurance industry’s adequate capital level, players like Arthur J. Gallagher & Co. (AJG - Free Report) , Brown & Brown, Inc. (BRO - Free Report) and Athene Holdings are pursuing strategic mergers and acquisitions.
Arthur J. Gallagher & Co. acquired Tave Risk Management, LLC. Arthur J. Gallagher boasts an impressive inorganic story. AJG’s merger and acquisition pipeline is quite strong with about $400 million revenues associated with nearly 50 term sheets either agreed upon or being prepared. The insurance broker estimates more than $2.5 billion for mergers and acquisitions consisting of $1 billion in cash, about $650 million of net cash generation in the second half of 2021, and $600 million to $700 million of borrowing capacity.
Brown & Brown’s subsidiary Brown & Brown of Florida, Inc. has acquired substantially all assets of Corporate Insurance Advisors. Brown & Brown intends to make consistent investments in boosting organic growth and margin expansion. BRO’s solid earnings have allowed it to expand its capabilities, with the buyouts extending its geographic footprint.
Athene and Apollo Global have agreed to buy a majority interest in Aqua Finance to boost Apollo’s $80 billion annual run-rate of asset origination across commercial and consumer lending platforms. Athene boasts impressive inorganic growth, driven by several buyouts and block reinsurance transactions with several companies. ATH expects its inorganic growth channel to continue to be an important driver in the future.
Shares of Arthur J. Gallagher, Brown & Brown and Athene have gained 32.9%, 38.9% and 86.8%, respectively, year to date.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.