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Brown & Brown (BRO) Strengthens Portfolio With Profits Creation
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Brown & Brown, Inc.’s (BRO - Free Report) subsidiary Brown & Brown Dealer Services (“BBDS”) has acquired all the assets of Profits Creation Corp. Profits Creation provides finance and insurance products and sales support to automotive dealers across the southeast.
The acquisition of Profits Creation will provide BBDS with better industry knowledge and expertise, which will enhance its capabilities and deliver improved solutions. The buyout will also enable the acquirer to strengthen the presence of BBDS in the Southeast.
Brown & Brown and its subsidiaries continuously make strategic acquisitions to expand globally, add capabilities and boost operations. Also, these strategic buyouts help Brown & Brown increase commissions and fees, which, in turn, drive revenues. The latest transaction was the fourth buyout for BRO in the second quarter of 2022.
Brown & Brown’s impressive growth is driven by organic and inorganic means across all segments. Also, strategic acquisitions and mergers help it spread its operations. The insurance broker closed two acquisitions in the first quarter with annual revenues of approximately $65 million. Brown & Brown intends to make consistent investments in boosting organic growth and margin expansion. Its solid earnings have allowed the company to expand its capabilities, with the buyouts extending the company’s geographic footprint.
Consistent operational results have been aiding this Zacks Rank #3 (Hold) insurance broker in generating solid cash flows for deployment in strategic initiatives. Brown & Brown exited first-quarter 2022 with cash and cash equivalents of $1.7 billion, which grew more than two-fold from the 2021-end level.
Given the insurance industry’s adequate capital level, players like Arthur J. Gallagher & Co. (AJG - Free Report) have been pursuing strategic mergers and acquisitions.
Arthur J. Gallagher & Co. acquired Menlo Park, CA-based Valerie Frederickson & Company, Inc. in May 2022. AJG boasts an impressive inorganic story. AJG has a strong merger and acquisition pipeline.
Arthur J. Gallagher’s revenues are geographically diversified with strong domestic and international operations and a compelling product and service portfolio. A solid capital position supports AJG in its growth initiatives and the company remains focused on continuing its tuck-in mergers and acquisitions.
Price Performance
Shares of Brown & Brown have gained 12.8% in a year against the industry’s decrease of 8.5%. Brown & Brown’s efforts to ramp up growth and capital position should continue to drive its shares.
The Zacks Consensus Estimate for RYAN’s 2022 and 2023 earnings has moved 3.4% and 4.3% north in the past 30 days. Ryan Specialty delivered a four-quarter average earnings surprise of 19.7%.
The Zacks Consensus Estimate for CINF’s 2022 and 2023 earnings has moved 3.6% and 1.7% north, respectively, in the past 60 days. Cincinnati Financial delivered a four-quarter average earnings surprise of 32.5%.
In the past year, shares of AJG, RYAN and CINF have gained 11.7%, 37.4% and 4.1%, respectively.
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Brown & Brown (BRO) Strengthens Portfolio With Profits Creation
Brown & Brown, Inc.’s (BRO - Free Report) subsidiary Brown & Brown Dealer Services (“BBDS”) has acquired all the assets of Profits Creation Corp. Profits Creation provides finance and insurance products and sales support to automotive dealers across the southeast.
The acquisition of Profits Creation will provide BBDS with better industry knowledge and expertise, which will enhance its capabilities and deliver improved solutions. The buyout will also enable the acquirer to strengthen the presence of BBDS in the Southeast.
Brown & Brown and its subsidiaries continuously make strategic acquisitions to expand globally, add capabilities and boost operations. Also, these strategic buyouts help Brown & Brown increase commissions and fees, which, in turn, drive revenues. The latest transaction was the fourth buyout for BRO in the second quarter of 2022.
Brown & Brown’s impressive growth is driven by organic and inorganic means across all segments. Also, strategic acquisitions and mergers help it spread its operations. The insurance broker closed two acquisitions in the first quarter with annual revenues of approximately $65 million. Brown & Brown intends to make consistent investments in boosting organic growth and margin expansion. Its solid earnings have allowed the company to expand its capabilities, with the buyouts extending the company’s geographic footprint.
Consistent operational results have been aiding this Zacks Rank #3 (Hold) insurance broker in generating solid cash flows for deployment in strategic initiatives. Brown & Brown exited first-quarter 2022 with cash and cash equivalents of $1.7 billion, which grew more than two-fold from the 2021-end level.
Given the insurance industry’s adequate capital level, players like Arthur J. Gallagher & Co. (AJG - Free Report) have been pursuing strategic mergers and acquisitions.
Arthur J. Gallagher & Co. acquired Menlo Park, CA-based Valerie Frederickson & Company, Inc. in May 2022. AJG boasts an impressive inorganic story. AJG has a strong merger and acquisition pipeline.
Arthur J. Gallagher’s revenues are geographically diversified with strong domestic and international operations and a compelling product and service portfolio. A solid capital position supports AJG in its growth initiatives and the company remains focused on continuing its tuck-in mergers and acquisitions.
Price Performance
Shares of Brown & Brown have gained 12.8% in a year against the industry’s decrease of 8.5%. Brown & Brown’s efforts to ramp up growth and capital position should continue to drive its shares.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked insurers include Ryan Specialty Group Holdings, Inc. (RYAN - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for RYAN’s 2022 and 2023 earnings has moved 3.4% and 4.3% north in the past 30 days. Ryan Specialty delivered a four-quarter average earnings surprise of 19.7%.
The Zacks Consensus Estimate for CINF’s 2022 and 2023 earnings has moved 3.6% and 1.7% north, respectively, in the past 60 days. Cincinnati Financial delivered a four-quarter average earnings surprise of 32.5%.
In the past year, shares of AJG, RYAN and CINF have gained 11.7%, 37.4% and 4.1%, respectively.