We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arthur J. Gallagher (AJG) Boosts Portfolio With SASC Buyout
Read MoreHide Full Article
Arthur J. Gallagher & Co. (AJG - Free Report) has acquired Wrightman, Inc., doing business as Surety Associates of Southern California Insurance Services (SASC). The terms of the transaction have been kept under wraps.
Established in 2010, La Mesa, CA.-based SASC specializes in servicing the surety bond needs of southern California contractors and developers. It is a licensed Surety Insurance Agency. It caters to clients across California, Arizona and Nevada.
The addition of SACS to Arthur J. Gallagher’s portfolio will strengthen its surety presence in the Southwest Region. This in turn will boost the acquirer’s retail property and casualty brokerage operations in that region.
Inorganic Growth Story
Arthur J. Gallagher boasts an impressive inorganic story. This Zacks Rank #3 (Hold) insurance broker closed five new tuck-in brokerage mergers, representing about $32 million of estimated annualized revenues in the first quarter of 2022. The recent acquisition marks the first acquisition in the third quarter of 2022. AJG’s merger and acquisition pipeline is quite strong, with about $250 million of revenues, associated with about 40 term sheets either agreed upon or being prepared.
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 it thus remains focused on continuing its tuck-in mergers and acquisitions.
AJG remains focused on long-term growth strategies for delivering organic revenue improvement and pursuing strategic mergers and acquisitions. AJG is focused on productivity improvements and quality enhancements that should help it post sturdy numbers in the future.
Price Performance
Shares of Arthur J. Gallagher have gained 17.1% in the past year against the industry’s decrease of 4.8%. The efforts to ramp up its growth profile and capital position should continue to drive the share price higher.
Image Source: Zacks Investment Research
Other Acquisitions in the Same Space
Given the insurance industry’s adequate capital level, players like Brown & Brown Inc. (BRO - Free Report) and Marsh & McLennan Companies, Inc. (MMC - Free Report) have been pursuing strategic mergers and acquisitions.
Brown & Brown completed the acquisition of Global Risk Partners Limited in July. BRO’s impressive growth is driven by organic and inorganic means across all segments. It intends to make consistent investments to boost 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.
Marsh & McLennan’s Marsh McLennan Agency acquired Maine-based Clark Insurance to boost its capabilities and more effectively cater to clients, colleagues and the community. Acquisitions are one of the core growth strategies of Marsh & McLennan, helping it to expand product offerings, benefit customers and strengthen its global presence. MMC spent $1.1 billion on buyouts in 2021. On the acquisition front, the insurance broker has been quite active this year as well by expending $24 million on buyouts in the first quarter of 2022.
The Zacks Consensus Estimate for RYAN’s 2022 and 2023 earnings has moved 3.4% and 4.3% north in the past 60 days and indicates a 13% and 19.3% year-over-year increase, respectively. Ryan Specialty surpassed estimates in three of the last four quarters, with the average surprise being 19.7%.
Shares of BRO, MMC and RYAN have gained 11.8%, 9.6% and 45.7%, respectively, in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Arthur J. Gallagher (AJG) Boosts Portfolio With SASC Buyout
Arthur J. Gallagher & Co. (AJG - Free Report) has acquired Wrightman, Inc., doing business as Surety Associates of Southern California Insurance Services (SASC). The terms of the transaction have been kept under wraps.
Established in 2010, La Mesa, CA.-based SASC specializes in servicing the surety bond needs of southern California contractors and developers. It is a licensed Surety Insurance Agency. It caters to clients across California, Arizona and Nevada.
The addition of SACS to Arthur J. Gallagher’s portfolio will strengthen its surety presence in the Southwest Region. This in turn will boost the acquirer’s retail property and casualty brokerage operations in that region.
Inorganic Growth Story
Arthur J. Gallagher boasts an impressive inorganic story. This Zacks Rank #3 (Hold) insurance broker closed five new tuck-in brokerage mergers, representing about $32 million of estimated annualized revenues in the first quarter of 2022. The recent acquisition marks the first acquisition in the third quarter of 2022. AJG’s merger and acquisition pipeline is quite strong, with about $250 million of revenues, associated with about 40 term sheets either agreed upon or being prepared.
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 it thus remains focused on continuing its tuck-in mergers and acquisitions.
AJG remains focused on long-term growth strategies for delivering organic revenue improvement and pursuing strategic mergers and acquisitions. AJG is focused on productivity improvements and quality enhancements that should help it post sturdy numbers in the future.
Price Performance
Shares of Arthur J. Gallagher have gained 17.1% in the past year against the industry’s decrease of 4.8%. The efforts to ramp up its growth profile and capital position should continue to drive the share price higher.
Image Source: Zacks Investment Research
Other Acquisitions in the Same Space
Given the insurance industry’s adequate capital level, players like Brown & Brown Inc. (BRO - Free Report) and Marsh & McLennan Companies, Inc. (MMC - Free Report) have been pursuing strategic mergers and acquisitions.
Brown & Brown completed the acquisition of Global Risk Partners Limited in July. BRO’s impressive growth is driven by organic and inorganic means across all segments. It intends to make consistent investments to boost 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.
Marsh & McLennan’s Marsh McLennan Agency acquired Maine-based Clark Insurance to boost its capabilities and more effectively cater to clients, colleagues and the community. Acquisitions are one of the core growth strategies of Marsh & McLennan, helping it to expand product offerings, benefit customers and strengthen its global presence. MMC spent $1.1 billion on buyouts in 2021. On the acquisition front, the insurance broker has been quite active this year as well by expending $24 million on buyouts in the first quarter of 2022.
A Stock to Consider
A better-ranked insurer from the same space is Ryan Specialty Group Holdings, Inc. (RYAN - Free Report) , 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 60 days and indicates a 13% and 19.3% year-over-year increase, respectively. Ryan Specialty surpassed estimates in three of the last four quarters, with the average surprise being 19.7%.
Shares of BRO, MMC and RYAN have gained 11.8%, 9.6% and 45.7%, respectively, in the past year.