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 Four Corners
Read MoreHide Full Article
Arthur J. Gallagher & Co. (AJG - Free Report) has acquired Four Corners Group Inc. The terms of the transaction have been kept under wraps.
Established in 2007, Toronto-based Four Corners Group is a leading Canadian executive search firm. It operates across Canada and the United States. The firm caters to clients in business services, technology, fast-moving consumer goods, manufacturing, retail, financial services, healthcare, academic, not-for-profits, associations, marketing services and professional services.
The addition of Four Corners Group to Arthur J. Gallagher’s portfolio will further widen and reinforce the acquirer’s global talent and leadership advisory offerings.
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 second 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 16.2% in the past year against the industry’s decrease of 6.1%. 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.
In July, Marsh & McLennan Companies, Inc.’s agency unit Marsh McLennan Agency acquired CS Insurance Strategies, Inc. to strengthen MMC’s Risk and Insurance Services segment, which is operated through Marsh and Guy Carpenter and boost the coverage span of Marsh McLennan Agency, which is a subsidiary of the leading insurance brokering firm Marsh. Acquisitions are one of the core growth strategies of Marsh & McLennan, helping it to expand product offerings, benefit customers and strengthen its global presence.
Image: Bigstock
Arthur J. Gallagher (AJG) Boosts Portfolio With Four Corners
Arthur J. Gallagher & Co. (AJG - Free Report) has acquired Four Corners Group Inc. The terms of the transaction have been kept under wraps.
Established in 2007, Toronto-based Four Corners Group is a leading Canadian executive search firm. It operates across Canada and the United States. The firm caters to clients in business services, technology, fast-moving consumer goods, manufacturing, retail, financial services, healthcare, academic, not-for-profits, associations, marketing services and professional services.
The addition of Four Corners Group to Arthur J. Gallagher’s portfolio will further widen and reinforce the acquirer’s global talent and leadership advisory offerings.
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 second 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 16.2% in the past year against the industry’s decrease of 6.1%. 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.
In July, Marsh & McLennan Companies, Inc.’s agency unit Marsh McLennan Agency acquired CS Insurance Strategies, Inc. to strengthen MMC’s Risk and Insurance Services segment, which is operated through Marsh and Guy Carpenter and boost the coverage span of Marsh McLennan Agency, which is a subsidiary of the leading insurance brokering firm Marsh. Acquisitions are one of the core growth strategies of Marsh & McLennan, helping it to expand product offerings, benefit customers and strengthen its global presence.
A Stock to Consider
A better-ranked insurer from the insurance industry is United Fire Group, Inc. (UFCS - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 270.8%.
The Zacks Consensus Estimate for UFCS’ 2022 earnings has moved 23.5% north in the past 60 days.
Shares of BRO, MMC and UFCS have gained 10%, 4.7% and 32.5%, respectively, in the past year.