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Arthur J. Gallagher (AJG) Expands in California With Buyout
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Arthur J. Gallagher & Co. (AJG - Free Report) has acquired Bulen & Associates Insurance Services, Inc. The terms of the transaction have been kept under wraps.
Established in 1929, Bulen & Associates is a Murrieta, CA-based retail property and casualty insurance agency. It caters to the insurance needs of individuals, families and businesses across Riverside, San Diego, Orange and Los Angeles counties.
The addition of Bulen & Associates to Arthur J. Gallagher’s portfolio provides the latter with better growth opportunities to increase its existing capabilities in the property and casualty insurance space as well as reinforce its presence in southern California.
Inorganic Growth Story
Arthur J. Gallagher boasts an impressive inorganic story. In the first nine months of 2022, this Zacks Rank #3 (Hold) insurance broker completed 19 tuck-in brokerage mergers, representing about $102.7 million of estimated annualized revenues. AJG also signed another merger late in the third quarter, which represents an additional $40 million of estimated annualized revenues. The recent acquisition marks the seventh acquisition in the fourth quarter of 2022. AJG’s merger and acquisition pipeline is quite strong, with about $400 million of annualized revenues, associated with about 50 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. 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, which should help it post sturdy numbers in the future.
Given the insurance industry’s adequate capital level, players like Brown & Brown, Inc. (BRO - Free Report) have been pursuing strategic mergers and acquisitions.
Brown & Brown’s subsidiary Brown & Brown Dealer Services (BBDS) acquired all the assets of Finance Builders Inc. in November 2022. The buyout will enable BBDS to expand in Connecticut and Massachusetts.
Brown & Brown and its subsidiaries continuously make strategic acquisitions to expand globally, add capabilities and boost operations. These strategic buyouts help Brown & Brown increase commissions and fees, which, in turn, drive revenues. The company intends to make consistent investments to drive organic growth and margins. Its solid earnings have allowed the company to expand its capabilities, with the buyouts extending the company’s geographic footprint.
Price Performance
Shares of Arthur J. Gallagher have gained 20.6% in the past year against the industry’s decline of 1%. The insurer’s efforts to ramp up its growth profile and capital position should continue to drive the share price.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked insurers from the insurance industry are W.R. Berkley Corporation (WRB - Free Report) and Kinsale Capital Group, Inc. (KNSL - Free Report) . While W.R. Berkley sports a Zacks Rank #1 (Strong Buy), Kinsale Capital carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of W.R. Berkley surpassed estimates in each of the last four quarters, the average being 25.63%. In the past year, the insurer has gained 46.4%.
The Zacks Consensus Estimate for W.R. Berkley’s 2022 and 2023 earnings has moved 5.1% and 2.4% north, respectively, in the past 30 days.
Kinsale Capital’s earnings surpassed estimates in each of the last four quarters, the average being 15.16%. In the past year, Kinsale Capital has gained 47.6%.
The Zacks Consensus Estimate for KNSL’s 2022 and 2023 earnings implies a respective year-over-year rise of 27.5% and 21.9%.
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Arthur J. Gallagher (AJG) Expands in California With Buyout
Arthur J. Gallagher & Co. (AJG - Free Report) has acquired Bulen & Associates Insurance Services, Inc. The terms of the transaction have been kept under wraps.
Established in 1929, Bulen & Associates is a Murrieta, CA-based retail property and casualty insurance agency. It caters to the insurance needs of individuals, families and businesses across Riverside, San Diego, Orange and Los Angeles counties.
The addition of Bulen & Associates to Arthur J. Gallagher’s portfolio provides the latter with better growth opportunities to increase its existing capabilities in the property and casualty insurance space as well as reinforce its presence in southern California.
Inorganic Growth Story
Arthur J. Gallagher boasts an impressive inorganic story. In the first nine months of 2022, this Zacks Rank #3 (Hold) insurance broker completed 19 tuck-in brokerage mergers, representing about $102.7 million of estimated annualized revenues.
AJG also signed another merger late in the third quarter, which represents an additional $40 million of estimated annualized revenues. The recent acquisition marks the seventh acquisition in the fourth quarter of 2022. AJG’s merger and acquisition pipeline is quite strong, with about $400 million of annualized revenues, associated with about 50 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. 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, which should help it post sturdy numbers in the future.
Given the insurance industry’s adequate capital level, players like Brown & Brown, Inc. (BRO - Free Report) have been pursuing strategic mergers and acquisitions.
Brown & Brown’s subsidiary Brown & Brown Dealer Services (BBDS) acquired all the assets of Finance Builders Inc. in November 2022. The buyout will enable BBDS to expand in Connecticut and Massachusetts.
Brown & Brown and its subsidiaries continuously make strategic acquisitions to expand globally, add capabilities and boost operations. These strategic buyouts help Brown & Brown increase commissions and fees, which, in turn, drive revenues. The company intends to make consistent investments to drive organic growth and margins. Its solid earnings have allowed the company to expand its capabilities, with the buyouts extending the company’s geographic footprint.
Price Performance
Shares of Arthur J. Gallagher have gained 20.6% in the past year against the industry’s decline of 1%. The insurer’s efforts to ramp up its growth profile and capital position should continue to drive the share price.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked insurers from the insurance industry are W.R. Berkley Corporation (WRB - Free Report) and Kinsale Capital Group, Inc. (KNSL - Free Report) . While W.R. Berkley sports a Zacks Rank #1 (Strong Buy), Kinsale Capital carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of W.R. Berkley surpassed estimates in each of the last four quarters, the average being 25.63%. In the past year, the insurer has gained 46.4%.
The Zacks Consensus Estimate for W.R. Berkley’s 2022 and 2023 earnings has moved 5.1% and 2.4% north, respectively, in the past 30 days.
Kinsale Capital’s earnings surpassed estimates in each of the last four quarters, the average being 15.16%. In the past year, Kinsale Capital has gained 47.6%.
The Zacks Consensus Estimate for KNSL’s 2022 and 2023 earnings implies a respective year-over-year rise of 27.5% and 21.9%.