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Arthur J. Gallagher (AJG) Expands in Midwest With Mahowald
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Arthur J. Gallagher & Co. (AJG - Free Report) has acquired Mahowald Insurance, LLC. The terms of the transaction have not been revealed yet.
St. Cloud, MN-based Mahowald, founded in 1930, is a retail insurance agency. It provides a broad range of insurance products to businesses and non-profits throughout Minnesota. It also provides employment benefits and personal insurance throughout the Midwest.
With the addition of Mahowald, Arthur J. Gallagher will leverage the health care market expertise of the acquiree and expand its presence and capabilities in the Midwest region.
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 ninth 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.
Price Performance
Shares of Arthur J. Gallagher have gained 16.3% in the past year against the industry’s decline of 3.6%. 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
Other Acquisition in the Same Space
Given the insurance industry’s adequate capital level, players like Fidelity National Financial Inc. (FNF - Free Report) , Brown & Brown, Inc. (BRO - Free Report) and Marsh & McLennan Companies, Inc. (MMC - Free Report) have been pursuing strategic mergers and acquisitions.
Fidelity National acquired TitlePoint from Black Knight, Inc. through its wholly-owned subsidiary, F&G Annuities & Life, Inc. This addition to FNF’s portfolio marks the acquirer’s focus on investment, expansion and integration of property data, images and search technology and strengthening the compelling portfolio.
FNF has a leading market share in the title insurance industry and is looking for strategic buyouts, which, in turn, should drive its operational results. The company is focused on ensuring a balanced capital allocation strategy by making investments in title technology and other strategic initiatives to support innovation and organic growth for the business. FNF is likely to benefit from strong origination demand and continued rebound in commercial real estate activity. FNF’s shares have lost 24.6% in the past year.
Brown & Brown’s subsidiary, Brown & Brown Dealer Services, acquired all assets of Finance Builders Inc. The addition of Finance Builders will boost Brown & Brown’s presence in Connecticut and Massachusetts.
Brown & Brown’s impressive growth is driven by organic and inorganic means across all segments. The company intends to make consistent investments to drive organic growth and margins. BRO’s solid earnings have allowed it to expand its capabilities, with the buyouts extending its geographic footprint. Brown & Brown’s shares have lost 13.4% in the past year.
Marsh & McLennan’s subsidiary, Marsh McLennan Agency, acquired McDonald Zaring Insurance. The acquisition will help the acquirer to expand its footprint in Walla Walla and result in resource expansion.
Acquisitions are part of the core growth strategies of the company. MMC has made numerous purchases within its different operating units, which have enabled it to enter geographical regions, expand within the existing ones, foray into new businesses, develop segments and specialize within its existing businesses. Marsh & McLennan’s shares have gained 2.4% in the past year.
Image: Bigstock
Arthur J. Gallagher (AJG) Expands in Midwest With Mahowald
Arthur J. Gallagher & Co. (AJG - Free Report) has acquired Mahowald Insurance, LLC. The terms of the transaction have not been revealed yet.
St. Cloud, MN-based Mahowald, founded in 1930, is a retail insurance agency. It provides a broad range of insurance products to businesses and non-profits throughout Minnesota. It also provides employment benefits and personal insurance throughout the Midwest.
With the addition of Mahowald, Arthur J. Gallagher will leverage the health care market expertise of the acquiree and expand its presence and capabilities in the Midwest region.
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 ninth 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.
Price Performance
Shares of Arthur J. Gallagher have gained 16.3% in the past year against the industry’s decline of 3.6%. 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
Other Acquisition in the Same Space
Given the insurance industry’s adequate capital level, players like Fidelity National Financial Inc. (FNF - Free Report) , Brown & Brown, Inc. (BRO - Free Report) and Marsh & McLennan Companies, Inc. (MMC - Free Report) have been pursuing strategic mergers and acquisitions.
Fidelity National acquired TitlePoint from Black Knight, Inc. through its wholly-owned subsidiary, F&G Annuities & Life, Inc. This addition to FNF’s portfolio marks the acquirer’s focus on investment, expansion and integration of property data, images and search technology and strengthening the compelling portfolio.
FNF has a leading market share in the title insurance industry and is looking for strategic buyouts, which, in turn, should drive its operational results. The company is focused on ensuring a balanced capital allocation strategy by making investments in title technology and other strategic initiatives to support innovation and organic growth for the business. FNF is likely to benefit from strong origination demand and continued rebound in commercial real estate activity. FNF’s shares have lost 24.6% in the past year.
Brown & Brown’s subsidiary, Brown & Brown Dealer Services, acquired all assets of Finance Builders Inc. The addition of Finance Builders will boost Brown & Brown’s presence in Connecticut and Massachusetts.
Brown & Brown’s impressive growth is driven by organic and inorganic means across all segments. The company intends to make consistent investments to drive organic growth and margins. BRO’s solid earnings have allowed it to expand its capabilities, with the buyouts extending its geographic footprint. Brown & Brown’s shares have lost 13.4% in the past year.
Marsh & McLennan’s subsidiary, Marsh McLennan Agency, acquired McDonald Zaring Insurance. The acquisition will help the acquirer to expand its footprint in Walla Walla and result in resource expansion.
Acquisitions are part of the core growth strategies of the company. MMC has made numerous purchases within its different operating units, which have enabled it to enter geographical regions, expand within the existing ones, foray into new businesses, develop segments and specialize within its existing businesses. Marsh & McLennan’s shares have gained 2.4% in the past year.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.