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Arthur J. Gallagher (AJG) Aids Health Insurance Market With JCB
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Arthur J. Gallagher & Co. (AJG - Free Report) has acquired John C. Breckenridge Insurance Solutions, Inc. (JCB). The terms of the transaction have not been revealed yet.
Sacramento, CA-based JCB, was formed in 2016. This brokerage and plan management firm specializes in student health and intercollegiate sports insurance for higher education institutions.
The addition of this entity will enhance the acquirer’s student health insurance market expertise and product offerings as well as consolidate its presence on the West Coast.
Inorganic Growth Story
Arthur J. Gallagher boasts an impressive inorganic story. This Zacks Rank #3 (Hold) insurance broker acquired 13 entities in the fourth quarter of 2022 and closed 19 new tuck-in brokerage mergers, contributing about $107 million to estimated annualized revenues in the first nine months of 2022.
The recent acquisition marks the third acquisition in the first quarter of 2023. AJG’s merger and acquisition pipeline is quite strong with about $400 million of annualized revenues and 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 and it, thus, remains focused on continuing its tuck-in mergers and acquisitions. The insurer expects M&A capacity at more than $4 billion through the end of 2023.
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 20.5% in the past year, outperforming the industry’s increase of 6.1%. 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
Another Acquisition in the Same Space
Given the insurance industry’s adequate capital level, another player like Marsh & McLennan Companies, Inc. (MMC - Free Report) has been pursuing strategic mergers and acquisitions.
Marsh & McLennan’s business Marsh recently acquired HMS Insurance Associates, Inc. through its subsidiary Marsh McLennan Agency or MMA in January 2023. MMA is expected to gain vastly from HMS Insurance’s robust experience in property and casualty insurance, group captive, employee benefits and surety operations. The move is likely to boost Marsh McLennan Agency’s footprint in Hunt Valley region.
Acquisitions are part of the core growth strategies of the company. MMC 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 6.1% in the past year.
Aon’s earnings surpassed estimates in three of the last four quarters and missed in one, the average being 2.83%. In the past year, AON has gained 11.4%.
The Zacks Consensus Estimate for AON’s 2023 earnings implies a year-over-year rise of 10.2%.
The Zacks Consensus Estimate for Hannover Ruck’s 2023 earnings has moved 3% north in the past 60 days. In the past year, HVRRY has gained 0.9%.
The Zacks Consensus Estimate for Hannover Ruck’s 2023 earnings implies a year-over-year rise of 35.7%.
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Arthur J. Gallagher (AJG) Aids Health Insurance Market With JCB
Arthur J. Gallagher & Co. (AJG - Free Report) has acquired John C. Breckenridge Insurance Solutions, Inc. (JCB). The terms of the transaction have not been revealed yet.
Sacramento, CA-based JCB, was formed in 2016. This brokerage and plan management firm specializes in student health and intercollegiate sports insurance for higher education institutions.
The addition of this entity will enhance the acquirer’s student health insurance market expertise and product offerings as well as consolidate its presence on the West Coast.
Inorganic Growth Story
Arthur J. Gallagher boasts an impressive inorganic story. This Zacks Rank #3 (Hold) insurance broker acquired 13 entities in the fourth quarter of 2022 and closed 19 new tuck-in brokerage mergers, contributing about $107 million to estimated annualized revenues in the first nine months of 2022.
The recent acquisition marks the third acquisition in the first quarter of 2023. AJG’s merger and acquisition pipeline is quite strong with about $400 million of annualized revenues and 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 and it, thus, remains focused on continuing its tuck-in mergers and acquisitions. The insurer expects M&A capacity at more than $4 billion through the end of 2023.
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 20.5% in the past year, outperforming the industry’s increase of 6.1%. 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
Another Acquisition in the Same Space
Given the insurance industry’s adequate capital level, another player like Marsh & McLennan Companies, Inc. (MMC - Free Report) has been pursuing strategic mergers and acquisitions.
Marsh & McLennan’s business Marsh recently acquired HMS Insurance Associates, Inc. through its subsidiary Marsh McLennan Agency or MMA in January 2023. MMA is expected to gain vastly from HMS Insurance’s robust experience in property and casualty insurance, group captive, employee benefits and surety operations. The move is likely to boost Marsh McLennan Agency’s footprint in Hunt Valley region.
Acquisitions are part of the core growth strategies of the company. MMC 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 6.1% in the past year.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are Aon plc (AON - Free Report) and Hannover Ruck SE (HVRRY - Free Report) , each carrying Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aon’s earnings surpassed estimates in three of the last four quarters and missed in one, the average being 2.83%. In the past year, AON has gained 11.4%.
The Zacks Consensus Estimate for AON’s 2023 earnings implies a year-over-year rise of 10.2%.
The Zacks Consensus Estimate for Hannover Ruck’s 2023 earnings has moved 3% north in the past 60 days. In the past year, HVRRY has gained 0.9%.
The Zacks Consensus Estimate for Hannover Ruck’s 2023 earnings implies a year-over-year rise of 35.7%.