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Arthur J. Gallagher (AJG) Expands in England With Buyout
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Arthur J. Gallagher & Co. (AJG - Free Report) has acquired AT Squared Holdings Limited (FE Protect). The acquisition will help the acquirer expand its footprint in the United Kingdom. This marks the eighth acquisition by AJG so far in 2023.
Based in Merseyside, England, FE Protect is an insurance broker specializing in the UK education sector. Its services include post-secondary learning distinct from higher education. It also serves independent schools and universities. FE Protect operates under the brands, Education Protect and Education Protect Scotland. The addition of FE Protect to the acquirer’s portfolio will add capabilities to its already compelling existing portfolio as well as help consolidate its presence in the United Kingdom.
Arthur J. Gallagher’s revenues are geographically diversified with strong domestic and international operations. Its international operations contribute about one-third of revenues. This Zacks Rank #2 (Buy) insurance broker expects an increase in international contribution to total revenues, given the number and size of the non-U.S. acquisitions
Arthur J. Gallagher has an impressive inorganic story with buyouts made in both Brokerage and Risk Management segments. This Zacks Rank #3 (Hold) insurance broker acquired 36 entities in 2022 that contributed about $107 million to estimated annualized revenues of $244 million. AJG has a strong merger and acquisition pipeline with about $300 million of revenues, associated with about 45 term sheets either agreed upon or being prepared.
A geographically diversified background with a compelling product and service portfolio through strategic buyouts should continue to drive AJG’s top line. A solid capital position supports AJG in its growth initiatives and it thus remains focused on continuing its tuck-in mergers and acquisitions. The company expects an M&A capacity of more than $3 billion through the end of 2023.
This insurance broker 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.
Shares of Arthur J. Gallagher have lost 5.1% in a year, versus the industry’s 6.7% decrease. The efforts to ramp up its growth profile and capital position should continue to drive the share price higher.
Axis Capital beat estimates in three of the last four quarters and missed in one, the average being 5.70%. The Zacks Consensus Estimate for 2023 has moved 5.4% north in the past 60 days.
The Zacks Consensus Estimate for AXS 2023 and 2024 earnings per share is pegged at $7.53 and $8.42, indicating year-over-year increases of 29.6% and 11.7%, respectively. In the past year, AXS has gained 1.4%.
The Zacks Consensus Estimate for Everest Re’s 2023 and 2024 earnings per share is pegged at $46.03 and $53.25, indicating a year-over-year increase of 69.9% and 15.7%, respectively. In the past year, RE has gained 26.6%.
RE beat estimates in each of the last four quarters, the average being 18.41%.
Kinsale Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 13.83%. In the past year, KNSL has gained 35.9%.
The Zacks Consensus Estimate for Kinsale Capital’s 2023 and 2024 earnings per share is pegged at $9.86 and $11.85, indicating a year-over-year increase of 26.4% and 20.2%, respectively.
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Arthur J. Gallagher (AJG) Expands in England With Buyout
Arthur J. Gallagher & Co. (AJG - Free Report) has acquired AT Squared Holdings Limited (FE Protect). The acquisition will help the acquirer expand its footprint in the United Kingdom. This marks the eighth acquisition by AJG so far in 2023.
Based in Merseyside, England, FE Protect is an insurance broker specializing in the UK education sector. Its services include post-secondary learning distinct from higher education. It also serves independent schools and universities. FE Protect operates under the brands, Education Protect and Education Protect Scotland. The addition of FE Protect to the acquirer’s portfolio will add capabilities to its already compelling existing portfolio as well as help consolidate its presence in the United Kingdom.
Arthur J. Gallagher’s revenues are geographically diversified with strong domestic and international operations. Its international operations contribute about one-third of revenues. This Zacks Rank #2 (Buy) insurance broker expects an increase in international contribution to total revenues, given the number and size of the non-U.S. acquisitions
Arthur J. Gallagher has an impressive inorganic story with buyouts made in both Brokerage and Risk Management segments. This Zacks Rank #3 (Hold) insurance broker acquired 36 entities in 2022 that contributed about $107 million to estimated annualized revenues of $244 million. AJG has a strong merger and acquisition pipeline with about $300 million of revenues, associated with about 45 term sheets either agreed upon or being prepared.
A geographically diversified background with a compelling product and service portfolio through strategic buyouts should continue to drive AJG’s top line. A solid capital position supports AJG in its growth initiatives and it thus remains focused on continuing its tuck-in mergers and acquisitions. The company expects an M&A capacity of more than $3 billion through the end of 2023.
This insurance broker 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.
Shares of Arthur J. Gallagher have lost 5.1% in a year, versus the industry’s 6.7% decrease. The efforts to ramp up its growth profile and capital position should continue to drive the share price higher.
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Other Stocks to Consider
Some other top-ranked stocks from the property and casualty insurance industry are Axis Capital Holdings Limited (AXS - Free Report) (AXS - Free Report) , Everest Re Group, Ltd. and Kinsale Capital Group, Inc. (KNSL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axis Capital beat estimates in three of the last four quarters and missed in one, the average being 5.70%. The Zacks Consensus Estimate for 2023 has moved 5.4% north in the past 60 days.
The Zacks Consensus Estimate for AXS 2023 and 2024 earnings per share is pegged at $7.53 and $8.42, indicating year-over-year increases of 29.6% and 11.7%, respectively. In the past year, AXS has gained 1.4%.
The Zacks Consensus Estimate for Everest Re’s 2023 and 2024 earnings per share is pegged at $46.03 and $53.25, indicating a year-over-year increase of 69.9% and 15.7%, respectively. In the past year, RE has gained 26.6%.
RE beat estimates in each of the last four quarters, the average being 18.41%.
Kinsale Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 13.83%. In the past year, KNSL has gained 35.9%.
The Zacks Consensus Estimate for Kinsale Capital’s 2023 and 2024 earnings per share is pegged at $9.86 and $11.85, indicating a year-over-year increase of 26.4% and 20.2%, respectively.