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Brown & Brown (BRO) Boosts Canada Presence With HBG Buyout
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Brown & Brown, Inc. (BRO - Free Report) has completed the acquisition of Highcourt Partners Limited and its subsidiaries e-Underwriters and CLIS. The addition of Highcourt Partners will boost Brown & Brown’s presence in Canadian market.
Highcourt Partners, founded in 2011, is an entrepreneurial international insurance brokerage and risk consulting firm. In April 2021, the company merged with a Toronto-based agency, the Breckles Group and changed into the Highcourt Breckles Group (HBG).
The addition of HBG will provide Brown & Brown solid opportunities, enhanced resources and a robust leadership team to boost growth in Canada. The buyout will also expand the insurance broker’s capabilities to assist customers globally. This marks the first acquisition by Brown and Brown in the first quarter of 2023.
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.
BRO had a record year for M&A activity in 2022. The insurance broker completed 30 acquisitions with approximately $435 million of annual revenues. Brown & Brown closed nine acquisitions in the fourth quarter of 2022 with annual revenues of approximately $17 million.
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. Its solid earnings have allowed the company to expand its capabilities with the buyouts extending the company’s geographic footprint.
Consistent operational results have been aiding Brown & Brown in generating solid cash flows for deployment in strategic initiatives. BRO has maintained a strong liquidity position with $650 million of cash and cash equivalents.
Given the insurance industry’s adequate capital level, players like Arthur J. Gallagher & Co. (AJG - Free Report) has been pursuing strategic mergers and acquisitions.
Arthur J. Gallagher has completed the acquisition of the partnership interests of BCHR Holdings, L.P., dba Buck in March 2023. The acquisition is expected to enhance Gallagher’s client offerings.
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. A solid capital position supports AJG in its growth initiatives. It, thus, remains focused on continuing its tuck-in mergers and acquisitions.
Price Performance
Shares of this Zacks Rank #4 (Sell) insurance broker have gained 1.2% year to date, outperforming the industry’s increase of 0.7%. Moreover, sustained operational performance, higher commissions and fees and a sturdy capital position will help the broker retain the momentum.
Marsh & McLennan’s earnings surpassed estimates in each of the last four quarters, the average beat being 4.08%.
The Zacks Consensus Estimate for MMC’s 2023 and 2024 earnings per share indicates a year-over-year increase of 9.3% and 9.1%, respectively. In the year-to-date period, the insurance broker has gained 1.9%.
The Zacks Consensus Estimate for eHealth’s 2023 earnings per share indicates a year-over-year increase of 63%. In the year-to-date period, EHTH has gained 91.7%.
EHTH’s earnings surpassed estimates in three of the last four quarters and missed in one, the average beat being 38.51%.
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Brown & Brown (BRO) Boosts Canada Presence With HBG Buyout
Brown & Brown, Inc. (BRO - Free Report) has completed the acquisition of Highcourt Partners Limited and its subsidiaries e-Underwriters and CLIS. The addition of Highcourt Partners will boost Brown & Brown’s presence in Canadian market.
Highcourt Partners, founded in 2011, is an entrepreneurial international insurance brokerage and risk consulting firm. In April 2021, the company merged with a Toronto-based agency, the Breckles Group and changed into the Highcourt Breckles Group (HBG).
The addition of HBG will provide Brown & Brown solid opportunities, enhanced resources and a robust leadership team to boost growth in Canada. The buyout will also expand the insurance broker’s capabilities to assist customers globally. This marks the first acquisition by Brown and Brown in the first quarter of 2023.
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.
BRO had a record year for M&A activity in 2022. The insurance broker completed 30 acquisitions with approximately $435 million of annual revenues. Brown & Brown closed nine acquisitions in the fourth quarter of 2022 with annual revenues of approximately $17 million.
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. Its solid earnings have allowed the company to expand its capabilities with the buyouts extending the company’s geographic footprint.
Consistent operational results have been aiding Brown & Brown in generating solid cash flows for deployment in strategic initiatives. BRO has maintained a strong liquidity position with $650 million of cash and cash equivalents.
Given the insurance industry’s adequate capital level, players like Arthur J. Gallagher & Co. (AJG - Free Report) has been pursuing strategic mergers and acquisitions.
Arthur J. Gallagher has completed the acquisition of the partnership interests of BCHR Holdings, L.P., dba Buck in March 2023. The acquisition is expected to enhance Gallagher’s client offerings.
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. A solid capital position supports AJG in its growth initiatives. It, thus, remains focused on continuing its tuck-in mergers and acquisitions.
Price Performance
Shares of this Zacks Rank #4 (Sell) insurance broker have gained 1.2% year to date, outperforming the industry’s increase of 0.7%. Moreover, sustained operational performance, higher commissions and fees and a sturdy capital position will help the broker retain the momentum.
Image Source: Zacks Investment Research
Stocks to Consider
Some better ranked insurers from the insurance industry are Marsh & McLennan Companies, Inc. (MMC - Free Report) and eHealth, Inc. (EHTH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Marsh & McLennan’s earnings surpassed estimates in each of the last four quarters, the average beat being 4.08%.
The Zacks Consensus Estimate for MMC’s 2023 and 2024 earnings per share indicates a year-over-year increase of 9.3% and 9.1%, respectively. In the year-to-date period, the insurance broker has gained 1.9%.
The Zacks Consensus Estimate for eHealth’s 2023 earnings per share indicates a year-over-year increase of 63%. In the year-to-date period, EHTH has gained 91.7%.
EHTH’s earnings surpassed estimates in three of the last four quarters and missed in one, the average beat being 38.51%.