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Arthur J. Gallagher Boosts Brokerage Services in Central US

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Arthur J. Gallagher & Co. (AJG - Free Report) has acquired Bomford, Couch & Wilson, Inc. (“BCW”) for an undisclosed amount. This buyout will help the acquirer enhance its brokerage services in central U.S.
Miami, OK-based BCW was founded in 1904. The retail insurance broker offers property and casualty, personal lines, employee benefits and risk management insurance services to its middle-market clients across Oklahoma, Kansas, Missouri and Arkansas. The company is an expert in insuring religious, agricultural and pharmaceutical clients. BCW is renowned for its industry expertise and strong presence in the regions where it operates. Thus, the buyout will further boost the already robust inorganic growth portfolio of the acquirer.

BCW’s superior service, strong market relationships and exemplary client service will be substantially value accretive to Arthur J. Gallagher’s client portfolio. This marks the third takeover by the company this year. Notably, Arthur J. Gallagher acquired Vincent L. Braband Insurance, Inc. on Mar 10 and White & Company Insurance, Inc. on Feb 18, 2016.

Arthur J. Gallagher, which currently carries a Zacks Rank #3 (Hold), is well known for its spree of strategic acquisitions. In 2015, the insurance broker acquired 44 entities, including two in the risk management segment, with net annualized revenue grossing $230 million.  

Following the inorganic route to ramp up one’s growth profile seems a well-accepted strategy among insurers as acquisitions and consolidations rage this space. Recently, Sun Life Assurance Company of Canada, the wholly owned subsidiary of Sun Life Financial Inc. (SLF - Free Report) acquired the employee benefits business of Assurant Inc. (AIZ - Free Report) for $940 million. Also, Marsh & McLennan Agency LLC (“MMA”), the middle market agency subsidiary of Marsh & McLennan Companies, Inc. (MMC - Free Report) acquired Celedinas Insurance Group for an undisclosed amount.

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