We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arthur J. Gallagher (AJG) Expands in UK With Lifesure Buyout
Read MoreHide Full Article
Arthur J. Gallagher & Co. (AJG - Free Report) has made a strategic move by acquiring Lifesure Group Limited, a UK-based personal lines insurance broking services provider. While the terms of the deal remain undisclosed, this acquisition marks an important step for the global insurance brokerage firm. Lifesure's portfolio includes vacation/holiday and leisure insurance products, such as park home, motorhome, caravan and leisure home insurance. In addition, the acquisition encompasses Barnes Commercial, an affiliated company of Lifesure, specializing in insurance for small-to-medium businesses. This expansion aligns with Gallagher's commitment to broadening its service offerings and presence in the UK.
Strengthening Retail Capabilities
The acquisition of Lifesure Group Limited is expected to significantly bolster Arthur J. Gallagher & Co.'s UK & Ireland Retail division. Lifesure's strong reputation for client relationships and niche expertise in personal lines insurance will enhance Gallagher's position in this market segment. J. Patrick Gallagher, Jr., chairman, president, and CEO of Arthur J. Gallagher & Co., noted, "Lifesure has an excellent reputation for client relationships and will enhance our UK retail capabilities in the niche personal lines space." This strategic move demonstrates Gallagher's commitment to serving clients with an even broader spectrum of insurance solutions.
The Acquisition Pipeline
Arthur J. Gallagher & Co. has a history of leveraging strategic acquisitions to fuel its growth. This recent acquisition reflects its dedication to identifying and integrating companies that align with its mission and values. AJG’s ability to carefully select and integrate such acquisitions has been a key driver of its success, allowing it to expand its market presence and deliver a wider range of services to clients. AJG has a strong merger and acquisition pipeline with about $350 million of revenues, associated with about 45 term sheets either agreed upon or being prepared.
Domestic and International Contributions Historically, Arthur J. Gallagher & Co. has reaped significant benefits from its strategic acquisitions, both domestically and internationally. These acquisitions have played a vital role in bolstering the company's top-line growth and solidifying its position as a global insurance powerhouse. AJG’s international operations contribute about one-third of revenues. The company expects an increase in international contribution to total revenues, given the number and size of non-U.S. acquisitions.
A solid capital position supports this insurance broker 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.
Share Price Performance
Shares of Arthur J. Gallagher have gained 20.3% year to date (YTD), outperforming the industry’s 12.1% increase. This Zacks Rank #3 (Hold) insurance broker’s efforts to ramp up its growth profile and capital position should continue to drive the share price higher.
Image Source: Zacks Investment Research
Another Acquisition in the Insurance Space
Marsh & McLennan Companies, Inc.’s (MMC - Free Report) business, Marsh, inked a deal to purchase the entire outstanding share capital of the Australia-based specialist insurance broker Honan Insurance Group Pty Ltd. Management of Marsh believes that the inclusion of Honan’s well-established capabilities, specifically in the field of corporate risk and strata insurance, will enhance its specialist competence. This, in turn, will enable Marsh to better serve its client base across Australia and New Zealand.
Acquisitions form one of the core growth strategies of Marsh & McLennan. Buyouts, similar to the latest one, add strength to its capabilities, expand its services offerings and enable the company to enter new geographies as well as solidify its foothold across existing markets. An upgraded services suite is likely to lure more customers and contribute more to the revenues of MMC in the days ahead. Year to date, shares have risen 16.6%.
Stocks to Consider
Some top-ranked stocks from the same space are Erie Indemnity Company (ERIE - Free Report) and Brown & Brown, Inc. (BRO - Free Report) .
Erie Indemnity outpaced earnings estimates in two of the last four quarters and missed the mark twice, the average surprise being 2.05%. The Zacks Consensus Estimate for ERIE’s 2023 earnings and revenues suggests a rise of 32.9% and 12.5%, respectively, from the prior-year reported figures. Year to date, its shares have risen 11.1%. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Brown & Brown’s earnings surpassed estimates in three of the trailing four quarters and missed the mark once, the average surprise being 3.98%. The Zacks Consensus Estimate for BRO’s 2023 earnings suggests 18% year-over-year growth while the same for revenues indicates an improvement of 17.6%. The consensus mark for BRO’s 2023 earnings has moved 7.2% north in the past 30 days. It carries a Zacks Rank #2 (Buy). YTD, shares have risen 27.3%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Arthur J. Gallagher (AJG) Expands in UK With Lifesure Buyout
Arthur J. Gallagher & Co. (AJG - Free Report) has made a strategic move by acquiring Lifesure Group Limited, a UK-based personal lines insurance broking services provider. While the terms of the deal remain undisclosed, this acquisition marks an important step for the global insurance brokerage firm. Lifesure's portfolio includes vacation/holiday and leisure insurance products, such as park home, motorhome, caravan and leisure home insurance. In addition, the acquisition encompasses Barnes Commercial, an affiliated company of Lifesure, specializing in insurance for small-to-medium businesses. This expansion aligns with Gallagher's commitment to broadening its service offerings and presence in the UK.
Strengthening Retail Capabilities
The acquisition of Lifesure Group Limited is expected to significantly bolster Arthur J. Gallagher & Co.'s UK & Ireland Retail division. Lifesure's strong reputation for client relationships and niche expertise in personal lines insurance will enhance Gallagher's position in this market segment. J. Patrick Gallagher, Jr., chairman, president, and CEO of Arthur J. Gallagher & Co., noted, "Lifesure has an excellent reputation for client relationships and will enhance our UK retail capabilities in the niche personal lines space." This strategic move demonstrates Gallagher's commitment to serving clients with an even broader spectrum of insurance solutions.
The Acquisition Pipeline
Arthur J. Gallagher & Co. has a history of leveraging strategic acquisitions to fuel its growth. This recent acquisition reflects its dedication to identifying and integrating companies that align with its mission and values. AJG’s ability to carefully select and integrate such acquisitions has been a key driver of its success, allowing it to expand its market presence and deliver a wider range of services to clients. AJG has a strong merger and acquisition pipeline with about $350 million of revenues, associated with about 45 term sheets either agreed upon or being prepared.
Domestic and International Contributions Historically, Arthur J. Gallagher & Co. has reaped significant benefits from its strategic acquisitions, both domestically and internationally. These acquisitions have played a vital role in bolstering the company's top-line growth and solidifying its position as a global insurance powerhouse. AJG’s international operations contribute about one-third of revenues. The company expects an increase in international contribution to total revenues, given the number and size of non-U.S. acquisitions.
A solid capital position supports this insurance broker 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.
Share Price Performance
Shares of Arthur J. Gallagher have gained 20.3% year to date (YTD), outperforming the industry’s 12.1% increase. This Zacks Rank #3 (Hold) insurance broker’s efforts to ramp up its growth profile and capital position should continue to drive the share price higher.
Image Source: Zacks Investment Research
Another Acquisition in the Insurance Space
Marsh & McLennan Companies, Inc.’s (MMC - Free Report) business, Marsh, inked a deal to purchase the entire outstanding share capital of the Australia-based specialist insurance broker Honan Insurance Group Pty Ltd. Management of Marsh believes that the inclusion of Honan’s well-established capabilities, specifically in the field of corporate risk and strata insurance, will enhance its specialist competence. This, in turn, will enable Marsh to better serve its client base across Australia and New Zealand.
Acquisitions form one of the core growth strategies of Marsh & McLennan. Buyouts, similar to the latest one, add strength to its capabilities, expand its services offerings and enable the company to enter new geographies as well as solidify its foothold across existing markets. An upgraded services suite is likely to lure more customers and contribute more to the revenues of MMC in the days ahead. Year to date, shares have risen 16.6%.
Stocks to Consider
Some top-ranked stocks from the same space are Erie Indemnity Company (ERIE - Free Report) and Brown & Brown, Inc. (BRO - Free Report) .
Erie Indemnity outpaced earnings estimates in two of the last four quarters and missed the mark twice, the average surprise being 2.05%. The Zacks Consensus Estimate for ERIE’s 2023 earnings and revenues suggests a rise of 32.9% and 12.5%, respectively, from the prior-year reported figures. Year to date, its shares have risen 11.1%. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Brown & Brown’s earnings surpassed estimates in three of the trailing four quarters and missed the mark once, the average surprise being 3.98%. The Zacks Consensus Estimate for BRO’s 2023 earnings suggests 18% year-over-year growth while the same for revenues indicates an improvement of 17.6%. The consensus mark for BRO’s 2023 earnings has moved 7.2% north in the past 30 days. It carries a Zacks Rank #2 (Buy). YTD, shares have risen 27.3%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.