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 With Strategic Acquisition
Read MoreHide Full Article
Arthur J. Gallagher & Co. (AJG - Free Report) recently acquired Specialty Risk Management Services, LLC, and its affiliate, Private Client Insurance Services, LLC, marking continued strategic expansion to drive growth.
Florida-based Specialty Risk Management Services manages a property insurance program for businesses, while Private Client Insurance Services specializes in commercial risks, condominium associations and personal lines. This move signifies AJG's commitment to enhancing its service offerings in key markets, as stated by J. Patrick Gallagher, Jr., the company’s chairman and CEO. This marks the seventh buyout by the insurance broker year to date.
Strategic Acquisitions Fueling Growth
AJG seeks opportunities that align with its business objectives and allow it to enter new markets, strengthen its service offerings and increase its global footprint. Historically, AJG has successfully utilized strategic acquisitions to enhance its competitive position and drive growth. As the company continues to pursue strategic acquisitions, it strengthens its position as a leading global insurance brokerage and risk management firm.
Arthur J. Gallagher has an impressive inorganic story with several buyouts in the Brokerage and Risk Management segments. AJG has a strong merger and acquisition pipeline with about $350 million of revenues, associated with about 40 term sheets either agreed upon or being prepared.
AJG’s revenues are geographically diversified, with strong domestic and international operations, with the latter contributing 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. With 2024 expected to be another strong year as far as cash flow generation is concerned, the company continues to expect about $3.5 billion of capacity to fund M&A in 2024 using only free cash and incremental borrowings.
Arthur J. Gallagher is the world’s largest property/casualty third-party claims administrator and the fourth largest globally among insurance brokers based on revenues. It is inclined toward long-term growth strategies for delivering organic revenue improvement and pursuing strategic mergers and acquisitions. It is focused on productivity improvements and quality enhancements that should help it post sturdy numbers in the future.
Share Price Performance and Zacks Rank
Shares of Arthur J. Gallagher have gained 9.9% year to date compared with the industry’s 13.2% increase. Its efforts to ramp up its growth profile and capital position should continue to drive the share price higher.
Brown & Brown, Inc.’s (BRO - Free Report) unit, Brown & Brown Dealer Services, has acquired the assets of DealerMax. This acquisition is expected to strengthen BRO’s presence in the Northeast.
Brown & Brown and its subsidiaries continuously make strategic acquisitions to expand globally, add capabilities and boost operations. Also, these strategic buyouts help the company increase commissions and fees, which, in turn, drive revenues. Its impressive growth is driven by organic and inorganic means across all segments. Consistent operational results have been aiding Brown & Brown in generating solid cash flows for deployment in strategic initiatives.
Marsh & McLennan Companies, Inc.’s (MMC - Free Report) Marsh McLennan Agency (“MMA”), a division of MMC’s Marsh business, recently closed buyouts of two middle-market agencies of Louisiana, Querbes & Nelson (“Q&N”) and Louisiana Companies. The twin buyouts are expected to strengthen the capabilities of MMA as well as solidify its presence significantly across Louisiana. The addition of Q&N is expected to bolster the business insurance and employee health and benefits offerings suite of MMA.
The acquisition underscores Marsh & McLennan's strategic inorganic growth approach, exemplified by various purchases across its operating units. These acquisitions have facilitated entry into new regions, expansion in existing ones, diversification into new businesses and the development of new segments. The prudent acquisitions position the company for sustained long-term growth.
Aon plc (AON - Free Report) recently announced that it has acquired the technology assets and intellectual property of Humn.ai. Aon, a professional services firm, will benefit from enhanced offerings to clients, further improving its core value proposition. The new capability will provide tools and data-powered insights, which are expected to improve business decision-making.
Acquisitions and partnerships form one of the main growth strategies at Aon, and the company has sealed many in the past few years. Its acquisitions are mainly aimed at the expansion of its health and benefits business, flood insurance solutions, and risk and insurance solutions operations. Strategic collaborations also boost AON’s capacity and make it one of the largest insurance brokers.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Arthur J. Gallagher (AJG) Expands With Strategic Acquisition
Arthur J. Gallagher & Co. (AJG - Free Report) recently acquired Specialty Risk Management Services, LLC, and its affiliate, Private Client Insurance Services, LLC, marking continued strategic expansion to drive growth.
Florida-based Specialty Risk Management Services manages a property insurance program for businesses, while Private Client Insurance Services specializes in commercial risks, condominium associations and personal lines. This move signifies AJG's commitment to enhancing its service offerings in key markets, as stated by J. Patrick Gallagher, Jr., the company’s chairman and CEO. This marks the seventh buyout by the insurance broker year to date.
Strategic Acquisitions Fueling Growth
AJG seeks opportunities that align with its business objectives and allow it to enter new markets, strengthen its service offerings and increase its global footprint. Historically, AJG has successfully utilized strategic acquisitions to enhance its competitive position and drive growth. As the company continues to pursue strategic acquisitions, it strengthens its position as a leading global insurance brokerage and risk management firm.
Arthur J. Gallagher has an impressive inorganic story with several buyouts in the Brokerage and Risk Management segments. AJG has a strong merger and acquisition pipeline with about $350 million of revenues, associated with about 40 term sheets either agreed upon or being prepared.
AJG’s revenues are geographically diversified, with strong domestic and international operations, with the latter contributing 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. With 2024 expected to be another strong year as far as cash flow generation is concerned, the company continues to expect about $3.5 billion of capacity to fund M&A in 2024 using only free cash and incremental borrowings.
Arthur J. Gallagher is the world’s largest property/casualty third-party claims administrator and the fourth largest globally among insurance brokers based on revenues. It is inclined toward long-term growth strategies for delivering organic revenue improvement and pursuing strategic mergers and acquisitions. It is focused on productivity improvements and quality enhancements that should help it post sturdy numbers in the future.
Share Price Performance and Zacks Rank
Shares of Arthur J. Gallagher have gained 9.9% year to date compared with the industry’s 13.2% increase. Its efforts to ramp up its growth profile and capital position should continue to drive the share price higher.
Image Source: Zacks Investment Research
AJG carries a Zacks Rank #4 (Sell) currently.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acquisitions in the Insurance Space
Brown & Brown, Inc.’s (BRO - Free Report) unit, Brown & Brown Dealer Services, has acquired the assets of DealerMax. This acquisition is expected to strengthen BRO’s presence in the Northeast.
Brown & Brown and its subsidiaries continuously make strategic acquisitions to expand globally, add capabilities and boost operations. Also, these strategic buyouts help the company increase commissions and fees, which, in turn, drive revenues. Its impressive growth is driven by organic and inorganic means across all segments. Consistent operational results have been aiding Brown & Brown in generating solid cash flows for deployment in strategic initiatives.
Marsh & McLennan Companies, Inc.’s (MMC - Free Report) Marsh McLennan Agency (“MMA”), a division of MMC’s Marsh business, recently closed buyouts of two middle-market agencies of Louisiana, Querbes & Nelson (“Q&N”) and Louisiana Companies. The twin buyouts are expected to strengthen the capabilities of MMA as well as solidify its presence significantly across Louisiana. The addition of Q&N is expected to bolster the business insurance and employee health and benefits offerings suite of MMA.
The acquisition underscores Marsh & McLennan's strategic inorganic growth approach, exemplified by various purchases across its operating units. These acquisitions have facilitated entry into new regions, expansion in existing ones, diversification into new businesses and the development of new segments. The prudent acquisitions position the company for sustained long-term growth.
Aon plc (AON - Free Report) recently announced that it has acquired the technology assets and intellectual property of Humn.ai. Aon, a professional services firm, will benefit from enhanced offerings to clients, further improving its core value proposition. The new capability will provide tools and data-powered insights, which are expected to improve business decision-making.
Acquisitions and partnerships form one of the main growth strategies at Aon, and the company has sealed many in the past few years. Its acquisitions are mainly aimed at the expansion of its health and benefits business, flood insurance solutions, and risk and insurance solutions operations. Strategic collaborations also boost AON’s capacity and make it one of the largest insurance brokers.