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Arthur J. Gallagher's (AJG) Unit Adds CCI Surety to Portfolio
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Arthur J. Gallagher & Co. (AJG - Free Report) announced that Risk Placement Services, Inc., its U.S. wholesale brokerage, binding authority and programs division, acquired CCI Surety, Inc. The acquisition will consolidate the acquirer’s presence in wholesale surety and boost its portfolio.
Golden Valley, MN-based CCI Surety is a managing general underwriter specializing in wholesale contract and commercial surety bonds for retail agents throughout the United States.
Arthur J. Gallagher has an impressive inorganic story with buyouts in the Brokerage and Risk Management segments. This Zacks Rank #3 (Hold) insurance broker acquired 12 entities totaling $69.2 million of estimated annualized revenues in the first quarter of 2024. Arthur J. Gallagher is growing through mergers and acquisitions, most of which are within its Brokerage segment. AJG has a solid merger and acquisition pipeline with about 50 term sheets either agreed upon or being prepared, representing more than $350 million of annualized revenues.
A solid capital position ensuring continuous cash inflow supports AJG in its growth initiatives. It remains focused on continuing its tuck-in mergers and acquisitions. AJG continues to expect M&A capacity of $3.5 billion in 2024 and another $4 billion in 2025 without using any equity.
Arthur J. Gallagher’s long-term growth strategies should help it deliver organic revenue improvement and pursue 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 gained 11.4% year to date, outperforming the industry’s 8.2% increase. Solid performance of the Brokerage and Risk Management segments, strategic buyouts to capitalize on growing market opportunities and effective capital deployment should continue to drive share price higher.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the insurance industry are Arch Capital Group Ltd (ACGL - Free Report) , The Allstate Corporation (ALL - Free Report) and Brown and Brown (BRO - Free Report) .
Arch Capital delivered a four-quarter average earnings surprise of 28.41%. The stock has gained 38.5% year to date. The Zacks Consensus Estimate for ACGL’s 2024 and 2025 earnings indicates a year-over-year increase of 1.2% and 5.2%, respectively. It sports a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Allstate delivered a four-quarter average earnings surprise of 41.88%. The stock has gained 20.2% year to date. The Zacks Consensus Estimate for ALL’s 2024 and 2025 earnings indicates a year-over-year increase of 1,479% and 14.7%, respectively. It carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Brown and Brown’s 2024 and 2025 earnings indicates a respective 24.5% and 7.9% increase year over year. BRO delivered a four-quarter average earnings surprise of 11.90%. Shares of BRO have risen 28.6% year to date. It carries a Zacks Rank #2.
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Arthur J. Gallagher's (AJG) Unit Adds CCI Surety to Portfolio
Arthur J. Gallagher & Co. (AJG - Free Report) announced that Risk Placement Services, Inc., its U.S. wholesale brokerage, binding authority and programs division, acquired CCI Surety, Inc. The acquisition will consolidate the acquirer’s presence in wholesale surety and boost its portfolio.
Golden Valley, MN-based CCI Surety is a managing general underwriter specializing in wholesale contract and commercial surety bonds for retail agents throughout the United States.
Arthur J. Gallagher has an impressive inorganic story with buyouts in the Brokerage and Risk Management segments. This Zacks Rank #3 (Hold) insurance broker acquired 12 entities totaling $69.2 million of estimated annualized revenues in the first quarter of 2024. Arthur J. Gallagher is growing through mergers and acquisitions, most of which are within its Brokerage segment. AJG has a solid merger and acquisition pipeline with about 50 term sheets either agreed upon or being prepared, representing more than $350 million of annualized revenues.
A solid capital position ensuring continuous cash inflow supports AJG in its growth initiatives. It remains focused on continuing its tuck-in mergers and acquisitions. AJG continues to expect M&A capacity of $3.5 billion in 2024 and another $4 billion in 2025 without using any equity.
Arthur J. Gallagher’s long-term growth strategies should help it deliver organic revenue improvement and pursue 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 gained 11.4% year to date, outperforming the industry’s 8.2% increase. Solid performance of the Brokerage and Risk Management segments, strategic buyouts to capitalize on growing market opportunities and effective capital deployment should continue to drive share price higher.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the insurance industry are Arch Capital Group Ltd (ACGL - Free Report) , The Allstate Corporation (ALL - Free Report) and Brown and Brown (BRO - Free Report) .
Arch Capital delivered a four-quarter average earnings surprise of 28.41%. The stock has gained 38.5% year to date. The Zacks Consensus Estimate for ACGL’s 2024 and 2025 earnings indicates a year-over-year increase of 1.2% and 5.2%, respectively. It sports a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Allstate delivered a four-quarter average earnings surprise of 41.88%. The stock has gained 20.2% year to date. The Zacks Consensus Estimate for ALL’s 2024 and 2025 earnings indicates a year-over-year increase of 1,479% and 14.7%, respectively. It carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Brown and Brown’s 2024 and 2025 earnings indicates a respective 24.5% and 7.9% increase year over year. BRO delivered a four-quarter average earnings surprise of 11.90%. Shares of BRO have risen 28.6% year to date. It carries a Zacks Rank #2.