Back to top

Image: Bigstock

Brown & Brown Closes Special Risk Insurance Managers Buyout

Read MoreHide Full Article

Brown & Brown, Inc. (BRO - Free Report) concluded the acquisition of Special Risk Insurance Managers, Ltd.

Established in199, Special Risk is an incorporated Managing General Agent (MGA), providing innovative insurance products and programs that meet the needs of specialty insurance product market in Canada. As an MGA, Special Risk Insurance Managers has entered into contracts with a number of the world's largest insurers. The company provides quotes, issues policies and manages claims. It also provides products that best suit client needs and at best prices. Special Risk offers a complete selection of insurance coverage for all aspects of diverse activities.

The addition of Special Risk to Brown & Brown’s portfolio is a strategic step forward for the acquirer, enabling it to boost its presence in the insurance brokerage market in Canada.

Also, the combination will provide Special Risk with major insurer opportunities, enhanced Lloyd’s relationships and innovative products for retail brokers.

Brown & Brown maintains a disciplined focus on acquiring companies that are strategic fits. This Zacks Rank #2 (Buy) insurer closed 18 transactions through the third quarter of 2019 with annualized revenues of $86 million. Mergers and acquisitions are central to its growth strategy, as demonstrated by the more than 500 agency acquisitions so far. It remains focused on making investments to drive organic growth and margin expansion.

Recently, there have been a number of acquisitions in the insurance industry, given the significant capital available. Arthur J. Gallagher & Co. (AJG - Free Report) acquired Huntington, NY-based Walsdorf Agency, Inc.

Shares of Brown & Brown have gained 43.2% in a year’s time, outperforming the industry’s increase of 36.9%. The company’s efforts to ramp up growth and its solid capital position should continue to drive shares higher.


Other Stocks to Consider

Some other top-ranked stocks from the same space are Fanhua Incorporation (FANH - Free Report) and Aon plc (AON - Free Report) . While Fanhua sports a Zacks Rank #1 (Strong Buy), Aon carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fanhua distributes insurance products and provides property and casualty insurance, life insurance and participating insurance products in China. The company beat the Zacks Consensus Estimate in three of the last four reported quarters, the average beat being 13.44%.

Aon offers advisory and solutions based on risk, retirement, and health to clients and provides commercial risk solutions, including retail brokerage, cyber, and global risk consulting solutions, as well as acts as a captive insurance provider.  The company beat the Zacks Consensus Estimate in three of the last four reported quarters, the average beat being 0.57%.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.

This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.

See their latest picks free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Aon plc (AON) - free report >>

Arthur J. Gallagher & Co. (AJG) - free report >>

Brown & Brown, Inc. (BRO) - free report >>

Fanhua Inc. (FANH) - free report >>

Published in