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Brown & Brown (BRO) Inks a Deal to Acquire Loan Protector

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Brown & Brown, Inc. (BRO - Free Report) has agreed to acquire the assets of U.S.-based LP Insurance Services (Loan Protector). The deal, following the fulfillment of certain closing conditions, is projected to close in April 2020. The transaction terms were not made public.

Formed in 1978, this Cleveland, OH- based Loan Protector offers customized, lender-placed insurance and tracking solutions that protect mortgage servicers from risk. It provides hazard coverage of up to $5.00 million for residential and $35.00 million for commercial properties that have been foreclosed and repossessed.

The acquisition is expected to expand the lender-placed insurance capabilities of Proctor Financial Insurance, a division of Brown & Brown, which it acquired in 2004.

With this deal, the collective customers of Brown & Brown will benefit from the services of Loan Protector.

With the merger of Loan Protector and Proctor, a new company will be formed with three service locations. The combined entity is expected to offer professional growth opportunities to the combined team members and offer better services to client partners.

The Zacks Rank #2 (Buy) insurance broker maintains a disciplined focus on acquiring companies that are strategic fits. In 2019, the company closed 23 transactions with approximately $105 million of annual revenues.  The company has acquired 500 insurance intermediary operations in more than two decades. It continues to make investments to drive growth and margin expansion.

Other Acquisitions in the Same Space

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 full-service wholesale insurance broker CMS, LLC.

Also, Aon plc (AON - Free Report) entered into an agreement with Willis Towers Watson Public Limited Company to combine in an all-stock deal, which is expected to cater to unmet client requirements and fight the evolving insurance industry threats.

Shares of Brown & Brown have gained 49.9% in the past year, outperforming the industry’s growth of 13.4%. The company’s efforts to ramp up growth and its solid capital position should continue to drive shares higher.


You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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