Yet Another Acquisition for Arthur J Gallagher - Analyst Blog
March 05 2014 - 4:50PM
Zacks
Arthur J Gallagher & Co. (AJG) recently
inked a deal to acquire a Massachusetts-based insurance broker for
an undisclosed amount.
Arthur J. Gallagher & Co.’s strong financial position
comprising substantial cash balance and retained earnings continues
to support its series of acquisitions.
The insurance broker, known as Tudor Risk Services, LLC was founded
in 2009 and is located in Woburn, MA. It provides employee benefits
insurance and consulting services, property and casualty insurance
coverage to all lines, risk management services, group health and
welfare and wellness plans to its clients across northeastern
United States.
Arthur J Gallagher & Co. expects the acquisition to further
enrich its own portfolio and strengthen operations in the
Northeast.
Arthur J. Gallagher & Co. regularly undertakes acquisitions to
augment its product and service offerings and at the same time,
leverage its international footprint. In the previous quarter, the
company made eleven acquisitions. Further in February this year,
the company announced the acquisition of Kent, Kent & Tingle,
based in Shreveport, LA for an undisclosed amount.
Prior to that, on Feb 14, in an effort to consolidate its foothold
throughout the United States, Arthur J Gallagher & Co.
announced the first buyout of the first quarter of 2014 by
acquiring Alabama-based Benefit Development Group of Selma for an
undisclosed amount.
Going ahead, we expect Arthur J. Gallagher & Co.’s compelling
inorganic growth story to boost its top- and bottom-line
growth.
Among others in the property and casualty insurance industry, a
wholly-owned subsidiary of White Mountains Insurance Group
Ltd. (WTM) announced, in Dec 2013, its decision to take
over Star & Shield Risk Management LLC for an undisclosed
amount.
Also, in Nov 2013, The Travelers Companies, Inc.
(TRV) closed its acquisition of Dominion of Canada General
Insurance.
Zacks Rank
Arthur J Gallagher & Co. presently carries a Zacks Rank #3
(Hold). A better-ranked stock in the same space worth mentioning is
Erie Indemnity Co. (ERIE), with a Zacks Rank #2
(Buy).
GALLAGHER ARTHU (AJG): Free Stock Analysis Report
ERIE INDEMNITY (ERIE): Free Stock Analysis Report
TRAVELERS COS (TRV): Free Stock Analysis Report
WHITE MTN INS (WTM): Free Stock Analysis Report
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