Arthur J. Gallagher & Co.
) recently acquired Cherry Hill, New Jersey-based McIntyre Risk
Management, LLC for an undisclosed amount.
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With this acquisition, Arthur J. Gallagher & Co.'s takeover
tally for the fourth quarter reaches an impressive nine. Shares
of Arthur J. Gallagher & Co. gained almost 4.9% to $46.511
since the onset of fourth-quarter 2013, reflecting investors'
enthusiasm about its impressive inorganic growth story so far.
Founded in 2002, McIntyre Risk Management is a retail insurance
broker. It provides risk management and retail commercial
property and casualty insurance products and services to its
upper middle market U.S. clients as well as to international
clients. Additionally, they offer insurances support services
that include contract reviews, risk control strategies, claims
management, modification modeling and loss control.
The acquisition is expected to enrich Arthur J. Gallagher's wide
range of insurance products and services besides strengthening
its client base in New Jersey. Especially, McIntyre's strong
experience in commercial lines coverage will be great complements
to Arthur J. Gallagher & Co.'s Northeast operation.
Post the acquisition, employees of McIntyre Risk Management LLC
will continue to work in their current location, led by Douglas
Brown, the north-east region head of retail property and casualty
brokerage operations of Arthur J. Gallagher & Co.
Arthur J. Gallagher's inorganic growth profile is fueled by its
continuous acquisition activities. Quarter-to-date tally already
exceeds the third quarter takeover count and compares favorably
with that of the second quarter. Annualized revenues from eight
acquisitions in the third quarter were $135.5 million, comparing
favorably with $35.9 million in annualized revenues from five
acquisitions in the second quarter.
Arthur J. Gallagher & Co.'s strong financial position
continues to support its robust acquisition strategy.
The Zacks Consensus Estimate 2014 is currently pegged $2.52. We
expect the current acquisition along with the previous ones and
the solid execution to add to the solid inorganic growth
trajectory. We hence expect it to exert upward directional
pressure on Zacks Rank. . Arthur J. Gallagher & Co.
presently carries a Zacks Rank #3 (Hold).
Others adopting the inorganic growth route in the insurance space
Brown & Brown Inc.
) subsidiary, Brown & Brown of Kentucky Inc., which acquired
certain assets of O'Neil Financial Services, Agency Services
Consolidated and Preserve Extended Protection Plan.
Mercer, the consulting wing of
Marsh & McLennan Companies Inc.
), announced its intention to purchase the pension wind-up
operations of PricewaterhouseCoopers (PwC) in Canada in August.
A better-ranked insurance broker
), with a Zacks Rank #2 (Buy), is worth considering.