Arthur J. Gallagher & Co.
), acquisition tally for the fourth quarter reached ten with yet
Arthur J. Gallagher & Co. acquired Rock Island-based
Cleaveland Insurance Group, for an undisclosed amount in a bid to
fortify its presence in Illinois.
Founded in 1868, Cleaveland Insurance Group operates as a retail
insurance broker and offers employee benefits, property, casualty
and risk management insurance services to its middle-market
clients across the central United States.
The acquisition is expected to enrich and consolidate the
insurance broker's wide range of insurance products and services
besides strengthening its client base in Illinois. Moreover,
Cleaveland Insurance Group's strong experience in sales and
services are also expected to compliment the operations of Arthur
J. Gallagher & Co.
Post the acquisition, employees of Cleaveland Insurance Group
will continue to work in their current locations, led by Thomas
J. Gallagher, the mid-west region head of property and casualty
brokerage operations, and William Ziebell, the north-central
region head of employee benefit brokerage operations, of Arthur
J. Gallagher & Co.
Arthur J. Gallagher & Co.'s inorganic growth profile is
fueled by continuous acquisitions. Quarter-to-date tally has
already surpassed the third-quarter count and compares favorably
with second quarter's count.
Arthur J. Gallagher & Co.'s strong financial position
continues to support its robust acquisition strategy.
We expect these acquisitions to add to the Arthur J. Gallagher
& Co. growth profile. The Zacks Consensus Estimate for 2013
and 2014 are currently pegged at $2.14 and $2.52, respectively.
The estimates translate to a year over year growth of 23.6% and
With optimism over the current acquisitions and solid
execution, we expect estimates to be revised upwards in the
coming weeks, thus exerting an upward pressure on the Zacks Rank.
Arthur J. Gallagher & Co. presently carries a Zacks Rank #3
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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.