With another acquisition by
Arthur J. Gallagher & Co.
), the insurance broker's tally for the fourth quarter reached
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Arthur J. Gallagher & Co. acquired Houston-based Barmore
Insurance Agency Inc., for an undisclosed amount in a bid to
fortify its presence in Texas.
Founded in 1952, Barmore Insurance Agency operates as an
insurance broker and offers retail and wholesale commercial
property and casualty, risk management and employee benefits
products and services to its middle-market clients across the
south-central United States. Barmore Insurance Agency specializes
in engineering, construction, public entity, non-profits and
The acquisition is expected to enrich Arthur J. Gallagher's wide
range of insurance products and services besides strengthening
its client base in Texas.
Post the acquisition, employees of Barmore Insurance Agency will
continue to work in their current location, led by Mike Henthorn,
the south-central 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
touched third quarter count and compares favorably with second
quarter's count. 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.
No momentum in the earnings estimate was observed over the past
week for Arthur J. Gallagher & Co. The Zacks Consensus
Estimate for 2013 and 2014 is currently pegged at $2.14 and
$2.52, respectively. 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 (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.