Recently, a subsidiary of
Brown & Brown Inc
) - Brown & Brown of New York Inc. has acquired some assets
of The Rollins Agency Inc. in order to strengthen its New York
As per the deal, Brown & Brown's existing office will be
relocated from the White Plains city of New York to The Rollin's
Agency office in Rye Brook, New York.
For over a century, The Rollins Agency has been responsible for
providing insurance products ands services to the people of
Westchester County, New York, Connecticut, New Jersey and the New
York tri-state area. It has offered competent customer service to
cater to the local community. Brown & Brown is expected to
utilize this constructive approach of The Rollins Agency to
expand its business in New York and beyond.
Besides insurance and reinsurance products, Brown & Brown
provides a number of risk management, third-party administration
and other services. The deal is expected to enhance the risk
management capabilities of Brown & Brown and at the same time
increase the clientele base of the company.
The Rollins Agency generates approximately $5.5 million in
revenues annually. We expect the addition of this company to the
operations of Brown & Brown to leverage the revenues of the
latter and thereby bolster earnings. Once the company starts to
reap the benefits, earnings are likely to exceed our present
projection of $1.52 per share for full year 2013, which
translates into a year-over-year improvement of 20.63%.
The company has undertaken a number of acquisitions in 2012
towards business expansion and has followed it up so far in 2013.
In May, 2013, Brown & Brown inked a deal with an insurance
and risk management broker Beecher Carlson Holdings Inc. pursuant
to which it will acquire the company for a net consideration of
$336.5 million. The deal is aimed at augmenting the insurance
business of Brown & Brown and is expected to culminate in Jul
Brown & Brown currently carries a Zacks Rank #3 (Hold).
Among others in the industry,
Arthur J Gallagher & Co.
Validus Holdings Limited
Willis Group Holdings Public Limited Company
) carry a favorable Zacks Rank #2 (Buy) and are worth
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