In its continued effort to enhance its product portfolio as
well as solidify its market presence,
Arthur J. Gallagher & Co
) announced the acquisition of R. W. Scobie, Inc. (Scobie).
Headquartered in Eau Claire, Wis. and founded in 1932, Scobie is
a managing general agent and wholesale insurance broker, offering
products and services to independent insurance agents and broker
clients across the U.S. It provides excess and surplus,
property/casualty, professional business liability, and other
specialty insurance products and services.
Addition of Scobie to Arthur J. Gallagher & Co.'s portfolio
will augment the latter's wholesale network.
However, the details of the transaction remain undisclosed.
Arthur J. Gallagher & Co. has been continually undertaking
acquisitions to ramp up its growth profile. Last week, the
insurance broker entered into an agreement to acquire
London-based Giles Group of Companies (Giles) in an all cash
transaction of £233 million ($366.4 million). The acquisition
will inflate Arthur J. Gallagher & Co.'s client base in the
middle-market and enhance its underwriting footprint via current
underwriting business and increased retail distribution
opportunities through broker networks. It will also expand the
company's footprint in England and Scotland and make a foray into
Northern Ireland, Wales, Isle of Man and the Channel Islands.
Till date, in the third quarter, Arthur J. Gallagher & Co.
has announced seven acquisitions. The company's strong financial
position continues to support its robust acquisition strategy.
Among other insurance brokers,
Brown & Brown Inc.
) closed its merger with Beecher Carlson Holdings, Inc. in July.
Marsh, a subsidiary of
Marsh & McLennan Companies, Inc
) closed the acquisition of Rehder y Asociados Group, the leading
insurance adviser in Peru, in June.
Arthur J. Gallagher & Co. presently carries a Zacks Rank #3
(Hold). The company has been continually witnessing rising
earnings estimates. We expect the momentum to continue given its
impressive inorganic growth story.
In the insurance space,
Everest Re Group Ltd
) with Zacks Rank #1 (Strong Buy) is worth considering.
GALLAGHER ARTHU (AJG): Free Stock Analysis
BROWN & BROWN (BRO): Free Stock Analysis
MARSH &MCLENNAN (MMC): Free Stock Analysis
EVEREST RE LTD (RE): Free Stock Analysis
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