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Arthur J. Gallagher (AJG) Boosts Portfolio With Cornerstone
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Arthur J. Gallagher & Co. (AJG - Free Report) recently acquired Cornerstone Commercial & Personal Insurance Services, Inc. The terms of the transaction have not been revealed yet.
Rancho Cucamonga, CA-based Cornerstone is a retail insurance agency that serves commercial and personal clients. It caters to its services across San Bernardino and Riverside counties. The company remains focused on commercial real estate, construction and homeowners associations.
With this acquisition, AJG will leverage the expertise of Cornerstone in the homeowners association niche. This, in turn, is likely to strengthen the capabilities of Arthur J. Gallagher in the regions of San Bernardino and Riverside.
Arthur J. Gallagher has an impressive inorganic story with buyouts in the Brokerage and Risk Management segments. This Zacks Rank #3 (Hold) insurance broker acquired 12 entities totaling $69.2 million of estimated annualized revenues in the first quarter of 2024. The company is growing through mergers and acquisitions, most of which are within its Brokerage segment. AJG has a solid merger and acquisition pipeline with about 50 term sheets either agreed upon or being prepared, representing more than $350 million of annualized revenues.
A solid capital position ensuring continuous cash inflow supports AJG in its growth initiatives. It remains focused on continuing its tuck-in mergers and acquisitions. The insurer continues to expect an M&A capacity of $3.5 billion in 2024 and another $4 billion in 2025 without using any equity.
Arthur J. Gallagher’s long-term growth strategies should help it deliver organic revenue improvement and pursue strategic mergers and acquisitions. AJG is focused on productivity improvements and quality enhancements that should help it post sturdy numbers in the future.
Price Performance
Shares of Arthur J. Gallagher have gained 19.9% over the past year compared with the industry’s 7.7% growth. Solid performance of the Brokerage and Risk Management segments, strategic buyouts to capitalize on growing market opportunities and effective capital deployment should continue to drive share price higher.
Image Source: Zacks Investment Research
Acquisitions by Another Industry Player
The global management consulting arm of Marsh & McLennan Companies, Inc. (MMC - Free Report) , Oliver Wyman, recently inked a deal to purchase the commodity trading advisory firm, Veritas Total Solutions. The deep expertise that Veritas has in risk, systems, analytics and AI is expected to strengthen the capabilities of Oliver Wyman in offering comprehensive trading advisory and systems implementation services. This, in turn, may benefit commodity trading companies with exceptional trading optimization expertise.
Brown and Brown has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 11.90%. In the past year, shares of BRO have jumped 40.9%.
The Zacks Consensus Estimate for BRO’s 2024 and 2025 earnings implies year-over-year growth of 28.47% and 8.03%, respectively.
The Zacks Consensus Estimate for Ryan Specialty’s 2024 and 2025 earnings implies year-over-year growth of 28.2% and 20.1%, respectively. In the past year, shares of RYAN have jumped 40.9%.
The Zacks Consensus Estimate for RYAN’s 2024 and 2025 revenues implies year-over-year growth of 19.4% and 15.7%, respectively.
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Arthur J. Gallagher (AJG) Boosts Portfolio With Cornerstone
Arthur J. Gallagher & Co. (AJG - Free Report) recently acquired Cornerstone Commercial & Personal Insurance Services, Inc. The terms of the transaction have not been revealed yet.
Rancho Cucamonga, CA-based Cornerstone is a retail insurance agency that serves commercial and personal clients. It caters to its services across San Bernardino and Riverside counties. The company remains focused on commercial real estate, construction and homeowners associations.
With this acquisition, AJG will leverage the expertise of Cornerstone in the homeowners association niche. This, in turn, is likely to strengthen the capabilities of Arthur J. Gallagher in the regions of San Bernardino and Riverside.
Arthur J. Gallagher has an impressive inorganic story with buyouts in the Brokerage and Risk Management segments. This Zacks Rank #3 (Hold) insurance broker acquired 12 entities totaling $69.2 million of estimated annualized revenues in the first quarter of 2024. The company is growing through mergers and acquisitions, most of which are within its Brokerage segment. AJG has a solid merger and acquisition pipeline with about 50 term sheets either agreed upon or being prepared, representing more than $350 million of annualized revenues.
A solid capital position ensuring continuous cash inflow supports AJG in its growth initiatives. It remains focused on continuing its tuck-in mergers and acquisitions. The insurer continues to expect an M&A capacity of $3.5 billion in 2024 and another $4 billion in 2025 without using any equity.
Arthur J. Gallagher’s long-term growth strategies should help it deliver organic revenue improvement and pursue strategic mergers and acquisitions. AJG is focused on productivity improvements and quality enhancements that should help it post sturdy numbers in the future.
Price Performance
Shares of Arthur J. Gallagher have gained 19.9% over the past year compared with the industry’s 7.7% growth. Solid performance of the Brokerage and Risk Management segments, strategic buyouts to capitalize on growing market opportunities and effective capital deployment should continue to drive share price higher.
Image Source: Zacks Investment Research
Acquisitions by Another Industry Player
The global management consulting arm of Marsh & McLennan Companies, Inc. (MMC - Free Report) , Oliver Wyman, recently inked a deal to purchase the commodity trading advisory firm, Veritas Total Solutions. The deep expertise that Veritas has in risk, systems, analytics and AI is expected to strengthen the capabilities of Oliver Wyman in offering comprehensive trading advisory and systems implementation services. This, in turn, may benefit commodity trading companies with exceptional trading optimization expertise.
Stocks to Consider
Some better-ranked stocks from the brokerage insurance industry is Brown and Brown, Inc. (BRO - Free Report) and Ryan Specialty Holdings Inc. (RYAN - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Brown and Brown has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 11.90%. In the past year, shares of BRO have jumped 40.9%.
The Zacks Consensus Estimate for BRO’s 2024 and 2025 earnings implies year-over-year growth of 28.47% and 8.03%, respectively.
The Zacks Consensus Estimate for Ryan Specialty’s 2024 and 2025 earnings implies year-over-year growth of 28.2% and 20.1%, respectively. In the past year, shares of RYAN have jumped 40.9%.
The Zacks Consensus Estimate for RYAN’s 2024 and 2025 revenues implies year-over-year growth of 19.4% and 15.7%, respectively.