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Arthur J. Gallagher Boosts Portfolio With Risk International
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Arthur J. Gallagher & Co.’s (AJG - Free Report) alternative risk and capital solutions subsidiary, Artex, recently acquired RIBV Holdings, LLC, and its subsidiaries, collectively doing business as Risk International. The terms of the transaction have not been revealed yet.
Fairlawn, OH-based Risk International boasts a leading advocate in the insurance industry and offers unique expertise as a risk management consultant and employee benefits advisor. It is an independent insurance risk management consultant and employee benefits advisor, delivering solutions through data and analytics.
With this acquisition, Artex will leverage the advisory expertise and client relationships of Risk International. This, in turn, will provide the acquirer with better growth opportunities.
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 24 new brokerage mergers, totaling $141.2 million of estimated annualized revenues in the first half of 2024. The company is growing through mergers and acquisitions, most of which are within its Brokerage segment. AJG has a strong merger pipeline, including 60 term sheets signed or being prepared, representing around $550 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.
AJG’s Price Performance
Shares of Arthur J. Gallagher have gained 27.1% year to date compared with the industry’s 31.7% 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
Marsh & McLennan Companies, Inc.’s (MMC - Free Report) business, Marsh McLennan Agency (“MMA”), in September 2024, inked a deal to acquire McGriff Insurance Services, LLC for $7.75 billion in cash. This move bodes well for MMC, as it will enhance its position in the U.S. insurance market by enhancing its capabilities across commercial property and casualty, employee benefits and personal lines.
Acquisitions form one of the core growth strategies of Marsh & McLennan. Buyouts add strength to its capabilities, expand service offerings and enable the company to enter new geographies, as well as solidify its foothold across existing markets.
Assurant has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 33.56%. In the past year, shares of AIZ have rallied 18%.
The Zacks Consensus Estimate for AIZ’s 2024 and 2025 earnings implies year-over-year growth of 6.7% and 6.1%, respectively.
MGIC Investment has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 15.59%. In the past year, shares of MTG have climbed 32.7%.
The Zacks Consensus Estimate for MTG’s 2024 and 2025 revenues implies year-over-year growth of 4.7% and 4.6%, respectively.
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Arthur J. Gallagher Boosts Portfolio With Risk International
Arthur J. Gallagher & Co.’s (AJG - Free Report) alternative risk and capital solutions subsidiary, Artex, recently acquired RIBV Holdings, LLC, and its subsidiaries, collectively doing business as Risk International. The terms of the transaction have not been revealed yet.
Fairlawn, OH-based Risk International boasts a leading advocate in the insurance industry and offers unique expertise as a risk management consultant and employee benefits advisor. It is an independent insurance risk management consultant and employee benefits advisor, delivering solutions through data and analytics.
With this acquisition, Artex will leverage the advisory expertise and client relationships of Risk International. This, in turn, will provide the acquirer with better growth opportunities.
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 24 new brokerage mergers, totaling $141.2 million of estimated annualized revenues in the first half of 2024. The company is growing through mergers and acquisitions, most of which are within its Brokerage segment. AJG has a strong merger pipeline, including 60 term sheets signed or being prepared, representing around $550 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.
AJG’s Price Performance
Shares of Arthur J. Gallagher have gained 27.1% year to date compared with the industry’s 31.7% 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
Marsh & McLennan Companies, Inc.’s (MMC - Free Report) business, Marsh McLennan Agency (“MMA”), in September 2024, inked a deal to acquire McGriff Insurance Services, LLC for $7.75 billion in cash. This move bodes well for MMC, as it will enhance its position in the U.S. insurance market by enhancing its capabilities across commercial property and casualty, employee benefits and personal lines.
Acquisitions form one of the core growth strategies of Marsh & McLennan. Buyouts add strength to its capabilities, expand service offerings and enable the company to enter new geographies, as well as solidify its foothold across existing markets.
Stocks to Consider
Some better-ranked stocks from the insurance industry are Assurant, Inc. (AIZ - Free Report) and MGIC Investment Corporation (MTG - Free Report) . While Assurant sports a Zacks Rank #1 (Strong Buy), MGIC Investment carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Assurant has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 33.56%. In the past year, shares of AIZ have rallied 18%.
The Zacks Consensus Estimate for AIZ’s 2024 and 2025 earnings implies year-over-year growth of 6.7% and 6.1%, respectively.
MGIC Investment has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 15.59%. In the past year, shares of MTG have climbed 32.7%.
The Zacks Consensus Estimate for MTG’s 2024 and 2025 revenues implies year-over-year growth of 4.7% and 4.6%, respectively.