Brown & Brown Inc. (BRO) recently announced that its subsidiary Brown & Brown Metro, Inc. has acquired certain assets of Global Benefit Strategies.
New Jersey-based Global Benefit Strategies is an expert in offering employee benefits insurance products and services. The company generates revenues worth $1.1 million annually.
Brown & Brown will benefit from Global Benefit Strategies’ innovative solutions like controlling costs and increasing employee satisfaction that it provides to its clients. The takeover will also strengthen the company’s retail footprint in New Jersey and across the Northeast.
Additionally, the takeover will enrich Brown & Brown’s employee benefit solutions portfolio, while providing the company with strong growth opportunities banking on Global Benefit Strategies market expertise and its solid relationships with clients.
Following the acquisition, Doug Pridgen, the founder of Global Benefit Strategies, along with its team under the leadership of Ty Beba, will join Brown & Brown Metro's existing location at Florham Park, NJ.
Brown & Brown has been expanding its portfolio globally. Acquisition of Gaston & Associates, Inc., The Wright Insurance Group, LLC, Axia Strategies, Inc., Agency Management Corp. and Recreational Protection Management, Inc., and Pacific Resources Benefits Advisors, LLC reflects its endeavors in this respect.
Notably, the company’s strong liquidity position cushions its growth initiatives.
Currently the insurance broker carries a Zacks Rank #3 (Hold). Its compelling inorganic growth is likely prompt analysts to raise their estimates, resulting in a rank upgrade.
Of late, its peers have been following a similar trend. Recently, Marsh & McLennan Companies’ (MMC), wholly owned subsidiary – Mercer – acquired Denarius, a leading compensation and benefits survey and information products consulting firm.
Moreover, Willis Ireland, part of Willis Group Holdings plc (WSH), completed the acquisition of a wide range of Irish pension and financial advisory businesses from IFG Group plc and Validus Holdings, Ltd. (VR) acquired Western World Insurance Group, Inc.
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