Arthur J. Gallagher & Co. AJG has acquired McPherson Benefits Group, LLC, for an undisclosed amount. The acquisition will help the insurance broker to boost its Employee Benefits business.
Madison, MS based McPherson Benefits Group was founded in 2005. The company offers employee benefit consultation, management and brokerage services to larger employer clients in southern United States. McPherson Benefits specializes in designing and ongoing management of the employee benefit programs. Additionally, it focuses on medical plans which are self-funded and voluntary. Hence, the addition of McPherson Benefits to the portfolio will help Arthur J. Gallagher to enhance its employee benefits in the south central region both by through a stronger foothold and diversified operations.
The insurance broker has been consistently boosting its inorganic growth profile through buyouts. In the third quarter, the Zacks Rank #3 (Hold) insurance broker closed five acquisitions with annualized revenues grossing $61 million. Subsequent to the third quarter to date, Arthur J. Gallagher has made four more acquisitions, taking the year-to-date tally to 28.
Arthur J. Gallagher & Co. will be reaping huge benefits from this acquisition since McPherson Benefits has strong tie-ups throughout southern United States, solid industry know-how and expertise in benefit operations. McPherson Benefits’ team-based culture and quality client service will complement the acquirer’s benefits operations.
Acquisitions have always been considered a prudent strategy for ramping up the growth profile of insurers. This October, The Travelers Companies, Inc. TRV acquired the majority stake in the property casualty business of its J. MalucelliParticipaçõesemSeguros e Resseguros S.A. (J. Malucelli) joint venture in Brazil. Earlier, National General Holdings Corp. NGHC had acquired certain business lines and assets from Assurant Health, a segment of Assurant, Inc. AIZ.
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