Arthur J. Gallagher & Co. AJG has acquired Centennial Insurance Agency, LLC, for an undisclosed amount. The acquisition will help the insurance broker to diversify its brokerage operations geographically.
Centennial Insurance Agency was founded in 1982 and is based in Pubelo, CO. The retail insurance broker offers commercial property, casualty and risk management consultation as well as personal lines insurance services to its clients throughout the western region of the United States. Centennial, regarded for its depth of expertise, will further boost Arthur J. Gallagher & Co.’s already strong inorganic growth portfolio.
Arthur J. Gallagher will be able to make substantial value addition to its client portfolio from Centennial’s exemplary record of client partnerships and strong carrier relationships. The company’s team-based sales and service capabilities will complement the acquirer’s Western Region brokerage operations.
The company boasts an impressive track record of buyouts. In the third quarter of 2015 itself the company closed five acquisitions with annualized revenues grossing $61 million. Subsequent to the third quarter, Arthur J. Gallagher made four more acquisitions, thereby taking the tally to 28. The company’s solid liquidity position cushions its growth initiatives. Therefore, the company is likely to make more acquisitions, going forward.
Other insurance companies too are increasingly pursuing acquisitions to bolster prospects. 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 purchased certain business lines and assets from Assurant Health, a segment of Assurant, Inc. AIZ.
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