Arthur J. Gallagher & Co. (AJG) has declared the acquisition of The Benfield Group. The move marks an effort by the company to ramp up its employee benefit business. Notably, the terms of the transaction were not disclosed.
St. Louis-based Benfield Group is a healthcare market research, strategy and communications firm offering services in the U.S. It specializes in helping healthcare companies and enabling them to develop and implement effective employer strategies. It also conducts research on consumers, patients and physicians, thereby providing employers with strategic communications support. Hence, with this acquisition, Arthur J. Gallagher has added another feather to its cap.
Arthur J. Gallagher has been focused on its employee benefit business and has been consistently strengthening the same. Its year-to-date acquisition tally touches 28, out of which 10 acquisitions, including the latest one, are in the employee benefit business.
Arthur J. Gallagher’s recent employee benefit business acquisitions such as the CT-based Everett James, Inc. Baker Tilly's Employee Benefits Solutions Business, U.S.-based Foundation Strategies Inc, UT-based Insurance Point, LLC and CO-based Denman Consulting Services are noteworthy.
Arthur J. Gallagher has been on an acquisition spree. Its balance sheet strength has been supporting the takeovers and going forward we expect the number to rise.
The company’s compelling inorganic growth and strong focus to boost its employee benefit busines will likely prompt analysts to raise their estimates, leading to a Zacks Rank upgrade. At present, Arthur J. Gallagher carries a Zacks Rank #3 (Hold).
Riding on its strong fundamentals, Arthur J. Gallagher has been witnessing upward estimate revisions. For 2014, the Zacks Consensus Estimate is pegged at $2.51 per share and for 2015, it is at $2.93. The long-term growth is targeted at 14.8%.
Other insurance brokers have also been resorting to acquisitions to boost inorganic growth. For instance, Aon plc (AON)’s Aon Risk Solutions took over a Lima-Peru-based risk and insurance solutions provider, Grana y Asociados last month. Marsh & McLennan Companies Inc.’s (MMC) leading insurance brokerage wing, Marsh Inc. announced the purchase of Montreal-based commercial insurance brokerage, Kocisko Insurance Brokers Inc. earlier this month. Last week, Willis Group Holdings plc (WSH) declared that its North American reinsurance business, Willis Re Inc. has entered into an agreement to acquire the assets of SurePoint Reinsurance Advisors, LLC.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment