Arthur J. Gallagher & Co. (AJG) has announced the takeover of Miller-Harrison Insurance Services that will strengthen its retail insurance business and boost inorganic growth. Notably, terms of the transaction were not revealed.
Iowa-based Miller-Harrison is a retail insurance broker offering commercial property/casualty, risk management consulting and personal lines insurance services to its Midwest clients since 1919. The company is committed to provide unfailing customer service through its technical expertise.
Miller-Harrison’s presence in Iowa, along with its outstanding client service and strong carrier relationships will help Arthur J. Gallagher to consolidate its presence in the Midwest.
Arthur J. Gallagher has been consistently enhancing its retail insurance as well as Midwest presence. Its recent acquisitions like that of Illinois-based The Forker Company, Colorado-based Insurance Associates, Inc. and Illinois-based Bennett & Shade Co. reflect its endeavors in this respect.
Prior to acquiring Miller-Harrison, Arthur J. Gallagher also added Virginia-based The Titan Group, LLC to its portfolio. Titan Group provides human resource consulting services to its private, public, nonprofit, education and state government clients.
Arthur J. Gallagher made seven acquisitions till now in the fourth quarter that include the latest one, bringing the year-to-date tally of 45 acquisitions. For the first nine months of 2014, the insurance broker generated annualized revenues of $693.6 million from acquisitions. Going forward, revenues are expected to grow further in the remainder of 2014 as company’s strong liquidity cushions its inorganic growth initiatives.
Zacks Rank
Currently, Arthur J. Gallagher has a Zacks Rank #3 (Hold).
Other Insurance Brokers Adopting Inorganic Route
The competitive environment for Arthur J. Gallagher is heightening with its peers boosting inorganic growth as well. In fourth-quarter 2014, Marsh & McLennan Agency LLC, a subsidiary of Marsh & McLennan Companies, Inc. (MMC), announced the acquisition of California-based NuWest Insurance Services Inc. Another competitor, Validus Holdings, Ltd. (VR) has acquired Western World Insurance Group, Inc. Meanwhile, Willis Group Holdings Public Limited Company (WSH) has proposed the takeover of SurePoint Reinsurance, along with the buyout of a range of Irish pension and financial advisory businesses from IFG Group plc.
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