Brown & Brown of New York, Inc., a subsidiary of Brown & Brown, Inc. BRO acquired some of the assets of Spain Agency, Inc. However, shares lost about 1% in the last two trading sessions owing to broader market fundamentals.
With annualized revenue of $6.5 million, Spain Agency provides an array of commercial and personal lines insurance primarily in New York. It mainly focuses on the insurance needs of municipalities. It boasts a history of more than 90 years of serving commercial, municipal and individual clients in Putnam County and downstate New York.
Brown & Brown remains focused on enriching its portfolio by adding companies that complement its operations. Last year, the insurance broker closed 10 acquisitions with revenues of $159.5 million. Quarter-to-date, it has closed three acquisitions. The company’s strategic buyouts are well supported by its strong liquidity position.
Though this marks the first buyout in the month of March, the company has been undertaking strategic initiatives for ramping up its growth trajectory. In mid March, the company announced that its subsidiaries – Apex Insurance Agency, Inc. and Public Risk Underwriters of Georgia – will combine to operate under the Apex brand. The company also entered into an accelerated share repurchase program with JPMorgan Chase Bank and National Association. The share repurchase amount will be approximately $100 million.
Brown & Brown presently carries a Zacks Rank #4 (Sell). We expect these initiatives to raise optimism and induce analysts to raise their estimates, exerting upward pressure on the Zacks Rank.
Acquisitions are a well-accepted strategy for growth among insurers. This month, Arthur J Gallagher & Co. AJG made three buyouts – Illinois-based retail insurance broker NationAir Aviation Insurance; New Jersey-based wholesale brokers Excel Insurance Services, Inc.and McCloskey Surplus & Excess, Inc.; and d/b/a Metcom Excess.
Last month, Willis Group Holdings Public Limited Company WSH inked a deal to purchase a 49% stake in a leading Indian insurance broker – Almondz Insurance Brokers Private Limited. Moreover, last month, Marsh & McLennan Companies, Inc.’s MMC subsidiary – Marsh & McLennan Agency LLC – took over The Benefit Planning Group, Inc.
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
Be the first to comment