A subsidiary of Brown & Brown, Inc. BRO, Brown & Brown of Connecticut, Inc., has bought the assets of Smith Insurance, Inc.
With an impressive track record of over 75 years, Smith Insurance has been providing personal and commercial insurance in Connecticut and Rhode Island and generating about $5.5 million annually. Post acquisition, Smith Insurance will continue to operate from its current location in Niantic, CT as a profit center for Brown & Brown.
Brown& Brown is set to gain from Smith Insurance’s personal lines and commercial insurance business in the region. The acquired company, on the other hand, will benefit from the compelling products and services of Brown& Brown.
Brown & Brown, along with its subsidiaries, has been adding to its inorganic growth through numerous acquisitions. So far this year, the Zacks Rank #3 (Hold) insurance broker has made a total of 10 acquisitions. The company will be able to diversify its operations geographically and also strategically with Smith Insurance coming on board with its proven track record of client services.
Other insurance companies too are increasingly pursuing the inorganic growth route to boost prospects. Recently, Arthur J. Gallagher & Co. AJG acquired McPherson Benefits Group, LLC. Early October, National General Holdings Corp. NGHC purchased certain business lines and assets from Assurant Health, a segment of Assurant, Inc. AIZ.
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