Arthur J. Gallagher & Co. AJG has acquired Australian insurance broker, Strathearn Insurance Group Pty Ltd. for an undisclosed amount.
Founded in 1993, Perth-based Strathearn provides commercial insurance and risk management services to mid-market and larger clients with complex coverage demands. Since its inception, Strathearn has expanded to East Australia and diversified its business to Brisbane, Sydney and Adelaide. Post acquisition, the team at Strathearn will continue to operate from their current locations.
Over the last two years, Arthur J. Gallagher & Co. has made several strategic acquisitions in Australia to bolster its operations. The latest deal is also no exception to this trend.
Strathearn’s diversified insurance broker capabilities as well as in-depth expertise in complex risk servicing will be substantially value accretive to Arthur J. Gallagher’s Australian insurance brokerage operation. Strathearn’s culture is similar to that of the acquirer. Since both companies deeply focus on strategic growth goals, the buyout will complement Arthur J. Gallagher’s existing inorganic growth portfolio.
Arthur J. Gallagher boasts an impressive track record of buyouts. In the third quarter of 2015, the company closed five acquisitions with annualized revenues grossing $61 million. These buyouts also reflect the company’s solid capital position.
Other insurers also regularly undertake strategic acquisitions to boost their prospects. Recently, Brown & Brown of Connecticut, Inc., a subsidiary of Brown & Brown, Inc. BRO, acquired certain assets of Ocean Marine Agency, Inc. Another insurance broker, Marsh and McLennan MMC purchased global pay and workforce metrics business provider, Comptryxs, in early October. Also, 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 in the same month.
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