Brown & Brown Insurance Agency of Virginia Inc., a subsidiary of Brown & Brown, Inc. BRO bought certain assets of Ocean Marine Insurance Agency, Inc. and affiliates.
Founded in 1984, with annualized revenues of $2 million, Ocean Marine provides an array of insurance products focusing mainly on maritime insurance products. Its portfolio includes coverage for commercial fishing vessels, commercial vessels, professional six-pack charters, passenger vessels, marinas, yachts and pleasure crafts, and marine artisans. Having served its namesake industry for more than three decades with Brown & Brown’s capabilities, Ocean Marine expects to leverage from its market position and provide compelling services with expanded capabilities.
Post acquisition, Ocean Marine will continue its operations as a branch office of Brown & Brown's ‘Flagship Group" maritime operations in Norfolk, VA.
Brown & Brown has a solid track of portfolio enhancement, having acquired more than 460 insurance intermediary operations over a little more than two decades. Its strategic buyouts are well supported by a strong liquidity position.
The Ocean Marine asset buyout is the fourth takeover by the company in the ongoing fourth quarter. Earlier this month, Brown & Brown of Connecticut, Inc., a subsidiary of the Brown & Brown bought the assets of Smith Insurance, Inc. Through the first nine months, the insurance broker acquired nine agencies with annualized revenues of about $33 million.
Brown & Brown presently carries a Zacks Rank #3 (Hold) as it is witnessing downward estimate revisions over the last 60 days. We expect these initiatives to raise optimism and prompt analysts to raise their estimates, exerting upward pressure on the Zacks Rank.
Acquisitions are a well-accepted growth strategy among insurers. Recently, Arthur J. Gallagher & Co. AJG purchased Strathearn Insurance Group Pty Ltd. In 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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