Associated Banc-Corp’s ASB subsidiary, Associated Benefits and Risk Consulting (“ABRC”) has closed yet another acquisition deal. It completed the buyout of Anderson Insurance & Investment Agency, Inc., a Minneapolis-based independent insurance agency. The financial terms of the transaction, announced in May 2018, were not disclosed.
Being a multi-line insurance consulting firm with more than 400 employees, ABRC is among the top 45 insurance brokerage firm in the United States. It provides employee benefits, retirement plans, compliance, business insurance, risk management and individual insurance solutions.
Having similar business lines, the acquisition of Anderson Insurance will add a range of complementary services to ABRC. This deal, along with the acquisition of Diversified Insurance Solutions in March, will further strengthen ABRC’s financials in the upcoming quarters.
As part of the transaction, some of the key executives of Anderson Insurance will remain in their leadership roles and support business expansion.
Dean Hildebrandt, CEO of ABRC, said, “These two strong teams will together provide customers with even more options and resources in financial and risk management services to ensure their businesses are as strong and successful as possible.”
Of late, Associated Banc-Corp has been on an acquisition spree, given its strong liquidity position. Other than further boosting its insurance operation through inorganic growth efforts, the company has acquired Bank Mutual Corporation and Whitnell & Co. These are expected to be accretive to the company’s earnings in the quarters ahead.
Driven by these initiatives, analysts seem to be bullish on the stock as evident from the steady upward estimate revisions for 2018 and 2019. Also, shares of Associated Banc-Corp have gained 10.3% in the past six months, outperforming 8.2% growth for the industry it belongs to.
Currently, Associated Banc-Corp sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other stocks from the same space worth a look are Civista Bancshares, Inc. CIVB, Commerce Bancshares, Inc. CBSH and UMB Financial Corporation UMBF.
Civista Bancshares’s current-year earnings estimates have moved 8.8% upward over the last 60 days. Its share price has increased 6.1% in the past six months. The stock sports a Zacks Rank #1.
Also sporting a Zacks Rank #1, Commerce Bancshares’ 2018 earnings estimates have been revised 7.1% upward over the past 60 days. Its shares have gained 15.7% in the past six months.
Over the last 60 days, UMB Financial witnessed an upward earnings estimate revision of 5.8% for the current year. Its share price has increased 3.6% in the past six months. The stock carries a Zacks Rank #2 (Buy).
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