Arthur J. Gallagher Buys California-Based Abram Interstate
Zacks Investment Research | Jun 13, 2019 09:32PM ET
Arthur J. Gallagher & Co. (NYSE:AJG) recently acquired Abram Interstate Insurance Services, Inc. The terms of the transaction have not been revealed.
Rocklin, CA-based Abram Interstate Insurance is a property/casualty managing general agency that offers a full range of commercial, agri-business and personal insurance products. The company caters to retail agents and their customers largely across California. The acquisition is a strategic fit as it will help Arthur J. Gallagher consolidate its presence in California, enhance product portfolio and capitalize on the growth opportunities there.
Arthur J. Gallagher is one of the top five global brokers, having a presence in the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand and the United Kingdom. Since 2002 through 2018, the company closed 507 buyouts that helped it expand its global presence as well as grow its revenues and profits.
Also, Arthur J. Gallagher closed 11 brokerage acquisitions in the first quarter of 2019 that should add about $71.2 million of annualized revenues. So far this quarter, the Zacks Rank #3 (Hold) insurance broker has already made 11 acquisitions. In the second quarter of 2018, the company had acquired 12 companies with $145.2 million of annualized revenues. Given its solid capital position, the company is well poised to pursue more strategic buyouts.
The company remains focused on its long-term growth strategies of delivering organic revenue growth and pursuing strategic mergers and acquisition. It is also focused on productivity improvements and quality enhancements that should help it post sturdy numbers in the future.
Shares of Arthur J. Gallagher have gained 11.6% quarter to date, outperforming the .
eHealth provides private health insurance exchange services to individuals, families, and small businesses in the United States and China. The company delivered positive earnings surprise of 512.20% in the last reported quarter.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.