Brown & Brown (BRO) Unit Buys Assets Of C & C Risk Services
Zacks Investment Research | Jun 18, 2018 11:04PM ET
Brown & Brown, Inc.’s (NYSE:BRO) unit recently purchased essentially all the assets of C & C Risk Services, LLC. With this buyout, the company expects to boost its brokerage operations as well as fortify its footprint in Texas and Florida.
Established in 2013, C & C Risk Services operates as a managing general agent offering excess public entity insurance coverage to municipalities in Texas and Florida plus boasts generating annual revenues of about $1 million. On completion of this transaction, C & C Risk Services will be part of Brown & Brown’s Wholesale Brokerage Division operating across Texas and Florida locations.
The acquisition is anticipated to help improve the insurance broker’s services in the public entity insurance market through C & C Risk Services’ in-depth expertise in the same. Apart from expanding its base in Texas and Florida, the insurance broker expects the transaction to add some substantial value to its service portfolio.
Moreover, the consolidation is likely to enhance the acquirer’s service offering at Wholesale Brokerage business, dealing in excess and surplus commercial as well as personal lines insurance.
On May 14, 2018, the insurance broker’s arm, Brown & Brown of Kentucky, Inc., bought almost all the assets of Automotive Development Group, LLC. The integration will not only enable Brown & Brown to boost its presence but also propel growth in the auto warranty and Finance and Insurance (F&I) training domain.
Therefore, strategic buyouts and mergers have always aided Brown & Brown to fuel growth as well as spread its operations. Also, these tactical moves assisted Brown & Brown to increase its commissions and fees, which in turn drove revenue growth.
Zacks Rank and Share Price Movement
Brown & Brown currently holds a Zacks Rank #2 (Buy). Shares of the company have gained 10.4% year to date, outperforming the Zacks Investment Research
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