Brown & Brown Closes Special Risk Insurance Managers Buyout
Zacks Investment Research | Jan 08, 2020 09:40PM ET
Brown & Brown, Inc. (NYSE:BRO) concluded the acquisition of Special Risk Insurance Managers, Ltd.
Established in199, Special Risk is an incorporated Managing General Agent (MGA), providing innovative insurance products and programs that meet the needs of specialty insurance product market in Canada. As an MGA, Special Risk Insurance Managers has entered into contracts with a number of the world's largest insurers. The company provides quotes, issues policies and manages claims. It also provides products that best suit client needs and at best prices. Special Risk offers a complete selection of insurance coverage for all aspects of diverse activities.
The addition of Special Risk to Brown & Brown’s portfolio is a strategic step forward for the acquirer, enabling it to boost its presence in the insurance brokerage market in Canada.
Also, the combination will provide Special Risk with major insurer opportunities, enhanced Lloyd’s relationships and innovative products for retail brokers.
Brown & Brown maintains a disciplined focus on acquiring companies that are strategic fits. This Zacks Rank #2 (Buy) insurer closed 18 transactions through the third quarter of 2019 with annualized revenues of $86 million. Mergers and acquisitions are central to its growth strategy, as demonstrated by the more than 500 agency acquisitions so far. It remains focused on making investments to drive organic growth and margin expansion.
Recently, there have been a number of acquisitions in the insurance industry, given the significant capital available. Arthur J. Gallagher & Co. (NYSE:AJG) acquired Huntington, NY-based Walsdorf Agency, Inc.
Shares of Brown & Brown have gained 43.2% in a year’s time, outperforming the Original post
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