Brown & Brown's Unit To Fortify Wholesale Brokerage Services
Zacks Investment Research | Jan 17, 2019 08:15PM ET
Hull & Company, LLC, a subsidiary of Brown & Brown, Inc. (NYSE:BRO) , has entered into an agreement wherein it purchased all the assets of Izzo Insurance Services. The buyout will enable Brown & Brown to boost its workers’ compensation insurance profile and cater to its clients’ demands efficiently and effectively.
Izzo Insurance was founded by the sole shareholder Karen Izzo in 1980 and it operates as a wholesale brokerage. The company focuses on offering workers’ compensation insurance coverage options to its retail broker partners. Izzo Insurance remains committed toward ensuring that each of its clients receives top-notch services and products at the most economic value. Moreover, the acquired company makes sure that there is substantial improvement in revenues and profits for its customers, thereby leading to long-term growth for both its clients and employees.
Izzo Insurance boasts annual revenues of about $2 million and post completion of the buyout, the firm will continue to do business from its present location under the leadership of Karen Izzo. When it comes to its operations, Izzo Insurance will function as a new stand-alone location in the acquirer’s Wholesale Brokerage division with Tony Strianese at the helm.
Izzo Insurance has made a name for itself in the workers’ compensation insurance solutions space on the back of its experience and customer-centric approach. This in turn, has helped it create a long-standing relationship with its retail agent partners and carrier.
The buyout will add an impetus to Izzo Insurance’s already strong workers’ compensation profile with Brown & Brown expected to benefit from its expertise, work culture, commitment toward markets and goodwill. The high-quality service offered by the acquired company along with its exclusive security guard specialty program will add value to Brown & Brown’s service portfolio.
The latest consolidation will not only solidify the buyer’s brokerage operations but also lend a vital support to ramping up its inorganic growth profile and boosting its margin expansion. Moreover, the company is anticipated to gain traction from this takeover in terms of reinforcing its product and service offerings.
The above-mentioned inorganic ploys braced the company to fuel growth and broaden its scope of operations. Also, these strategic endeavors braced Brown & Brown to increase its commissions and fees, which in turn, contributed to revenue growth. In fact, the company projects its 2018 revenues to range between $17.5 million and $21 million while for 2019, the metric is expected to be in the $210-$220 million band.
Shares of this Zacks Rank #2 (Buy) insurance broker have gained 7.3% in a year’s time, outperforming its Original post
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.