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Arthur J. Gallagher Adds Franklin-Case Agency to Portfolio

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Arthur J. Gallagher & Co. (AJG - Free Report) has recently acquired Flemington-based Franklin-Case Agency, LLC. The financial details of the transaction, however, remain under wraps.

Franklin-Case Agency is a property and casualty insurer that offers an array of commercial and personal services in New Jersey and New York. The company offers commercial insurance services to national transportation companies, entertainment promoters, large contractors and main street operators. The company also writes personal business insurance providing homeowners, auto and umbrella coverage. Its in-depth expertise in risk management and transportation business will be highly accretive to the acquirer’s portfolio.

Post takeover, the acquired company will resettle in Arthur J. Gallagher's Whippany office in New Jersey. It will continue to operate under the leadership of Daniel Tropp, head of Mid-Atlantic retail property and casualty brokerage operations of Arthur J. Gallagher.

Notably, the Zacks Rank #3 (Hold) insurance broker has always resorted to strategic acquisitions to add more potential to its portfolio. The company’s inorganic story seems impressive with strategic buyouts. This marks the ninth acquisition by the company in the ongoing quarter.

Arthur J. Gallagher’s merger and acquisition pipeline remains strong with about $250 million of revenues, which has been fueling its top-line growth. Last quarter, the company closed nine acquisitions with annualized revenues of more than $30.3 million. A solid capital position continues to drive Arthur J. Gallagher to pursue strategic initiatives.

Share Price Movement

Shares of Arthur J. Gallagherhave outperformed the industry year to date. While Arthur J. Gallagher’s shares have returned 15.6%, the industry has grown 8.8%. We expect the company’s diversified product offerings and strategic acquisitions to further drive its shares.

 

Stocks to Consider

Some better-ranked stocks from the insurance industry are Atlas Financial Holdings, Inc , Markel Corporation (MKL - Free Report) and Mercury General Corporation (MCY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Atlas Financial Holdings engages in underwriting commercial automobile insurance policies in the United States. The company delivered a positive earnings surprise in two of the last four quarters, with the average beat being 57.94%

Markel Corporation markets and underwrites specialty insurance products in the United States and internationally. The company delivered a positive earnings surprise in two of the last four quarters, with the average beat being 21.06%

Mercury General Corporation engages in writing personal automobile insurance in the United States. The company beat estimates in three of the trailing four quarters, with an average positive earnings surprise of 1.06%.

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