Arthur J. Gallagher has announced its acquisition of AssuredPartners in a deal valued at $13.45bn.
This strategic move is aimed at reinforcing Gallagher’s position within the middle-market insurance segment, which caters to businesses with annual revenues between $10m and $1bn, according to InsurTech Insights.
This acquisition aligns with Gallagher’s long-term growth strategy, expanding its reach in this key market sector.
Arthur J. Gallagher & Co. is a global leader in insurance brokerage and risk management. It provides a range of services including employee benefits, property and casualty insurance, and consulting.
Gallagher serves a diverse client base, ranging from large corporations to small and medium-sized businesses across various sectors.
AssuredPartners, established in 2011, is a prominent player in the middle-market insurance space.
The company offers tailored insurance solutions to mid-sized businesses, with services spanning across property and casualty, employee benefits, and more. Its expertise has made it a trusted partner for many companies seeking comprehensive insurance solutions.
This acquisition is part of a broader trend in the insurance industry, as competitors like Aon PLC and Marsh & McLennan Cos. Inc. have made similar strategic investments to grow their foothold in the middle-market.
The acquisition is expected to close by the first quarter of 2025, with Gallagher forecasting a significant boost to its adjusted profit following the completion of the deal. To finance the acquisition, Gallagher plans to use a combination of cash, debt, and an $8.5bn stock offering that was recently announced.
The acquisition is a significant step for Arthur J. Gallagher in its pursuit of expansion within the lucrative middle-market insurance segment.
This move is expected to increase Gallagher’s influence in the sector, helping the company better compete with industry leaders. Gallagher’s strategic focus on this market is reflected in the growing trend of consolidations in the insurance industry.
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