Gallagher, an international insurance brokerage and risk management business, is now set to increase M&A deal flow after it completed the acquisition of United States AssuredPartners, a large independent insurance broker.
The agreement to acquire the assets is worth about $7.5bn and is already seen as the next stage in Gallagher’s continued growth to establish itself as a major player in insurance.
The acquisition of AssuredPartners was completed earlier this year and is considered a powerful solution that allows Gallagher to strengthen its presence in the American and international markets.
Having an extensive network of clients and successful expertise in commercial insurance and employee benefits, AssuredPartners will increase value for Gallagher to provide various services for businesses and individuals.
Strategic integration of AssuredPartners in the firm makes a great deal of sense, particularly in light of the firm’s long-term growth plan, which relies on continued development of the product portfolio through both organic growth and acquisitions.
Gallagher’s management has signaled that this deal is only the beginning of a more aggressive M&A strategy in the future. The company is interested in buying more firms to expand its capabilities, especially in risk management, employee benefits, and the digital services space. With its strong balance sheet and proven ability to integrate previous acquisitions, Gallagher is well-positioned to pursue further deals and take advantage of opportunities in the fragmented insurance industry.
The reason for such a change in strategy is based on the coop success of M&A activities in the recent past.
Specifically, Gallagher has been one of the most disciplined acquisitive entities ever in the insurance broking business by engaging mainly in the acquisition of firms that reflect its values and strategic plan for the future.
This has made the company expand organically and through affiliations, making it a big and successful insurance brokerage firm in the world.
Analysts claim that the rise of M&A deals at the company is in line with a change in the insurance market where firms are integrating to improve their competitiveness and market portfolio.
Beverages, insurance, and risk management services are becoming increasingly competitive, and many firms are deploying acquisitions as a strategic means of diversifying acquisition technologies and revenue gains.
While Gallagher works on integrating AssuredPartners into its more extended operations, the company probably will keep considering other opportunities for acquisition.
With an excellent pipeline of potential targets and a strategic focus on the most promising sectors, Gallagher appears to be very well positioned not only to reinforce its place in the insurance market but also to confirm its status as a leader in this field.
