Arthur J. Gallagher Completes Historic Acquisition of AssuredPartners
Industry Impact and Growth Opportunities Explained
Hey everyone, welcome back to the channel! Today, we’re diving into some major news in the insurance industry—Arthur J. Gallagher & Co. has officially closed its acquisition of AssuredPartners, one of the biggest deals in this space.
So, what does this mean? Gallagher, a huge insurance broker based in the U.S., announced last December that it was acquiring AssuredPartners, which is headquartered in Orlando, Florida. The deal was valued at a whopping $13.45 billion in cash. But after accounting for a deferred tax asset, the net consideration comes to about $12.45 billion. With this acquisition, AssuredPartners’ 10,900 employees will now be joining the Gallagher team.
Originally, Gallagher and AssuredPartners had hoped to wrap things up in the first quarter of 2025. However, in March, Gallagher received a second information request from the Federal Trade Commission, or FTC. This kind of request is pretty common in big transactions, as part of the Hart-Scott-Rodino review process to make sure there aren’t any issues with competition. Because of this, the review period was extended.
Before this deal, AssuredPartners was owned by private equity firms GTCR and Apax Partners. In fact, the search for a full or partial sale had been going on for several months. Chicago-based GTCR called Gallagher’s acquisition “the largest sale of a U.S. insurance broker to a strategic acquirer in the history of the industry.”
Gallagher’s Chairman and CEO, Patrick Gallagher, Jr., welcomed all the new team members from AssuredPartners and talked about how the company plans to build on both organizations’ entrepreneurial cultures. He mentioned combining expertise, data, innovative tools, great service, and a broad range of insurance products to provide the best risk management solutions for clients.
This deal isn’t just about numbers—it’s also about expanding what Gallagher can do. The company is looking to boost its capabilities in sectors like transportation, energy, healthcare, government contractors, and public entities. Plus, it creates new opportunities in wholesale, reinsurance, and claims management. The acquisition also brings in talented professionals from the UK and Ireland.
Let’s look at some stats for AssuredPartners. Their adjusted revenue for the year ending September 30 was about $2.9 billion. According to Insurance Journal’s 2024 Top 100 Independent Property/Casualty Agencies list, AssuredPartners ranked number 5 based on P/C revenue, and AM Best ranked them 14th in the world’s biggest insurance brokers for 2023 total revenue. Gallagher, meanwhile, was third, right behind Marsh McLennan and Aon.
Speaking of big deals, Gallagher isn’t alone. Marsh McLennan and Aon have also made major moves in the middle market recently. In April 2024, Aon completed a $13 billion acquisition of NFP, a middle-market P/C broker. In November 2024, Marsh McLennan bought McGriff Insurance Services for $7.75 billion. And just this June, Brown & Brown Inc. agreed to buy Accession Risk Management, which includes specialty broker Risk Strategies and wholesaler One80 Intermediaries, for about $9.8 billion.
AssuredPartners has been a key player in the mergers and acquisitions game over the past few years. Most recently, they did 17 transactions by September 30 this year. Their pace was a bit slower in 2022 and 2023, after a busy run with 32 deals in 2021.
This acquisition is a real milestone for the insurance industry, and it’s going to be exciting to see how Gallagher and AssuredPartners grow together. Stay tuned for more updates, and don’t forget to subscribe for the latest in business news!
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