In what can solely be referred to as the most important ever dealer acquisition within the insurance coverage business, Arthur J. Gallagher has signed a definitive settlement to accumulate AssurePartners in an all-cash deal valued at $13.45 billion. Whereas the transaction remains to be topic to customary regulatory approvals, it’s anticipated to shut in the course of the first half of 2025.
“Once we began AssuredPartners, I may by no means have imagined how far we might come. What began as a small workforce with a giant imaginative and prescient has grown into a unprecedented group, constructed on a basis devoted to our shoppers, our tradition, and our individuals,” mentioned Jim Henderson, Chairman of AssuredPartners. “I’ve watched the Gallagher tradition thrive all through my profession. With Gallagher’s mutual shopper first mindset and underlying entrepreneurial spirit, I consider our staff, our shoppers, and our buying and selling companions will likely be nicely served by placing these two superb firms collectively.”
“We’ve got held in excessive regard the fast-growing AssuredPartners franchise since its founding in 2011. AssuredPartners’ entrepreneurial spirit, broad U.S. footprint and middle-market focus make them a perfect merger companion for Gallagher. By additional leveraging our deep business verticals, investments in information and analytics, entry to specialty merchandise, our frequent techniques and standardized service mannequin, collectively we are able to present much more worth to shoppers and additional place Gallagher for future development,” mentioned J. Patrick Gallagher, Jr., Chairman and CEO. “I stay up for welcoming the ten,900 AssuredPartners colleagues to our rising Gallagher household of pros.”
13 years of development
Headquartered in Orlando, Florida, AssuredPartners was based 13 years in the past as a GTCR Leaders Technique™ partnership with 40-year insurance coverage business veteran Jim Henderson. The Leaders Technique™ is an initiative began by the worldwide personal fairness agency GTCR, to speculate administration leaders in “…in core domains to determine, purchase and construct market-leading firms by means of natural development and strategic acquisitions.”
Since then, AssuredPartners, has grown into the 11th largest insurance coverage dealer within the U.S, with a workforce of 10,900 and places of work all through the U.S. and the U.Ok. One of many major components of its explosive development is thru its strategic acquisitions, with the corporate having acquired over 500 companies since its inception. In Massachusetts, the
“Our collaboration with Jim, Randy and the workforce at AssuredPartners is a quintessential Leaders Technique™ partnership, constructing an excellent enterprise alongside a world-class govt workforce,” mentioned Aaron Cohen, Managing Director and Head of Monetary Companies & Expertise at GTCR. “Once we fashioned the partnership, the aim was to construct a client-first tradition at Assured, supported by a centralized greatest follow strategy to know-how, go-to-market and powerful provider relationships. Jim, Randy and your entire AssuredPartners workforce executed the thesis brilliantly, which is what has made the enterprise so profitable. We consider that Gallagher, with its robust service-oriented values, complementary enterprise and geographic footprint, is the best house for AssuredPartners to proceed on its path to broaden its suite of options and additional enhance shopper service.”
What this deal means for Gallagher
With the addition of AssuredPartners, Gallagher has catapulted itself to one of many main brokerage companies on the earth.
In response to the corporate, among the many many advantages of the acquisition are anticipated to incorporate:
- Financially engaging, with estimated double digit adjusted EPS accretion together with the influence of synergies
- Additional increasing Gallagher’s retail middle-market property/casualty and worker advantages focus throughout the U.S.
- Constructing on new enterprise alternatives by leveraging Gallagher’s experience, information and analytics and expansive product choices
- Deepening Gallagher’s capabilities throughout a number of area of interest follow teams, together with Transportation, Power, Healthcare, Authorities Contractors and Public Entity
- Increasing the attain of Gallagher’s tuck-in M&A method
- Creating alternatives for Gallagher’s wholesale, reinsurance and claims administration companies
- Including scale, experience and expertise to Gallagher within the U.Ok. and Eire
- Combining two extremely appropriate entrepreneurial, sales-based cultures, embedded in native communities and centered on development and shopper service
- Including extremely seasoned, skilled and confirmed insurance coverage business leaders to the Gallagher workforce
AssuredPartners’ Presence in Massachusetts
AssuredPartner has a longtime presence in Massachusetts. In 2020, the brokerage agency made two main acquisitions with the acquisition of the 126 year-old WTPhelan & Co. Insurance Agency adopted by its acquisition of People United Insurance Agency, a subsidiary of Individuals’s United Financial institution. In 2021, it introduced three additional acquisitions: Fessenden & Sykes, The Joseph A. Glynn Insurance Agency, and the Lehrer & Madden Insurance Agency. In 2022, it introduced its acquisition of the 150-year previous Fred C. Church Insurance Agency. AssuredPartners most up-to-date acquisition in Massachusetts was in October 2024 with its buy of the Halstead Insurance Agency.
As for Gallagher it acquired one in all Massachusetts largest unbiased insurance coverage businesses, Eastern Insurance, in 2023.
