Arthur J. Gallagher Boosts Its Services With McNeary Buyout

Arthur J. Gallagher & Co. (NYSE:AJG) announced the acquisition of McNeary, Inc. for an undisclosed amount. The deal will complement the acquirer’s Southeastern property/casualty (P&C) and employee benefits operations.

Charlotte, NC-basedMcNeary was founded in 1956. The company is a retail insurance broker that provides services like commercial P&C insurance, risk management services, and employee benefits insurance and consulting services to clients across Eastern United States. The company is an expert in insurance and consulting services for hospitals and the healthcare industry.

McNeary boasts strong market presence and industry expertise. The company is also renowned for its commendable industry associations and team-focused culture. Hence, theMcNearybuyout will substantially bolster Arthur J. Gallagher’s Southeastern operations with its depth of expertise and high-quality client services. Post acquisition, McNeary will continue to operate from its current location.

This deal marks the seventh takeover by Arthur J. Gallagher in second-quarter 2016. The company recently acquired Hogan Insurance Services Inc. which provides retail insurance brokerage services and specializes in workers compensation insurance. Notably, Arthur J. Gallagher completed 11 acquisitions in the second quarter of last year with annualized revenues of over $82 million.

Arthur J. Gallagher, which currently carries a Zacks Rank #3 (Hold), is well known for strengthening its profile through frequent acquisitions in the brokerage space, fueling revenue growth. Revenues in the Brokerage segment soared 12% year over year in the first quarter of 2016.

Some better-ranked stocks in the insurance sector are Alleghany Corp (NYSE:Y) and NMI Holdings Inc. (NASDAQ:NMIH) with a Zacks Rank #1 (Strong Buy) and Hannover Rueckversicherung AG (OTC:HVRRY) with a Zacks Rank #2 (Buy).