Brown & Brown, Inc. (NYSE:BRO) , via its affiliate, Pacific Resources Benefit Advisors, LLC, closed the buyout of all the assets of Universal Benefit Solutions, L.L.C. The financial details of the deal are kept under wraps.
Universal Benefit Solutions boasts large company clients in the placement of ancillary employee benefits products. The company provides life insurance, short-term and long-term disability coverage, accident, vision and dental insurance solutions. The company employs a team of professionals with extensive experience in both the intermediary and the insurance carrier side of its business.
The acquisition of Universal Benefit Solutions is likely to enhance the company’s ability to deliver better employee benefit services across various markets. This deal will help Pacific Resources strengthen its foothold and enhance its employee benefit program administration. As a result, the company will be able to cater to more clients, who use data-driven insights to augment their advisory services.
Universal Benefit Solutions has annual revenues worth $2.5 billion. Post takeover, the assets of Universal Benefit Solutions will operate as part of the Pacific Resources profit center, which operates under the leadership of Barrett Brown, Regional President of Brown & Brown, Inc. Further, joining their capabilities with the Pacific Resources team under the leadership of Paul Barden and Paul Rogers is expected to boost the operations of both companies.
Strategic ventures have always helped Brown & Brown spread its operations. Over a span of a little more than two decades, the company has acquired more than 460 insurance intermediary operations. The company closed two acquisitions in second-quarter 2017. This marks the first buyout by the company in the ongoing quarter. A strong operational performance and solid cash flow aids Brown & Brown in generating sufficient free cash flow to be deployed in strategic initiatives and shareholder-friendly moves.
Acquisitions and divestitures are important means of creating value for companies. Arthur J. Gallagher & Co. (NYSE:AJG) recently acquired Santa Fe, New Mexico-based Reynolds & Rodar Insurance Group, Inc. to enhance its employee benefit services. Earlier in October, White Mountains Insurance Group, Ltd. (NYSE:WTM) announced that it has entered into an agreement to acquire a 50% stake in DavidShield to gain a premier spot in the accident and health insurance market. Fidelity National Financial, Inc. (NYSE:FNF) announced that its FNF Group recently acquired a majority stake in SkySlope, Inc. to utilize the best of technology to provide quality services to real estate agents and brokers.
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