Arthur J. Gallagher & Co. Acquires The Rowley Agency, LLC

Rhea-AI Summary

Arthur J. Gallagher & Co. has acquired The Rowley Agency, LLC, a retail insurance broker based in Concord, New Hampshire. The terms of the acquisition were not disclosed. The Rowley Agency provides property/casualty, surety, and employee benefits products to clients in New Hampshire, Vermont, Maine, and Massachusetts. The acquisition is expected to enhance Gallagher's capabilities in construction, manufacturing, and healthcare niches in New England.

Positive

• Acquisition of The Rowley Agency, LLC is expected to enhance Gallagher's capabilities in New England
• The Rowley Agency provides property/casualty, surety, and employee benefits products to clients in New England

Negative

• None.

Insights

Market Research Analyst

The acquisition of The Rowley Agency by Arthur J. Gallagher & Co. signals a strategic move to strengthen their market position in the New England area. This acquisition is indicative of Gallagher's targeted growth strategy, focusing on expanding regional capabilities and service offerings. By integrating The Rowley Agency's specialized knowledge in construction, manufacturing and healthcare, Gallagher is poised to enhance its competitive advantage in these sectors.

The decision to keep the acquired team in place suggests a smooth transition and continuity for clients, which is crucial in maintaining trust and minimizing disruption in client services. This move could potentially result in increased cross-selling opportunities and bolster Gallagher's client base in the Northeast region. However, the lack of disclosed terms raises questions about the financial impact of the transaction, which investors should monitor for future disclosures.

Financial Analyst

Arthur J. Gallagher & Co.'s acquisition of The Rowley Agency may have a material effect on its financials, yet the undisclosed terms leave room for speculation. Investors should consider the potential for revenue growth against the costs of integration. The acquisition could lead to economies of scale and improved margins over time, especially if Gallagher leverages The Rowley Agency's niche expertise effectively.

Historically, Gallagher's acquisitions have been accretive to earnings within the first year, which could suggest a positive outlook for this transaction. However, the actual impact will depend on the alignment of the two companies' operations and the effectiveness of the post-merger integration process. Stakeholders should look for future financial statements and earnings calls for insights into the performance of the new business unit.

Insurance Industry Expert

The insurance brokerage market is highly competitive, with firms continuously seeking to diversify their portfolios and expand their geographic footprint. Gallagher's acquisition of The Rowley Agency is a strategic move within this context, as it strengthens their presence in the New England region and adds niche expertise to their portfolio.

The integration of property/casualty, surety and employee benefits products from The Rowley Agency could provide Gallagher with a more comprehensive product suite to offer existing and potential clients. This could be particularly beneficial in the construction, manufacturing and healthcare sectors where specialized insurance products are in demand. The long-term success of this acquisition will hinge on Gallagher's ability to integrate The Rowley Agency's offerings and maintain the high level of service quality that clients expect.

ROLLING MEADOWS, Ill., Jan. 18, 2024 /PRNewswire/ -- Arthur J. Gallagher & Co. today announced the acquisition of Concord, New Hampshire-based The Rowley Agency, LLC. Terms of the transaction were not disclosed.

The Rowley Agency is a retail insurance broker providing property/casualty, surety and employee benefits products to commercial and personal lines clients primarily in New Hampshire, Vermont, Maine and Massachusetts. Dan Church, Gary Stevens and their team will remain in their current location under the direction of Brendan Gallagher, head of Gallagher's Northeast region retail property/casualty brokerage operations, and John Neumaier, head of Gallagher's East region employee benefits consulting and brokerage operations.

"The Rowley Agency's expertise in niches including construction, manufacturing and healthcare enhances our existing capabilities as we continue to expand our presence in New England," said J. Patrick Gallagher, Jr., Chairman and CEO. "I am delighted to welcome Dan, Gary and their associates to Gallagher."

Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

Investors: Ray Iardella, VP - Investor Relations	Media: Paul Day, Communications Manager
630-285-3661/ ray_iardella@ajg.com	630-285-5946/ paul_day1@ajg.com

 

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SOURCE Arthur J. Gallagher & Co.

FAQ

What company has acquired The Rowley Agency, LLC?

Arthur J. Gallagher & Co. has acquired The Rowley Agency, LLC.

Where is The Rowley Agency, LLC based?

The Rowley Agency, LLC is based in Concord, New Hampshire.

What products does The Rowley Agency, LLC provide?

The Rowley Agency, LLC provides property/casualty, surety, and employee benefits products.

In which regions does The Rowley Agency, LLC primarily serve clients?

The Rowley Agency, LLC primarily serves clients in New Hampshire, Vermont, Maine, and Massachusetts.

What is the ticker symbol for Arthur J. Gallagher & Co.?

The ticker symbol for Arthur J. Gallagher & Co. is AJG.

Who will remain in their current location after the acquisition?

Dan Church, Gary Stevens, and their team will remain in their current location under the direction of Brendan Gallagher and John Neumaier.