Brown & Brown (BRO) Boosts Benefits Service With Piper Jordan
Brown & Brown, Inc. BRO has acquired substantially all Piper Jordan assets.
San Diego, CA -based Piper Jordan is an employee benefits advisory firm. It provides a wide range of services, which include benefits consulting, administration, advocacy, and communication. It looks to address the expectation of its members with its creative design strategy, market trend expertise and creation of benefits strategies.
With the acquisition, Brown & Brown will leverage the expertise of Piper Jordan in offering employee benefits advisory services. The acquisition is expected to enhance the acquirer’s benefits advisory services, cater to the needs of its customers and also enhance its product portfolio.
As far as Piper Jordan is concerned, the deal will empower the firm to enhance its capability to transform employee benefits packages in the national account space and provide them with more opportunities in the future.
Notably, the latest transaction marks the second buyout of the insurance broker in second-quarter 2021. In the first quarter of 2021, it closed two acquisitions with annual revenues of approximately $33 million. In 2020, it closed 23 transactions.
Inorganic Growth Story
Brown & Brown along with its subsidiaries pursues frequent buyouts in order to achieve top-line growth. Its revenues received a boost as a result of persistent focus on net new business growth and acquisitions.
Consistent investments and solid earnings will likely aid this Zacks Rank #2 (Buy) insurance broker in carrying out inorganic efforts. Acquisitions drive Brown & Brown’s commission and fees, which, in turn, boost revenue growth.
From 1993 through first-quarter 2021, the company acquired 563 insurance intermediary operations. It remains well-poised with its low leverage, capital structure and access to additional capital to fund its merger and acquisition activities. Moreover, consistent operational results have helped Brown & Brown to generate solid cash flows to be deployed in strategic initiatives. So far this year, it has made five acquisitions.
The stock has risen 36% in the past year compared with the industry’s growth of 31.4%. The company’s efforts to ramp up growth and capital position should continue to drive its shares.
Other Acquisitions in the Same Space
There have been a host of acquisitions in the insurance space of late, given significant capital availability. In the ongoing second quarter of 2021, Arthur J. Gallagher & Co. AJG has acquired California-based Kaneko & Krammer Corp. Marsh & McLennan Companies, Inc.’s MMC unit Marsh & McLennan Agency LLC (“MMA”) recently acquired PayneWest Insurance, one of the largest independent agencies in the United States. Alleghany Corporation’s Y wholly-owned subsidiary Alleghany Capital Corporation acquired Wilbert, Inc. (WPS).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
Brown & Brown, Inc. (BRO) : Free Stock Analysis Report
Alleghany Corporation (Y) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
