Brown & Brown (BRO) Boosts Ohio Presence With Berry Insurance
Brown & Brown, Inc. BRO subsidiary, Brown & Brown of Ohio, LLC has acquired substantially all Berry Insurance Group assets.
Terrace Park, OH-based Berry Insurance Group was founded in 2002. It offers clients with commercial and personal lines, surety, life, health, and benefits products. It is one of the most prominent insurance brokerage agencies in Ohio that furnishes commercial and personal insurance products for business and individual customers throughout the Cincinnati tri-state area.
With this acquisition, Brown & Brown will leverage the expertise of Berry Insurance Group in offering insurance solutions. The acquisition is expected to enhance and boost the acquirer’s retail presence in Ohio and its neighbouring regions.
With this buyout, members of Berry Insurance Group will get the opportunity to better serve risk management needs of customers and expand its footprint in the Ohio market.
Notably, this latest transaction marks the second buyout of the insurance broker in first-quarter 2021. 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 have got 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 third-quarter 2020, the company acquired 552 insurance intermediary operations. It remains well positioned with its capital structure and has been able to access sufficient capital via $1.1-billion available cash to fund growth. Moreover, consistent operational results have helped Brown & Brown to generate solid cash flows to be deployed in strategic initiatives.
The stock has risen 17.3% in the past year, outperforming the industry’s growth of 1.2%. The company’s efforts to ramp up growth and capital position should continue to drive shares.
Other Acquisitions in the Same Space
There has been a host of acquisitions in the insurance space of late, given significant capital availability. Recently, Arthur J. Gallagher & Co. AJG closed the buyout of Jacksonville, FL-based Harden & Associates, Inc. to boost its healthcare and real estate practices in the Southeast. Assurant AIZ acquired EPG Insurance to consolidate its presence in the automotive service contract space. Marsh & McLennan Companies, Inc.’s MMC unit, Marsh & McLennan Agency LLC (MMA) recently acquired an independent agency, INSPRO, in Nebraska.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
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
Assurant, Inc. (AIZ) : Free Stock Analysis Report
Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
Brown & Brown, Inc. (BRO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
