A better-ranked stock in the insurance space is Aspen Insurance Holdings Ltd. (NYSE:MMC) announced that it intends to purchase the pension wind-up operations of PricewaterhouseCoopers (PwC) in Canada in August, 2013.īrown & Brown presently caries a Zacks Rank #4 (Sell). Mercer, the consulting wing of Marsh & McLennan Companies Inc. (NYSE:AJG), which acquired Rock Island-based Cleaveland Insurance Group, for an undisclosed amount. Earlier this month, Brown & Brown acquired certain assets of ICA, Inc.Īmong others adopting the inorganic route is Arthur J. Wright Flood takes pride in user-friendly technology, exceptional claims. Prior to that, in Jul 2013, the company had acquired insurance and risk management broker Beecher Carlson Holdings Inc. Wright National Flood Insurance Company, the largest flood insurance provider in the nation and a wholly owned subsidiary of Brown & Brown, Inc., offers federal, excess and private flood insurance with leading industry expertise, rated A- (Excellent) by A.M. and Preserve Extended Protection Plan Inc. In Dec 2013, Brown & Brown of Kentucky Inc., a subsidiary of Brown & Brown, had agreed to acquire selected assets of O'Neil Financial Services, Agency Services Consolidated Inc. The acquisition at Brown & Brown was primarily supported by its strong cash position, which in turn, is owing to its continued solid operational performance across all four business divisions.īrown & Brown is consistently treading the inorganic route to ramp up its growth profile. The bottom line of Wright is also expected to benefit significantly from this merger.
This translates into a year-over-year improvement over adjusted net revenue of $113.7 million in 2013. Wright is expected to generate net revenues of $121 million for the first twelve months of operation post the closing of the deal. The deal will also give Brown & Brown strong growth opportunities banking on Wright’s market expertise and its solid infrastructure and relationships with clients.įurthermore, the transaction is expected to yield $108 million in future tax benefits for Brown & Brown. The acquisition will enable Brown & Brown to be a part of the national flood insurance program (:NFIP) and serve as a premier service provider to the government sponsored insurance programs, and to proprietary national and regional programs.Īdditionally, the partnership will enrich Brown & Brown’s risk management product portfolio and also provide it with an expanded client base. The purchase consideration comprises $587.5 million of cash payments for the programs business, $7.5 million for Wright National Flood Insurance Company (:WNFIC) and another $7.5 million for WNFIC statutory surplus.įollowing the acquisition, Wright will continue to operate from its existing offices and all its operations will be part of the National Program Division of Brown & Brown. Brown & Brown expects the entire transaction to close by Apr 2014.įounded in 1978, Wright operates as a fee-based private specialty insurance company that administers and underwrites property and casualty risks through three distinct segments. (NYSE:BRO) recently announced a merger agreement to acquire The Wright Insurance Group, LLC (Wright) for a total net consideration of $602.5 million.
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