Arthur J. Gallagher: Acquisitions create a dominant force in commercial insurance broking

Gallagher is now the fifth largest in the UK in terms of brokerage, marking a distinct change in the industry hierarchy. The group has attained much of its success from the businesses it has bought and has been able to access a new variety of products and markets. Having made significant investments in the UK and the Southern hemisphere, Gallagher has become a major force in commercial insurance.

Scope

Understand Gallagher's recent acquisitions and the rationale behind them.

Learn about how Gallagher's recent acquisitions are helping to drive the business up the global brokerage rankings.

Analyze the potential issues associated with an aggressive M&A strategy and look at how Gallagher is combating them.

Assess Gallagher's future prospects.

Reasons to buy

Who has Arthur J. Gallagher bought and why?

How are these acquisitions helping to drive growth?

What changes is Gallagher making to maximize the benefit of its acquisition spree?

What might the future hold for the company?

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Table of Contents

OVERVIEW

Catalyst

Summary

AGGRESSIVE ACQUISITION STRATEGY DRIVES GROWTH

The firm is now a market-leading broker in terms of growth

Acquisitions have helped the firm progress up the broker rankings into the top five

Gallagher’s first acquisition transformed the firm into a top 10 broker

Barbon’s commercial property interests enticed Gallagher into another acquisition

Independent broker Giles marked the company’s third major purchase

The acquisition of Wesfarmers saw Gallagher venture into the Southern hemisphere

Gallagher cemented its position as a major broker with the acquisition of The Oval Group

STRATEGY & MANAGEMENT CHANGES MAXIMIZE ACQUISITION BENEFITS

A select few brokers dominate the market as Gallagher joins the ranks

Gallagher intends to become a global force within insurance broking

Changes at the top have seen Gallagher realign its business objectives and priorities

STRONG PROSPECTS BUT CHALLNEGES REMAIN

Rationalizing a wide geographic coverage and ensuring quality of service is maintained

Corporate and customer relationships must be serviced and maintained

The aligning of all administrative features is also vital to the success of the acquisitions

Sharing product expertise will provide benefits to other corporate clients

Gallagher must direct its efforts towards business integration

Acquisitions are seemingly the only way for brokers to significantly grow revenues

More spending is an option once the new purchases have been integrated

CONCLUSIONS

Successful integration crucial, if achieved may lead to more acquisitions

APPENDIX

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