Arthur J. Gallagher & Co. has announced a definitive agreement to acquire AssuredPartners for a substantial $13.45 billion in cash. This strategic move is set to significantly broaden Gallagher’s presence in the U.S. middle-market property/casualty and employee benefits sectors, solidifying its position in the competitive insurance landscape.
J. Patrick Gallagher, Jr., CEO of Gallagher, expressed strong enthusiasm about the acquisition, stating, “We have long admired the impressive growth of the AssuredPartners franchise since its inception in 2011. Their entrepreneurial ethos, extensive U.S. footprint, and dedicated focus on the middle market align perfectly with Gallagher, making them an ideal partner for this merger.”
AssuredPartners, headquartered in Orlando, Florida, brings to Gallagher a team of approximately 10,900 employees operating across around 400 offices in the United States, the United Kingdom, and Ireland. The company serves a diverse clientele, including commercial organizations, public entities, and individuals. As of September 30 of the last year, AssuredPartners reported adjusted revenues of approximately $2.9 billion, demonstrating its robust market presence and financial health within the Assured Partners Insurance brokerage space.
According to Gallagher, this acquisition is expected to enhance their capabilities across several specialized practice groups, including transportation, energy, healthcare, government contracting, and public entity sectors. This expansion into niche markets will further diversify Gallagher’s service offerings and strengthen its competitive edge.
Randy Larsen, CEO of AssuredPartners, also commented on the acquisition, highlighting the mutual benefits of the deal. “Joining forces with Gallagher will combine unparalleled global resources and expert insights with our team of exceptional employees, whose expertise and commitment have been fundamental to our success,” Larsen stated. This synergy is anticipated to drive continued growth and enhanced service delivery for clients of both firms.
AssuredPartners’ strong market standing is underscored by its ranking as No. 5 in Insurance Journal‘s 2024 Top 100 Independent P/C Agencies list, based on property/casualty revenue. Furthermore, AM Best’s ranking of the world’s largest insurance brokers placed AssuredPartners at 14th globally based on its 2023 total revenue. Arthur J. Gallagher held the 3rd position on the same AM Best list, preceded by Marsh McLennan and Aon, highlighting the scale of these industry giants.
This acquisition positions Gallagher alongside Marsh McLennan and Aon in making significant investments to capture a larger share of the middle market. Notably, Aon finalized its $13 billion acquisition of middle-market P/C broker NFP in April, and Marsh McLennan completed the purchase of McGriff Insurance Services for $7.75 billion just last month. This trend indicates a clear consolidation within the insurance brokerage industry, with major players strategically expanding their reach and capabilities through acquisitions like the AssuredPartners insurance deal.
The private equity firms GTCR and Apax Partners, previous owners of AssuredPartners, had been exploring potential partnerships for a sale of the brokerage. GTCR, based in Chicago, described Gallagher’s acquisition of AssuredPartners as the “largest sale of a U.S. insurance broker to a strategic acquiror in the history of the industry,” emphasizing the magnitude and historical significance of this transaction in the assured partners insurance sector.
AssuredPartners has been actively involved in mergers and acquisitions, completing 17 transactions year-to-date as of September 30, according to OPTIS Partners, an investment banking and financial consulting firm. While their acquisition pace had slightly decreased in 2022 and 2023 compared to 32 transactions in 2021, this history of strategic acquisitions demonstrates AssuredPartners’ growth-oriented approach and market dynamism within the assured partners insurance landscape.
The Gallagher-AssuredPartners transaction is anticipated to be finalized in the first quarter of 2025, pending customary regulatory approvals. Gallagher reported that the net consideration for the deal is approximately $12.45 billion, after accounting for a deferred tax asset. The acquisition is expected to be financed through a combination of long-term debt, short-term borrowings, cash, and equity. This financial strategy reflects Gallagher’s commitment to a robust and well-structured integration of AssuredPartners insurance into its operations.
