ROLLING MEADOWS, Ill. - Arthur J. Gallagher & Co., the global insurance brokerage and consulting services firm, has acquired Health Insurance Consultants Australia (HICA), a specialist health insurance consultancy and brokerage serving various clients in Australia. The acquisition was announced today, with the terms of the transaction remaining undisclosed.
HICA, based in Melbourne, Victoria, has been providing its services to corporate clients, small and medium-sized businesses, professional groups, and associations for over 30 years. With this acquisition, the HICA team, including founder Suzanne Still and Jethro Still, will continue to operate from their current location. They will now report to Graham Campbell, who leads Gallagher's employee benefits and HR consulting operations in Australia.
J. Patrick Gallagher, Jr., Chairman and CEO of Arthur J. Gallagher & Co., expressed his enthusiasm for the acquisition, stating, "HICA has a strong record of growth and will enhance our benefits consulting capabilities in Australia." He also extended a warm welcome to the HICA team as part of Gallagher's expanding global presence.
Arthur J. Gallagher & Co. (NYSE:AJG), headquartered in Rolling Meadows, Illinois, operates in approximately 130 countries worldwide. The firm is known for offering a wide range of insurance brokerage, risk management, and consulting services through its owned operations and network of correspondent brokers and consultants.
This strategic move by Arthur J. Gallagher & Co. signifies a further strengthening of their international operations, particularly in the Australian market. It's based on a press release statement and the details of the transaction have not been made public.
InvestingPro Insights
Arthur J. Gallagher & Co.'s (NYSE:AJG) latest acquisition of Health Insurance Consultants Australia (HICA) aligns with the company's impressive track record of growth and its commitment to expanding its global footprint, particularly in the Australian market. As investors consider the potential impact of this strategic move, it's important to look at AJG's financial health and market performance to understand the broader context.
According to InvestingPro data, Arthur J. Gallagher & Co. boasts a market capitalization of 52.16 billion USD, underscoring its significant size and influence in the insurance brokerage sector. The company's Price/Earnings (P/E) ratio currently stands at a high 47.34, but when adjusted for the last twelve months as of Q1 2024, it presents a more favorable figure of 29.17. This adjustment reflects the company's earnings growth and investors' willingness to pay a premium for its shares based on future earnings expectations.
InvestingPro Tips highlight that Arthur J. Gallagher & Co. has raised its dividend for an impressive 13 consecutive years, demonstrating its commitment to returning value to shareholders. Additionally, the company is expected to maintain profitability this year, as indicated by analysts' predictions. This financial stability is also reflected in the company's revenue growth of 18.67% over the last twelve months as of Q1 2024, suggesting a robust business model capable of generating increased sales.
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