DAYTONA BEACH, Fla. - Brown & Brown, Inc. (NYSE:BRO), a prominent insurance brokerage firm, has expanded its portfolio by acquiring the assets of McNamara Company, a family-owned agency known for its comprehensive insurance solutions. The announcement was made today by J. Scott Penny, Chief Acquisitions Officer of Brown & Brown, and Patrick and Aleshia McNamara, the principals of McNamara Company.
McNamara Company, established in 1970 and headquartered in Minnesota, has serviced customers across the United States for four generations, offering insurance products for businesses, families, and individuals. With this acquisition, the McNamara team is set to join Brown & Brown's office in Phoenix, under the leadership of Scott Jones.
John Esposito, Senior Vice President of Brown & Brown's Retail segment, expressed enthusiasm about the new addition, highlighting the McNamara team's expertise in commercial and personal insurance lines, particularly for franchise owners and operators. The integration aims to enhance the service capabilities within Brown & Brown's Phoenix operations.
Patrick and Aleshia McNamara also conveyed their excitement about the merger, anticipating the opportunity to continue providing superior service and robust insurance solutions to their clientele as part of a larger organization.
Brown & Brown has been a key player in the insurance industry since 1939, offering risk management solutions with a global presence of over 16,000 employees and more than 500 locations.
This news is based on a press release statement from Brown & Brown, Inc.
In other recent news, Brown & Brown, a leading insurance brokerage firm, has been the focus of several analysts. Citi raised the company's target to $100, maintaining a 'buy' rating, citing the firm's diverse portfolio and potential for continued growth. BofA Securities upgraded Brown & Brown's stock from Underperform to Neutral, lifting the price target to $101. The adjustment follows the company's first-quarter revenue surpassing expectations.
Keefe, Bruyette & Woods increased the stock's price target to $82, based on Brown & Brown's strong financial performance in the first quarter of 2024. Jefferies also raised the price target for Brown & Brown to $84, following robust first-quarter results.
These recent developments reflect positive financial health and growth prospects for Brown & Brown. The company reported a robust financial performance in the first quarter, with revenues exceeding $1.25 billion, marking a 12.7% increase from the same quarter in the previous year. Brown & Brown's adjusted EBITDAC margin saw an impressive improvement, and its earnings per share grew significantly.
The company completed six acquisitions this quarter, indicating an active pursuit of further M&A opportunities. Despite a challenging labor market and inflationary pressures, Brown & Brown remains optimistic about its growth prospects.
InvestingPro Insights
As Brown & Brown, Inc. (NYSE:BRO) continues its strategic growth through acquisitions like McNamara Company, investors and industry onlookers are closely monitoring the firm's financial health and market position. Recent data from InvestingPro presents a snapshot of the company's current standing in the market.
With a robust market capitalization of 25.54 billion USD, Brown & Brown stands as a significant entity in the insurance brokerage sector. Its Price/Earnings (P/E) ratio, which is a key indicator of how much investors are willing to pay per dollar of earnings, is currently at 27.29. This figure slightly increases when adjusted for the last twelve months as of Q1 2024, reaching 30.52. This suggests that investors may expect higher future earnings growth, reflected in the PEG (Price/Earnings to Growth) ratio of 0.84, indicating potential undervaluation based on near-term earnings growth projections.
InvestingPro Tips highlight that Brown & Brown has raised its dividend for 31 consecutive years and maintained dividend payments for 39 consecutive years, showcasing the firm's commitment to returning value to shareholders. Additionally, the company's dividend growth over the last twelve months as of Q1 2024 is 13.04%, a testament to its financial strength and stability. Furthermore, with a year-to-date price total return of 26.31%, Brown & Brown has delivered strong performance for investors.
For readers interested in deeper analysis and additional insights, there are more InvestingPro Tips available for Brown & Brown at https://www.investing.com/pro/BRO. Take advantage of the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of financial data and expert analysis to inform your investment decisions.
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