ROLLING MEADOWS, Ill. - Arthur J. Gallagher & Co., the global insurance brokerage and risk management services firm, has expanded its footprint with the acquisition of Filos Agency, Inc., a retail property/casualty insurance agency based in Long Beach, New York. The terms of the transaction, announced today, have not been disclosed.
Filos Agency has been serving businesses and individuals in the New York area, building a reputation for client service within local communities. Post-acquisition, the Filos Agency team, led by Thomas Costantakos, will continue to operate from their current Long Beach location. They will become part of the Gallagher Agency Alliance, under the leadership of Jen Tadin, who oversees Gallagher Select, a division focused on U.S. property/casualty operations for small businesses.
J. Patrick Gallagher, Jr., Chairman and CEO of Arthur J. Gallagher & Co., expressed his enthusiasm for the acquisition, stating, "Filos Agency's strong reputation for client service in its local communities will be an excellent complement to our existing small business capabilities." He welcomed Tom Costantakos and his associates to the company.
The Gallagher Agency Alliance operates as a merger and acquisitions model, partnering with agencies that focus on small business property/casualty insurance and employee benefits. Arthur J. Gallagher & Co., listed on the New York Stock Exchange under the ticker NYSE:AJG, is headquartered in Rolling Meadows, Illinois, and offers its services globally across approximately 130 countries through owned operations and a network of correspondent brokers and consultants.
This expansion is a strategic move by Arthur J. Gallagher & Co. to enhance their service offerings and client base in the New York region. The information regarding this acquisition is based on a press release statement from Arthur J. Gallagher & Co.
In other recent news, Arthur J. Gallagher & Co. has reported a robust third-quarter financial performance for 2024, with a 13% increase in revenue across its Brokerage and Risk Management segments, and a significant year-over-year growth in earnings per share. The company's performance has been strong in both U.S. and international operations, particularly in Australia and New Zealand, and it projects continued organic growth and margin expansion for the upcoming quarters. Despite some challenges like a miss in the Risk Management segment's revenue bonus and unrealized foreign exchange expenses, Arthur J. Gallagher & Co. maintains a positive outlook with a strong pipeline for mergers and acquisitions. The company has approximately $1.2 billion in cash available for M&A activities. According to recent analyst notes, the company's Brokerage segment is expected to achieve 6% to 8% organic growth in 2025, and the Risk Management segment is projected to have 7% organic growth for Q4 2024.
InvestingPro Insights
Arthur J. Gallagher & Co.'s acquisition of Filos Agency aligns with the company's strong financial performance and growth strategy. According to InvestingPro data, AJG has maintained dividend payments for an impressive 40 consecutive years, demonstrating its commitment to shareholder returns. This track record of consistent dividends may appeal to investors seeking stable income streams in the insurance sector.
Moreover, an InvestingPro Tip reveals that AJG has raised its dividend for 14 consecutive years, further underlining the company's financial strength and ability to generate consistent cash flows. This consistent dividend growth could be particularly attractive to income-focused investors and may reflect management's confidence in the company's future prospects, including the potential benefits from acquisitions like Filos Agency.
Another relevant InvestingPro Tip indicates that net income is expected to grow this year. This projected income growth could be partly attributed to strategic acquisitions such as Filos Agency, which are likely to contribute to AJG's revenue and profit expansion.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 11 more tips available for Arthur J. Gallagher & Co. These tips could provide valuable context for understanding the company's financial position and growth potential in light of its recent acquisition activity.
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