ROLLING MEADOWS, Ill. - Arthur J. Gallagher & Co., the global insurance brokerage, has completed the acquisition of Cornerstone Commercial & Personal Insurance Services, Inc., a retail insurance agency based in Rancho Cucamonga, California. The financial terms of the deal were not disclosed.
Cornerstone has been serving both commercial and personal clients, particularly in San Bernardino and Riverside counties. Their specialization in commercial real estate, construction, and homeowners associations is expected to bolster Gallagher's operations in these sectors. The current Cornerstone team, including Phil Hakopian and Allison Hakopian, will continue to operate from their existing location, now under the supervision of Scott Firestone, who leads Gallagher's Southwest region retail property/casualty brokerage operations.
J. Patrick Gallagher, Jr., Chairman and CEO of Arthur J. Gallagher & Co., expressed his enthusiasm about the acquisition: "Cornerstone is a highly regarded agency whose expertise in the homeowners association niche will enhance our capabilities in the region."
This acquisition is part of Gallagher's ongoing expansion strategy. The company, which is headquartered in Rolling Meadows, Illinois, operates globally, offering insurance brokerage, risk management, and consulting services in approximately 130 countries.
Arthur J. Gallagher & Co. is listed on the New York Stock Exchange under the ticker NYSE:AJG. The addition of Cornerstone is anticipated to contribute to Gallagher's regional market strength, particularly in the specialized areas that Cornerstone serves.
The information in this article is based on a press release statement.
In other recent news, Arthur J. Gallagher & Co. has been actively expanding its operations. The global insurance brokerage and consulting services firm has completed the acquisition of OperationsInc, a human resources consulting company, and Crawford Insurance, a retail insurance agency. Additionally, the company has broadened its U.S. wholesale brokerage offerings with the acquisition of CCI Surety, Inc., a managing general underwriter specializing in surety bonds.
These acquisitions are part of Gallagher's strategic efforts to enhance its service offerings, with recent developments expected to bolster the company's human resources, consulting services, and insurance products. Notably, Citi has increased its price target for Arthur J. Gallagher to $294 from $280, maintaining a Buy rating. This revision follows a detailed analysis of the company's earnings potential and market conditions.
On a similar note, Argus has raised its price target for Arthur J. Gallagher shares to $270 from $264, also retaining a Buy rating. The adjustment is based on expectations of robust organic growth within the company's Brokerage and Risk Management units. These recent developments underline Arthur J. Gallagher's strategic expansion efforts and the continued confidence from financial analysts in the company's financial health and growth prospects.
InvestingPro Insights
Arthur J. Gallagher & Co. (NYSE:AJG) has been making headlines with its recent acquisition of Cornerstone Commercial & Personal Insurance Services, Inc., which is expected to complement its existing services and support its growth strategy. As investors and industry watchers evaluate the implications of this move, certain metrics and InvestingPro Tips provide a deeper insight into the company's financial health and market position.
InvestingPro Data shows that Arthur J. Gallagher & Co. has a solid market capitalization of $56.35 billion, reflecting its significant presence in the insurance industry. The company's P/E ratio stands at 51.06, which is on the higher end and suggests a premium market valuation. This is further supported by a Price / Book ratio of 4.99, indicating that the market holds the company's assets in high regard.
In terms of performance, the company has demonstrated strong revenue growth over the last twelve months as of Q1 2024, with an 18.67% increase, signaling robust business operations and potential for future expansion. This growth narrative is consistent with the company's proactive acquisition strategy, including the recent addition of Cornerstone.
InvestingPro Tips that are particularly relevant to Arthur J. Gallagher & Co. include the fact that the company has raised its dividend for 13 consecutive years and maintained dividend payments for 40 consecutive years. This consistency in rewarding shareholders is a testament to the company's financial stability and commitment to returning value. Moreover, analysts predict that the company will be profitable this year, which is an encouraging sign for potential investors.
For those interested in gaining more insights and tips on Arthur J. Gallagher & Co., there are additional InvestingPro Tips available at https://www.investing.com/pro/AJG. These can provide valuable guidance for making informed investment decisions. Don't forget to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 10 more tips listed on InvestingPro that can help you understand the company's prospects and investment potential in greater detail.
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