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Competitor Profile: Arthur J. Gallagher

Competitor Profile: Arthur J. Gallagher

Summary

The past few years have been momentous for commercial insurance broker Arthur J. Gallagher, which, after purchasing several smaller broker firms, has seen its revenues increase significantly. Gallagher now has a brokerage of £603.5m – a substantial increase on the £347.6m generated in the previous year (2013).

Synopsis

  • An in-depth analysis of Arthur J. Gallagher and the operations that have helped the firm substantially improve its revenues.
  • Discover how Gallagher plans to develop operations and business practices in its post-acquisition phase.
Reasons To Buy
  • What is the value of Arthur J. Gallagher's brokerage now after making several major acquisitions?
  • Which firms did Gallagher buy?
  • Are acquisitions the only way for commercial insurance brokers to substantially improve revenues?
  • What will happen in Gallagher's post-acquisition phase?
  • Is business integration next on the agenda for Gallagher?
Key Highlights

2014 saw one of the biggest changes to the broker hierarchy for several years. While there have been some movements within the ranks of the top five brokers since the turn of the millennium, the hierarchy has remained largely unchanged.

Gallagher's company acquisitions, coupled with organic growth, have added £256m to its brokerage and resulted in the firm quickly rising up the IMAS UK broker rankings.


  • Executive Summary
    • Arthur J. Gallagher has upset the commercial insurance broker pecking order
    • Key findings
  • Acquisition Strategy
    • Gallagher has followed an aggressive acquisition strategy
      • The firm is now a market-leading broker in terms of growth
      • Acquisitions have helped the firm progress up the broker rankings into the top five
      • Gallagher's first acquisition transformed the firm into a top 10 broker
      • Barbon's commercial property interests enticed Gallagher into another acquisition
      • Independent broker Giles marked the company's third major purchase
      • The acquisition of Wesfarmers saw Gallagher venture into the Southern hemisphere
      • Gallagher cemented its position as a major broker with the acquisition of The Oval Group
  • Strategy and Management
    • A global broker with a significant share of the commercial insurance market
      • A select few brokers dominate the market as Gallagher joins the ranks
      • Gallagher intends to become a global force within insurance broking
        • Table Top five brokers by brokerage (2014) and 2013 ranking
      • Changes at the top have seen Gallagher realign its business objectives and priorities
  • Prospects and Future Opportunities
    • The challenges Gallagher will have to overcome
      • Rationalizing a wide geographic coverage and ensuring quality of service is maintained
      • Corporate and customer relationships must be serviced and maintained
      • The aligning of all administrative features is also vital to the success of the acquisitions
      • Sharing product expertise will provide benefits to other corporate clients
    • Revising company strategy after substantial change on many fronts
      • Gallagher must direct its efforts towards business integration
      • Acquisitions are seemingly the only way for brokers to significantly grow revenues
      • More spending is an option once the new purchases have been integrated
  • Appendix
    • Definitions
      • Brokers
      • SME
    • Bibliography
    • Further reading

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