Arthur J. Gallagher & Co. announced it has closed the previously announced acquisition of U.S. insurance broker AssuredPartners, further expanding its retail middle-market property/casualty and employee benefits focus across the U.S.
Gallagher announced in December that it had agreed to acquire Orlando, Florida-based AssuredPartners for $13.45 billion in cash. AssuredPartners’ 10,900 employees will become Gallagher employees. Gallagher said the deal’s net consideration is about $12.45 billion after a deferred tax asset.
The parties had hoped to close during the first quarter 2025. However, in March Gallagher reported that it had received a second request for information from the Federal Trade Commission (FTC), which often happens in large transactions as part of the Hart-Scott-Rodino review process for potential anti-competitiveness. The move extended the review period.
AssuredPartners’ private-equity ownership GTCR and Apax Partners were reportedly looking for partners for a full or partial sale of the brokerage for several months. Chicago’s GTCR said Gallagher’s buy of AssuredPartners is the “largest sale of a U.S. insurance broker to a strategic acquirer in the history of the industry.”
Patrick Gallagher, Jr., chairman and CEO, extended a welcome to AssuredPartners. “Together, we will further build upon our client-centric, entrepreneurial cultures and utilize our product and industry expertise, extensive data, innovative analytical tools, outstanding service, and broad product offerings to provide our clients with the very best insurance and risk management solutions,” he said in a statement.
Gallagher sees the deal deepening the firm’s capabilities in transportation, energy, healthcare, government contractors and public entity sectors while also creating opportunities in wholesale, reinsurance and claims management businesses. AssuredPartners also adds talent in the U.K. and Ireland.
AssuredPartners’ adjusted revenue over the last year as of Sept. 30 was about $2.9 billion. AssuredPartners ranked No. 5 in Insurance Journal‘s 2024 Top 100 Independent P/C Agencies list based on P/C revenue. AM Best’s ranking of the world’s biggest insurance brokers put AssuredPartners in 14th based on 2023 total revenue. Arthur J. Gallagher ranked third on the list, behind March McLennan and Aon.=
Gallagher follows Marsh McLennan and Aon in making recent deals to tap the middle market. In April 2024, Aon completed a $13 billion acquisition of middle-market P/C broker NFP. In November 2024, Marsh McLennan completed the purchase of McGriff Insurance Services for $7.75 billion.
In June of this year, Brown & Brown Inc. said it had agreed to buy Accession Risk Management, the parent company of specialty brokerage firm Risk Strategies, and wholesaler One80 Intermediaries, for about $9.8 billion.
AssuredPartners had been an active M&A participant over the last several years – most recently with 17 transactions year-to-date as of Sept. 30, according to investment banking and financial consulting firm OPTIS Partners. The broker’s buying pace had slowed a bit in 2022 and 2023 following 32 transactions in 2021.
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