Arthur J. Gallagher & Co. has completed its purchase of AssuredPartners, a major U.S. insurance brokerage firm. This move broadens Gallagher’s reach in the middle-market property and casualty insurance and employee benefits sectors across the country. The deal, originally announced in December, was valued at $13.45 billion in cash. After accounting for a deferred tax asset, the net cost for Gallagher is roughly $12.45 billion.
AssuredPartners, based in Orlando, Florida, brings roughly 10,900 employees into the Gallagher family. The acquisition was expected to finalize in early 2025, but the process faced delays when the Federal Trade Commission (FTC) asked for additional information as part of its anti-competitive review.
Before the sale, AssuredPartners was owned by private equity firms GTCR and Apax Partners. They had been exploring options to sell the company fully or partially for several months. GTCR noted that this transaction marks the largest sale of a U.S. insurance broker to a strategic buyer in the industry’s history.
Patrick Gallagher Jr., the chairman and CEO of Arthur J. Gallagher, welcomed the new team. He expressed confidence that combining the two companies’ expertise and resources would deliver strong insurance and risk management solutions to clients.
The acquisition also strengthens Gallagher’s presence in industries like transportation, energy, healthcare, government contracting, and public entities. It opens doors to growth in wholesale insurance, reinsurance, and claims management. Additionally, AssuredPartners adds talent from the U.K. and Ireland to Gallagher’s global network.
In the past year, AssuredPartners generated about $2.9 billion in adjusted revenue. It ranked fifth in Insurance Journal’s 2024 list of the top 100 independent property/casualty agencies and was 14th in the world’s largest insurance brokers, according to AM Best’s 2023 global ranking. Arthur J. Gallagher itself holds the third spot behind Marsh McLennan and Aon.
This acquisition fits into a larger trend. Other big players like Marsh McLennan, Aon, and Brown & Brown have made sizeable purchases targeting the middle market. For example, earlier in 2024, Aon bought NFP for $13 billion, and Marsh McLennan acquired McGriff Insurance Services for $7.75 billion. Brown & Brown recently agreed to purchase Accession Risk Management and One80 Intermediaries for about $9.8 billion.
AssuredPartners has also been active in acquiring smaller firms over recent years, although its buying pace slowed down a bit in 2022 and 2023. As part of Gallagher, AssuredPartners will likely continue to play a significant role in the insurance brokerage industry moving forward.