Arthur J Gallagher & Co (AJG), an insurance brokerage and risk management services firm based in Illinois, has purchased American Wholesalers Underwriting (AWU), in Stamford, Connecticut, as part of its ongoing expansion strategy.
Financial terms of the transaction have not been revealed by the parties.
Founded in 1994, American Wholesalers Underwriting operates as a managing general agent and program manager and delivers commercial property/casualty insurance products and services to independent insurance agent and broker clients across the US.
The acquired entity specializes in program coverage for the durable and non-durable goods wholesale distribution space.
Post acquisition, John Shea and his associates will continue to operate from their Stamford and Bonita Springs, Florida locations under the direction of Joel Cavaness, president of risk placement services, a subsidiary of Arthur J Gallagher & Co.
Commenting on the acquisition, Arthur J Gallagher & Co chairman, president and CEO J. Patrick Gallagher, Jr., said, "AWU’s successful growth stems from their strong underwriting expertise and quality client-focused culture which makes them an outstanding merger partner."
"They also have superior carrier relationships that are so important when placing specialty risks for their broker clients.
"Their wealth of specialty program products and service capabilities will be a terrific addition to Risk Placement Services’ expanding wholesale network," Gallagher, Jr., added.
The latest acquisition follows two successful transactions earlier this month. Arthur J Gallagher purchased Mike Henry Insurance Brokers (MHIB) headquartered in Auckland, New Zealand.
AJG reached an agreement to acquire the Wesfarmers Insurance Brokerage operations, which comprises the OAMPS businesses in Australia and the UK, Crombie Lockwood in New Zealand and the associated premium funding operation, in a transaction valued at nearly A$1bn ($933m).
Arthur J Gallagher & Co operates in 25 nations and offers client-service capabilities in more than 140 countries globally, leveraging a network of correspondent brokers and consultants.
Image: Arthur J Gallagher & Co corporate headquarters in Itasca, Illinois. Photo courtesy of: Arthur J. Gallagher & Co. 1999 -2014.