雅虎香港財經 Chubb Limited (CB) to Boost Australia Presence With Buyout
Chubb Limited CB recently inked a definitive agreement to acquire a Melbourne-based managing general agent, Catalyst Aviation Insurance. Pending regulatory and other closing conditions, the transaction is likely to be completed by the end of June 2024. The transaction is a testimony to CB’s effort to expand its presence in Australia.
Catalyst Aviation, founded in 2016, is the insurance intermediary that has established itself as a sustainable part of the aviation insurance market in Australia, New Zealand and the Asia Pacific. Catalyst Aviation is a service-driven business. The vast majority of its insurance policies are backed by the security of Lloyd's, one of the most trusted names in aviation insurance globally.
Catalyst Aviation seems to be a prudent pick by Chubb Limited due to its longstanding reputation in the general aviation market in Australia. Its underwriting approach and emphasis on sustainable results co-ordinate with CB's business. The financial terms of the deal were kept in wraps.
The addition of Catalyst Aviation would expand Chubb Limited's capabilities, expertise and presence in an important aviation market, providing its brokers and clients with local market access.
The closing of the Catalyst Aviation acquisition is likely to serve as a means for CB to solidify its foothold in Australia and New Zealand. The solid distribution capabilities and financial strength of Chubb Limited will complement the Catalyst team to expand its risk tolerance.
The acquisition will expand the reach of the aviation insurance products and capabilities of Chubb Global Markets, the company's London Market wholesale and specialty business, including its Lloyd's platform. It will complement CB's existing aviation operations, from Chubb Global Markets in London to the aviation hub that was established in Singapore in 2023.
This Zacks Rank #3 (Hold) insurer has always considered acquisitions as an effective strategy for inorganic growth and global expansion. It acquired 17 businesses over the past 15 years. Acquisitions provide the company with a competitive edge in terms of scale, efficiencies and balance sheet size, which would lead to considerable value creation in the future. Through acquisitions, Chubb Limited has expanded its international and domestic footprint and built a superior portfolio of products and services.
Price Performance
Shares of CB have gained 38.2% compared with the industry’s growth of 25.3% over the past year. Improving pricing, new business growth, high renewal rates and a sturdy financial position should help it retain the momentum.
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Acquisitions by Other Industry Players
Marsh & McLennan Companies, Inc.’s MMC Marsh McLennan Agency (“MMA”), a division of MMC’s Marsh business, closed the buyout of Mississippi-based Fisher Brown Bottrell Insurance, Inc. in June 2024. The closing of this acquisition is likely to serve as a means for Marsh McLennan Agency to solidify its foothold in Mississippi, Alabama and Florida. MMA will be empowered to devise enhanced risk management strategies for addressing the needs of businesses and individuals in the Southeast region.
The different units operating under the Risk and Insurance Services and Consulting segments of MMC resort to buyouts that enable them to expand product suite, enter new geographies, expand within the existing locations, foray into new businesses and specialize within current businesses.
Arthur J. Gallagher & Co. AJG acquired Pittsburgh, Pennsylvania-based Crawford Insurance, LLC in June 2024. With this acquisition, Arthur J. Gallagher will leverage the client excellence and expertise of Wrightway to enhance the present specialist capabilities of Pen Underwriting.
Arthur J. Gallagher has an impressive inorganic story with buyouts in the Brokerage and Risk Management segments. AJG is growing through mergers and acquisitions, most of which are within its Brokerage segment. It has a solid merger and acquisition pipeline with about 50 term sheets either agreed upon or being prepared, representing more than $350 million of annualized revenues.
Stock to Consider
Another better-ranked stock from the property and casualty insurance industry is NMI Holdings Inc. NMIH, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NMI Holdings has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 8.60%. In the past year, shares of NMIH have jumped 38.2%.
The Zacks Consensus Estimate for NMIH’s 2024 and 2025 earnings implies year-over-year growth of 10.4% and 7.5%, respectively.
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Chubb Limited (CB) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
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