At the end of 2024 Arthur J. Gallagher, the third largest insurance broker in the world, announced plans to acquire Assured Partners, a PE-backed P&C and benefits brokerage. The deal is set to be the largest in industry history. AJG, with its reported ~$10B in top line as of 2023, will acquire roughly $2.9B of TTM revenue. The transaction underscores an ongoing wave of industry consolidation, but also paves the way for further deal activity in the upper market. Since the DOJ blocked AON’s bid for WTW in 2021, regulatory scrutiny seemed to freeze upper market M&A, and consolidation has remained concentrated throughout the middle market. However, the recent AJG acquisition suggests renewed momentum, alongside AON’s acquisition of NFP earlier in April of 2024. With a more relaxed, pro-business regulatory posture likely to take hold under the Trump administration, it seems likely that in 2025 we will see more megadeals within the sector.
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Reflections on Arthur J. Gallagher's…
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At the end of 2024 Arthur J. Gallagher, the third largest insurance broker in the world, announced plans to acquire Assured Partners, a PE-backed P&C and benefits brokerage. The deal is set to be the largest in industry history. AJG, with its reported ~$10B in top line as of 2023, will acquire roughly $2.9B of TTM revenue. The transaction underscores an ongoing wave of industry consolidation, but also paves the way for further deal activity in the upper market. Since the DOJ blocked AON’s bid for WTW in 2021, regulatory scrutiny seemed to freeze upper market M&A, and consolidation has remained concentrated throughout the middle market. However, the recent AJG acquisition suggests renewed momentum, alongside AON’s acquisition of NFP earlier in April of 2024. With a more relaxed, pro-business regulatory posture likely to take hold under the Trump administration, it seems likely that in 2025 we will see more megadeals within the sector.