Arthur J. Gallagher & Co. AJG is strengthening its commercial insurance brokerage operations by acquiring McMillan Insurance & Bonding, doing business as Innovise Business Consultants. The acquired business specializes in commercial insurance brokerage and surety, serving clients across construction, energy, real estate and manufacturing.
The deal could support AJG’s growth by expanding its presence in specialized commercial insurance markets. Innovise’s expertise in surety and industry-specific risks can help Gallagher address more complex coverage needs and deepen relationships with commercial clients.
The acquisition also provides opportunities to cross-sell Gallagher’s broader insurance, risk management and consulting solutions to Innovise’s client base. This could create additional revenue opportunities while deepening Gallagher’s relationships with commercial clients.
The move aligns with Gallagher’s acquisition-driven expansion strategy. Acquisitions remain a second important pillar of AJG's two-pronged growth strategy alongside organic growth. The company has consistently used acquisitions to broaden its geographic reach, add specialized capabilities and complement organic growth. In the second quarter, the company’s Brokerage and Risk Management segments delivered 24% revenue growth, including 6% organic growth, showing the contribution of both acquisitions and underlying business expansion.
Expanding across specialized industries could further diversify Gallagher’s commercial client base and strengthen its brokerage platform. However, successful integration and cross-selling will be important to supporting Gallagher’s brokerage growth.
What About Its Peers?
Marsh & McLennan Companies, Inc. MRSH continues to expand its brokerage capabilities through acquisitions. In August 2026, Marsh McLennan Agency agreed to acquire Accel Holdings, adding commercial and personal insurance, employee benefits and agribusiness capabilities. Its diversified platform provides exposure to both insurance and advisory services.
Brown & Brown, Inc. BRO is also expanding through acquisitions. In February 2026, it acquired American Adventure Insurance, adding dealership-focused insurance and F&I capabilities. In September 2026, BRO acquired MacKay Corporate Insurance Brokers, strengthening its commercial insurance capabilities across construction, property, professional services, charities and oil & gas.
AJG’s Price Performance
Shares of AJG have dropped 18.6% in a year compared with the industry’s decline of 18%.
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AJG’s Valuation
From a valuation standpoint, AJG trades at a forward price-to-earnings ratio of 16.72X, higher than the industry average of 15.08X.
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AJG’s Growth Estimates
The consensus estimate for earnings per share (EPS) for 2026 and 2027 indicates a year-over-year increase of 24.2% and 12.2%, respectively.
The Zacks Consensus Estimates for 2026 and 2027 earnings moved 0.1% and 0.1% north, respectively, in the last 30 days.
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The Zacks Consensus Estimates for AJG’s 2026 and 2027 revenues indicate a year-over-year increase.
AJG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).