Major Insurance Brokerage Deal Sealed for $1.2 Billion

Arthur J. Gallagher & Co. announced on Tuesday that it has agreed to acquire rival insurance brokerage firm Woodruff Sawyer in a $1.2 billion transaction, furthering its expansion efforts in the industry.

According to Reuters, the acquisition will enhance Gallagher’s management liability, construction, real estate, and cyber insurance offerings while strengthening its presence along the U.S. West Coast.

The insurance brokerage sector has seen an uptick in mergers and acquisitions in recent years as companies aim to expand their market share in the middle-market segment. Per Reuters, Gallagher previously struck a $13.5 billion agreement in December to acquire AssuredPartners, marking another significant step in its growth strategy.

The Insurer, a Reuters publication, had exclusively reported last month that Gallagher was nearing a deal to acquire Woodruff Sawyer. The publication also noted that Woodruff Sawyer had engaged in discussions with other major insurance brokers, including WTW and Brown & Brown, before finalizing the agreement with Gallagher.

Founded in 1918 by E.L. Woodruff, San Francisco-based Woodruff Sawyer has grown into one of the largest insurance brokerages in the United States. The firm specializes in property and casualty insurance, employee benefits, and risk management services, primarily catering to middle and large-market clients. The company is particularly known for its expertise in Directors and Officers (D&O) insurance, which provides coverage to corporate leadership against claims stemming from their business decisions and actions.

Woodruff Sawyer’s workforce of more than 600 employees will be integrated into Gallagher’s operations, with the team reporting to Peter Doyle, who heads Gallagher’s U.S. retail property and casualty brokerage division. The company currently operates 14 offices across the U.S. and one in the U.K.

According to Reuters, Woodruff Sawyer reported pro forma revenue of approximately $268 million for the 12-month period ending December 31.

Source: Reuters