Brown & Brown (NYSE: BRO) announced that its subsidiary Brown & Brown Lone Star Insurance Services, Inc. has acquired all the assets of HARCO Insurance Services and HARCO Financial Services. The financial terms of the deal have been kept under wraps.
Notably, shares of the insurance and reinsurance products, and federal program services provider, with the current market capitalization of $20 billion have gained 48% over the past year.
Benefits of the Deal
Founded in 1969, HARCO is a full-service, independent retail insurance agency serving clients in Texas, U.S. The HARCO Texas office will serve as a branch location for Brown & Brown’s Houston, Texas, retail operations.
The addition of HARCO will compliment Brown & Brown businesses and will enhance its products, resources, and services, adding more value to customers and insurance companies they serve. Furthermore, the acquisition will strengthen Brown & Brown’s presence in the Texas region.
Management Weighs In
Tommy K. Huval, Regional President in Brown & Brown’s Retail segment in Texas and Louisiana, commented, “Over its long and successful history, HARCO has thrived because of its focus on delivering outstanding service with an eye toward building long-term customer and carrier relationships.”
Consensus among analysts is a Moderate Buy based on 3 Buys and 3 Holds. The average Brown & Brown price target of $69.33 implies that the shares are fairly valued at the current levels.
Investors Weigh In
According to TipRanks’ Stock Investors tool, investors currently have a Very Positive stance on Brown & Brown, with 20% of investors increasing their exposure to BRO stock over the past 30 days.