Latest news with #ArthurJ.Gallagher&Co
Associated Press
30-04-2025
- Business
- Associated Press
Arthur J. Gallagher & Co. Acquires First Capital Financial Services
ROLLING MEADOWS, Ill., April 30, 2025 /PRNewswire/ -- Arthur J. Gallagher & Co. today announced the acquisition of New Zealand-based First Capital Financial Services (First Capital) and its affiliate First Capital Wealth Management. Terms of the transaction were not disclosed. First Capital is a financial advisory firm providing wealth management, risk management and employee benefits services to corporate clients and individuals throughout New Zealand from offices in Christchurch and Auckland. Hugh Percy and the First Capital team will operate under the direction of Graham Campbell, head of Gallagher's employee benefits and HR consulting operations in Australia and New Zealand. 'First Capital has a client-focused culture like our own and offers an excellent opportunity to expand our benefits consulting capabilities in the region,' said J. Patrick Gallagher, Jr., Chairman and CEO. 'I am excited to welcome Hugh and his associates to our growing, global team.' Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants. View original content to download multimedia: SOURCE Arthur J. Gallagher & Co.
Yahoo
09-04-2025
- Business
- Yahoo
Arthur J. Gallagher & Co. (NYSE:AJG): One of the Best Insurance Stocks to Buy According to Hedge Funds
We recently published a list of the 10 Best Insurance Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Arthur J. Gallagher & Co. (NYSE:AJG) stands against the other insurance stocks held by hedge funds. The insurance stocks have done better in 2025 despite the losses from wildfires earlier this year. The industry-leading ETFs, SPDR S&P Insurance ETF and iShares US Insurance ETF, have surged nearly 6% and 8.60% year-to-date, respectively. At the same time, the S&P 500 index, which tracks large-cap stocks, has plunged over 8%. Read More: 10 Most Undervalued Insurance Stocks to Buy Now Investors are holding back as the market feels uneasy due to the tariff policies. The Trump Administration has addressed to the market that it plans to reposition the U.S. economy as a leader. The government has imposed heavy tariffs to drive companies to invest in the domestic market. The U.S. Treasury Secretary Scott Bessent acknowledged that these policies may create short-term disruption, even if they turn out to be effective eventually. Apart from the market-changing conditions in the U.S., there are geopolitical conflicts in Europe and the Middle East. Once again, the economic data is warning of a potential recession, and U.S. consumers are financially quitting. The changing economic landspace in the U.S. could have significant implications for insurers, leading to potential supply chain changes and shifts in overall profitability. According to the Underwriting Director at Lloyd's Market Association, Elizabeth Wooliston, the effects of tariffs on insurers will differ as increased uncertainty and market volatility could raise business risks. 'There is no doubt we are living in unpredictable times, and even looking at a 12-month insurance contract could feel as if we are trying to predict a long way ahead,' Wooliston added. She further said, 'In the U.S., as the end price of goods is likely to rise, the most obvious and immediate concern for insurers will be managing their 'value at risk', with brokers paying close attention to avoid underinsureance for their customers.' Apart from underwriting for profitability, insurers also rely on investing their capital in various financial instruments. If market uncertainty increases in the long term, it can hurt the overall profitability of insurers. However, analysts at Keefe, Bruyette & Woods believe that insurers should be able to overcome the tariff challenges. Industry players will potentially have enough time to request rate increases, which state regulators are likely to approve. The analysts expect the tariffs to mainly impact personal insurance, along with auto damage, commercial property, surety, and marine lines. These segments will potentially be hit harder by tariffs due to increased claim costs. Despite the current market circumstances and losses from wildfire, the insurance industry in the U.S. remains steady. The U.S. has some of the largest insurance companies that drive the overall market. A senior executive looking up at a large boardroom filled with the stocks their company manages. Our Methodology We used a Finviz screener to shortlist insurance companies with a market capitalization of more than $1 billion. We then looked for the insurance stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey's database, updated as of Q4 2024. Finally, the 10 best insurance stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). No. of Hedge Fund Holders: 77 Arthur J. Gallagher & Co. (NYSE:AJG) is a leading global insurance brokerage and risk management firm. It offers brokerage and consulting services to entities of all types, including commercial, public sector organizations, nonprofits, insurance companies, insurance capital providers, and others. AJG has grown into one of the largest insurance providers globally, serving in more than 130 countries. Recently, Truist analyst Mark Huges upgraded the price target on AJG shares from $290 to $310 per share, maintaining a Hold rating. The analyst sees higher peer valuations in AJG. However, Huges has cut the company's 2025 earnings estimate to $10.65, which is still slightly higher than 2024's actual earnings of $10.09 per share. Similarly, Keefe, Bruyette & Woods analyst Meyer Shields increased the price target of AJG from $308 to $314, keeping a Market Perform rating on the stock. Andvari Associates stated the following regarding Arthur J. Gallagher & Co. (NYSE:AJG) in its Q3 2024 investor letter: 'Arthur J. Gallagher & Co. (NYSE:AJG) and Rollins are two other serial acquirers in Andvari's client portfolios. Both are some of the largest and best businesses in their respective industries. AJG is a leading property and casualty insurance and reinsurance broker. Rollins is home to many of the top brands in the pest service industry in North America.' Overall, AJG ranks third among the 10 best insurance stocks to buy now. While we acknowledge the potential of insurance companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AJG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-03-2025
- Business
- Yahoo
Arthur J. Gallagher & Co. (NYSE:AJG) Passed Our Checks, And It's About To Pay A US$0.65 Dividend
Arthur J. Gallagher & Co. (NYSE:AJG) is about to trade ex-dividend in the next 4 days. The ex-dividend date occurs one day before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important as the process of settlement involves a full business day. So if you miss that date, you would not show up on the company's books on the record date. Therefore, if you purchase Arthur J. Gallagher's shares on or after the 7th of March, you won't be eligible to receive the dividend, when it is paid on the 21st of March. The company's next dividend payment will be US$0.65 per share, and in the last 12 months, the company paid a total of US$2.60 per share. Last year's total dividend payments show that Arthur J. Gallagher has a trailing yield of 0.8% on the current share price of US$337.74. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. Check out our latest analysis for Arthur J. Gallagher Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Arthur J. Gallagher paid out a comfortable 36% of its profit last year. When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn. Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. This is why it's a relief to see Arthur J. Gallagher earnings per share are up 9.8% per annum over the last five years. We'd also point out that Arthur J. Gallagher issued a meaningful number of new shares in the past year. Trying to grow the dividend while issuing large amounts of new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Arthur J. Gallagher has delivered an average of 6.1% per year annual increase in its dividend, based on the past 10 years of dividend payments. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders. From a dividend perspective, should investors buy or avoid Arthur J. Gallagher? It has been growing its earnings per share somewhat in recent years, although it reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. In summary, Arthur J. Gallagher appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it. With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. Case in point: We've spotted 3 warning signs for Arthur J. Gallagher you should be aware of. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
07-02-2025
- Business
- Yahoo
Arthur J. Gallagher's (NYSE:AJG) Dividend Will Be Increased To $0.65
The board of Arthur J. Gallagher & Co. (NYSE:AJG) has announced that it will be increasing its dividend by 8.3% on the 21st of March to $0.65, up from last year's comparable payment of $0.60. Although the dividend is now higher, the yield is only 0.7%, which is below the industry average. Check out our latest analysis for Arthur J. Gallagher If it is predictable over a long period, even low dividend yields can be attractive. However, prior to this announcement, Arthur J. Gallagher's dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business. Over the next year, EPS is forecast to expand by 67.9%. If the dividend continues along recent trends, we estimate the payout ratio will be 26%, which is in the range that makes us comfortable with the sustainability of the dividend. The company has an extended history of paying stable dividends. The annual payment during the last 10 years was $1.44 in 2015, and the most recent fiscal year payment was $2.40. This works out to be a compound annual growth rate (CAGR) of approximately 5.2% a year over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios. The company's investors will be pleased to have been receiving dividend income for some time. Arthur J. Gallagher has seen EPS rising for the last five years, at 10% per annum. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting. We should note that Arthur J. Gallagher has issued stock equal to 15% of shares outstanding. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For example, we've picked out 3 warning signs for Arthur J. Gallagher that investors should know about before committing capital to this stock. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
