Brown & Brown, Inc. Acquires Assets of HARCO

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.

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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.”

Analysts Recommendation

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.

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