Arthur J. Gallagher & Co. (NYSE:AJG)

This company provides stable numbers. Look for them to continue to rise and become one of the top insurance agencies.

OK COMPANY AND DECENT PEOPLE.ONE OF THE LAST GOOD OLD BOYS CLUBS.SOME OF THE BIGGEST SHORT SELLERS IN THE HEDGE FUND WORLD ARE GOING TO POUND AWAY

AJG has been a steady Eddy and i would think that down the road it may purchased by someone.

Solid business and a great dividend.

They are taking advantage of the slowed economy as a time to expand their operation, acquire competitors, etc. Always a good sign for the future.

I wrote an article comparing two insurance companies AJG and MMC. In a time of high unemployment, sliding consumer spending and the weakening dollar; an insurance company is a great way to better diversify your financial sector when the risk of holding other financial institutions is high and the entire regional bank industry has been downgraded to a sell. To read more view my blog by clicking below

http://stocklook.blogspot.com/2009/11/insurance-company-stocks.html

Poor value compared to industry.

A J and the all business gang. Growth of dividend yield looks nice.Already paying better than 5% yield to keep a few shareholders around.Business also looks pretty good with with 1.6 billion last 12 months,and growing right along just fine. Latest acquistion in Fort Lauderdale for the wealthy and bored should boost things up for the long haul. Average estimate FY 2008 $1.54 should be a breeze to surprise for the Gallagher gang, and continue growth on the forward move. Interesting investment.

Good stock to hold in current market conditions. Pays a good dividend and has lots of upside potential.

financial services

bmw

Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage and risk management services. It operates in three segments: Brokerage, Risk Management, and Financial Services. Note: This market is sinking, grab what you can and get OUT.

Company is in a retail industry that will go grow with the reduced availability of insurance for catastrophes.

Always a need for quality insurance brokers, even if the insurance market has softened.

Arthur J. Gallagher principal activity is the negotiation and placements of insurance for its clients. It finished the year 2006 with modest growth in revenue and had restructured its business model with more commitment to transparency. The industry has not seen any major catastrophe loss in the recent time to facilitate any rate competition across all geographies and has good amount of capital coming into the market.

Organizing itself into three operating segments as Brokerage, Risk Management and Financial Services it managed to resolve all claims owning to contingent commissions pending in New Jersey. Its commitment for transparency and moving more towards fee-based compensation as opposed to contingent commissions would hurt its margins. This has given its competitors the freedom to price more competitively and also place its brokers who collect them at a disadvantage.

The balance sheet is well positioned with no operating debt and total debt to capital ratio of just 4%. This along with the strong cash flows would help it support the share buy back program and the acquisitions. On the mergers and acquisition front it completed 11 deals in 2006 bring over $55 million in revenues. Recent focus of the management is on new business, client retention and expenses management.

The risk management business cost the company about $ 4 million pre tax due to decrease in claim frequency with slight overstaffing in the claims department and high cost of fixed expenses. Moreover the California market has become increasingly difficult with rising employment cost, price competition with lower premiums and bundling of claims work.

Asset base of its financial services division has been trimmed down owing to the rising one-time charges with positive hope of improving profitability in the coming year. However, a huge chunk of its investments are in a hedge fund manager and syn/coal plants making its return more volatile and more dependent on oil prices. Its aspirations for international expansions is challenged by its gigantic competitors and the prospects of the company is on the downturn.

Value

BIG SMOKERS IN EUROPE