Gallagher to acquire Eastern Insurance
Gallagher announced its intention to acquire Eastern Insurance Group , a subsidiary of Eastern Bank based in Natick, Massachusetts. The transaction, awaiting regulatory approval, is anticipated to conclude in the last quarter of 2023.
Eastern Insurance, known for its offerings in commercial property/casualty, personal lines products, and employee benefits consulting, serves a broad clientele across Northeast US. The existing leadership under Tim Lodge will remain at their Natick location, transitioning under the guidance of Patrick Kennedy and John Neumaier, leaders of Gallagher’s Northeast and East region operations respectively.
Financially, Eastern Insurance reported revenues and EBITDA of approximately $104 million and $37 million, respectively, for the 12 months ending June 30, 2023. The agreed acquisition price stands at $510 million, net of certain seller expenses.
Globally, Arthur J. Gallagher & Co., with its headquarters in Rolling Meadows, Illinois, offers a range of insurance brokerage, risk management, and consulting services in about 130 countries.
“For more than 20 years, the dedicated team at Eastern Insurance has grown the agency into what is now the third largest bank-affiliated insurance brokerage in the country and a top 50 agency overall. The growth and success of Eastern Insurance was made possible by the leadership of CEO Tim Lodge and the dedicated team who have built the agency into one of the premier insurance brokerage firms in the country. For that and more, I am grateful to each and every one of my colleagues at Eastern Insurance. On behalf of all of their colleagues at Eastern, they will be greatly missed.” – Bob Rivers, Chief Executive Officer and Chair of the Board of Eastern Bankshares, Inc. and Eastern Bank.