Arthur J. Gallagher & Co. has strengthened its U.S. wholesale division, Risk Placement Services, Inc. (RPS), through the acquisition of Litchfield Special Risks, Inc. (LSR), a wholesale insurance broker and managing general agency based in El Paso, Texas. The financial terms of the deal were not disclosed.
LSR specializes in providing transportation and property and casualty (P&C) insurance solutions, serving retail agents across Texas and the broader Southwest region. Following the acquisition, the firm will continue to operate from its current location, with Bill Brenton and his team reporting to Ash Thomas, vice president of RPS’s Western Region.
Gallagher’s Growing Presence in Texas
This acquisition marks another step in Gallagher’s strategic expansion in Texas. The company has significantly increased its footprint in the state through multiple acquisitions and partnerships, enhancing its service capabilities across key markets.
Gallagher maintains a strong presence in Texas, with offices in major cities including Houston, Dallas, Austin, and San Antonio.
In December, the company acquired Howe Insurance Group LLC, which operates as DMc Insurance Partners. This Austin-based personal lines-focused agency strengthened Gallagher’s ability to serve individuals and small business owners in the region.
Furthering its Texas expansion, Gallagher also acquired CBS Insurance, LLP, and Boley-Featherston Insurance in 2023, adding to its portfolio with offices in Abilene and Wichita Falls.
Financial Performance and Growth
Beyond acquisitions, Gallagher reported strong financial performance in the previous year. In the fourth quarter of 2024, the company posted a profit of $258.2 million, or $1.12 per share, marking a significant recovery from a loss of $39.6 million, or 15 cents per share, in the same quarter of the prior year.
Total revenue for the quarter increased by nearly 12% to $2.72 billion, with commissions rising by 13%, reflecting Gallagher’s continued growth and expansion strategy.
With this latest acquisition and a strong financial outlook, Gallagher continues to solidify its position as a leading force in the insurance brokerage industry.
