Arthur J. Gallagher & Co. · NYSE:AJG
Arthur J. Gallagher & — Gallagher Arthur J & — Merger or Acquisition (May 2014)
11 slides from Arthur J. Gallagher &'s merger presentation, May 19, 2014
Slide 1: Acquisition of Canadian Insurance Broker Noraxis
Exhibit 99.2 ARTHUR J. GALLAGHER & CO. Acquisition of Canadian Insurance Broker Noraxis Conference Call May 20, 2014 8:00 am CST
Slide 2: Information Regarding Forward-Looking Statements
Information Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “anticipates,” “believes,” “contemplates,” “see,” “should,” “could,” “estimates,” “expects,” “intends,” “pla
Slide 3: Information Regarding Non-GAAP Measures
Information Regarding Non-GAAP Measures This press release refers to EBITDAC, a measure not in accordance with, or an alternative to, the GAAP information provided herein. EBITDAC is defined as earnings from continuing operations before interest, income taxes, depreciation, amortization and the chan
Slide 4: About The Noraxis Group
About The Noraxis Group Business Overview • Founded by RSA Canada, Noraxis has become one of Canada’s largest and fastest growing insurance brokers. • Provides commercial lines, personal lines and employee benefits on a retail basis and has targeted specialty niches in each operating unit, including
Slide 5: Noraxis and Gallagher Locations
Noraxis and Gallagher Locations Province 2013 Noraxis Revenues (Approximate) Ontario C$77 million Alberta 22 million Nova Scotia 9 million New Brunswick 4 million Manitoba 13 million Total C$125 million AJG: 8 offices across 4 provinces Noraxis: 23 offices across 5 provinces 5
Slide 6: About The Noraxis Group
About The Noraxis Group Commercial Lines 2013 Commercial Lines Commissions • Generated approximately C$83 million of revenues by brokering nearly 40,000 policies in 2013. • Focused on middle-market clients and targeted industry niches. Personal Lines 2013 Personal Lines Commissions • Generated appro
Slide 7: Transaction Rationale
Transaction Rationale • Canada is the 10 th largest economy and has the 8 th highest per capita income in the world. Trends suggest that Canadian commercial insurance market will outpace Country and Canadian GDP in growth. Market • Provides significant national platform covering 5 provinces with the
Slide 8: Transaction Rationale
Transaction Rationale • Well-established, experienced and entrepreneurial management team with an average of 27 years of industry experience. Leadership • Strong sales based culture built on integrity with the clients’ best interests at the forefront of the business. • Senior management team consist
Slide 9: Transaction Rationale
Transaction Rationale • Gallagher will bring new expertise in certain niches (e.g. real estate and condominiums) and will provide the platform for building out other specialties such Niches as professional indemnities/financial lines where we have a strong market position. • Provides the platform to
Slide 10: Valuation Summary
Valuation Summary Accretive to Shareholders of $0.07 per share in 2015. AJG's 87.1% interest C$ US$ (1) Cash price paid to sellers $ 435.5 $ 400.3 Less net assets acquired (13.9) (12.8) Net Consideration $ 421.6 $ 387.5 EBITDAC acquired before Synergies (2015 expected) $ 37.3 $ 34.3 Synergies: Rent,
Slide 11: For Additional Information
For Additional Information: Marsha Akin Director – Investor Relations Marsha_Akin@ajg.com Phone: 630-285-3501
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