US-based Arthur J Gallagher & Co has agreed to acquire Eastern Insurance Group, a subsidiary of Eastern Bank, for a cash consideration of $510m.

Eastern Insurance offers comprehensive commercial property and casualty (P&C) and personal lines products. It also provides employee benefits consulting to clients throughout the Northeast US.

Arthur said that Eastern Insurance CEO Timothy J Lodge and his team will remain in their current location under the leadership of Gallagher North-East region retail P&C brokerage operations head Patrick Kennedy, and Gallagher East region employee benefits consulting and brokerage operations head John Neumaier.

Subject to regulatory approval, the deal is slated to be completed in Q4 2023.

Arthur J Gallagher chairman, president and CEO J Patrick Gallagher Jr said: “Eastern Insurance is highly regarded throughout New England, where they have established a strong culture and demonstrated steady organic growth.

“Their extensive niche expertise in retail, construction, real estate, hospitality and benefits will enhance the value we deliver to our clients and significantly expand our capabilities in the region.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Eastern Insurance operates through 22 non-branch offices that are located primarily in eastern Massachusetts, US.

In a press statement, Eastern said: “After careful consideration of Eastern’s long-term goals, the transaction is being made to recognise the valuation premium of Eastern Insurance while allowing Eastern to focus on the growth and strategic initiatives of its core banking business, including the announced merger with Cambridge.”

In a separate announcement, Eastern Bank has signed a definitive merger agreement with Cambridge Bancorp, the parent company of Cambridge Trust Company.