Arthur J. Gallagher & Co announced it will acquire insurance brokerage Woodruff Sawyer for $1.2 billion. The deal is anticipated to close in the second quarter of 2025.

The announcement follows Gallagher's deal in late 2024 to acquire AssuredPartners for $13.45 billion, which will be the largest sale of a U.S. insurance broker in the history of the insurance industry. This deal is projected to close this quarter.

While the Woodruff Sawyer acquisition is much less costly, it continues to strengthen Gallagher's middle-market reach. Woodruff Sawyer, based in San Francisco, offers commercial property & casualty products, employee benefits solutions and risk management services, focusing on middle- and large-market clients. It operates out of 14 U.S. offices and one U.K. office. 

Gallagher, a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois, and provides services in approximately 130 countries through its owned operations and network of correspondent brokers and consultants.

Woodruff Sawyer, which will continue to be led by Chairman and CEO Andy Barrengos, will operate under the direction of Peter Doyle, head of Gallagher's U.S. retail p&c brokerage operations. Integration costs and expected non-cash management retention costs are expected to total $150 million over the next three years, according to Gallagher.

"Woodruff Sawyer has an outstanding reputation in our industry, and we have long admired their niche expertise and client-focused culture. Our complementary strengths will enhance the value we deliver to our clients and significantly expand our capabilities," said J. Patrick Gallagher Jr., chairman and CEO of Gallagher. "I look forward to welcoming Andy and the more than 600 Woodruff Sawyer colleagues to our growing Gallagher family of professionals."

"We are thrilled to join Gallagher, who shares our deep commitment to employees and has a culture defined by integrity, trust and excellence," Barrengos said. “We look forward to leveraging our complementary expertise and Gallagher's substantial global capabilities to provide outstanding support for our clients."

While 2024 saw decreased agency mergers & acquisitions activity from the previous four years, activity was still higher than in pre-pandemic years and is anticipated to continue to be active, according to OPTIS Partners. Last year saw three mega-deals—in addition to Gallagher's record-breaking acquisition of AssuredPartners, Aon PLC purchased NFP for $13 billion and Marsh & McLennan purchased McGriff Insurance services for $7.75 billion.

OPTIS Partners predicted additional large deals throughout 2025 and into 2026 as “the chase for scale continues," said Tim Cunningham, OPTIS Partners managing partner, in the firm's most recent report.

AnneMarie McPherson Spears is IA news editor.