Gallagher Bassett Signs Acquisition Agreement With GABR

Oct 01, 2010 (Datamonitor via COMTEX) -- Gallagher Bassett Services, a subsidiary of Arthur J Gallagher & Company, an insurance brokerage and risk management services firm, has signed a definitive agreement to acquire substantially all the third-party administrator assets and managed care service operations of GAB Robins North America and its subsidiary MedInsights, collectively known as GABR.

This transaction does not include GABR's property/casualty loss adjusting operations. Terms were not disclosed. The transaction is expected to close in October 2010.

GABR provides third-party claims and risk management services, primarily for workers' compensation, general liability and commercial auto insurance segments. Its managed care provider offers case management and cost-containment services, including medical bill review, nurse case management and pharmacy benefit management for self-insured workers' compensation cases.

It is expected that the transaction will generate approximately $45 million to $50 million in annualized revenue. Over 420 GABR professionals will combine with Gallagher Bassett's property/casualty third-party administrator (TPA) and managed care operations and will operate under the direction of Gallagher Bassett's president, Scott Hudson.

Patrick Gallagher, Jr, chairman, president and CEO of Arthur J Gallagher, said: "We believe that Gallagher Bassett is the best property/casualty claims administrator in the world, and we are fully dedicated to delivering a level of client service that is second to none.

"The strategic combination of these two great organizations underscores our commitment to invest in and grow this business. We look forward to working with our newest associates, and we welcome them to our Gallagher family of professionals."

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