Core Insights - Tokio Marine has agreed to acquire Commodity & Ingredient Hedging (CIH) for $970 million, enhancing its risk management solutions in the agricultural sector [1][4] - CIH provides integrated risk management services, including consulting, brokerage, and insurance, through a proprietary technology platform [1][2] - The acquisition is expected to close in the first quarter of 2026, pending regulatory approval [4] Company Overview - CIH is based in Chicago and specializes in risk management for clients in agriculture and commodity sectors [1] - The company combines advisory and execution functions, allowing clients to manage commodity price exposure effectively [2][3] - CIH's technology platform offers a unified method for clients to monitor, analyze, and manage risk [3] Strategic Implications - The acquisition will enhance Tokio Marine's specialty offerings in the US agricultural sector and broaden its non-insurance risk solutions capabilities [4] - Tokio Marine HCC's CEO highlighted the importance of CIH's agricultural expertise and innovative technology in managing price volatility [5] - This partnership aligns with Tokio Marine Group's long-term strategy to diversify and grow through fee-based services [5]

Core Insights - Brown & Brown, Inc. (BRO) is valued at a market cap of $27.6 billion and is one of the largest insurance brokerage firms in the U.S., offering a variety of insurance products and services across four main segments [1] Financial Performance - In the third quarter, Brown & Brown reported $1.6 billion in revenue, a 35.4% increase year-over-year, primarily driven by acquisitions [4] - Commissions and fees rose 34.2% to approximately $1.6 billion, while adjusted EBITDAC increased 41.8% to $587 million, resulting in a margin of 36.6% [4] - However, income before taxes decreased by 1.9% to $311 million, net income fell 3% to $227 million, and diluted EPS dropped to $0.68, a decline of roughly 16% [5] - For the fiscal year ending December 2025, analysts project a 10.7% year-over-year growth in adjusted EPS to $4.25 [5] Stock Performance - Over the past 52 weeks, BRO shares have decreased by 26.7%, underperforming the S&P 500 Index, which has increased by 13.7% [2] - Year-to-date, BRO shares are down 20.9%, compared to a 13.4% gain in the S&P 500 [2] - The stock has also underperformed the Financial Select Sector SPDR Fund's (XLF) return of 3.2% over the past 52 weeks [3] Analyst Ratings - Among 18 analysts covering BRO, the consensus rating is a "Hold," consisting of three "Strong Buy" ratings, one "Moderate Buy," 13 "Holds," and one "Moderate Sell" [6]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [3][4] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score assesses stocks based on price trends and earnings outlook changes, helping investors identify optimal buying opportunities [6] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, growth forecasts, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [9] Stock to Watch: Assurant (AIZ) - Assurant Inc. is a global risk management provider, operating in multiple regions including North America and Europe [12] - AIZ holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A, indicating solid performance potential [12] - The company is projected to achieve year-over-year earnings growth of 6.2% for the current fiscal year, supported by upward revisions in earnings estimates [13]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Company Summaries - **Richardson Electronics (RELL)**: A global provider of engineered solutions, has seen a 52.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - **Wayfair (W)**: A leading online seller of home goods, has experienced a 7.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - **Flexsteel Industries (FLXS)**: Engaged in the design and manufacture of upholstered furniture, has seen a 5.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - **Encore Capital Group (ECPG)**: An international specialty finance company providing debt recovery solutions, has experienced a 3.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - **Assurant (AIZ)**: A global provider of risk management solutions, has seen a 3.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [5]

Core Insights - The article emphasizes the importance of sales growth over earnings when evaluating stocks, suggesting that steady sales growth indicates strong demand and a durable business model [2][3][10] - A selection of stocks with robust sales growth and high cash balances is recommended, including StoneCo, Garmin, Assurant, VICI Properties, and Duke Energy, all of which show promising sales growth for 2025 [10][11][12][13][14][15] Sales Growth and Cash Flow - Sales growth is preferred over earnings as it reflects actual demand and provides visibility into a company's business model [3][5] - Constant sales growth leads to predictable cash flows, allowing companies to reinvest, expand, or return capital to shareholders without excessive debt reliance [5] Stock Selection Criteria - Stocks are shortlisted based on criteria such as 5-Year Historical Sales Growth greater than industry average and Cash Flow exceeding $500 million [6] - Additional metrics include a Price/Sales (P/S) Ratio lower than the industry average, positive changes in sales estimate revisions, operating margins above 5%, and Return on Equity (ROE) greater than 5% [7][8][9] Recommended Stocks - **StoneCo Ltd. (STNE)**: Expected sales growth of 9.8% for 2025, currently holds a Zacks Rank 1 [11] - **Garmin Ltd. (GRMN)**: Anticipated sales growth of 12.3% for 2025, currently holds a Zacks Rank 2 [12] - **Assurant Inc. (AIZ)**: Projected sales growth of 5.7% for 2025, currently holds a Zacks Rank 2 [13] - **VICI Properties Inc. (VICI)**: Expected sales growth of 4% for 2025, currently holds a Zacks Rank 2 [14] - **Duke Energy Corporation (DUK)**: Anticipated sales growth of 4.6% for 2025, currently holds a Zacks Rank 2 [15]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Value Score identifies attractive stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score focuses on a company's financial health and future growth potential, considering earnings and cash flow [4] - The Momentum Score assesses trends in stock prices and earnings estimates to identify favorable investment opportunities [5] - The VGM Score combines all three styles to highlight stocks with the best value, growth, and momentum characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +23.81% since 1988 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - Stocks with lower ranks, even if they have good Style Scores, may still face downward price pressure due to negative earnings forecasts [10] Company Spotlight: Assurant Inc. (AIZ) - Assurant Inc. is a global provider of risk management solutions, operating in multiple regions including North America and Europe [11] - The company holds a Zacks Rank of 2 (Buy) and has a VGM Score of B, indicating strong potential [11] - Assurant is projected to achieve year-over-year earnings growth of 5.8% for the current fiscal year, with upward revisions in earnings estimates [12] - The Zacks Consensus Estimate for Assurant's earnings has increased by $0.59 to $17.60 per share, with an average earnings surprise of +18.9% [12]

Core Insights - CorVel Corporation announced the winners of the 2025 Theo Awards, recognizing Sharp HealthCare, the State of North Carolina, and The Save Mart Companies for their achievements in workers' compensation [1][6] - The awards highlight organizations that have innovatively transformed workplace safety, claims management, and employee care, leading to reduced costs and new industry standards [2] Group 1: Sharp HealthCare - Sharp HealthCare was recognized for its biopsychosocial transdisciplinary model, which effectively addresses complex claims related to traumatic brain injuries, chronic pain, PTSD, and substance abuse [3] - The model focuses on early identification of psychosocial risk factors, resulting in accelerated recovery timelines and reduced prescription drug dependency [3] Group 2: State of North Carolina - The State of North Carolina demonstrated exceptional crisis management following Hurricane Helene, ensuring access to medical care and wage replacement for injured workers in the disaster area [4] - The partnership with CorVel involved expanding provider search efforts and coordinating care during significant infrastructure damage and communication outages [4] Group 3: The Save Mart Companies - The Save Mart Companies implemented a comprehensive workers' compensation strategy focusing on prevention, early intervention, efficient claim resolution, and collaborative execution [5] - This strategy has led to fewer claims, faster settlements, and reduced overall program costs while enhancing workplace safety [5] Group 4: CorVel Corporation - CorVel applies advanced technology, including AI and machine learning, to improve the management of care episodes and related healthcare costs [7] - The company partners with various stakeholders, including employers and government agencies, to manage workers' compensation and health services [7]

Core Viewpoint - Arthur J. Gallagher & Co. reported Q2 2025 earnings with adjusted EPS of $2.33 and revenue of $3.17 billion, both slightly below analyst expectations, highlighting strong profitability but a slowdown in organic revenue growth in the core Brokerage segment [1][2]. Financial Performance - Adjusted EPS for Q2 2025 was $2.33, compared to estimates of $2.36 and $2.29 in Q2 2024, reflecting a year-over-year increase of 1.7% [2]. - Revenue for Q2 2025 reached $3.17 billion, up 14.8% from $2.76 billion in Q2 2024 [2]. - Adjusted EBITDAC climbed to $1.01 billion, with a margin of 36.4%, an increase from 33.1% in Q2 2024 [2][6]. - Organic revenue growth in the core Brokerage segment decelerated to 5.3% in Q2 2025 from 9.5% in Q1 2025 [1][5]. Business Overview - Arthur J. Gallagher & Co. is one of the largest insurance brokers and risk managers globally, focusing on arranging insurance coverage, consulting services, and risk management solutions [3]. - The business model consists of two main segments: Brokerage and Risk Management, with a strategic focus on diversifying operations and pursuing growth through mergers and acquisitions [4]. Key Developments - The company completed 9 acquisitions in the quarter, generating an estimated annualized revenue of $290 million, with the pending AssuredPartners transaction valued at approximately $13.45 billion [7]. - Adjusted revenue for Gallagher Bassett, the risk management arm, increased to $391.8 million, with organic growth of 6.2% [8]. - The workforce grew to 59,291 employees, a 10% increase compared to the previous year [10]. Market Dynamics - The insurance market remains cautious, with property insurance renewal premiums falling by 7% in Q2 2025, while casualty lines rose by 8% in Q1 2025 [11]. - The quarterly dividend was raised to $0.65 per share, up from $0.60 in Q2 2024, indicating a positive outlook despite potential challenges in organic growth [12].

Company Announcement - Brown & Brown, Inc. will release its 2025 second-quarter earnings on July 28, 2025, after market close [1] - An investor update conference call will be hosted on July 29, 2025, at 8:00 a.m. EDT by the president and CEO, J. Powell Brown, and the executive vice president and CFO, R. Andrew Watts [1] - The conference call will be available for live listening on the company's website and will be archived for 14 days post-broadcast [1] Company Overview - Brown & Brown, Inc. is a leading insurance brokerage firm established in 1939, providing customer-centric risk management solutions [2] - The company operates over 500 locations globally and employs more than 17,000 professionals [2] - Brown & Brown is committed to delivering scalable and innovative strategies for customers throughout their growth journey [2]

Core Viewpoint - Brown & Brown, Inc. has announced a public offering of 39,215,686 shares of common stock at a price of $102.00 per share, totaling an aggregate offering amount of $4 billion, expected to close on June 12, 2025 [1][3] Group 1: Offering Details - The offering price is set at $102.00 per share, with an aggregate amount of $4 billion [1] - The underwriters have a 30-day option to purchase an additional $400 million in shares at the public offering price [1] - The expected net proceeds from the offering are approximately $3.9 billion after deducting underwriting discounts and expenses [3] Group 2: Use of Proceeds - The net proceeds will primarily fund a portion of the consideration for the acquisition of RSC Topco, Inc., the holding company for Accession Risk Management Group, Inc. [3] - If the acquisition does not occur, the proceeds will be used for general corporate purposes [3] Group 3: Underwriters - J.P. Morgan and BofA Securities are the lead book running managers for the offering [2] - Additional book running managers include BMO Capital Markets and Truist Securities, with several co-managers involved [2] Group 4: Company Overview - Brown & Brown, Inc. is a leading insurance brokerage firm with over 500 locations and a team of more than 17,000 professionals [6]