Gallagher to pay $510 million for Eastern Insurance

Arthur J. Gallagher & Co. has agreed to buy bank-owned brokerage Eastern Insurance Group LLC for $510 million.

Natick, Massachusetts-based Eastern Insurance, which is the 52nd-largest brokerage of U.S. business according to Business Insurance’s most recent ranking, has expertise in retail, construction, real estate, hospitality and benefits, a Gallagher statement said. It is owned by Eastern Bank.

The brokerage, which is headed by President and CEO Tim Lodge, had annualized revenue and earnings at June 30 of $104 million and $37 million, respectively, Gallagher said.

According to BI’s directory of agents and brokers, it has about 400 staff in 21 offices and its business comprises 49% commercial retail, 33% personal lines and 18% employee benefits.