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ITASCA, Ill., April 14 /PRNewswire-FirstCall/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today announced the sale of Gallagher Benefit Administrators, Inc. ("GBA") and Northshore International Insurance Services ("NiiS"). Terms of the transactions were not disclosed.
GBA, a third party employee benefit claim payment administrator, was sold to The Parker Group, Inc. of Lubbock, Texas. The Parker Group will be responsible for supporting all current GBA clients and will continue to manage customer support from GBA's existing corporate office in Lisle, Illinois.
NiiS, primarily a provider of medical claims management and auditing services, was sold to the NiiS management group. NiiS was part of NiiS/APEX Group Holdings that Gallagher acquired in 2002. APEX is not part of this transaction and will remain an operation of Gallagher Benefit Services, Inc.
As a result of these dispositions, a non-recurring net loss of less than $.01 of diluted earnings per share will be reported in the first quarter 2005. The following is a summary of the annual amounts directly associated with these discontinued operations that were included in Gallagher's previously reported financial information.
2004 2003 2002 ($ in Millions) Revenues Brokerage Segment $6.2 $8.0 $5.8 Risk Management Segment 27.1 29.7 31.7 Expenses Brokerage Segment 7.5 8.6 6.6 Risk Management Segment 25.1 27.6 29.6 Earnings before income taxes $0.7 $1.5 $1.3
About the Parker Group
The Parker Group is a privately-held health care management organization. Separate companies provide employee benefit and third party administration, preferred provider organization network services, medical and case management, wellness, and information technology including EDI clearing house, paper to EDI conversion and PPO repricing.
NiiS is a provider of professional claims management and audit services for medical, disability, workers' compensation and other property and casualty coverages to Insurers, Reinsurers, Corporate Self-Insureds, Governmental Entities and Lloyd's Syndicate. They are headquartered in Danvers, Massachusetts with offices in Illinois, New Jersey, Georgia and Pennsylvania.
About Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois, has operations in eight countries and does business in more than 100 countries around the world through a network of correspondent brokers and consultants. Gallagher is traded on the New York Stock Exchange under the symbol AJG.
SOURCE Arthur J. Gallagher & Co. -0- 04/14/2005 /CONTACT: Marsha J. Akin, Investor Relations of Arthur J. Gallagher & Co., +1-630-773-3800/ /Web site: http://www.ajg.com / (AJG) CO: Arthur J. Gallagher & Co.; Gallagher Benefit Administrators, Inc.; Northshore International Insurance Services; Parker Group, Inc. ST: Illinois, Texas IN: FIN INS SU: TNM CS-JK -- CGTH038 -- 9852 04/14/2005 10:17 EDT http://www.prnewswire.com