The transaction is currently pending regulatory approval and is expected to be finalized in the fourth quarter of 2023.

Eastern Insurance is renowned for its comprehensive portfolio encompassing commercial property/casualty, personal lines products, and employee benefits consulting. It caters to a diverse clientele across the Northeastern United States. Tim Lodge, the current leader of Eastern Insurance, will continue to oversee operations at the Natick location, with Patrick Kennedy and John Neumaier, who lead Gallagher’s Northeast and East region operations respectively, providing guidance during the transition.

In financial terms, Eastern Insurance reported revenues of approximately $104 million and EBITDA of $37 million for the 12 months ending on June 30, 2023. The acquisition will be completed at an agreed-upon price of $510 million, net of specific seller expenses.

Arthur J. Gallagher & Co., a global entity headquartered in Rolling Meadows, Illinois, specialises in offering a wide range of insurance brokerage, risk management, and consulting services across approximately 130 countries worldwide.

Speaking about the announcement, Bob Rivers, Chief Executive Officer and Chair of the Board of Eastern Bankshares, Inc. and Eastern Bank, said, “For more than 20 years, the dedicated team at Eastern Insurance has grown the agency into what is now the third largest bank-affiliated insurance brokerage in the country and a top 50 agency overall. The growth and success of Eastern Insurance was made possible by the leadership of CEO Tim Lodge and the dedicated team who have built the agency into one of the premier insurance brokerage firms in the country.”

He added: “For that and more, I am grateful to each and every one of my colleagues at Eastern Insurance. On behalf of all of their colleagues at Eastern, they will be greatly missed.”