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September 21, 2023

Natick insurer acquired by Illinois firm in $510M deal amid bank merger

Photo | Courtesy of Google Eastern Insurance Agency in Natick

Eastern Insurance Group, a Natick-based subsidiary of Eastern Bankshares of Boston ,will likely be acquired by Illinois insurance giant Arthur J. Gallagher & Co. for $510 million in cash.

On an after-tax basis, the net gain on sale is expected to be approximately $260 million, according to a Tuesday press release from Eastern Bankshares, which is the parent company of Eastern Bank.

"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," Eastern Bankshares CEO and Board Chair Robert Rivers said in the press release. "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.”

The deal is expected to close in the fourth quarter. Current leadership and employees of Eastern Insurance are expected to join Gallagher, according to the press release.

The acquisition was announced as Eastern Bankshares and Cambridge Bancorp, parent of Cambridge Trust, announced Cambridge Bancorp will merge into Eastern in a transaction valued at approximately $528 million. That deal is expected to be complete in the first quarter.

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