NU Online News Service, Aug. 3, 2:39 p.m.EDT

Itasca, Ill.-based insurance broker Arthur J. Gallagher &Co. says it acquired Group Benefits of Arkansas, LLC the first purebenefits agency it has acquired in the state.

Established in 2004, Group Benefits of Arkansas, located in Ft.Smoth, offers a wide range of employee benefit consultation andbrokerage services for their middle-market clients in Arkansas andOklahoma. The firm specialize in group medical, dental, life anddisability insurance with an emphasis on consumer directed planssuch as health savings accounts, health reimbursement arrangementsand cafeteria plans.

Principals Andy Jackson and Ron Novak, and about sixassociates, will continue to operate at their current locationunder the direction of John Neumaier, South Central regionalexecutive vice president of Gallagher's employee benefit consultingand brokerage operations.

In a statement, J. Patrick Gallagher Jr., chairman, presidentand chief executive officer says that the acquisition is the firstbenefits-only acquisition in the state, helping to "expand ourclient service capabilities in the region."

Just last week, AJG acquired Potter-Holden & Company inAtlanta.

A retail insurance brokerage founded in 1918, it providescommercial property and casualty and risk management insuranceservices to their health care industry clients throughout theUnited States. The firm specialize in healthcare liabilityinsurance for hospitals, community health centers and physiciansgroups.

Charley Malmquist, Potter-Holden’s principal and his associates,between 15-20 employees, will continue to operate from Atlantaunder the direction of Mitchel Brashier, Southeastern regionalmanager of AJG’s retail P&C brokerage operation.

Terms of the transactions were not released.