Brown & Brown, Inc. (BRO) is adding some specialized muscle to its insurance operations. The company announced Thursday that its Bridge Specialty Group unit has acquired the assets of Shoemaker & Besser Associates, a full-service managing general agent that's been operating out of York, Pennsylvania since 1959.

The market liked the move. Brown & Brown shares rose 2.55% to $80.82 following the announcement.

What They're Getting

Shoemaker & Besser brings decades of experience serving independent insurance agents with specialty personal lines and niche commercial products. Think of them as the behind-the-scenes experts who help smaller agents access hard-to-find coverage for their clients.

The Shoemaker & Besser team isn't going anywhere. They'll keep working from their York base and will report to Jason Haupt, who runs Bridge Specialty Group's Mid-Atlantic and Delta region.

The Strategy Behind the Deal

Brown & Brown's specialty unit plans to tap into Shoemaker & Besser's automation tools and product access to beef up what they can offer retail brokers. According to Bridge Specialty Group President Anurag Batta, the acquired team's capabilities will complement and expand solutions across contract binding and light brokerage services.

Shoemaker & Besser owners Jack Brubaker and L. Allan Boyd say the combination will give them better market access while keeping the personalized service approach that's defined their business for over six decades.

For Brown & Brown, this acquisition gives its specialty unit more firepower to compete for those niche personal and business coverage relationships that require specialized knowledge and carrier connections.