Arthur J. Gallagher & Co. acquired Capital Bauer Insurance Agency, an Albany, N.Y.-based retail insurance broker allowing it to significantly expand its Upstate New York presence.

Arthur J. Gallagher & Co. acquired Mutual Insurance Services, a Federal Way, Wash.-based managing general agent and wholesale insurance broker.

Marsh & McLennan Agency, a subsidiary of insurance broker Marsh Inc., acquired the employee benefits division of a Marlborough, Mass.-based agency, adding about $600,000 in annual revenue to its middle-market operations.

NORCAL Mutual Insurance Co.’s purchase of Austin, Texas-based Medicus Insurance Co. was approved by the Texas Insurance Department and finalized, company officials said.

Aon Corp.acquired an Ohio-based benchmarking and best practices researcher provider to insurance companies.

Pacific Life is going to acquire a large block of mortality retrocession and reinsurance business from Manulife Financial Corp.

Tabb, Brockenbrough & Ragland, a 129-year-old independent insurance agency in Richmond, Va., has been acquired by an Ohio-based independent agency system.

A Branchville, N.J.-based holding company announced that its subsidiary entered a renewal rights and asset purchase agreement with an Alterra Capital Holdings subsidiary to add excess and surplus lines (E&S) to its portfolio.

Nationwide Better Health, a division of Nationwide Mutual Insurance Co., intends to lay off about 100 employees at its Hunt Valley offices over the next few months, part of its move out of company wellness programs.

A Richmond, Va.-based insurance holding company announced its agreement to sell for $290 million its Medicare supplement business and related blocks of in-force business.