Marsh & McLennan Companies, Inc.’s MMC division, Marsh McLennan Agency (“MMA”), recently announced the acquisition of Acumen Solutions Group LLC, a full-service insurance agency based in Melville, NY. Acumen specializes in crafting tailored insurance solutions for the construction, real estate and aviation sectors. With this acquisition, MMA is poised to deepen its expertise in these industries while expanding its client base. The terms of the acquisition are not disclosed yet.

This move bodes well for MMA as it will bolster its presence in the Northeast market while enriching its portfolio of services. Integration of Acumen’s specialized knowledge and leveraging Marsh McLennan’s extensive resources, MMC can deliver cutting-edge risk mitigation and insurance solutions to its clients. This is expected to boost revenues in the Marsh sub-unit of the Risk and Insurance Services segment in the future. Marsh revenues grew 9% year over year in the third quarter of 2024.

As competition intensifies in the insurance sector, this acquisition positions MMA as a stronger player. MMC also acquired McGriff Insurance Services in November 2024, enhancing its capabilities, particularly in the middle-market segment. Moves like these underscore MMC's commitment to growth, innovation and superior client service, setting the stage for sustained success in 2025 and beyond.

Acquisitions are a key pillar of Marsh & McLennan's growth strategy. By acquiring businesses across its operational units, the company has successfully entered new regions, expanded its presence in existing markets, diversified into emerging industries and enhanced its specialization within core areas. In the first nine months of 2024, MMC spent $1 billion on acquisitions, up from $619 million in the prior-year period. 

MMC’s 1-Year Price Performance

Shares of Marsh & McLennan have gained 10.4% in the past year compared with the industry’s 27.3% growth.

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Zacks Rank & Key Picks

MMC currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the insurance space are Horace Mann Educators Corporation HMN, Brown & Brown, Inc. BRO and Radian Group Inc. RDN. While Horace Mann Educators sports a Zacks Rank #1 (Strong Buy), Brown & Brown and Radian Group carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Horace Mann Educators’ earnings surpassed the Zacks Consensus Estimate in two of the last four quarters, met and missed the mark once, the average surprise being 4.6%. The Zacks Consensus Estimate for HMN’s 2024 earnings indicates a 66.2% rise, while the same for revenues implies an improvement of 7.6% from the respective prior-year figures. 

Brown & Brown’s earnings surpassed estimates in each of the last four quarters, the average surprise being 6.87%. The Zacks Consensus Estimate for BRO’s 2024 earnings indicates a 33.1% rise, while the same for revenues implies an improvement of 11.2% from the respective prior-year figures. The consensus mark for BRO’s earnings has moved 0.3% north in the past 60 days.

Radian Group’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 17.65%. The Zacks Consensus Estimate for RDN’s 2024 earnings indicates a 3.1% rise, while the same for revenues implies an improvement of 6.4% from the respective prior-year figures. The consensus mark for RDN’s 2024 earnings has moved up 6.7% in the past 60 days.

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