Marsh & McLennan Companies, Inc. MMC recently completed its acquisition of McGriff Insurance Services, integrating more than 3,500 McGriff employees into its Marsh McLennan Agency (“MMA”) division, one of its higher growth areas. This move is expected to enhance MMA’s capabilities, particularly in the middle-market segment, and expand its reach.

The acquisition will likely strengthen Marsh & McLennan’s risk management, insurance, and broking services while leveraging McGriff’s expertise and talent. It is expected to boost MMA’s capabilities in key areas, including commercial property and casualty, employee benefits, personal lines and management liability. It will also provide McGriff employees with access to MMC’s global resources and further solidify MMC’s position as a leader in the insurance and risk advisory sectors.

The move will likely expand its client base, service offerings and cross-selling opportunities, triggering revenue growth. Notably, McGriff’s revenues for the trailing 12 months ended June 30, 2024, amounted to $1.3 billion. MMA accounts for almost half of the Marsh US/Canada unit.

During September-end, MMC announced the agreement to acquire McGriff, an affiliate of TIH for $7.75 billion in cash. The transaction was completed ahead of the projected year-end timeline, showcasing efficiency in finalizing the agreement.

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.

MMC’s One-year Price Performance

Shares of Marsh & McLennan have gained 11.9% in the past year compared with the industry’s 24.7% growth.

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Zacks Rank & Key Picks

MMC currently has a Zacks Rank #3 (Hold).

Investors interested in the broader Finance space may look at some better-ranked players like Root, Inc. ROOT, AXIS Capital Holdings Limited AXS and Brown & Brown, Inc. BRO. While Root currently sports a Zacks Rank #1 (Strong Buy), AXIS Capital and Brown & Brown carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for ROOT’s current-year earnings indicates an 88.2% year-over-year improvement. It beat earnings estimates in each of the trailing four quarters, with an average surprise of 127.2%. Furthermore, the consensus estimate for Root’s 2024 revenues indicates 147.9% year-over-year growth.

The consensus mark for AXIS Capital’s current-year earnings indicates a 10.6% year-over-year growth. It beat earnings estimates in each of the trailing four quarters, with an average surprise of 90.3%. Furthermore, the consensus estimate for AXS’ 2024 revenues indicates a 7.4% year-over-year increase.

The Zacks Consensus Estimate for Brown & Brown’s current-year earnings is pegged at $3.73 per share, which indicates 32.7% year-over-year growth. It has witnessed four upward estimate revisions against none in the opposite direction in the past month. BRO beat earnings estimates in each of the past four quarters, with an average surprise of 6.9%.

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Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report

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