Why Marsh & McLennan Companies, Inc (MMC) Is Skyrocketing So Far In 2025

Insider Monkey
25 Feb

We recently published an article titled Why These 15 Insurance Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where Marsh & McLennan Companies Inc (NYSE:MMC) stands against the other insurance stocks.

Insurance stocks are back in the spotlight after Berkshire Hathaway’s annual shareholder report for 2024. These stocks are not only benefiting from stable cash flows, but they are also benefiting from higher investment yields and premium growth as inflation trends have benefited insurers.

Moreover, AI and tech innovations are starting to spill over into many other industries, which include insurance. It is also benefiting from a demographic tailwind as the growing “silver segment” requires more life and health insurance.

As such, it is worth looking into some of the top performers in this industry. There are good reasons behind each of the stocks’ uptrends.

Insurance house, car and family health live concept. The insurance agent presents the toys that symbolize the coverage.

Methodology

For this article, I screened the top-performing defense stocks year-to-date. Stocks that I have covered recently will be excluded from this list.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A financial analyst looking at the news, analyzing the trends of the insurance market.

Marsh & McLennan Companies, Inc. (NYSE:MMC)

Number of Hedge Fund Holders In Q4 2024: 69

Marsh & McLennan Companies, Inc. (NYSE:MMC) is a professional services company that provides insurance brokerage and other related services.

The stock is up significantly so far in 2025 after it announced strong Q4 and full-year 2024 results. Full-year revenue grew 7% and adjusted EPS grew 10% to $8.8. It had its 17th  consecutive year of reported margin expansion.

In addition, the company's $7.75 billion acquisition of McGriff Insurance Services closed in late 2024. This added $1.3 billion in revenues and an estimated $400 million to $500 million in EBITDA to MMC's MMA segment.

Marsh & McLennan Companies, Inc. (NYSE:MMC) declared a quarterly dividend of $0.815 per share, payable on February 14, 2025.

The consensus price target of $230.44 implies 0.17% upside.

Marsh & McLennan Companies, Inc. (NYSE:MMC) is up 8.69% year-to-date.

Overall MMC ranks 13th on our list of the insurance stocks that are skyrocketing so far in 2025. While we acknowledge the potential of MMC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MMC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

 

Disclosure: None. This article is originally published at Insider Monkey.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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