Marsh & McLennan Companies Enhances Capabilities Through Acquisitions Marsh & McLennan Companies Enhances Capabilities Through Acquisitions

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Marsh & McLennan Companies, Inc.’s MMC Marsh McLennan Agency (β€œMMA”), a division of MMC’s Marsh business, recently closed buyouts of two middle-market agencies of Louisiana, Querbes & Nelson (β€œQ&N”) and Louisiana Companies. The terms of the deal have been kept under wraps.

Elevated Capabilities and Strategic Expansion

The twin buyouts are expected to strengthen the capabilities of MMA as well as solidify its presence significantly across Louisiana. The acquired companies seem to be prudent picks for buyouts by MMA owing to their longstanding history of serving a wide array of industries.

For more than a century, Q&N has been providing business insurance, employee benefits, and alternative risk financing consulting services, particularly specializing in serving energy services, commercial contractors, and transportation businesses. The addition of Q&N is set to enhance the business insurance and employee health and benefits offerings suite of MMA.

Historical Expertise and Market Expansion

Louisiana Companies provides business and personal lines insurance, excelling in serving the construction, manufacturing, distributor, healthcare, and hospitality sectors since 1890. With these enhanced capabilities, MMA is poised to better serve its clients, attract new customers, and drive increased revenues to the Marsh business.

Furthermore, the Risk and Insurance Services segment of Marsh & McLennan, to which the Marsh business belongs, has been a major revenue contributor, accounting for about 62% of MMC’s top line in 2023.

Strategic Acquisitions and Growth Trajectory

MMA’s acquisition spree is a notable highlight, with over 100 organizations purchased since its inaugural buyout in 2009. In 2023 alone, acquisitions included companies like SOLV Risk Solutions, Integrity HR, Trideo Systems, Graham Company, and Blue Water Insurance.

This trend of active acquisition heralds an anticipated robust acquisition activity by Marsh & McLennan throughout 2024, aligning with its strategy over the past few years.

Market Perfomance and Growth Outlook

Shares of Marsh & McLennan have outperformed the industry, posting a 22.3% gain in the past year compared to industry growth of 18.2%. MMC currently holds a Zacks Rank #3 (Hold), positioning it as a stable investment opportunity.

For investors seeking potential opportunities in the insurance sector, noteworthy stocks like Horace Mann Educators Corporation, Ryan Specialty Holdings, Inc., and W. R. Berkley Corporation have shown favorable performance. Horace Mann carries a Zacks Rank #1 (Strong Buy), while Ryan Specialty and W.R. Berkley both hold a Zacks Rank #2 (Buy).

With a strong track record of earnings surprises and positive growth outlooks, these companies present compelling options for investors looking to capitalize on growth in the insurance sector.

Zacks Investment Research’s insights provide valuable information for investors seeking to make informed decisions in the dynamic financial landscape.

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