We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Marsh&McLennan Unit Boosts Growth with Blakestad Buyout
Read MoreHide Full Article
Marsh & McLennan Agency LLC (“MMA”), a unit of Marsh & McLennan Companies, Inc. (MMC - Free Report) , recently announced that it has acquired Blakestad, Inc. The terms of the transaction were not disclosed. The addition of Blakestad would expand the acquirer’s capabilities in the private client market.
Over the past many years, this leading insurance broker and risk management company has displayed exceptional growth through investments in both organic and inorganic strategies. Since 2009, Marsh & McLennan has closed 130 buyouts worth almost $6 billion. These initiatives have significantly bolstered the company’s revenue base.
The company’s strategies have usually found favor with shareholders, which is clearly evident from the stock’s favorable performance in the last six months. Over the time frame, the stock has gained 8.5% outpacing the Insurance Brokerage industry’s gain of 7.9%.
This recent acquisition is likely to add more value to the stock. The stock is also lucrative from the value perspective. The Price to Earnings Growth (PEG) ratio of Marsh & McLennan stock is currently pegged at 1.67 compared with the industry average of 1.72
We note that Blakestad, which is a private client and commercial lines independent insurance agency, provides property and casualty insurance to privately held businesses and individuals. The company is an expert in working with high-net worth individuals and families worldwide. Hence, Blakestad’s association with a leading brand like MMA should open up several opportunities for it.
Acquisitions are a well-accepted growth strategy among insurers. Apart from enriching portfolio with added capabilities, strategic buyouts help acquirers expand geographic presence. Since 2009, it has invested more than $7 billion for growth and efficiency. Acquisitions also testify the financial strength of the acquirers.
American Financial offers P&C insurance products in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.45%.
Everest Re offers reinsurance and insurance products. The company delivered positive surprises in three of the last four quarters with an average beat of 43.49%.
Selective Insurance provides insurance products and services in the United States. The company delivered a positive surprise in one of the last four quarters but with an average negative surprise of 4.53%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Marsh&McLennan Unit Boosts Growth with Blakestad Buyout
Marsh & McLennan Agency LLC (“MMA”), a unit of Marsh & McLennan Companies, Inc. (MMC - Free Report) , recently announced that it has acquired Blakestad, Inc. The terms of the transaction were not disclosed. The addition of Blakestad would expand the acquirer’s capabilities in the private client market.
Over the past many years, this leading insurance broker and risk management company has displayed exceptional growth through investments in both organic and inorganic strategies. Since 2009, Marsh & McLennan has closed 130 buyouts worth almost $6 billion. These initiatives have significantly bolstered the company’s revenue base.
The company’s strategies have usually found favor with shareholders, which is clearly evident from the stock’s favorable performance in the last six months. Over the time frame, the stock has gained 8.5% outpacing the Insurance Brokerage industry’s gain of 7.9%.
This recent acquisition is likely to add more value to the stock. The stock is also lucrative from the value perspective. The Price to Earnings Growth (PEG) ratio of Marsh & McLennan stock is currently pegged at 1.67 compared with the industry average of 1.72
We note that Blakestad, which is a private client and commercial lines independent insurance agency, provides property and casualty insurance to privately held businesses and individuals. The company is an expert in working with high-net worth individuals and families worldwide. Hence, Blakestad’s association with a leading brand like MMA should open up several opportunities for it.
Acquisitions are a well-accepted growth strategy among insurers. Apart from enriching portfolio with added capabilities, strategic buyouts help acquirers expand geographic presence. Since 2009, it has invested more than $7 billion for growth and efficiency. Acquisitions also testify the financial strength of the acquirers.
Zacks Rank and Stocks to Consider:
Marsh & McLennan presently carries Zacks Rank #3 (Hold).
Some better-ranked stocks from the insurance industry include American Financial Group, Inc. (AFG - Free Report) , Everest Re Group, Ltd , Selective Insurance Group, Inc. (SIGI - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
American Financial offers P&C insurance products in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.45%.
Everest Re offers reinsurance and insurance products. The company delivered positive surprises in three of the last four quarters with an average beat of 43.49%.
Selective Insurance provides insurance products and services in the United States. The company delivered a positive surprise in one of the last four quarters but with an average negative surprise of 4.53%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>