Back to top

Image: Bigstock

Marsh & McLennan Unit Buyout to Offer Better Client Services

Read MoreHide Full Article

Marsh & McLennan Companies, Inc.'s (MMC - Free Report) unit Mercer recently announced the completion of its purchase of Summit Strategies Group (Summit) on Nov 15, 2018. However, terms of the transaction are unknown.

With the consolidation of Summit’s enriched client service experience and Mercer’s top-notch investment capabilities, customers would be highly benefited from this deal. They would continue working with their current consulting team and also access Mercer’s resources.

Apart from its contract to acquire Summit, the unit announced owning certain operations of Pavilion Financial Corporation on Aug 13, 2018. The latter buyout is expected to close in the fourth quarter of 2018.

Strategic acquisitions have always been one of the core growth strategies at Marsh and McLennan. In the past, the parent company made numerous purchases to boost its portfolio, enter new geographies, expand within the existing businesses and foray into new ones. In recent months, the company bought Klein Agency and Insurance Associates, which helped fortifying its footprint in greater Washington DC region and enhance its construction capabilities.

 The company also completed a buyout in Scotland, adding to its revenue base. Of late, it acquired Houston-based Wortham Insurance along with Eustis Insurance & Benefits, a leading independent insurance agency in Louisiana. Integration of Jardine Lloyd Thompson Group is also due and with its culmination, the company’s subsidiary Marsh would launch a specialty business.

Shares of this Zacks Rank #3 (Hold) company have gained 4.4% in a year’s time, underperforming its industry’s growth of 8.2%.


Stocks to Consider

Investors interested in the insurance sector might consider a few better-ranked stocks like Willis Towers Watson Public Limited Company , eHealth, Inc. (EHTH - Free Report) and Cigna Corporation (CI - Free Report) .

Willis Towers works as an advisory, broking and solutions company worldwide. The company carries a Zacks Rank #2 (Buy) and managed to deliver positive results in the trailing four reported quarters, the average beat being 7.13%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

eHealth offers private online health insurance exchange services in the United States and China. It holds a Zacks Rank of 2 and came up with average three-quarter positive surprise of 7.29%.

Cigna provides insurance and related products and services in the United States and internationally. The stock sports a Zacks Rank #1 (Strong Buy) and pulled off average four-quarter earnings surprise of 13.46%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cigna Group (CI) - free report >>

Marsh & McLennan Companies, Inc. (MMC) - free report >>

eHealth, Inc. (EHTH) - free report >>

Published in