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Morgan Stanley Teams Up With Brokers to Offer P&C Insurance

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With an aim to expand the current insurance offerings, Morgan Stanley (MS - Free Report) has collaborated with HUB International, Marsh Private Client Services and Willis Towers Watson. Teaming up with these insurance brokers, Morgan Stanley plans to offer Property & Casualty insurance to its high net worth clients and their families in order to lessen potential risks associated with property loss and general liability.

Morgan Stanley’s traditional insurance services include life insurance, long-term care insurance and disability insurance, which it currently makes available through its Wealth Management Investment Solutions Insured Solutions business. This new arrangement is expected to complement the traditional insurance business.

Through the new arrangement, the insurance brokers will help Morgan Stanley’s clients assess their risk exposures and hence will provide them solutions to help protect their assets.

There will be policy reviews to ensure that clients are properly insured and their current policies are most appropriate for their needs. Also, clients will be alerted of situations for which extra precautions are required and there will be a streamlined approach for processing insurance claims.

Joseph Toledano, the head of Insured Solutions, Morgan Stanley Wealth Management Investment Solutions stated, “Our clients place a high priority on asset protection and by working with these industry-leading insurance brokers, Morgan Stanley can address their need for a comprehensive insurance strategy as part of their overall relationship.”

Notably, Morgan Stanley has been continuously taking several initiatives to restructure operations, with a goal of increasing reliable revenue sources. Hence, it has been focusing more on the Wealth Management segment, which is less dependent on the performance of the capital markets.

In fact, its all-stock deal to acquire E*TRADE Financial (ETFC - Free Report) for $13 billion is expected to position it as a leader in the Wealth Management industry across all channels and wealth segments, with a significant increase in the scale and breadth of its franchise.

Shares of Morgan Stanley have lost 3.2% so far this year compared with the industry’s decline of 14%.

Currently, the company carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks from the same space are mentioned below.

TD Ameritrade Holding Corporation (AMTD - Free Report) witnessed an upward earnings estimate revision of 21.8% for the current fiscal year over the past 60 days. Its share price has fallen 22.8% over the past year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Interactive Brokers Group, Inc.’s (IBKR - Free Report) current-year earnings has been revised 9.1% upward over the past 60 days. Its share price has increased 3.7% over the past twelve months. The company currently carries a Zacks Rank #2 (Buy).

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