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Marsh & McLennan (MMC) Arm Buys Compass Financial Partners

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Marsh & McLennan Companies, Inc. (MMC - Free Report) arm Marsh & McLennan Agency LLC (MMA) recently acquired Compass Financial Partners, a Greensboro, NC-based retirement consulting and investment advisory company. MMA is the middle market agency unit of Marsh, which provides commercial property, casualty, personal lines and employee benefits to businesses and people across North America. However, terms of the deal were kept under wraps.

Compass Financial Partners is a leading company in the industry and provides institutional retirement plan consulting and fiduciary services in the United States. Notably, its combined plan assets surpass $14 billion, which is added to Marsh and McLennan’s $50 billion worth of retirement assets.

Per the terms of the transaction, Compass employees will continue to serve under the leadership of their founders and the managing partners Kathleen Kelly and George Hoyle.

It is needless to say that Compass is the right fit for this acquisition as it is known for providing extraordinary services and measurable results to its customers.

MMA also bought Heritage Insurance Service, Inc., a market-leading independent agency in Louisville, KY. With this transaction, the company will gain from the acquired entity’s expertise in the field. It also acquired the independent agency INSPRO in Nebraska.  

Acquisitions form one of the core growth tactics at Marsh and McLennan.
The company has made numerous purchases within its different operating units that enabled it to tap new geographies, expand within the existing ones, foray into new businesses, develop new segments and specialize within its current businesses.

Its consolidation spree augurs well for the long haul.

There has been a host of acquisitions in the insurance brokerage space of late, banking on the availability of their substantial capital resources. Recently, the company’s peer Arthur J. Gallagher & Co. (AJG - Free Report) acquired Harden & Associates, Inc. to boost its healthcare and real estate practices in the Southeast.

Further, Brown & Brown, Inc.’s (BRO - Free Report) subsidiary Brown & Brown Dealer Services (BBDS) took over considerably all the assets of ADM Marketing Group, Inc. and its affiliate ADM Insurance Services, Ltd. (collectively ADM).

Zacks Rank and Price Performance

Shares of Marsh & McLennan, which currently carries a Zacks Rank #3 (Hold), have gained 5% over the past six months compared with the industry’s growth of 7.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Another company in the same space, Aon plc (AON - Free Report) , has also risen 6.3%in the same time frame.

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