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Marsh & McLennan (MMC) Arm Increases Stake in Indian Unit

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Marsh & McLennan Companies Inc. (MMC - Free Report) unit Marsh recently announced that it enhanced its shareholding percentage from 49% to 92% in Marsh India Insurance Brokers Pvt. Ltd. The deal was approved by the Insurance Regulatory and Development Authority (IRDAI).

Marsh purchased share from local partners and the entire stake of the Rampart Trust for an undisclosed sum per the terms of the deal.

This hike in investment will enable this MMC arm to cater to the evolving and complicated requirements of companies from all sectors in India. India is one of the most dynamic markets and this investment will enable the leading insurance broker to expand its portfolio in the Indian demography.

Marsh’s Indian arm was established as a joint venture between Marsh International and India-based Rampart Trust in 2003. This MMC unit has expanded its presence over the years with 18 branches in India.
The aforementioned move is in line with Marsh’s commitment to help companies with the pandemic-related challenges. This stake enhancement will also solidify Marsh’s presence further in Asia.

The Risk and Insurance Services segment, which operates through Marsh and Guy Carpenter, is delivering solid results for the last few quarters. Marsh leaves no stone unturned when it comes to boosting its presence. Its MMA unit is on a buyout spree. For instance, earlier this month, MMA unit of Marsh acquired the market-leading independent agency InSource Insurance Group LLC in Texas.

In November, the Marsh unit announced the buyout of Pelnik Insurance, a leading independent agency in North Carolina. The year 2020 marked a record phase for MMA with regard to acquired revenues since its establishment in 2009. MMA completed eight transactions last year, fetching combined revenues of around $235 million. Marsh is steadily contributing to growth of the Risk and Insurance Services segment.

Shares of this insurance brokerage player have gained 48.2% in a year's time, outperforming its industry's growth of 26.3%.

Zacks Investment ResearchImage Source: Zacks Investment Research

MMC currently holds a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Some better-ranked stocks in the insurance space are Brown & Brown, Inc.  (BRO - Free Report) , Ryan Specialty Group Holdings Inc. (RYAN - Free Report) and CNO Financial, Inc. (CNO - Free Report) , each currently holding a Zacks Rank #2 (Buy).

Brown & Brown markets and sells insurance products and services, primarily in the United States, London, Bermuda and the Cayman Islands. BRO’s earnings managed to beat estimates in all its trailing four quarters, the average being 18.3%.

Ryan Specialty Group Holdings is a service provider of specialty products and solutions for insurance brokers, agents and carriers. RYAN came up with a trailing four-quarter earnings surprise of 41.2%, on average.

CNO Financial is a top-tier holding company for a group of insurance companies operating throughout the United States. CNO’s bottom line beat estimates in three of its trailing four quarters (missing the mark in the remaining one), the average surprise being 13.2%.

Shares of BRO, RYAN and CNO have gained 48.9%, 43.1% and 5.8%, respectively, in the same time frame.