Marsh & McLennan Companies, Inc.’s ( MMC Quick Quote MMC - Free Report) agency unit Marsh McLennan Agency recently acquired CS Insurance Strategies, Inc. The acquiree is a Chicago-based full-service insurance agency. The terms of the deal are yet to be disclosed.
The minority-owned CS Insurance was founded by CEO Charles Smith in 2009. It provides business insurance, employee health and benefits, and risk management consultation in the domestic market. It has an expansive footprint in different sizes of client markets and organizations. Hence, the acquisition will likely boost the coverage span of Marsh McLennan Agency, which is a subsidiary of the leading insurance brokering firm Marsh, a business under MMC.
Further, CS Insurance’s specialized expertise in non-profit, municipal and minority-owned businesses will help Marsh McLennan Agency enhance its product offerings. Its focus on serving growing businesses can position Marsh McLennan Agency well for long-term growth. The existing 10 employees of CS Insurance are expected to join the acquirer.
The latest acquisition can help MMC strengthen its Risk and Insurance Services segment, which is operated through Marsh and Guy Carpenter. This segment generates maximum revenues for Marsh & McLennan (61% in 2021). It delivered solid results in the last few quarters. This upside is expected to continue on the back of the Marsh unit. The Risk and Insurance Services segment completed eight acquisitions in 2021.
Acquisitions form one of the core growth strategies at Marsh & McLennan. MMC made numerous purchases within its different operating units that enabled it to tap new geographical regions, expand within the existing ones, foray into new businesses, develop new segments and specialize within its existing businesses.
Shares of Marsh & McLennan have jumped 9.6% in the past year against the
industry’s 4.8% fall. Image Source: Zacks Investment Research Zacks Rank & Key Picks
Marsh & McLennan currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader
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