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Marsh & McLennan (MMC) Arm MMA Bags Steinberg & Associates

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Marsh & McLennan Companies, Inc.’s (MMC - Free Report) subsidiary Marsh recently announced the acquisition of Steinberg & Associates, Inc., which focuses on insurance and employee benefits. The buyout was made by Marsh McLennan Agency (“MMA”), a subsidiary of Marsh, a member of MMC’s Risk & Insurance Services business unit.

The terms of the deal are yet to be disclosed. The acquiree is an independent agency headquartered in Spartanburg, SC. It provides private client services to individuals and mid-size businesses in South Carolina, North Carolina and Georgia. Per the deal, the president of the acquiree, Hank Steinberg and his employees are expected to join Marsh McLennan Agency.

The acquisition will provide Steinberg & Associates with the vast resources of MMC, positioning it for rapid growth. The move is expected to also boost Marsh & McLennan’s footprint in the region. Acquisitions form one of the core growth strategies at the company. It has made numerous purchases within its different operating units that have enabled it to enter new geographical regions, expand within the existing ones, foray into new businesses, develop new segments and specialize within its existing businesses.

Marsh & McLennan Agency LLC completed 11 transactions in 2021, fetching combined revenues of around $170 million. In 2021, it spent $1.1 billion on buyouts. The Risk and Insurance Services segment completed eight acquisitions in 2021. These are likely to help the company enhance its geographic footprint in the middle market space. Constant buyouts poise it well for long-term growth.

In addition, a business of Marsh & McLennan, Oliver Wyman, recently closed the buyout of Booz Allen Hamilton Holding Corporation’s (BAH - Free Report) Middle East and North Africa (MENA) consulting business, for an undisclosed sum. The move will likely bolster Oliver Wyman’s presence in the India, Middle East & Africa (IMEA) region. The acquiree’s workers are joining Oliver Wyman’s global community of more than 5,700 employees. It has more than 70 offices in 30 countries.

Price Performance

Shares of Marsh & McLennan have jumped 1.9% in the past year compared with the industry’s 0.9% rise.

Zacks Investment Research
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Zacks Rank & Key Picks

Marsh & McLennan currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader finance space are Ares Capital Corporation (ARCC - Free Report) and Hannover Rück SE (HVRRY - Free Report) . While Ares Capital sports a Zacks Rank #1 (Strong Buy), Hannover carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Based in Los Angeles, CA, Ares Capital specializes in rescue financing of middle-market companies. The Zacks Consensus Estimate for ARCC’s 2022 earnings indicates 16.3% year-over-year growth.

Based in Germany, Hannover offers reinsurance products and services around the globe. The Zacks Consensus Estimate for HVRRY’s 2022 bottom line indicates 6.1% year-over-year growth.

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