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Marsh & McLennan (MMC) to Help Ukraine With Insurance Access

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Marsh & McLennan Companies, Inc. (MMC - Free Report) recently joined hands with the Ukraine government to help it gain access to the global insurance market. MMC will be providing services on a pro-bono basis to the distressed Ukraine economy.

MMC aims to create a war risk insurance pool for the Ukrainian and G7 governments. Under this partnership, MMC will provide a risk data platform enabling insurers to calculate and underwrite war risks in Ukraine with greater conviction. The partnership bodes well, as MMC earlier collaborated with Lloyd’s insurer to provide insurance coverage for grain exporters. This has also improved the supply chain to function properly.

Marsh & McLennan’s business model provides professional services related to risk, people and strategy for a fee. Its top line is dependent on the level of business activity of clients. Any financial difficulty for the clients due to the Russia-Ukraine war may result in delayed payments, affecting the company’s top line. However, the partnership is expected to boost Ukraine’s economy and help MMC’s clients, which will aid the company’s top line in the long-run.

The Ukrainian government will provide detailed information to insurance industry players to help revive its commercial insurance market. MMC’s partnership with Ukraine would aid insurance players to start offering insurance coverage to companies therein. With the looming war tensions, businesses are skeptical about their future in Ukraine. But, with war risk insurance, Ukraine will be able to attract investment to help the economy grow.

Zacks Rank and Price Performance

MMC currently carries a Zacks Rank #2 (Buy).

Shares of Marsh & McLennan have gained 10.4% year to date compared with the industry’s 7.5% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

Some other top-ranked stocks in the insurance space are American International Group, Inc. (AIG - Free Report) , Brown & Brown, Inc. (BRO - Free Report) and Ryan Specialty Holdings, Inc. (RYAN - Free Report) . American International currently sports a Zacks Rank #1 (Strong Buy), while Brown & Brown and Ryan Specialty carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

American International’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 9.2%.

The Zacks Consensus Estimate for AIG’s 2023 earnings suggests 42.4% year-over-year growth, while the same for revenues indicates an improvement of 8.5%.

The bottom line of Brown & Brown outpaced earnings estimates in three of the last four quarters and missed once, the average surprise being 1.2%.

The Zacks Consensus Estimate for BRO’s 2023 earnings and revenues suggests a rise of 10.5% and 13.2%, respectively, from the prior-year reported figures.

Ryan Specialty’s earnings surpassed estimates in two of the trailing four quarters, missed the mark once and matched the same on the remaining one occasion, the average surprise being 2.7%.

The Zacks Consensus Estimate for RYAN’s 2023 earnings suggests 15.7% year-over-year growth, while the same for revenues indicates an improvement of 17%.

Shares of Brown & Brown and Ryan Specialty have gained 15.9% and 3.4%, respectively, year to date. However, American International stock has declined 11.5% in the year-to-date period.

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