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Marsh & McLennan (MMC) Unit Buys Integrity HR, Brings New Skill
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Marsh & McLennan Companies, Inc.’s (MMC - Free Report) Marsh McLennan Agency (“MMA”), a division of MMC’s Marsh business, recently purchased the Kentucky-based human resources (“HR”) consulting firm, Integrity HR, Inc. The terms of the deal have been kept under wraps. 13 employees of the acquiree will be part of MMA.
The buyout seems to be in sync with MMA’s endeavor to leverage Integrity HR’s expertise for introducing a set of HR capabilities such as compensation consulting, executive succession planning and talent acquisition for its midsize clients. This, in turn, will enhance the national Employee Health & Benefits offering suite of MMA.
Integrity HR seems to be a prudent pick by MMA due to its reputation of providing outsourced HR and HR consulting services for nearly two decades to midsize clients forming a part of diversified industries and sectors. Non-profit organizations, private equity portfolio firms, family-owned businesses, governments and municipalities make up the customer base of Integrity HR.
Thereby, as a result of the acquisition, MMA will be equipped to devise comprehensive talent strategies and reduce HR expenses, thereby enabling its clients to counter intricacies prevailing in the HR environment and ensure the seamless functioning of their organizations.
An upgraded national Employee Health & Benefits services suite might fetch more clients to MMA, which in turn, is expected to boost Marsh unit’s contribution to the revenues of the parent company which is Marsh & McLennan. Marsh and Guy Carpenter form a part of the Risk and Insurance Services segment, which usually contributes the most to MMC’s top line.
MMA had resorted to purchasing employee health and benefits service providers similar to Integrity HR in the past as well. Acquisitions of Maine-based Clark Insurance, CS Insurance Strategies based in Illinois and Texas-based Galbraith Group undertaken last year bear testament to the same.
An active acquisition spree is not just restricted to the Marsh sub-unit of Marsh & McLennan. The different units operating under the Risk and Insurance Services as well as Consulting segments of MMC pursue buyouts that enable them to expand product suite, enter new geographies, expand within the existing locations, foray into new businesses and specialize within current businesses. Hence, acquisitions pose MMC well for long-term growth.
After expending $859 million and $572 million on buyouts in 2021 and 2022, respectively, Marsh & McLennan seems to sustain its record of an active acquisition history this year as well. It spent $263 million on buyouts in the first quarter of 2023.
Shares of Marsh & McLennan have gained 19.3% in a year, compared with the industry’s 19.2% growth. MMC currently carries a Zacks Rank #2 (Buy).
Assurant’s earnings surpassed estimates in three of the trailing four quarters and missed the mark once, the average surprise being 9.96%. The Zacks Consensus Estimate for AIZ’s 2023 earnings suggests 0.3% year-over-year growth, while the same for revenues indicates an improvement of 2.7%. The consensus mark for AIZ’s 2023 earnings has moved 2.6% north in the past 60 days.
The bottom line of RLI outpaced earnings estimates in each of the last four quarters, the average surprise being 43.50%. The Zacks Consensus Estimate for RLI’s 2023 earnings and revenues suggests a rise of 7.9% and 17%, respectively, from the prior-year reported figures. The consensus mark for RLI’s 2023 earnings has moved 3.7% north in the past 30 days.
HCI Group’s earnings surpassed estimates in three of the trailing four quarters and missed the mark once, the average surprise being 308.82%. The Zacks Consensus Estimate for HCI’s 2023 earnings is pegged at $2.70 per share. A loss of $5.48 per share was reported in the prior year. The same for revenues indicates an improvement of 0.7% year over year. The consensus mark for HCI’s 2023 earnings has moved 200% north in the past 60 days.
The RLI stock has gained 17.7% in a year. However, shares of Assurant and HCI Group have declined 28.8% and 16.3%, respectively, in the same time frame.
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Marsh & McLennan (MMC) Unit Buys Integrity HR, Brings New Skill
Marsh & McLennan Companies, Inc.’s (MMC - Free Report) Marsh McLennan Agency (“MMA”), a division of MMC’s Marsh business, recently purchased the Kentucky-based human resources (“HR”) consulting firm, Integrity HR, Inc. The terms of the deal have been kept under wraps. 13 employees of the acquiree will be part of MMA.
The buyout seems to be in sync with MMA’s endeavor to leverage Integrity HR’s expertise for introducing a set of HR capabilities such as compensation consulting, executive succession planning and talent acquisition for its midsize clients. This, in turn, will enhance the national Employee Health & Benefits offering suite of MMA.
Integrity HR seems to be a prudent pick by MMA due to its reputation of providing outsourced HR and HR consulting services for nearly two decades to midsize clients forming a part of diversified industries and sectors. Non-profit organizations, private equity portfolio firms, family-owned businesses, governments and municipalities make up the customer base of Integrity HR.
Thereby, as a result of the acquisition, MMA will be equipped to devise comprehensive talent strategies and reduce HR expenses, thereby enabling its clients to counter intricacies prevailing in the HR environment and ensure the seamless functioning of their organizations.
An upgraded national Employee Health & Benefits services suite might fetch more clients to MMA, which in turn, is expected to boost Marsh unit’s contribution to the revenues of the parent company which is Marsh & McLennan. Marsh and Guy Carpenter form a part of the Risk and Insurance Services segment, which usually contributes the most to MMC’s top line.
MMA had resorted to purchasing employee health and benefits service providers similar to Integrity HR in the past as well. Acquisitions of Maine-based Clark Insurance, CS Insurance Strategies based in Illinois and Texas-based Galbraith Group undertaken last year bear testament to the same.
An active acquisition spree is not just restricted to the Marsh sub-unit of Marsh & McLennan. The different units operating under the Risk and Insurance Services as well as Consulting segments of MMC pursue buyouts that enable them to expand product suite, enter new geographies, expand within the existing locations, foray into new businesses and specialize within current businesses. Hence, acquisitions pose MMC well for long-term growth.
After expending $859 million and $572 million on buyouts in 2021 and 2022, respectively, Marsh & McLennan seems to sustain its record of an active acquisition history this year as well. It spent $263 million on buyouts in the first quarter of 2023.
Shares of Marsh & McLennan have gained 19.3% in a year, compared with the industry’s 19.2% growth. MMC currently carries a Zacks Rank #2 (Buy).
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Other Stocks to Consider
Some other top-ranked stocks in the insurance space include Assurant, Inc. (AIZ - Free Report) , RLI Corp. (RLI - Free Report) and HCI Group, Inc. (HCI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Assurant’s earnings surpassed estimates in three of the trailing four quarters and missed the mark once, the average surprise being 9.96%. The Zacks Consensus Estimate for AIZ’s 2023 earnings suggests 0.3% year-over-year growth, while the same for revenues indicates an improvement of 2.7%. The consensus mark for AIZ’s 2023 earnings has moved 2.6% north in the past 60 days.
The bottom line of RLI outpaced earnings estimates in each of the last four quarters, the average surprise being 43.50%. The Zacks Consensus Estimate for RLI’s 2023 earnings and revenues suggests a rise of 7.9% and 17%, respectively, from the prior-year reported figures. The consensus mark for RLI’s 2023 earnings has moved 3.7% north in the past 30 days.
HCI Group’s earnings surpassed estimates in three of the trailing four quarters and missed the mark once, the average surprise being 308.82%. The Zacks Consensus Estimate for HCI’s 2023 earnings is pegged at $2.70 per share. A loss of $5.48 per share was reported in the prior year. The same for revenues indicates an improvement of 0.7% year over year. The consensus mark for HCI’s 2023 earnings has moved 200% north in the past 60 days.
The RLI stock has gained 17.7% in a year. However, shares of Assurant and HCI Group have declined 28.8% and 16.3%, respectively, in the same time frame.