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Marsh & McLennan (MMC) Unit Buys Firms to Enhance Capabilities
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Marsh & McLennan Companies, Inc.’s (MMC - Free Report) Marsh McLennan Agency (“MMA”), a division of MMC’s Marsh business, recently closed buyouts of two middle-market agencies of Louisiana, Querbes & Nelson (“Q&N”) and Louisiana Companies. The terms of the deal have been kept under wraps.
The twin buyouts are expected to strengthen the capabilities of MMA as well as solidify its presence significantly across Louisiana. The acquired companies seem to be prudent picks for buyouts by MMA owing to their longstanding history of serving a wide array of industries. Also, since MMA offers business insurance, employee health and benefits, retirement and wealth management, and private client insurance solutions to individuals and mid-market organizations, the purchased middle-market companies are expected to provide it with an in-depth understanding of better serving the middle-market firms.
For more than 10 decades, Q&N has been providing business insurance, employee benefits and alternative risk financing consulting services, and holds special expertise in catering to energy services, commercial contractors and transportation businesses. Therefore, the addition of Q&N is expected to bolster the business insurance, and employee health and benefits offerings suite of MMA.
And, Louisiana Companies offers business and personal lines insurance, with proficiency in serving the construction, manufacturing, distributor, healthcare and hospitality sectors since 1890. With enhanced capabilities, MMA is likely to better serve its clients, earn new customers and fetch greater revenues to the Marsh business, which forms a part of the Risk and Insurance Services segment of Marsh & McLennan.
The segment contributes the most to MMC’s top line, with the percentage being around 62% in 2023. The acquisition spree that MMA has embarked on throughout the year requires a special mention. Since its first buyout in 2009, MMA has purchased more than 100 organizations. In 2023, it acquired the Texas-based risk management advisory services company, SOLV Risk Solutions. MMA also purchased the Kentucky-based Integrity HR and Illinois-based Trideo Systems.
The Pennsylvania-based risk management consultancy and insurance and employee benefits broker Graham Company purchased by MMA remains one of the largest acquisitions of the Risk and Insurance Services unit last year. It also purchased the employee health and benefits insurance broker, Blue Water Insurance, in 2023.
The recent initiatives bear testament to the active acquisition activity that Marsh & McLennan is likely to follow in 2024, a trend that it has followed for the past few years. Apart from MMA, other operating units under the Risk and Insurance Services, and Consulting segments pursue buyouts that place MMC well for long-term growth. It expended $859 million, $572 million and $976 million on buyouts in 2021, 2022 and 2023, respectively.
Shares of Marsh & McLennan have gained 22.3% in the past year compared with the industry’s 18.2% growth. MMC currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the insurance space are Horace Mann Educators Corporation (HMN - Free Report) , Ryan Specialty Holdings, Inc. (RYAN - Free Report) and W. R. Berkley Corporation (WRB - Free Report) . While Horace Mann sports a Zacks Rank #1 (Strong Buy) at present, Ryan Specialty and W.R. Berkley carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Horace Mann’s earnings surpassed estimates in three of the trailing four quarters and matched the mark once, the average surprise being 15.24%. The Zacks Consensus Estimate for HMN’s 2024 earnings is pegged at $3.15 per share, which has more than doubled from the prior-year reported figure. The consensus mark for revenues suggests 9.2% year-over-year growth. The consensus mark for HMN’s 2024 earnings has moved 5% north in the past 30 days.
The bottom line of Ryan Specialty outpaced earnings estimates in two of the last four quarters and matched the mark twice, the average surprise being 5.05%. The Zacks Consensus Estimate for RYAN’s 2024 earnings and revenues suggests a rise of 28.3% and 19.2%, respectively, from the prior-year reported figures. The consensus mark for RYAN’s 2024 earnings has moved 3.5% north in the past seven days.
W.R. Berkley’s earnings surpassed estimates in three of the trailing four quarters and missed the mark once, the average surprise being 4.10%. The Zacks Consensus Estimate for WRB’s 2024 earnings and revenues suggests a rise of 22% and 9.7%, respectively, from the prior-year reported figures. The consensus mark for WRB’s 2024 earnings has moved 1% north in the past 30 days.
Ryan Specialty and W.R. Berkley have gained 31.7% and 24%, respectively, in the past year. However, the Horace Mann stock has declined 1.3% in the same time frame.
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Marsh & McLennan (MMC) Unit Buys Firms to Enhance Capabilities
Marsh & McLennan Companies, Inc.’s (MMC - Free Report) Marsh McLennan Agency (“MMA”), a division of MMC’s Marsh business, recently closed buyouts of two middle-market agencies of Louisiana, Querbes & Nelson (“Q&N”) and Louisiana Companies. The terms of the deal have been kept under wraps.
The twin buyouts are expected to strengthen the capabilities of MMA as well as solidify its presence significantly across Louisiana. The acquired companies seem to be prudent picks for buyouts by MMA owing to their longstanding history of serving a wide array of industries. Also, since MMA offers business insurance, employee health and benefits, retirement and wealth management, and private client insurance solutions to individuals and mid-market organizations, the purchased middle-market companies are expected to provide it with an in-depth understanding of better serving the middle-market firms.
For more than 10 decades, Q&N has been providing business insurance, employee benefits and alternative risk financing consulting services, and holds special expertise in catering to energy services, commercial contractors and transportation businesses. Therefore, the addition of Q&N is expected to bolster the business insurance, and employee health and benefits offerings suite of MMA.
And, Louisiana Companies offers business and personal lines insurance, with proficiency in serving the construction, manufacturing, distributor, healthcare and hospitality sectors since 1890. With enhanced capabilities, MMA is likely to better serve its clients, earn new customers and fetch greater revenues to the Marsh business, which forms a part of the Risk and Insurance Services segment of Marsh & McLennan.
The segment contributes the most to MMC’s top line, with the percentage being around 62% in 2023. The acquisition spree that MMA has embarked on throughout the year requires a special mention. Since its first buyout in 2009, MMA has purchased more than 100 organizations. In 2023, it acquired the Texas-based risk management advisory services company, SOLV Risk Solutions. MMA also purchased the Kentucky-based Integrity HR and Illinois-based Trideo Systems.
The Pennsylvania-based risk management consultancy and insurance and employee benefits broker Graham Company purchased by MMA remains one of the largest acquisitions of the Risk and Insurance Services unit last year. It also purchased the employee health and benefits insurance broker, Blue Water Insurance, in 2023.
The recent initiatives bear testament to the active acquisition activity that Marsh & McLennan is likely to follow in 2024, a trend that it has followed for the past few years. Apart from MMA, other operating units under the Risk and Insurance Services, and Consulting segments pursue buyouts that place MMC well for long-term growth. It expended $859 million, $572 million and $976 million on buyouts in 2021, 2022 and 2023, respectively.
Shares of Marsh & McLennan have gained 22.3% in the past year compared with the industry’s 18.2% growth. MMC currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the insurance space are Horace Mann Educators Corporation (HMN - Free Report) , Ryan Specialty Holdings, Inc. (RYAN - Free Report) and W. R. Berkley Corporation (WRB - Free Report) . While Horace Mann sports a Zacks Rank #1 (Strong Buy) at present, Ryan Specialty and W.R. Berkley carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Horace Mann’s earnings surpassed estimates in three of the trailing four quarters and matched the mark once, the average surprise being 15.24%. The Zacks Consensus Estimate for HMN’s 2024 earnings is pegged at $3.15 per share, which has more than doubled from the prior-year reported figure. The consensus mark for revenues suggests 9.2% year-over-year growth. The consensus mark for HMN’s 2024 earnings has moved 5% north in the past 30 days.
The bottom line of Ryan Specialty outpaced earnings estimates in two of the last four quarters and matched the mark twice, the average surprise being 5.05%. The Zacks Consensus Estimate for RYAN’s 2024 earnings and revenues suggests a rise of 28.3% and 19.2%, respectively, from the prior-year reported figures. The consensus mark for RYAN’s 2024 earnings has moved 3.5% north in the past seven days.
W.R. Berkley’s earnings surpassed estimates in three of the trailing four quarters and missed the mark once, the average surprise being 4.10%. The Zacks Consensus Estimate for WRB’s 2024 earnings and revenues suggests a rise of 22% and 9.7%, respectively, from the prior-year reported figures. The consensus mark for WRB’s 2024 earnings has moved 1% north in the past 30 days.
Ryan Specialty and W.R. Berkley have gained 31.7% and 24%, respectively, in the past year. However, the Horace Mann stock has declined 1.3% in the same time frame.