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Marsh McLennan Agency expands with The Horton Group buy

EditorLina Guerrero
Published 08/01/2024, 01:25 PM
MMC
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WHITE PLAINS, N.Y. - Marsh McLennan (NYSE:MMC) Agency, a subsidiary of the professional services firm Marsh McLennan (NYSE: MMC), has completed its acquisition of The Horton Group, Inc., an insurance brokerage firm based in Orland Park, Illinois. This move is set to bolster Marsh McLennan Agency's presence in the Midwest and Florida.

The acquisition, which was finalized today, brings together two significant players in the insurance industry. The Horton Group, established in 1971, ranks among the top insurance brokers in the United States. It provides a range of services, including property/casualty insurance, employee benefits consultation, and personal lines coverage for both businesses and individuals.

This strategic acquisition is expected to enhance Marsh McLennan Agency's service offerings and geographic reach. The Horton Group's employees will join the Marsh McLennan Agency team and continue to operate from their nine locations across Indiana, Illinois, Michigan, Minnesota, Wisconsin, and Florida.

Marsh McLennan Agency operates as a local consultant with the backing of global resources. The firm employs approximately 11,000 individuals across 200 offices in North America, offering business insurance, employee health and benefits, retirement and wealth management, and private client insurance solutions.

Marsh McLennan, the parent company, stands as a global leader in insurance brokerage and risk advisory services. With over 45,000 colleagues worldwide, Marsh McLennan advises clients in more than 130 countries, providing data-driven risk solutions and advisory services. With an annual revenue of $23 billion, the company operates through four market-leading businesses: Marsh, Guy Carpenter, Mercer (NASDAQ:MERC), and Oliver Wyman.

In other recent news, Marsh & McLennan has reported strong second-quarter results, with earnings per share (EPS) of $2.41 slightly surpassing the consensus estimate of $2.40, and a recorded underlying revenue growth of 6%. RBC Capital Markets has maintained a Sector Perform rating on the stock, adjusting the price target to $232.00. On the other hand, Goldman Sachs has maintained a Sell rating while raising the price target to $207. Roth/MKM has also raised the company's price target to $220, maintaining a Neutral rating.

InvestingPro Insights

Marsh McLennan (NYSE: MMC), with its latest strategic acquisition of The Horton Group, demonstrates a consistent pattern of growth and a commitment to enhancing its service offerings. The move is backed by the company's solid financial performance and industry standing. According to InvestingPro data, Marsh McLennan has a robust market capitalization of $109.86 billion, underscoring its significant presence in the insurance sector. The company's revenue growth over the last twelve months as of Q2 2024 stands at an impressive 9.44%, showcasing its ability to increase earnings and potentially provide value to its shareholders and clients alike.

In addition to its financial strength, Marsh McLennan has a history of rewarding its investors, as highlighted by one of the InvestingPro Tips, which notes the company has raised its dividend for 14 consecutive years. Furthermore, the firm has maintained dividend payments for an impressive 54 consecutive years, indicating a reliable return for long-term investors. This is particularly relevant for those considering the company's stock, as it trades near its 52-week high, with a price that is 99.82% of this peak value. The firm's dividend yield as of mid-2024 stands at 1.46%, paired with a substantial dividend growth of 38.14% over the last twelve months as of Q2 2024.

For those interested in deeper analysis or additional insights, there are more InvestingPro Tips available for Marsh McLennan at https://www.investing.com/pro/MMC. These tips can provide further guidance on the company's stock performance and potential investment opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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