NEW YORK - Marsh McLennan (NYSE: NYSE:MMC), a prominent player in the fields of risk, strategy, and people management, announced today the finalization of its acquisition of McGriff Insurance Services, LLC. This move incorporates McGriff's team of over 3,500 into the Marsh McLennan Agency (MMA), aiming to enhance the company's services in the middle market sector.
John Doyle, President and CEO of Marsh McLennan, expressed enthusiasm about the acquisition, stating that McGriff's specialized skills and industry knowledge will bolster MMA's offerings and extend its market reach. David Eslick, Chairman and CEO of MMA, echoed this sentiment, looking forward to leveraging McGriff's expertise to benefit more businesses and communities nationwide.
Read Davis, CEO of McGriff, assured that clients would continue to receive the same level of service from the teams they trust, now backed by the expanded global resources and industry insights provided by MMA.
McGriff, established in 1886, is a prominent provider of insurance broking and risk management services in the United States, offering a wide range of insurance solutions.
Marsh McLennan advises clients in 130 countries through its four businesses: Marsh, Guy Carpenter, Mercer (NASDAQ:MERC), and Oliver Wyman. With an annual revenue of $23 billion and a workforce exceeding 85,000, the company is committed to helping clients succeed by providing diverse perspectives.
This strategic acquisition is expected to strengthen Marsh McLennan's position in the insurance and risk management sector, providing clients with a broader range of services and expertise. The information regarding this acquisition is based on a press release statement from Marsh McLennan.
In other recent news, Marsh & McLennan has been making notable strides. The company reported a 5% increase in underlying revenue and a 12% rise in adjusted operating income for Q3 2024. The adjusted EPS was $1.63, a 4% year-over-year increase, and consolidated revenue was reported at $5.7 billion. Additionally, Marsh & McLennan issued $7.25 billion in senior notes, facilitated by major underwriters including Citigroup (NYSE:C) Global Markets Inc., BofA Securities, Inc., and Deutsche Bank (ETR:DBKGn) Securities Inc.
In a significant expansion move, Marsh & McLennan acquired McGriff Insurance Services for $7.75 billion. This acquisition is expected to close by the end of the year and is anticipated to be modestly accretive to the adjusted EPS in its first year.
Analyst firms Keefe, Bruyette & Woods, BMO Capital Markets, RBC Capital, and Goldman Sachs have updated their price targets and ratings for Marsh & McLennan. Keefe, Bruyette & Woods raised its price target to $212.00, BMO Capital Markets to $228.00, and RBC Capital to $242.00, while Goldman Sachs maintained its price target at $220.00. All four firms have updated their earnings per share estimates for the company, reflecting their analysis of the company's recent performance and future prospects.
InvestingPro Insights
As Marsh McLennan (NYSE: MMC) finalizes its acquisition of McGriff Insurance Services, LLC, it's worth examining some key financial metrics and insights from InvestingPro that shed light on the company's current position and future prospects.
Marsh McLennan boasts a market capitalization of $109.0 billion, underlining its significant presence in the insurance and risk management sector. The company's revenue for the last twelve months as of Q3 2024 stood at $23.95 billion, aligning closely with the annual revenue figure mentioned in the article. This revenue represents a growth of 7.84% over the same period, indicating steady expansion even before the McGriff acquisition.
An InvestingPro Tip highlights that Marsh McLennan has raised its dividend for 15 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by a dividend yield of 1.47% and an impressive dividend growth of 14.79% in the last twelve months. Such consistent dividend performance could be attractive to investors seeking stable income streams.
Another relevant InvestingPro Tip notes that Marsh McLennan is a prominent player in the insurance industry. This status is likely to be further cemented with the McGriff acquisition, potentially enhancing the company's market position and service offerings in the middle market sector.
For those interested in a deeper analysis, InvestingPro offers 9 additional tips that could provide valuable insights into Marsh McLennan's financial health and market position. These tips, along with real-time data and expert analysis, are available to InvestingPro subscribers, offering a comprehensive view of the company's potential in light of this strategic acquisition.
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