Marsh McLennan Agency expands with AmeriStar acquisition By Investing.com

WHITE PLAINS, N.Y. – Marsh McLennan (NYSE:) Agency, a subsidiary of the global professional services firm Marsh McLennan (NYSE: MMC), has announced the acquisition of the Minnesota-based independent agency, AmeriStar Agency, Inc. The financial terms of the deal have not been made public.

AmeriStar Agency, established in 1987, specializes in providing insurance coverage solutions to high net worth individuals and commercial clients. With this acquisition, all AmeriStar employees, including President Matt Schadow, will join Marsh McLennan Agency but will continue their operations from their current office in Wayzata.

Timothy Fleming, Chairman of Marsh McLennan Agency’s Upper Midwest region, remarked on the acquisition, stating the move aligns with the company’s growth strategy to integrate high-quality agencies that align with their evolving client needs. The focus is on expanding risk management expertise and solutions for both businesses and individuals.

Matt Schadow expressed optimism about the new partnership, highlighting the opportunity to enhance AmeriStar’s service offerings by leveraging Marsh McLennan Agency’s extensive resources and expertise. The aim is to offer clients more robust solutions to their unique market exposures.

Marsh McLennan Agency operates with a workforce of 11,000 across 200 offices in North America, offering a suite of services including business insurance, employee health and benefits, and private client insurance solutions. It is part of Marsh McLennan, a global leader in insurance brokerage and risk advisory services, which boasts a revenue of $23 billion and a presence in over 130 countries.

The acquisition is part of Marsh McLennan’s strategy to provide comprehensive and sophisticated risk management services to its clientele. AmeriStar’s existing clients can expect to benefit from the enhanced capabilities and resources made available through Marsh McLennan Agency.

This expansion demonstrates Marsh McLennan Agency’s commitment to growing its service portfolio and strengthening its market position in the insurance and risk management sector. The information regarding this acquisition is based on a press release statement issued by Marsh McLennan Agency.

In other recent news, Marsh McLennan Agency, a subsidiary of Marsh McLennan, has been active in expanding its operations through multiple acquisitions. The firm recently acquired Hudson (NYSE:) Shore Group, a New Jersey-based employee benefits broker, and Perkins Insurance Agencies, a Texas-based independent agency. The company has also announced its intent to acquire UK and Dutch pension specialist , which will integrate approximately $66 billion in assets under management into Mercer (NASDAQ:)’s wealth management services, pending regulatory approval.

These acquisitions aim to strengthen Marsh McLennan’s presence in various regions and sectors. RBC Capital and Keefe, Bruyette & Woods have raised their price targets on Marsh & McLennan, citing the company’s strong performance and future growth trends.

Additionally, Marsh & McLennan disclosed an upcoming blackout period for its employee benefit plans due to administrative changes in the company’s 401(k) Savings and Investment Plan. These are among the recent developments for Marsh McLennan, underscoring the company’s ongoing efforts to grow and diversify its portfolio of services.

InvestingPro Insights

As Marsh McLennan (NYSE: MMC) continues to expand its footprint in the insurance industry with strategic acquisitions like AmeriStar Agency, Inc., financial metrics and market performance provide a broader context for understanding the company’s position. According to recent data, Marsh McLennan boasts a robust market capitalization of $104.19 billion, underscoring its significant presence in the market.

The company’s commitment to shareholder returns is evident through its impressive track record of increasing dividend payments for 54 consecutive years, a testament to its financial stability and prudent management. This dedication to consistent dividend growth aligns with the company’s strategic growth initiatives and focus on long-term value creation. Additionally, Marsh McLennan’s stock stability is reflected in its low price volatility, which can be an attractive feature for investors seeking a more predictable investment in the volatile insurance sector.

InvestingPro Tips further reveal that Marsh McLennan is trading at a high Price / Book multiple of 8.4, indicative of the market’s valuation of the company’s assets relative to its share price. Moreover, analysts maintain a positive outlook on the company, predicting profitability in the current fiscal year, which is supported by a solid track record of profitability over the last twelve months.

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