In an effort to expand its geographic presence, Marsh &
McLennan Agency LLC ("MMA"), an operating subsidiary of
Marsh & McLennan Companies, Inc. ( MMC ),
has purchased Florida-based Eidson Insurance. No other details
pertaining to the acquisition were disclosed by the entities.
Per the agreement, all executives of the acquired company will
join the management team of MMA. Eidson Insurance will be a part of
MMA's Florida hub which the company created a year ago and operates
as a subsidiary of Marsh & McLennan.
The company's focus is to serve the middle market consumers and
individuals present in Florida. Eidson will continue to operate
from its office in Orlando. As a result of this acquisition, Marsh
& McLennan will have operating units in Miami, Fort Lauderdale,
West Palm Beach, Jacksonville and Orlando.
Following the news, Marsh & McLennan's shares gained 1.5%
(or 50 cents) to close at $34.35 yesterday.
Of late, Marsh & McLennan has been proactive in acquiring
companies. In July, MMA acquired Wisconsin-based Security Insurance
Services Inc. to expand insurance and employee benefits
We believe that these acquisitions will aid Marsh &
McLennan's top-line going forward and also help the company sustain
its growth strategy, which is crucial amid the soft pricing
environment and challenges associated with antitrust litigations.
We believe, owing to these attributes, the company is still a
dominant player in its industry despite sluggish organic
However, Aon Corporation ( AON ),
the company's closest competitor, continues to pose a stiff
challenge. Alongside, Aon is striving to expand its services and
products both organically and inorganically. It has been adding new
clients to its list, renewing contracts and acquiring companies
Marsh & McLennan carries a Zacks #3 Rank that translates
into a short-term Hold rating. We also maintain a long-term Neutral
recommendation on its shares.
AON PLC (AON): Free Stock Analysis Report
MARSH &MCLENNAN (MMC): Free Stock Analysis
To read this article on Zacks.com click here.