Fortifying its roots in the U.S.,
Marsh & McLennan Companies Inc.
) Marsh & McLennan Agency LLC (MMA) announced the acquisition
of Ohio-based Kinker-Eveleigh Insurance Agency. However, the value
and terms and conditions of the buyout were not disclosed.
MMA is a subsidiary of Marsh & McLennan's leading insurance
brokerage wing - Marsh Inc. Following the announcement, the stock
price of Marsh & McLennan gained 0.7% and closed at $48.93 on
Armed with annual revenues of $3.5 million, Kinker-Eveleigh is
operational in the Midwest hub of the U.S. for about 95 years now.
The agency specializes in property-casualty (P&C) and employee
benefit solutions as well as offersexcellent market expertiseto its
Meanwhile, the acquisition will enable Kinker-Eveleigh to
maintain its existing business model and work culture, while also
add to Marsh & McLennan's technical expertise and vast
resources that were inaccessible to the firm until now.
On the other hand, this deal will help Marsh & McLennan to
expand its insurance brokering coverage by consolidating individual
outperforming agencies across the Midwest of the U.S. Backed by the
same intention, the company had also acquired Michigan-based
Cambridge Property & Casualty in Dec 2013.
Marsh & McLennan boasts a history of well-aligned strategic
growth through acquisitions. This is also reflected in the
company's consistent financials in the past quarters. Additionally,
a healthy balance-sheet and adequate liquidity not only eliminates
significant risks from debt leverage, but also positions Marsh
& McLennan as one of the dominant industry players.
These factors project an optimistic growth outlook for the
company in the future. The Zacks Consensus Estimate for 2014 and
2015 currently pegged at $2.79 and $3.13 reflect year-over-year
growth of 12.7% and 11.9%, respectively.
Moreover, the Most Accurate Estimate for Marsh & McLennan's
2014 and 2015 earnings stands at $2.80 and $3.15 a share, resulting
of +0.4% and +0.6%, respectively.
Other Stocks to Consider
Along with Marsh & McLennan, stocks in the same sector such
Erie Indemnity Co.
Arthur J. Gallagher & Co.
) also bear a Zacks Rank #2 (Buy) and are worth reckoning.
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