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Marsh & McLennan's (MMC) Guy Carpenter to Acquire Re Solutions

Marsh & McLennan Companies, Inc.’s MMC business Guy Carpenter recently agreed to acquire an Israeli independent reinsurance broker, Re Solutions. The deal is expected to conclude later in this quarter. Details of the transaction are yet to be disclosed.

The move is expected to strengthen Marsh & McLennan’s footprint in Israel. Its Guy Carpenter business has Re Solutions as a correspondent broker in the country for more than a decade now (since 2011). Hence, the latest move is built on a strong relationship.

The acquiree develops innovative client-focused solutions and the combined entity is expected to become a leading reinsurance broker in the country. The move is likely to enable Guy Carpenter to offer its extensive portfolio of services to the local market through Re Solutions’ platform.

The move is also anticipated to boost demand for Guy Carpenter’s insurtech expertise in the Israeli market, a major insurtech and fintech hub. Per the deal, Asaf Grinstein, the CEO of Re Solutions will assume the role of CEO of Guy Carpenter Israel. Also, all of the acquiree’s team will likely join the acquirer.

Marsh & McLennan has a strong inorganic growth strategy in place, which enables it to enter new geographical regions, expand within the existing ones, foray into new businesses, develop new products and specialize within its existing businesses. Strengthening its Guy Carpenter business is expected to boost the company’s Risk and Insurance Services segment. In the first quarter of 2023, revenues from this unit jumped 10% year over year.

Price Performance

Shares of Marsh & McLennan have climbed 8.3% in the past year compared with the industry’s 11% rise.

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Zacks Investment Research

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Zacks Rank & Key Picks

Marsh & McLennan currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader finance space are Ambac Financial Group, Inc. AMBC, Lemonade, Inc. LMND and Argo Blockchain plc ARBK, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Ambac Financial’s 2023 earnings has improved 68% over the past 30 days. During this time, AMBC has witnessed one upward estimate revision against none in the opposite direction.

The Zacks Consensus Estimate for Lemonade’s 2023 earnings suggests 15.9% year-over-year growth. Also, the consensus mark for LMND’s 2023 revenues implies a 53.6% year-over-year rise.

The Zacks Consensus Estimate for Argo Blockchain’s 2023 bottom line suggests an 87.8% year-over-year improvement. During the past month, ARBK witnessed one upward estimate revision against none in the opposite direction.

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Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report

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