WHITE PLAINS, N.Y. - Marsh McLennan (NYSE:MMC) Agency, a subsidiary of global professional services firm Marsh McLennan (NYSE: MMC), has acquired Perkins Insurance Agencies, an independent agency based in Abilene, Texas. The terms of the deal, announced today, were not disclosed.
Perkins Insurance Agencies, established in 1977, offers commercial property and casualty as well as personal lines insurance, with a focus on serving the West Texas community. The firm has developed specialized expertise catering to industries such as oil and gas, trucking, farm and ranch, and restaurants. Following the acquisition, all employees of Perkins, including CEO Mark Perkins, will continue to operate from their current offices in Abilene and Eastland, Texas.
Matt Stadler, CEO of Marsh McLennan Agency's Southwest region, remarked on the acquisition, noting the high-quality service provided by Perkins Insurance and its strong reputation in the community. He expressed that the addition of Perkins is in line with the company's strategy to enhance their offerings in the West Texas area.
Mark Perkins highlighted the benefits for their clients, stating that the merger with Marsh McLennan Agency will give them access to a broader range of resources and industry-leading expertise, which will enable them to deliver enhanced results for local businesses and the community.
Marsh McLennan Agency offers a range of services including business insurance, employee health and benefits, retirement and wealth management, and private client insurance solutions. With a network of 10,000 colleagues across North America, the agency aims to provide localized service backed by the resources of Marsh McLennan, a company with a global reach advising clients in more than 130 countries.
The acquisition is part of Marsh McLennan's broader strategy to provide comprehensive risk solutions and advisory services to its clients. With this move, Marsh McLennan Agency continues to strengthen its presence in the United States by integrating regional agencies with deep local expertise. This information is based on a press release statement from Marsh McLennan Agency.
In other recent news, Marsh McLennan Agency, a subsidiary of Marsh, is expanding its operations with the acquisition of AC Risk Management (ACRM), a New York-based commercial lines brokerage. This move is expected to bolster the company's presence in the Northeast region, particularly in the construction insurance sector. ACRM's team, including CEO Matt Avellino, will continue to operate from their current office in Melville.
In a strategic move to enhance its footprint in the Southeast, Marsh McLennan Agency has also agreed to purchase Fisher Brown Bottrell Insurance, Inc. (FBBINSURANCE) from Trustmark (NASDAQ:TRMK) National Bank for $315.9 million in cash. This acquisition, pending regulatory approval, is expected to conclude in the second quarter of 2024. The FBBINSURANCE team, including CEO Scott Woods, will join Marsh McLennan Agency post-acquisition.
Analysts have also been adjusting their outlooks on Marsh & McLennan. Keefe, Bruyette & Woods raised their price target to $195 from the previous $188, while maintaining an Underperform rating on the stock, following Marsh & McLennan's first-quarter earnings report. RBC (TSX:RY) Capital Markets also increased their price target to $210, citing the company's solid top-line momentum. On the other hand, BofA Securities reduced its price target to $223 from $228, despite Marsh & McLennan's reported 9% organic growth in the first quarter of 2024, which surpasses the company's full-year guidance.
These developments are part of Marsh McLennan Agency's ongoing efforts to grow and diversify its portfolio of services. The company plans to leverage these acquisitions to enhance its insurance and consulting services across various sectors and regions.
InvestingPro Insights
As Marsh McLennan (NYSE: MMC) continues to expand its footprint with strategic acquisitions like Perkins Insurance Agencies, investors and industry observers are closely monitoring the company's financial health and market position. According to the latest data available from InvestingPro, Marsh McLennan has a robust market capitalization of $100.88 billion, reflecting its significant presence in the global professional services industry.
Investors should note that Marsh McLennan is currently trading at a P/E ratio of 25.82, which is high relative to near-term earnings growth. This valuation metric, alongside a Price/Book ratio of 8.12 as of the last twelve months ending Q1 2024, suggests that the market has considerable confidence in the company's future prospects. Additionally, the firm has demonstrated a solid revenue growth of 10.38% during the same period, underscoring its ability to grow its top-line figures in a competitive landscape.
An InvestingPro Tip worth mentioning is Marsh McLennan's track record of raising its dividend for 14 consecutive years, with a notable dividend growth of 20.34% in the last twelve months as of Q1 2024. This is indicative of the company's strong commitment to returning value to shareholders and its financial stability. Moreover, Marsh McLennan is a prominent player in the Insurance industry, which aligns with its strategic moves to acquire agencies like Perkins Insurance to bolster its industry-specific offerings.
For those considering an investment in Marsh McLennan or seeking more insights, there are additional InvestingPro Tips available. Currently, there are 10 more tips listed on InvestingPro, offering a deeper analysis of the company's performance and potential. Interested readers can access these valuable insights by visiting https://www.investing.com/pro/MMC and can benefit from an additional 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.
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