Marsh & McLennan (MMC) Unit Expands in the Healthcare Industry
Marsh & McLennan Companies’ MMC Marsh McLennan Agency recently fortified its position in the healthcare industry with the acquisition of Trideo Systems, a leading risk management information system (RMIS) provider.
The deal, announced today, marks another strategic acquisition for Marsh McLennan Agency as it continues to expand its portfolio and enhance its offerings in the insurance and risk management sector.
More on Trideo Systems
Based in Arlington Heights, IL, Trideo Systems, established in 2008, offers a comprehensive RMIS platform designed specifically for healthcare organizations. The platform enables clients to efficiently manage risk throughout the entire process, from identifying adverse events to resolving claims. By leveraging improved collaboration and advanced analytics, Trideo Systems' solution saves time and enhances risk management capabilities.
With this acquisition, Marsh McLennan Agency aims to leverage Trideo's technology and analytics capabilities to provide innovative and customized solutions, including healthcare systems and long-term care facilities.
Strategic Acquisitions Fuel MMC’s Growth
Marsh McLennan Agency's acquisition of Trideo Systems is part of a broader strategy of strategic acquisitions that have historically propelled growth. With multiple purchases across different operating units, Marsh McLennan has expanded its geographical reach, entered new markets and developed specialized services. In 2021 alone, Marsh McLennan Agency completed 11 transactions, generating approximately $170 million in revenues. The company spent $572 million on acquisitions in 2022. In the first quarter of 2023, it spent $263 million on buyouts. This ongoing commitment to acquisitions demonstrates Marsh McLennan's dedication to long-term growth and providing cutting-edge solutions to its clients.
By continuously expanding its portfolio through strategic acquisitions, Marsh McLennan Agency has been solidifying its position as a leader in the insurance and risk management industry.
Zacks Rank and Price Performance
Marsh & McLennan carries a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of MMC have gained 12.8% in a year compared with the industry’s increase of 9.4%.
Image Source: Zacks Investment Research
Acquisitions in the Insurance Space
Arthur J. Gallagher & Co. AJG recently made two significant acquisitions, further strengthening its position in the industry. The company announced the acquisition of The Andersen Group, a retail insurance agency based in Chantilly, VA, and Fender Marine AS, a Norwegian managing general agent specializing in marine coverages.
Arthur J. Gallagher has an impressive inorganic story with several buyouts in Brokerage and Risk Management segments. This insurance broker acquired 10 entities in the first quarter of 2023 that contributed about $69 million to estimated annualized revenues and made 11 buyouts in the second quarter. AJG has a strong merger and acquisition pipeline with about $350 million of revenues, associated with about 45 term sheets either agreed upon or being prepared. The company expects an M&A capacity of more than $3 billion through the end of 2023.
Brown & Brown, Inc.’s BRO subsidiary acquired assets of Brownlee Agency, Inc. The addition of Brownlee Agency will boost Brown & Brown’s presence in Georgia.
Brown & Brown and its subsidiaries continuously make strategic acquisitions to expand globally, add capabilities and boost operations. Also, these strategic buyouts help the company increase commissions and fees, which, in turn, drive revenues. Its impressive growth is driven by organic and inorganic means across all segments. Consistent operational results have been aiding Brown & Brown in generating solid cash flows for deployment in strategic initiatives.
American Financial Group, Inc. AFG has acquired Crop Risk Services ("CRS"), a primary crop insurance general agent based in Decatur, IL, for a cash consideration of $240 million from American International Group. The inclusion of CRS into the fold will reinforce Great American's position as the fifth largest provider of multi-peril crop insurance in the United States.
American Financial Group has a track record of reaping the rewards of strategic acquisitions. It is actively involved in startups, small-to-medium-sized acquisitions and product launches. It is prudently investing in businesses.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
American Financial Group, Inc. (AFG) : Free Stock Analysis Report
Brown & Brown, Inc. (BRO) : Free Stock Analysis Report
