Marsh & McLennan's Arm Buys Stake in Corridor Platforms
Marsh & McLennan Companies, Inc.’s MMC unit Oliver Wyman recently acquired a minority stake in Corridor Platforms, which is a leading decision workflow governance and automation software provider.
In July 2019, Oliver Wyman entered into a strategic partnership with Corridor Platforms to offer banks and non-bank financial institutions solutions and help update and digitize credit extension, transactions and end-to-end risk management. This tie-up allowed Corridor Platforms’ unique, modular and cloud-based risk management platform that assists in credit modeling, loan valuation and real-time policy execution to combine with Oliver Wyman’s competence in risk management, such as next-generation risk analytics, model development and data or process management.
Oliver Wyman utilized Corridor Platforms’ solution to enable timely end-to-end credit decision making while enhancing governance. With Corridor Platforms, the process of big data and analytics can be condensed to a few weeks from months. This strategic initiative is the right move during these challenging times as demand for fast credit models and decisioning is at its peak.
Notably, Corridor Platforms will be able to gain traction from Oliver Wyman’s experience in the forefront of risk management and advanced analytics. The deal was struck at a time when the market is quite volatile with insurers facing high claims and new threats in the wake of the coronavirus outbreak.
In the first quarter of 2020, Oliver Wyman Group, registered revenues of $511 million, flat year over year on an underlying basis. Per its last earnings call, management expected to witness a pullback in underlying revenues from this business line in the second and the third quarter. But once the global economy stabilizes, the metric is likely to bounce back strongly.
Other Major Acquisitions in the Same Space
Insurance brokers have been looking for ways to fight the evolving challenges and boost their company portfolios. In this context, strategic buyouts will be of great help. Last month, Brown & Brown, Inc. BRO subsidiary Hull & Company, LLC acquired substantially all the assets of The Colonial Group and all issued and outstanding shares of its affiliate, Colonial Premium Finance Company.
Zacks Rank and Price Performance
Shares of this Zacks Rank #4 (Sell) company have rallied 12.7% in a year’s time, outperforming its industry’s growth of 7%. The performance looks feeble in comparison to other companies in the same space, such as eHealth, Inc. EHTH and Willis Towers Watson Public Limited Company WLTW, which have gained 87.8% and 15.3% in the same time frame.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Marsh McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
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