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WHITE PLAINS, N.Y. - Marsh McLennan (NYSE:MMC) Agency, a subsidiary of global professional services firm Marsh McLennan (NYSE: MMC), has announced a definitive agreement to acquire The Horton Group, Inc., an established full-service insurance brokerage based in Orland Park, Illinois. The financial terms of the deal, which is expected to close by the end of the third quarter of 2024, were not disclosed.
The Horton Group, founded in 1971, has been recognized as a top independent insurance broker in the United States. It provides a range of services including property and casualty insurance, employee benefits consultation, and personal lines coverage. With a strong regional presence, Horton serves clients in Indiana, Illinois, Wisconsin, Minnesota, and Florida through its nine offices.
Tony Chimino, CEO of Marsh McLennan Agency’s Midwest region, expressed enthusiasm for the acquisition, noting the shared commitment to strategic risk management solutions. Dan Horton, CEO of The Horton Group, reciprocated the sentiment, highlighting the benefits for clients due to the combined expertise of the two firms.
The acquisition aligns with Marsh McLennan Agency's strategy to expand its services and reach. The addition of Horton's workforce will bolster the agency's capabilities in the Midwest. Employees of Horton, including Dan Horton, are set to join Marsh McLennan Agency, continuing operations from their current locations.
Marsh McLennan Agency operates with a network of 11,000 colleagues across 200 offices in North America. It offers various insurance and consultancy services, leveraging the extensive resources of Marsh McLennan, which reported annual revenues of $23 billion. Marsh McLennan's businesses include Marsh, Guy Carpenter, Mercer (NASDAQ:MERC), and Oliver Wyman, providing a wide array of risk, strategy, and people advisory services globally.
This article is based on a press release statement.
In other recent news, Marsh McLennan Agency, a subsidiary of Marsh McLennan, has expanded its portfolio through several acquisitions. The company has acquired Minnesota-based AmeriStar Agency and New Jersey-based Hudson (NYSE:HUD) Shore Group, enhancing its insurance coverage solutions and employee benefits programs respectively. The financial terms of these deals remain undisclosed.
Marsh McLennan has also announced its intent to acquire UK and Dutch pension specialist Cardano, pending regulatory approval. This acquisition will integrate approximately $66 billion in assets under management into Mercer's wealth management services, a subsidiary of Marsh McLennan.
RBC Capital and Keefe, Bruyette & Woods have recently raised their price targets on Marsh & McLennan, citing the company's strong performance and future growth trends. Moreover, Marsh McLennan has disclosed an upcoming blackout period for its employee benefit plans due to administrative changes in the company's 401(k) Savings and Investment Plan.
These are among the recent developments for Marsh McLennan, demonstrating the company's ongoing efforts to grow and diversify its portfolio of services.
InvestingPro Insights
As Marsh McLennan (NYSE: MMC) moves to enhance its service offerings with the acquisition of The Horton Group, the company's financial stability and market performance provide a backdrop for understanding this strategic move. With a robust market capitalization of $104.44 billion and a revenue growth in the last twelve months as of Q1 2024 at 10.38%, Marsh McLennan showcases a strong financial position.
Investors have seen substantial returns with a year-to-date price total return of 13.89% and a one-year price total return of 18.15%, indicating a positive market sentiment towards the company. Moreover, the firm's commitment to shareholder value is evident with a dividend yield of 1.33% and a significant dividend growth of 20.34% in the same period.
Marsh McLennan's strategy of consistent dividend increases is further underscored by one of the InvestingPro Tips, which notes that the company has raised its dividend for 14 consecutive years. Additionally, the company's prominent position in the insurance industry is not just by chance; it has maintained dividend payments for an impressive 54 consecutive years, reflecting a long-term stability that few competitors can match.
For readers looking to delve deeper into Marsh McLennan's financial metrics and gain further insights, InvestingPro offers additional tips that can be accessed at https://www.investing.com/pro/MMC. For those interested in a subscription, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 10 more InvestingPro Tips available, providing a comprehensive analysis of the company's financial health and market performance.
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