Willis Group Holdings plc WSH announced the buyout of Carsa Consultores in its effort to widen and strengthen its presence in Mexico. However, the terms of the deal remain undisclosed.
Founded in 1991, Carsa Consultores is an insurance broker, risk consultant, actuarial consultant and specialist in Public RFP with a leading presence in Mexico. The acquisition will help Willis Group to penetrate further into the northwest region of Mexico. The addition of Carsa will also enhance Willis Mexico’s actuarial services and affinity programs. Following the buyout, Willis Group will now have nine offices in Mexico.
Moreover, the acquisition complements Willis Group’s product and discipline. Hence, Willis Group can capitalize on its presence in Mexico as well as the capabilities and risk expertise offered by Carsa for growth.
Willis Group has been adopting the inorganic route over the last several years. Its strategic acquisitions have also expanded its geographical footprint in countries like Italy, Canada, the U.K. and France. In Jan 2015, Willis Group inked a deal to acquire an 85% interest in Miller Insurance Services. Further, the company reached an agreement with Miller Insurance Services LLP to form a leading London-based wholesale specialist insurance broking firm. In order to boost its Indian base, the company inked a deal to purchase a 49% stake in a leading Indian insurance broker, Almondz Insurance Brokers Private Limited this February. Moreover, the company is still left to decide on the option to buy the remaining 70% of Gras Savoye from its Associates line.
There was no earnings momentum in the last 30 days. With optimism surrounding the current acquisition, we expect analysts to revise their estimates higher, exerting upward pressure on the Zacks Rank. Willis Group presently carries a Zacks Rank #3 (Hold).
Following the inorganic route to ramp up one’s operational profile seems a well-accepted strategy among insurers as acquisitions rage this space. Last month, Brown & Brown of New York, Inc., a subsidiary of Brown & Brown, Inc. BRO acquired some of the assets of Spain Agency, Inc. Arthur J Gallagher & Co. AJG made three buyouts – Illinois-based retail insurance broker NationAir Aviation Insurance; New Jersey-based wholesale brokers Excel Insurance Services, Inc., and McCloskey Surplus & Excess, Inc. d/b/a Metcom Excess. In February, Marsh & McLennan Companies, Inc.’s MMC subsidiary – Marsh & McLennan Agency LLC – took over The Benefit Planning Group, Inc.
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