Leading insurance broker and risk management provider Marsh & McLennan Companies, Inc.’s MMC wholly-owned subsidiary – Marsh & McLennan Agency LLC (MMA) – announced the acquisition of Texas-based MHBT Inc. on Jun 1. The terms of the deal were not disclosed.
MHBT, which generates revenues of $76 million and has employee strength of 350 in five offices throughout Texas, is one of the largest insurance brokers in the U.S. It offers insurance, risk management and employee benefits solutions for businesses and individuals across the nation.
Post acquisition, all MHBT employees will join MMA and operate under the name “MHBT, a Marsh & McLennan Agency LLC company”. The addition of MHBT will not only enhance Marsh & McLennan’s Southwest footprint, but will also help it to explore new opportunities.
In a separate development, another wholly-owned subsidiary of Marsh & McLennan – Marsh – announced the takeover of Leeds-based SME Insurance Services (SMEi) on the same day. The transaction is expected to close by the third quarter of 2015. SMEi is an independent broker that specializes in the provision of commercial insurance to small and medium-sized companies all over the U.K.
SMEi, with its highly effective online and telephone-based business model, provides flexible and extensive insurance solutions, which irrespective of the risk profile size, suits the needs of individual clients. Additionally, the company operates an online trading platform – Broker2Broker – which allows individual insurance brokers to come across a wide range of products via a group of commercial insurers.
Marsh has been consistently boosting its small and medium-sized businesses across the U.K. as well as strengthening its base in the country. Earlier, the company had also acquired Central Insurance Services. Notably, both these acquisitions are among the fastest growing business in the U.K.
The addition of SMEi online and call center platform to Marsh will be revolutionary in terms of convenience, quality, and cost of insurance solutions. The inclusion of SMEi’s Broker2Broker platform will also be highly advantageous to the members of Marsh’s broker networks.
Marsh & McLennan’s strategic acquisition initiatives have resulted in the generation of new clients, thereby triggering growth. The company has been consistently expanding its global reach through takeovers, which in turn, has resulted in substantial top-line growth and expansion of insurance margins.
Currently, Marsh & McLennan carries a Zacks Rank #3 (Hold). Better-ranked stocks from insurance space include ageas SA/NV AGESY, Old Republic International Corporation ORI and Assured Guaranty Ltd. AGO. All these stocks sport a Zacks Rank #1 (Strong Buy).
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