WHITE PLAINS, N.Y. - Marsh McLennan (NYSE:MMC) Agency, a subsidiary of Marsh, has expanded its operations with the acquisition of AC Risk Management (ACRM), a New York-based commercial lines brokerage. The transaction, which was announced today, is expected to strengthen the company's presence in the Northeast region, particularly in the construction insurance sector.
ACRM, established in 2012, is recognized for its property and casualty insurance services to businesses, with an emphasis on the construction industry. Following the acquisition, all ACRM employees, including CEO Matt Avellino, will remain at their current Melville office.
Jerry Alderman, CEO of Marsh McLennan Agency’s Northeast region, commented on the acquisition, stating that the ACRM team's expertise in commercial lines and the construction industry will be valuable for Marsh McLennan Agency. He expressed enthusiasm for the potential to serve the Long Island business community and their risk management needs.
Matt Avellino of ACRM highlighted the benefits of joining forces with Marsh McLennan Agency, noting that the team will have access to advanced tools and technologies. This collaboration is expected to enhance solutions provided to clients for risk exposure and offer professional growth resources for the ACRM team.
Marsh McLennan Agency operates across North America, offering a range of insurance and consulting services to both organizations and individuals, with a network of over 10,000 colleagues and 180 offices. As part of Marsh McLennan (NYSE: MMC), a global professional services firm, the agency leverages the resources of its parent company to deliver comprehensive services.
Marsh, the parent company of Marsh McLennan Agency, is a global leader in insurance brokerage and risk advisory. With a workforce of over 45,000 across more than 130 countries, Marsh provides clients with data-driven risk solutions and advisory services. It is part of the Marsh McLennan group, which includes other prominent businesses like Guy Carpenter, Mercer (NASDAQ:MERC), and Oliver Wyman.
The financial terms of the acquisition have not been disclosed. The information is based on a press release statement from Marsh McLennan Agency.
InvestingPro Insights
As Marsh McLennan Agency (NYSE: MMC) fortifies its position in the Northeast through the acquisition of AC Risk Management, the company's financial health and market performance offer a compelling backdrop to this strategic move. With a robust market capitalization of $98.41 billion, MMC stands as a powerhouse in the insurance industry. The company's commitment to shareholder returns is evident in its impressive track record of raising dividends for 14 consecutive years, a testament to its financial stability and confidence in future growth.
An InvestingPro Tip highlights MMC's role as a prominent player in the Insurance industry, which aligns with the company's strategic acquisition aimed at expanding its commercial lines brokerage services. Additionally, MMC's low price volatility makes it an attractive option for investors looking for stable returns in the tumultuous financial markets. This stability is further reflected in the company's Price to Earnings (P/E) Ratio of 25.28, which adjusts to a slightly lower 23.32 when looking at the last twelve months as of Q1 2024.
With a Price / Book multiple of 7.92 as of the last twelve months leading up to Q1 2024, MMC is trading at a premium, indicating that investors may have high expectations for the company's future performance. The firm's revenue growth of 10.38% over the same period suggests a healthy expansion trajectory, which may be bolstered by the recent acquisition of ACRM.
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