7 Best Insurance Brokerage Stocks to Invest in Now

2. Marsh & McLennan Companies Inc. (NYSE:MMC)

Number of Hedge Fund Holders: 51

Marsh & McLennan Companies Inc. (NYSE:MMC) is a leading global professional services firm that specializes in insurance brokerage, risk management, and consulting. The company operates through four main divisions: Marsh, Guy Carpenter, Mercer, and Oliver Wyman, providing comprehensive solutions to clients in 130 countries.

Recently, on September 30, Marsh & McLennan Companies Inc. (NYSE:MMC) announced its agreement to acquire McGriff Insurance Services for $7.75 billion. McGriff Insurance Services is a leading provider of insurance broking and risk management services. This acquisition will enhance the company’s capabilities in commercial property and casualty insurance, employee benefits, and management liability.

The company is on track for a record year in mergers and acquisitions, having committed nearly $10 billion to acquisitions so far in 2024. These acquisitions include McGriff Insurance Services, Vanguard’s U.S. OCIO business, Cardano, Horton, and FBBI. These strategic moves highlight Marsh & McLennan’s (NYSE:MMC) strategy to invest in faster-growing areas of its business and expand its market presence to meet the evolving needs of its clients.

In the third quarter of 2024, Marsh & McLennan Companies Inc. (NYSE:MMC) reported a 6% increase in GAAP revenue and a 5% rise in underlying revenue. The company’s earnings per share also showed positive growth, with GAAP EPS rising 3% to $1.51 and adjusted EPS increasing 4% to $1.63. These results reflect the firm’s strong performance across its business segments and its effective execution of its growth strategy.

Over the past five years, the company has seen its revenue grow at a compound annual growth rate (CAGR) of 8.26%, with net income increasing at a CAGR of 21.78%. With a solid track record of growth, Marsh & McLennan Companies Inc. (NYSE:MMC) stands out as an attractive investment opportunity in the insurance brokerage sector.

MMC is one of the best insurance brokerage stocks to buy now. According to Insider Monkey’s Q2 2024 database of over 900 hedge funds, 51 hedge funds held stakes in Marsh & McLennan Companies Inc. (NYSE:MMC).