Marsh & McLennan Companies, Inc. (MMC), Willis Group Holdings PLC (WSH), Aon PLC (AON): Investing in Insurance Advisory Can Help Your Portfolio Improve

Therefore, Aon PLC (NYSE:AON)’s HR consulting business is likely to observe growth and margin acceleration in its consulting business for insurance exchanges by next year. Additionally, Sears and Darden have chosen the company for private health insurance exchanges for both active employees and retirees. This is expected to contribute more than $100 million of incremental revenue by 2014 and around $500 million by 2016.

Aon PLC (NYSE:AON)’s risk solutions business is expected to show a steady performance for the next few years. Its Global Risk Insight Platform, or GRIP, is a Web-accessible solution that provides insurance companies with analytical insights regarding their underwriting capabilities. It also helps clients understand the risk associated with insurance and solutions to compete effectively. It is expected that GRIP will contribute 3% to 4% of Aon PLC (NYSE:AON)’s total revenue and will aid margin expansion of 50 to 75 basis points over the next few years. Aon PLC (NYSE:AON)’s risk solution business expects to generate $7.9 billion in this year from $7.59 billion in 2012 and $8.29 billion in 2014.

Conclusion

All three companies are taking measures to sustain in the changing economic conditions.

Acquisition of Corven and Rehder will help Marsh & McLennan Companies, Inc. (NYSE:MMC) improve its consulting and advisory services to the energy sector and penetrate in Peru’s insurance markets to expand its product offerings. Willis Group Holdings PLC (NYSE:WSH)’ North America segment will benefit from the recovering housing market and its service expertise, and the cost saving initiative will continue to save it around $25 million to $30 million annually. Healthcare reforms will bring potential growth to Aon PLC (NYSE:AON)’s HR consulting business in the coming years. Its risk solutions business is expected to show steady performance for the next few years by contributing healthy revenue.

Therefore, I recommend a buy for all three stocks.

Madhukar Dubey has no position in any stocks mentioned. The Motley Fool recommends Aon. The Motley Fool owns shares of Aon.

The article Investing in Insurance Advisory Can Help Your Portfolio Improve originally appeared on Fool.com and is written by Madhukar Dubey.

Madhukar is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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