Marsh & McLennan: Trees Don't Grow To The Sky, But Brokers Might

RB Equity profile picture
RB Equity


  • Marsh & McLennan is the top insurance broker and a rare example of a successful serial acquirer.
  • Margins have expanded impressively in the last decade, overcoming a soft insurance market most of the time.
  • The insurance market has improved lately, and premium pools are expected to grow strongly in the long term.
  • MMC's valuation is not expensive relative to peers.

Cityscape mixed with green plants, multi layered image

Hiroshi Watanabe/DigitalVision via Getty Images

As noted here, Marsh & McLennan Companies, Inc. (NYSE:MMC) has had quite a bit of a run. Good performance continued into 2022, with an impressive set of Q1 numbers:

Revenue growth of 10%, to $5.5Bln,

Line chart with MMC margins

MMC earnings presentation

Premium Growth to 2040 Charts

Swiss Re

MMC vs peers in shares outstanding % change
Data by YCharts

MMC shares outstanding % change
Data by YCharts

This article was written by

RB Equity profile picture
Striving to compound knowledge. Long-time fan of Warren and Charlie. Always invert. "To finish first, you must first finish". Investing own and family funds for +20 years. Senior finance roles at public and private corporations for most of that time.

Disclosure: I/we have a beneficial long position in the shares of MMC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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