Marsh & McLennan Affiliate To Buy Bluefin Insurance Group

Marsh, a wholly owned subsidiary of Marsh & McLennan Companies, Inc. (NYSE:MMC) has inked a deal to acquire Bluefin Insurance Group Limited, a unit of AXA Group.

The acquisition is slated to be closed by the first quarter of 2017, subject to certain regulatory approvals. Marsh intends to combine Bluefin and Jelf, acquired last year – into one single business unit. Phil Barton, the present CEO of Jelf, will lead the mergedunit. A management team comprising employees from both Bluefin and Jelf will also be formed post transaction.

We note that since its buyout Jelf has facilitated Marsh in every possible way to deliver the best value and expertise to cater to the needs of clients.

On the other hand, Bluefin boasts a significance presence in almost 45 locations across the U.K. The company provides guidance on creating insurance solutions to more than 150,000 businesses and individuals through its extensive broker network and growing Managing General Agents business.

Hence, the latest acquisition and the subsequent integration with Jelf will enable Marsh to serve over 250,000 clients in 80 locations. The move will also add roughly 400 network broker members alongside strong affinity and digital offerings.

The new unit is expected to become one of the leading insurance brokers for mid-size and SME companies in the U.K. The merged entity is also likely to offer high quality technical advice, bespoke products and unique services including claims consultancy and risk management. Intelligent risk insights to enable companies to combat emerging risks like cyber and solution to people-related issues through a strong employee benefits team is another positive.

This acquisition and the ensuing merger of the two business units will ensure the best risk and insurance advice to businesses of all sizes. Marsh is currently investing in new policies, products and analytic tools to help businesses manage future risks and uncertainties.

MARSH &MCLENNAN Price

Zacks Rank & Stocks to Consider

Marsh & McLennan presently carries Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked players from the insurance space include CNA Financial Corporation (NYSE:CNA) , Chubb Ltd. (NYSE:CB) and Everest Re Group Ltd. (NYSE:RE) . All of these stocks carry a Zacks Rank #2 (Buy).

CNA Financial delivered positive surprises in three of the last four quarters but with an average miss of 18.69%.

Chubb beat expectations in three of the last four quarters with an average beat of 4.06%

Everest Re delivered positive surprises in three of the last four quarters with an average beat of 25.64%.

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