WHITE PLAINS, N.Y. - Marsh McLennan (NYSE:MMC) Agency, a subsidiary of Marsh, has struck a definitive agreement to purchase Fisher Brown Bottrell Insurance, Inc. (FBBINSURANCE) from Trustmark (NASDAQ:TRMK) National Bank for $315.9 million in cash, subject to adjustments. FBBINSURANCE, a leading bank-affiliated insurance agency based in Jackson, Mississippi, is recognized as one of the top five in the nation and a major player in the Southeast.
The acquisition, which is pending regulatory approval and standard closing conditions, is slated to conclude in the second quarter of 2024. This strategic move aims to bolster Marsh McLennan Agency's footprint in the Southeast by integrating FBBINSURANCE's expertise in commercial property/casualty insurance, surety, and employee benefits services.
Established in 1936, FBBINSURANCE has been serving businesses and individuals across the Southeast and operates out of 10 offices in Mississippi, Alabama, and Florida. The FBBINSURANCE team, including CEO Scott Woods, will join Marsh McLennan Agency post-acquisition, continuing operations from their current locations.
Peter Krause, President & CEO of Marsh McLennan Agency's Southeast region, expressed enthusiasm for the partnership, citing FBBINSURANCE's strong regional presence and client-focused approach as key attractions. Scott Woods underscored the shared commitment to integrity and client service, noting the enhanced global resources and collaborative opportunities that will come with joining Marsh McLennan Agency.
Marsh McLennan Agency, with a network of 10,000 colleagues and 180 offices across North America, delivers business insurance, employee health & benefits, retirement & wealth, and private client insurance solutions. It is part of Marsh McLennan (NYSE: MMC), the world's leading professional services firm in the areas of risk, strategy, and people.
Marsh, a business of Marsh McLennan, is the world's premier insurance broker and risk advisor, employing over 45,000 colleagues across more than 130 countries. The parent company, with an annual revenue of $23 billion, operates through four market-leading businesses: Marsh, Guy Carpenter, Mercer (NASDAQ:MERC), and Oliver Wyman.
The information in this article is based on a press release statement.
InvestingPro Insights
As Marsh McLennan (NYSE: MMC) continues to expand its influence in the insurance industry with the acquisition of Fisher Brown Bottrell Insurance, Inc., the company's financial health and market position remain robust. Marsh McLennan's commitment to growth is reflected in its consistent dividend increases, having raised its dividend for an impressive 14 consecutive years.
This dedication to shareholder returns is further underscored by its history of maintaining dividend payments for 54 consecutive years, highlighting the company's stability and reliability as an investment.
Analyzing the company's recent financial metrics, Marsh McLennan boasts a market capitalization of approximately $99.42 billion, placing it among the leaders in the Insurance industry. With a Price to Earnings (P/E) ratio of 25.33 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 23.77, the company trades at a premium reflecting its market position and growth prospects. The Price/Book ratio stands at 8.0, indicating a strong valuation by the market, which may be attributed to its solid fundamentals and the expectation of continued profitability, as analysts predict the company will be profitable this year.
Investors should note that Marsh McLennan is trading near its 52-week high, with the price being 96.49% of the peak. This could signify market confidence in the firm's prospects, especially considering its revenue growth of 10.38% over the last twelve months as of Q1 2024. It's also important to consider that seven analysts have revised their earnings estimates downwards for the upcoming period, which may impact future performance.
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