Reasons Why Investors Should Hold on to Marsh & McLennan Shares Now

Core Viewpoint - Marsh & McLennan Companies, Inc. (MMC) is positioned for growth through its strong business segments, new business generation, and strategic acquisitions, supported by favorable earnings estimates [1][2] Financial Performance - The Zacks Consensus Estimate for MMC's earnings in 2025 and 2026 is $9.57 and $10.38 per share, indicating year-over-year growth of 8.8% and 8.4% respectively [3] - Revenue estimates for 2025 and 2026 predict increases of 10.1% and 5.4% year-over-year, driven by new business and renewals in Marsh and growth in Guy Carpenter [3] Business Strategy - Marsh & McLennan has consistently delivered strong operating performance, supported by a diversified product portfolio, broad geographic presence, and high client retention rates [4] - The company is benefiting from ongoing rate increases in the commercial property and casualty insurance market, which are expected to enhance top-line growth [4] - Strategic acquisitions are a key part of the company's long-term strategy, with notable recent purchases including Arthur Hall Insurance, AmeriStar, and the $7.75 billion acquisition of McGriff Insurance Services [5] Capital Management - The company has a solid record of cash flow generation, allowing for disciplined capital deployment, including consistent dividends and share repurchases [6] - Marsh & McLennan's dividend yield is 1.4%, exceeding the industry average of 1%, reflecting its commitment to shareholder returns [6] - In 2024, the company repurchased $900 million worth of shares, with an additional $300 million in the first quarter of 2025, and approximately $2 billion remains available under its current buyback authorization as of March 31, 2025 [6]