AON(US:AON) ZACKS·2025-12-04 14:11Core Insights - The Zacks Insurance Brokerage industry is poised for growth due to improved pricing, prudent underwriting, rising demand for insurance products, and global expansion, benefiting key players like Brown and Brown, Marsh & McLennan, Willis Towers Watson, and Aon [1][4][6] Industry Overview - The Zacks Brokerage Insurance industry includes companies that provide insurance and reinsurance products and services, acting as intermediaries between clients and insurance providers [3] - The global insurance brokerage market is projected to grow from $140.38 billion in 2025 to $171.93 billion by 2030, reflecting a CAGR of 4.14% [3] Trends Influencing the Industry - Increased demand for customized insurance solutions is driving revenue growth, with companies expanding globally and improving product offerings [4][5] - The aging population is increasing demand for retirement products, while millennials and baby boomers are boosting demand for various insurance types [5] - The industry is experiencing rapid consolidation, driven by mergers and acquisitions, competition, and the need for specialization [6] Technological Advancements - Adoption of digital tools and technologies like AI, machine learning, and blockchain is enhancing operational efficiency and customer interactions [7][8] - Digital transformation is expected to reduce operational costs and improve margins, although initial investments may increase expense ratios [8] Market Performance - The Zacks Insurance - Brokerage industry ranks 101, placing it in the top 42% of over 243 Zacks industries, indicating positive near-term prospects [9][10] - The industry has underperformed compared to the Finance sector and the S&P 500, with a 30.7% decline over the past year [12] Valuation Metrics - The industry currently trades at a trailing 12-month price-to-book (P/B) ratio of 3.72X, lower than the Zacks S&P 500 Composite's 8.49X and the sector's 4.19X [15] Company Highlights - Brown & Brown (BRO): Market cap of $27.19 billion, with a 21.5% earnings growth over five years and expected long-term growth of 10% [20][21] - Marsh & McLennan (MMC): Market cap of $90.39 billion, with a 13.4% earnings growth over five years and expected long-term growth of 6.1% [24][25] - Willis Towers Watson (WTW): Market cap of $30.87 billion, with a 9.4% earnings growth over five years and expected long-term growth of 10.8% [28][29] - Aon (AON): Market cap of $74.27 billion, with an 11.4% earnings growth over five years and expected long-term growth of 10.4% [32][34]