Marsh & Mclennan Cos

Marsh & McLennan earns revenue by providing insurance brokerage and consulting services through four main businesses: Marsh (commercial insurance placement), Guy Carpenter (reinsurance brokerage), Mercer (HR consulting, retirement, and investments), and Oliver Wyman (management consulting). The company acts as intermediary between corporate clients and insurance carriers, collecting commissions and fees for policy placement, risk advisory services, actuarial consulting, and strategic advice. Unlike insurance companies that underwrite risk, Marsh McLennan generates fee-based revenue with limited capital requirements, creating high returns on invested capital and strong cash flow generation.

Marsh & McLennan benefits from essential professional services with high client retention and secular growth in risk management complexity. The business model produces predictable recurring revenue with low capital intensity and strong margins. Insurance brokerage revenue grows during hard market pricing cycles as premiums (and commissions) increase. Risks include regulatory changes affecting brokerage compensation models, potential economic slowdowns reducing consulting demand, competition from both established rivals and new digital platforms, and exposure to catastrophic events disrupting insurance markets. The stock typically trades at premium valuations reflecting defensive growth characteristics and capital-light economics.

In insurance brokerage, Marsh competes primarily with Aon and Willis Towers Watson, forming a "big three" that dominate large corporate placements. Arthur J. Gallagher and Brown & Brown compete more in middle-market and specialty segments. Mercer competes with Aon Hewitt, Willis Towers Watson, and Conduent in HR consulting and retirement services. Oliver Wyman faces competition from McKinsey, Bain, Boston Consulting Group, and Accenture in management consulting. The competitive landscape varies significantly across the four business segments.

Marsh & McLennan pays a quarterly dividend yielding approximately 1.9%, with a long track record of annual increases reflecting steady earnings growth. The company has raised dividends every year for over a decade, with growth rates typically in the high single digits. The payout ratio remains conservative around 40-45% of earnings, allowing for continued dividend growth while funding strategic acquisitions and technology investments. The dividend is well-supported by strong free cash flow generation from the capital-light brokerage and consulting businesses, making it a reliable income component.

MRSH is currently trading at $173.10, down 0.44% in today's session. Over the past 52 weeks, the stock has traded between a low of $170.37 and a high of $193.32. The current price represents 12% of its 52-week range, which helps investors gauge where the stock sits relative to its recent trading history.

Among 30 analysts covering MRSH, the consensus rating is Hold — 12 rate it a buy, 17 hold, and 1 sell. The average price target sits at $295.85, implying 71% upside from the current price. Keep in mind that analyst targets reflect 12-month expectations and can shift quickly after earnings reports or major company events.

Marsh & Mclennan Cos generated $26.72B in revenue during fiscal year 2026, with $4.12B reaching the bottom line as net income. The net profit margin of 15.4% is solid for its sector.

MRSH trades at a P/E ratio of 21.53 on trailing earnings of $8.42 per share. That's roughly in line with the broader market average of ~20-25x. Comparing this multiple against Insurance sector peers gives better context than the broad market alone, since P/E norms vary significantly across industries.

Performance varies across timeframes, reflecting shifting market conditions. Returns by timeframe: -7.43% (3M), -13.26% (6M), -26.84% (1Y), -5.14% (YTD). Comparing these figures against the S&P 500 and sector benchmarks helps determine whether MRSH is outperforming or lagging the broader market.