Marsh & McLennan Companies, Inc.

Marsh & McLennan Companies has launched Archer by Marsh, a new service that helps life and annuity insurers, asset managers and capital providers create and run reinsurance businesses globally. Archer takes Marsh beyond traditional advisory work by supporting the full process, from product, asset and capital decisions to regulatory approval, setup and ongoing operations, with clients able to use Marsh's shared infrastructure while keeping ownership and strategic control. The offering combines actuarial, capital, risk, reinsurance, insurance management and regulatory expertise and can support standalone reinsurance vehicles, special purpose reinsurers and dedicated cells, and Marsh also formed Bermuda-based Mangrove ISAC Life Re to facilitate sidecar and affiliate reinsurance solutions. Marsh brings scale to the offering, reporting about $27 billion in annual revenues, more than 95,000 employees and operations across 130 countries. The move is likely to broaden Marsh's revenue mix beyond brokerage and consulting by adding recurring, service-based income from operating reinsurance vehicles after launch, and could create a more durable revenue stream tied to the ongoing operation of reinsurance businesses if adoption grows.

Employer health-benefit costs per employee are projected to rise 8.2% in 2027, the steepest increase since 2003 and the fifth consecutive year of increases, according to preliminary results from Marsh's 2026 National Survey of Employer-Sponsored Health Plans. To hold the increase even to that level, 59% of employers plan cost-cutting changes to their health benefits, while without any mitigation employers estimate their current plans would cost 11% more. The projection is a cost-per-employee figure, not a forecast of any individual worker's payroll deduction, but it gives 65-year-olds still working on a large-employer plan a concrete reason to compare their company coverage with Medicare. The catch is that enrolling in any part of Medicare, including premium-free Part A, ends HSA eligibility beginning with the month coverage takes effect, and the annual contribution limit is then prorated by eligible months. Filing for Social Security after age 65 triggers automatic Part A enrollment backdated up to six months, which can lower the prorated limit after the fact and leave excess contributions subject to income tax plus a 6% excise tax for each year they sit uncorrected. The 2026 standard Part B premium is $202.90, up $17.90 from $185.00 in 2025, and the income-related adjustment begins above $109,000 in modified adjusted gross income for a single filer, with the top tier carrying a total Part B premium of $689.90 per month.

Marsh & McLennan declared a quarterly dividend of $0.99 per share, in line with its previous payout. The dividend carries a forward yield of 2.24%. It is payable Nov. 13 to shareholders of record as of Oct. 1, with an ex-dividend date of Oct. 1.

Marsh & McLennan Companies remains well positioned for growth on continued innovation, sales-capacity investments, AI initiatives and strategic acquisitions, according to Zacks Investment Research. The Zacks Consensus Estimate for Marsh's 2026 earnings is $10.44 per share, up 7.1% year over year, with 11 upward revisions in the past 60 days and no downward moves, while 2026 revenue consensus stands at $28.51 billion, implying 5.7% growth. In the second quarter of 2026 total revenues rose 6% year over year and underlying revenues increased 5%, and management consulting grew 13.4% organically, its fastest quarterly growth in more than two years. Marsh repurchased about $750 million of shares in the second quarter, bringing first-half buybacks to $1.5 billion, raised its quarterly dividend by 10% for a 17th consecutive year of increases, and expects to deploy roughly $5.5 billion of capital in 2026 across dividends, acquisitions and repurchases. The company still faces cost pressures, with second-quarter expenses up 7% and outpacing revenue growth, total debt of $18.9 billion against $1.7 billion of cash as of June 2026, and a forward 12-month P/E of 15.98X versus the industry average of 13.51X.

U.S. employers face another sharp increase in healthcare costs in 2027, with average health benefit costs per employee projected to climb 8.2% even after mitigation, according to a Marsh & McLennan survey of over 1,800 employers. Without cost-control measures, costs could rise about 11%, the steepest since 2003, driven by expensive treatments, GLP-1 weight-loss drugs, and AI-assisted billing. Aon echoes the warning, expecting a 9.5% rise before mitigation. This spending surge creates opportunities for benefits consultants like Marsh and insurers like UnitedHealth and Centene, which are positioned to help employers manage costs. Marsh and UnitedHealth carry a Zacks Rank #2, while Centene holds a #1 Strong Buy, with all three expected to see earnings growth in 2026 and 2027.

Marsh's 2026 National Survey of Employer-Sponsored Health Plans projects that total health benefit cost per employee will rise 8.2% on average in 2027, the highest increase since 2003, even after planned cost-reduction measures. The survey, based on responses from over 1,800 US employers, found that costs would increase 11% if no action were taken, marking the fifth consecutive year of elevated growth. Key drivers include GLP-1 medications, which account for a full percentage point of the overall cost growth, along with AI-enabled billing software and out-of-network payment awards under the No Surprises Act. In response, 59% of employers plan cost-cutting changes, such as higher deductibles, and about two-thirds of large employers expect to increase employees' premium share, potentially raising paycheck deductions above the 8.2% average. Marsh suggests employees explore alternative plan options during open enrollment, as over a third of large employers plan to offer non-traditional plans like variable copay plans, which can lower costs while guiding members to high-quality providers.

Marsh and Resilience have launched Cyber Protect in Asia, an offering that combines Marsh's cyber insurance expertise with Resilience's 24/7 Risk Operations Center to help clients detect and respond to cyber threats before they become losses. Available exclusively through Marsh in Asia, excluding China, the program includes proactive threat monitoring and human-validated alerts at no additional cost to clients who purchase cyber insurance brokered by Marsh. The launch comes as only 50% of Asia-based organizations are confident in their cyber risk management, compared to the global average of 72%, and nearly three in ten cyber attacks globally target Asia. Sean Letz, Cyber Leader for Marsh Asia, said prevention alone is no longer sufficient, while Resilience President Mario Vitale emphasized the value of preventing losses before they occur.

Oakmark U.S. Concentrated Strategy initiated a new position in Marsh & McLennan Companies during the second quarter of 2026. The firm views the world's largest insurance broker as a leader in an oligopolistic market with strong organic revenue growth and consistent margin expansion. Management's rebranding efforts include an expense program, leveraging AI to improve productivity, and centralizing technology and operations to drive efficiencies. The stock has fallen out of favor due to softening insurance rates and macroeconomic uncertainty, which Oakmark sees as an opportunity to invest at an attractive price. Marsh & McLennan closed at $192.19 per share on July 28, 2026, with a market capitalization of $91.72 billion.

Marsh & McLennan Companies reported second quarter 2026 earnings and updated on its share repurchase program and automation initiatives with SS&C Blue Prism. The stock trades at a price-to-earnings ratio of 21.2 times, which is above the estimated fair P/E of 13.7 times and the US Insurance industry average of 12.1 times, yet a discounted cash flow model from Simply Wall St estimates a fair value of $283.79 per share, implying the stock is 37.8% undervalued at its current price of $176.40. The company generated $27.9 billion in revenue and $3.98 billion in net income, and its P/E sits at a modest discount to close peers trading at 23.5 times. The mixed valuation signals leave investors weighing whether the premium multiple will compress toward industry levels or if the cash-flow-based discount represents a buying opportunity.

Marsh & McLennan Companies posted second-quarter revenue of $7.4 billion, up 6% from a year earlier, with adjusted earnings per share rising 9% to $2.96. Underlying revenue growth accelerated to 5%, driven by strong demand across risk, insurance, and consulting services despite continued pricing pressure in commercial insurance and reinsurance. Consulting revenue jumped 10% to $2.6 billion, with Mercer's wealth business recording its best growth quarter since 2016 and Marsh Management Consulting delivering its fastest quarterly growth in more than two years. Risk and insurance services revenue increased 4% to $4.8 billion, though Guy Carpenter's revenue fell 2% as reinsurance rates declined, with the property catastrophe rate-on-line index down 16% at midyear. The company repurchased $200 million of stock in the quarter, bringing first-half buybacks to $1.5 billion, and raised its 2026 capital deployment target to approximately $5.5 billion.

Marsh & McLennan Companies is expanding its investment offerings through its Mercer business by partnering with American Beacon Advisors to launch a new suite of model portfolio solutions, Mercer & American Beacon Model Portfolios. The collaboration combines Mercer's institutional investment research and portfolio construction capabilities with American Beacon's fund management and distribution network. The solutions are designed for financial advisors, wealth managers and multi-family offices seeking professionally managed, diversified portfolios that can adapt to changing market conditions. The suite includes five risk-based portfolios built around thematic investing, dynamic asset allocation and active risk management, providing exposure to long-term growth themes such as artificial intelligence, the energy transition and demographic shifts. The partners have also introduced income-focused portfolios that balance capital preservation with yield opportunities, allowing advisors to address a broader range of client objectives.

StockStory highlights two S&P 500 stocks to own for decades and one to avoid. TransDigm is favored for its 9.5% average organic revenue growth over the past two years, 33.8% annual earnings per share growth over five years, and a strong 19.6% free cash flow margin. Marsh is picked for its 9.3% annual revenue growth over five years, massive $27.52 billion revenue base, and robust 15.9% free cash flow margin. Solventum is questioned due to flat projected sales, weak demand, and a 30.8 percentage point decline in free cash flow margin over five years.

Carlyle Group is introducing a new climate risk framework for its $475 billion portfolio at London Climate Action Week. The framework, developed with insurance broker Marsh and backed by institutional investors including Mubadala and Sampension, provides portfolio managers a four-step process to assess asset exposure to extreme weather, measure resilience gaps, calculate loss reduction from upgrades, and use those findings to negotiate better insurance terms such as premium credits and lower deductibles. Steve Hatfield, Carlyle's co-head of global sustainability, said the goal is to shift from reacting after damage to pricing resilience before storms, floods, droughts, or heat exposure hit asset values. Several major institutional investors have already shown interest, and leading insurance carriers are expected to road test the framework in coming months.

Ryan Specialty posted the strongest first-quarter results among five tracked insurance brokers, with revenue rising 15.2% year on year to $795.2 million and beating analyst estimates by 2.1%. Marsh reported revenue of $7.60 billion, up 7.6% and exceeding expectations by 2.9%, while Brown & Brown's revenue grew 35.4% to $1.90 billion but missed organic revenue estimates. Arthur J. Gallagher's revenue increased 27.7% to $4.75 billion, in line with forecasts, and Baldwin Insurance Group's revenue climbed 28.7% to $532.2 million, surpassing estimates by 3.2%. As a group, the five brokers' revenues beat consensus by 1.7%, though their average share price has fallen 3.8% since reporting.

Apple is benefiting from an expanding enterprise footprint that is becoming a key growth driver, with professional services firm Marsh deploying a large-scale refresh of corporate devices to iPhone 17 and adopting Mac for internal AI development in the second quarter of fiscal 2026. The company's installed base has surpassed more than 2.5 billion devices, and for the June quarter Apple expects revenues to grow 14% to 17% year over year with gross margin guidance of 47.5% to 48.5%. Apple's integrated hardware, software, and enterprise services approach, including the launch of the all-in-one Apple Business platform, is making its ecosystem more accessible for organizations, while its investment in AI and Apple silicon positions Mac as a preferred platform for enterprise-grade AI development. The company faces stiff competition from Dell Technologies and Alphabet, which are also expanding their enterprise footprints, with Dell booking $24.4 billion of AI orders in the first quarter of fiscal 2027 and Alphabet's Google Cloud revenues surging 63% year over year to $20 billion in the first quarter of 2026. Apple shares have gained 9.7% year to date, underperforming the broader Zacks Computer and Technology sector's return of 20%, and the stock carries a Zacks Rank #2, or Buy, with a fiscal 2026 consensus earnings estimate of $8.75 per share, suggesting 17.29% year-over-year growth.