Marsh & McLennan Companies, Inc. (MMC) has been on an acquisition spree since the beginning of the year. The latest buyout of NuWest Insurance Services Inc. has added yet another feather to its cap. The deal was carried out by Marsh & McLennan Agency LLC (MMA.V), a subsidiary of Marsh & McLennan.

Founded in 1985, NuWest is a California-based property/casualty agency that generates revenues of $2.4 million annualy and specializes in providing multi-employer trust funds and employee unions’ property and casualty solutions.

Post-acquisition, NuWest will be merged with Marsh & McLennan Agency LLC Company’s existing Orange County office – Barney & Barney, thereby strengthening its Western Region base. This transaction also marks the first acquisition by MMA West, which, in turn, was formed through the takeover of Barney & Barney in Feb 2014.

The clients of NuWest, as a part of MMA, will benefit by gaining access to the latter’s wider range of products and services.

Marsh & McLennan is well known for pursuing acquisitions that help to expand its business globally. The NuWest acquisition marks the third such transaction in the current quarter.

Notably, the company’s solid liquidity continues to aid its inorganic growth with cash and cash equivalents of $2.6 billion (up 15% from 2013 end-level) and retained earnings of $10 billion (up 6.2% from 2013 end-level).

Marsh & McLennan’s compelling inorganic growth and strong focus to expand globally will likely prompt analysts to raise their estimates, resulting in a possible rank upgrade for the stock. At present, the insurance broker carries a Zacks Rank #3 (Hold).

Insurance brokers are now increasingly settling for the inorganic growth route to boost prospects. Notably, Arthur J. Gallagher & Co. (AJG) has acquired California-based Discovery Benefit Solutions, Inc. Willis Group Holdings Public Limited Co. (WSH) has proposed the acquisition of SurePoint Reinsurance along with the buyout of a range of Irish pension and financial advisory businesses from IFG Group plc and Validus Holdings, Ltd. (VR)-acquired Western World Insurance Group, Inc.

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