On Nov 25, we updated our research report on Marsh & McLennan Companies, Inc. MMC.

Marsh & McLennan’s strategic acquisitions and well-executed restructuring initiatives have helped in adding clients, thereby triggering growth. From 2009 to year-end 2014, the company made 85 acquisitions and investment transactions of approximately $3 billion. Some of the recent acquisitions made by the company include Tequesta Insurance Advisors, Cline Wood Agency, Vézina and J.W. Terrill, Dovetail Insurance and Dawson Insurance. Recently, Marsh & McLennan announced its intention to acquire U.K.-based insurance broker, Jelf Group and GAMA Consultores Associados of Brazil.

Through nine months of 2015, underlying revenues rose 3%, adjusted operating income was up 5%, margins grew 120 basis points, and adjusted earnings per share increased 8% all on a year-over-year basis.

With a view to expand business globally, the company has extended its coverage to the Asia Pacific, Africa and Latin America markets, thereby substantially contributing to top-line growth and insurance margins.

Marsh & McLennan remains focused on cost reduction and expense management. Over the last couple of years, the company implemented cost-saving initiatives by divesting redundant units and moderating its expenses on compensation and benefits, and other operations. These have helped the company to enhance organic growth and operating leverage, deliver cost efficiency and boost its operating income.

Marsh & McLennan is focused on returning more value to its shareholders via repurchase of shares. Through the first nine months of 2015, the company deployed $2.4 billion for share repurchases, dividends payouts and acquisitions, already above the total $2.3 billion capital deployed in 2014.

However, Marsh & McLennan earnings have been hit by the strength in the U.S. dollar. The company estimates an earnings drain of about 18 cents per share owing to adverse foreign exchange. Stiff competition and pricing pressure have also thwarted new business production of the company.

During the most recently reported third quarter, the company’s earnings of 63 cents per share beat the Zacks Consensus Estimate of 60 cents and improved 12.5% year over year.

Currently, Marsh & McLennan carries a Zacks Rank #3 (Hold). Some better-ranked players in the space are Hannover Rück SE HVRRY, eHealth, Inc. EHTH and Blue Capital Insurance Group Inc. BCRH. While Hanover sports a Zacks Rank #1 (Strong Buy), the other two stocks carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

• Personal Investing Ideas & Strategies
• Finance Trading
• Marsh & McLennan Companies, Inc.