Opinions on Marsh & McLennan Companies Inc. and Brown & Brown Inc. -- The Long Walk in the Desert for Insurance Brokers
October 25 2010 - 8:55AM
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www.stockcall.com/ offers investors comprehensive research on the
insurance brokers industry and has completed analytical research on
Marsh & McLennan Companies Inc. (NYSE:
MMC) and
Brown & Brown Inc. (NYSE: BRO).
Register with us today at www.stockcall.com/ to have free access to
these researches.
The insurance sector saw its rates fall 5.2% in the third
quarter this year. While this is better than the 6.3% drop in Q2,
the trend of shrinking rates has become all too familiar to the
insurance market. With a decline every quarter since 2004, the
sector is struggling due to a decrease in policies required in an
environment with high levels of unemployment. Surplus capacity and
a high level of competition are cohering to create a soft market.
There is no expectation of a recovery until a broader shift in the
economy helps reduce unemployment levels. Recently, unemployment
has remained mostly steady, but still quite high.
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and free access to our analyst research and opinions on Marsh &
McLennan Companies Inc. and Brown & Brown Inc.; all investors
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Another major issue within the sector is the regulation in the
works concerning Medical Loss Ratios. The new healthcare reform law
stipulates an MLR of 80% for individual and small business plans
and 85% for large groups. This is bad for brokers as commissions
are grouped into the administrative side of the ratio. While the
National Associated of Insurance Commissioners has created a
sub-committee to work on getting some costs reclassified into the
healthcare column, including brokerage commissions, the Obama
administration's clear delineation of cost makes it unclear whether
any attempts will be successful. If commissions remain under the
administrative blanket, they will most likely diminish as companies
work to satisfy the MLR requirements. Register now at
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to have free access to our reports on the insurance brokers
industry.
On the earnings timetable for this quarter, Marsh & McLennan
Companies Inc. will be releasing its earnings on November 9th.
Investors looking for free research on Marsh &
McLennan Companies Inc. are welcome to sign up at
www.stockcall.com/MMC251010.pdf.
Already posted are the results for insurance broker firm Brown
& Brown Inc. which indicated that the company made earnings of
$0.31 per share on revenue of $247.6 million. Investors looking for
free research on Brown & Brown Inc. are
welcome to sign up at www.stockcall.com/BRO251010.pdf.
Visit www.stockcall.com/ to see how companies in this industry
have grown over the past years and how they are expected to perform
in the future.
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