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I feel like the insurance brokers don't get nearly enough love on fintwit.
Look at what $AON has accomplished over the past decade:
-4% Revenue CAGR
-890bps of margin expansion
-11% EPS CAGR!
-14% FCF CAGR!
-ROIC has improved from 11.7% to 23.5%
Look at what $AON has accomplished over the past decade:
-4% Revenue CAGR
-890bps of margin expansion
-11% EPS CAGR!
-14% FCF CAGR!
-ROIC has improved from 11.7% to 23.5%
Similarly look at $MMC has accomplished over the past decade:
-5% Revenue CAGR
-970bps of margin expansion
-10.2% Operating Income CAGR
-11.7% EPS CAGR
-5% Revenue CAGR
-970bps of margin expansion
-10.2% Operating Income CAGR
-11.7% EPS CAGR
The industry continues to consolidate and AON's upcoming merger with WLTW looks more likely; the brokers should continue to benefit from pricing power, and further operating leverage.
$MMC and $AON trade at reasonable valuations, guiding to MSD rev growth and HSD/LDD EPS growth
$MMC and $AON trade at reasonable valuations, guiding to MSD rev growth and HSD/LDD EPS growth
And frankly I've missed it too despite covering the sector off and on for a few years.
I'm initiating a position in $WLTW to take advantage of that sweet 4% merger arb spread.
I'm initiating a position in $WLTW to take advantage of that sweet 4% merger arb spread.
