Marsh McLennan

Methodology

Marsh McLennan's insurance brokerage and consulting businesses generate highly predictable earnings from recurring relationships and renewal commissions with limited capital requirements. Fee-based revenue creates exceptional visibility into sustainable cash flows. The stable, high-quality business model makes this calculation reliable compared to insurance underwriters exposed to claims volatility.

Methodology

Marsh McLennan consistently commands premium PEG ratios reflecting exceptional business quality, market leadership in insurance brokerage, and consulting expertise that generates steady fee income. While growth appears moderate, the asset-light model and competitive moats justify valuations above traditional insurance companies. Compare to Aon and historical ranges rather than insurance underwriters.

Methodology

Marsh McLennan offers a meaningful dividend with consistent growth supported by predictable cash generation from brokerage and consulting fees. The dividend adds significant value to total returns for this stable service provider. PEGY better captures the income component that supplements steady earnings growth from market leadership positions.