Marsh McLennan Holds Strong in First Quarter

Marsh McLennan continued to post strong growth in the first quarter, as the company is being aided by tailwinds across its business. Overall revenue grew 10% year over year excluding currency impacts and acquisitions. Historically, however, the company has achieved only modest organic growth. This is our expectation over the long term, and management’s guidance suggests growth will start to slow as the company moves through the year. We will maintain our $130 fair value estimate and narrow moat rating. While we think Marsh McLennan is an attractive narrow-moat franchise, we believe the current market price is overly tied to current growth levels.