Weaker Insurance Pricing Could Become a Headwind for Marsh

We view Marsh as something of a tollbooth business. Its leading position in brokerage would be difficult to displace, and its sticky customer relationships allow it to benefit from a relatively stable level of insurance transactions, although it does have exposure to the insurance pricing cycle. We think Marsh's long-term future will largely resemble its past, with moderate growth and attractive profitability, although the coronavirus and a hard insurance market have created some recent ups and downs.