FAF

Acquisition of Insurance Brokerages: Marsh McLennan Agency (MMA) has acquired three insurance brokerages in Honolulu, Hawaii, enhancing its market presence and service offerings in the region. The firms, previously part of Tradewind Group, will continue operating from their existing locations with all employees retained.

Expansion Strategy: The acquisition aligns with MMA's strategy to broaden its insurance solutions and deepen its market footprint, particularly in the Risk and Insurance Services segment, which significantly contributes to Marsh & McLennan's overall revenue.

Continued Acquisition Activity: MMA's acquisition strategy is ongoing, with a recent purchase of Hayden Wood Insurance Agency in Massachusetts, indicating a commitment to expanding its capabilities and market reach across various segments.

Stock Performance and Rankings: Marsh & McLennan's shares have seen a modest increase, and the company holds a Zacks Rank #3 (Hold). Other insurance stocks like EverQuote, Assurant, and First American Financial have shown strong earnings growth and positive stock performance recently.

Credit Ratings Affirmed: AM Best has affirmed the Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of "a" (Excellent) for First American Title Insurance Company and its affiliates, with a stable outlook.

Financial Strength and Performance: The ratings reflect FATIG's strongest balance sheet strength, adequate operating performance, and robust enterprise risk management, despite challenges from rising interest rates and a slowing real estate market.

Market Position: FATIG is the second-largest underwriter in the U.S. title insurance industry, maintaining a solid market position with significant investments in comprehensive title plants.

Potential Rating Actions: Negative rating actions could arise from declines in operating profitability or risk-adjusted capitalization, while positive actions could occur with improvements in these areas.