SOURCE: Wall Street Equity Research

Wall Street Equity Research

January 12, 2011 08:16 ET

Professional Research on Marsh & McLennan Companies Inc. and Aon Corporation - Insurance Brokers Sector Nervous on Drop in Re-Insurance Rates

JOHANNESBURG, SOUTH AFRICA--(Marketwire - January 12, 2011) - allows shareholders to gain full understanding of the economic and market forces influencing the insurance brokers industry, and offers free research on industry players Marsh & McLennan Companies Inc. (NYSE: MMC) and Aon Corporation (NYSE: AON). Register today at to receive free research reports on these companies.

The Insurance Brokers Sector which includes giants like Marsh & McLennan Companies Inc. and Aon Corporation is nervous lately as it has seen re-insurance rates fall between 5% and 10% during their January renewal period. While last year's strong investment gains and moderate disaster payouts helped results, the large pool of excess capital generated has actually become somewhat of a burden to the sector. The excess capital, some analysts estimate to be around $19 billion sector wide, cause customers to believe that lower disaster payouts should result in lower insurance rates. Shareholders and investors can sign up today at or to download the full reports on Marsh & McLennan Companies Inc. and Aon Corporation. is a specialized website where investors can have complete access to free reports on insurance brokers industry; traders looking for analyst opinions on Marsh & McLennan Companies Inc., Aon Corporation and other players in the industry are welcomed to sign up for a free one year membership at

This has sent the sector into a negative pricing cycle due to the excess underwriting capacity generated by fewer policy sales during the recession. It is predicted that many companies will try to use their excess funds to buy back shares or pay out dividends. There are also some rumors of a pick-up in mergers and acquisitions activity. Either way, the sector will feel some pain in the future if the rate cycle does not improve and a major disaster hits leaving them unprepared.

Visit us at to understand the catalysts and forces driving or affecting insurance brokers stocks.

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