Marsh McLennan resumed with a Sector Perform at RBC Capital

RBC Capital resumed coverage of Marsh McLennan (MMC) with a Sector Perform rating and $200 price target as part of a broader research note launching coverage on P&C insurance carriers and brokers. Looking to 2026, the firm expects continued strong return on equity, ROE, and book value per share growth amongst carriers, though it also sees slowing top-lines limiting earnings growth, the analyst tells investors in a research note. Some earnings headwinds are emerging, with a softening P&C cycle, difficult catastrophe comps, and uncertain reserving driving RBC’s expectations for ROE compression and limited sector performance, the firm added. For the company, RBC expects low-to-mid single-digit organic revenue growth in 2026/27 and overall revenue growth in the 4%-6% range in both years but also a particularly soft start to 2026, with the slow hurricane season and continued capacity growth in reinsurance markets leading to down pricing at renewals.