- GAAP Revenue Increases 6%; Underlying Revenue Rises 5%
- Growth in GAAP Operating Income of 11% and Adjusted Operating
Income of 12%
- Third Quarter GAAP EPS Rises 3% to $1.51 and Adjusted EPS
Increases 4% to $1.63
- Nine Months GAAP EPS Rises 10% to $6.59 and Adjusted EPS
Increases 10% to $6.93
Marsh McLennan (NYSE: MMC), a global leader in risk, strategy
and people, today reported financial results for the third quarter
ended September 30, 2024.
John Doyle, President and CEO, said: "This was a milestone
quarter for Marsh McLennan as we delivered strong results and
announced the acquisition of McGriff Insurance Services. Our
performance demonstrated continued momentum, with 5% underlying
revenue growth, 110 basis points of margin expansion and adjusted
EPS growth of 4%, or 11% excluding a one-time tax benefit a year
ago. We remain on track for another great year in 2024."
"McGriff's excellent leadership, outstanding talent and record
of strong growth complement Marsh McLennan Agency's capabilities
and culture. I am excited about our future as we come together to
help our clients thrive."
Consolidated Results
Consolidated revenue in the third quarter of 2024 was $5.7
billion, an increase of 6% compared with the third quarter of 2023.
On an underlying basis, revenue increased 5%. Operating income rose
11% to $1.1 billion. Adjusted operating income, which excludes
noteworthy items as presented in the attached supplemental
schedules, rose 12% to $1.2 billion. Net income attributable to the
Company was $747 million. Earnings per share increased 3% to $1.51.
Adjusted earnings per share increased 4% to $1.63. Adjusted EPS in
the prior year period included a 10-cent per share benefit from a
favorable discrete tax item.
For the nine months ended September 30, 2024, consolidated
revenue was $18.4 billion, an increase of 7% on both a GAAP and
underlying basis, compared to the prior year period. Operating
income was $4.7 billion, an increase of 12% from the prior year
period. Adjusted operating income rose 12% to $4.9 billion. Net
income attributable to the Company was $3.3 billion, or $6.59 per
diluted share, compared with $6.01 in the first nine months of
2023. Adjusted earnings per share increased 10% to $6.93.
Risk & Insurance Services
Risk & Insurance Services revenue was $3.5 billion in the
third quarter of 2024, an increase of 8%, or 6% on an underlying
basis. Operating income increased 15% to $733 million, while
adjusted operating income increased 16% to $775 million. For the
nine months ended September 30, 2024, revenue was $11.7 billion, an
increase of 9%, or 8% on an underlying basis. Operating income rose
13% to $3.6 billion, and adjusted operating income increased 12% to
$3.7 billion.
Marsh's revenue in the third quarter of 2024 was $2.9 billion,
an increase of 9%, or 7% on an underlying basis. In U.S./Canada,
underlying revenue rose 6%. International operations produced
underlying revenue growth of 7%, reflecting 8% growth in Latin
America, 7% growth in EMEA, and 5% growth in Asia Pacific. For the
nine months ended September 30, 2024, Marsh’s underlying revenue
growth was 7%.
Guy Carpenter's revenue in the third quarter of 2024 was $381
million, an increase of 6%, or 7% on an underlying basis. For the
nine months ended September 30, 2024, Guy Carpenter’s underlying
revenue growth was 8%.
Consulting
Consulting revenue was $2.3 billion in the third quarter of
2024, an increase of 3%, or 4% on an underlying basis. Operating
income increased 9% to $462 million, while adjusted operating
income increased 7% to $478 million. For the first nine months
ended September 30, 2024, revenue was $6.7 billion, an increase of
4%, or 5% on an underlying basis. Operating income rose 7% to $1.3
billion, and adjusted operating income increased 7% to $1.3
billion.
Mercer's revenue in the third quarter was $1.5 billion, an
increase of 2%, or 5% on an underlying basis. Health revenue of
$520 million increased 8% on an underlying basis. Wealth revenue of
$625 million increased 4% on an underlying basis. Career revenue of
$307 million increased 5% on an underlying basis. For the nine
months ended September 30, 2024, Mercer’s revenue was $4.3 billion,
an increase of 6% on an underlying basis.
Oliver Wyman’s revenue in the third quarter of 2024 was $810
million, an increase of 4%, or 1% on an underlying basis. For the
nine months ended September 30, 2024, Oliver Wyman’s revenue was
$2.4 billion, an increase of 5% on an underlying basis.
Other Items
The Company repurchased 1.4 million shares of stock for $300
million in the third quarter of 2024. Through nine months ended
September 30, 2024, the Company has repurchased 4.3 million shares
of stock for $900 million.
On September 29, 2024, the Company entered into an agreement to
acquire McGriff Insurance Services, LLC, a leading provider of
insurance broking and risk management services in the United
States, with $1.3 billion of revenue for the trailing twelve months
ended June 30, 2024. Under the terms of the transaction, Marsh
McLennan will pay $7.75 billion in cash consideration, funded by a
combination of cash and proceeds from debt financing. In
conjunction with the transaction, Marsh McLennan expects to assume
a deferred tax asset valued at approximately $500 million. The
transaction is targeted to close by year-end, subject to regulatory
clearance and other standard closing conditions.
Conference Call
A conference call to discuss third quarter 2024 results will be
held today at 8:00 a.m. Eastern time. The live audio webcast may be
accessed at marshmclennan.com. A replay of the webcast will be
available approximately two hours after the event. The webcast is
listen-only. Those interested in participating in the
question-and-answer session may register here to receive the
dial-in numbers and unique PIN to access the call.
About Marsh McLennan Marsh McLennan (NYSE: MMC) is a
global leader in risk, strategy and people, advising clients in 130
countries across four businesses: Marsh, Guy Carpenter, Mercer and
Oliver Wyman. With annual revenue of $23 billion and more than
85,000 colleagues, Marsh McLennan helps build the confidence to
thrive through the power of perspective. For more information,
visit marshmclennan.com, or follow us on LinkedIn and X.
INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements," as
defined in the Private Securities Litigation Reform Act of 1995.
These statements, which express management's current views
concerning future events or results, use words like "anticipate,"
"assume," "believe," "continue," "estimate," "expect," "intend,"
"plan," "project" and similar terms, and future or conditional
tense verbs like "could," "may," "might," "should," "will" and
"would".
Forward-looking statements are subject to inherent risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in our forward-looking statements.
Factors that could materially affect our future results include,
among other things:
- the impact of geopolitical or macroeconomic conditions on us,
our clients and the countries and industries in which we operate,
including from multiple major wars, escalating conflict throughout
the Middle East and rising tension in the South China Sea, slower
GDP growth or recession, lower interest rates, capital markets
volatility, inflation and changes in insurance premium rates;
- the impact from lawsuits or investigations arising from errors
and omissions, breaches of fiduciary duty or other claims against
us in our capacity as a broker or investment advisor, including
claims related to our investment business’ ability to execute
timely trades;
- the increasing prevalence of ransomware, supply chain and other
forms of cyber attacks, and their potential to disrupt our
operations, or the operations of our third party vendors, and
result in the disclosure of confidential client or company
information;
- the financial and operational impact of complying with laws and
regulations, including domestic and international sanctions
regimes, anti-corruption laws such as the U.S. Foreign Corrupt
Practices Act, U.K. Anti Bribery Act and cybersecurity, data
privacy and artificial intelligence regulations;
- our ability to attract, retain and develop industry leading
talent;
- our ability to compete effectively and adapt to competitive
pressures in each of our businesses, including from
disintermediation as well as technological change, digital
disruption and other types of innovation such as artificial
intelligence;
- our ability to manage potential conflicts of interest,
including where our services to a client conflict, or are perceived
to conflict, with the interests of another client or our own
interests;
- the impact of changes in tax laws, guidance and
interpretations, such as the implementation of the Organization for
Economic Cooperation and Development international tax framework,
or the increasing number of challenges from tax authorities in the
current global tax environment;
- the regulatory, contractual and reputational risks that arise
based on insurance placement activities and insurer revenue
streams; and
- our ability to successfully integrate or achieve the intended
benefits of the acquisition of McGriff.
The factors identified above are not exhaustive. Marsh McLennan
and its subsidiaries (collectively, the "Company") operate in a
dynamic business environment in which new risks emerge frequently.
Accordingly, we caution readers not to place undue reliance on any
forward-looking statements, which are based only on information
currently available to us and speak only as of the dates on which
they are made. The Company undertakes no obligation to update or
revise any forward-looking statement to reflect events or
circumstances arising after the date on which it is made.
Further information concerning the Company, including
information about factors that could materially affect our results
of operations and financial condition, is contained in the
Company's filings with the Securities and Exchange Commission,
including the "Risk Factors" section and the "Management’s
Discussion and Analysis of Financial Condition and Results of
Operations" section of our most recently filed Annual Report on
Form 10-K.
Marsh & McLennan
Companies, Inc.
Consolidated Statements of
Income
(In millions, except per share
data)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Revenue
$
5,697
$
5,382
$
18,391
$
17,182
Expense:
Compensation and benefits
3,442
3,287
10,366
9,831
Other operating expenses
1,147
1,099
3,350
3,172
Operating expenses
4,589
4,386
13,716
13,003
Operating income
1,108
996
4,675
4,179
Other net benefit credits
68
62
201
180
Interest income
12
16
61
40
Interest expense
(154
)
(145
)
(469
)
(427
)
Investment income
1
1
3
6
Income before income taxes
1,035
930
4,471
3,978
Income tax expense
283
192
1,155
941
Net income before non-controlling
interests
752
738
3,316
3,037
Less: Net income attributable to
non-controlling interests
5
8
44
37
Net income attributable to the
Company
$
747
$
730
$
3,272
$
3,000
Net income per share attributable to
the Company:
- Basic
$
1.52
$
1.48
$
6.65
$
6.07
- Diluted
$
1.51
$
1.47
$
6.59
$
6.01
Average number of shares
outstanding:
- Basic
492
494
492
494
- Diluted
496
499
496
499
Shares outstanding at September
30
491
493
491
493
Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis Three Months
Ended September 30 (Millions) (Unaudited)
The Company advises clients in 130 countries. As a result,
foreign exchange rate movements may impact period over period
comparisons of revenue. Similarly, certain other items such as
acquisitions and dispositions, including transfers among
businesses, may impact period over period comparisons of revenue.
Non-GAAP underlying revenue measures the change in revenue from one
period to the next by isolating these impacts.
Components of Revenue
Change*
Three Months Ended
September 30,
% Change
GAAP Revenue*
Currency Impact
Acquisitions/
Dispositions/ Other
Impact**
Non-GAAP
Underlying Revenue
2024
2023
Risk and Insurance Services
Marsh
$
2,934
$
2,700
9
%
—
2
%
7
%
Guy Carpenter
381
359
6
%
—
—
7
%
Subtotal
3,315
3,059
8
%
—
2
%
7
%
Fiduciary interest income
138
131
Total Risk and Insurance Services
3,453
3,190
8
%
—
2
%
6
%
Consulting
Mercer
1,452
1,425
2
%
—
(3
)%
5
%
Oliver Wyman Group
810
781
4
%
—
3
%
1
%
Total Consulting
2,262
2,206
3
%
—
(1
)%
4
%
Corporate Eliminations
(18
)
(14
)
Total Revenue
$
5,697
$
5,382
6
%
—
1
%
5
%
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
Components of Revenue
Change*
Three Months Ended
September 30,
% Change
GAAP Revenue*
Currency Impact
Acquisitions/
Dispositions/ Other
Impact**
Non-GAAP
Underlying Revenue
2024
2023
Marsh:
EMEA
$
747
$
692
8
%
1
%
—
7
%
Asia Pacific
342
311
10
%
—
5
%
5
%
Latin America
134
134
(1
)%
(10
)%
2
%
8
%
Total International
1,223
1,137
7
%
(1
)%
1
%
7
%
U.S./Canada
1,711
1,563
10
%
—
3
%
6
%
Total Marsh
$
2,934
$
2,700
9
%
—
2
%
7
%
Mercer:
Wealth
$
625
$
635
(2
)%
1
%
(6
)%
4
%
Health
520
496
5
%
(1
)%
(2
)%
8
%
Career
307
294
4
%
(1
)%
1
%
5
%
Total Mercer
$
1,452
$
1,425
2
%
—
(3
)%
5
%
*
Rounded to whole percentages. Components
of revenue may not add due to rounding.
**
Acquisitions, dispositions, and other
includes the impact of current and prior year items excluded from
the calculation of non-GAAP underlying revenue for comparability
purposes. Details on these items are provided in the reconciliation
of non-GAAP revenue to GAAP revenue tables included in this
release.
Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis Nine Months
Ended September 30 (Millions) (Unaudited)
The Company advises clients in 130 countries. As a result,
foreign exchange rate movements may impact period over period
comparisons of revenue. Similarly, certain other items such as
acquisitions and dispositions, including transfers among
businesses, may impact period over period comparisons of revenue.
Non-GAAP underlying revenue measures the change in revenue from one
period to the next by isolating these impacts.
Components of Revenue
Change*
Nine Months Ended
September 30,
% Change
GAAP Revenue*
Currency Impact
Acquisitions/
Dispositions/ Other
Impact**
Non-GAAP
Underlying Revenue
2024
2023
Risk and Insurance Services
Marsh
$
9,202
$
8,482
8
%
(1
)%
2
%
7
%
Guy Carpenter
2,161
2,006
8
%
—
—
8
%
Subtotal
11,363
10,488
8
%
(1
)%
2
%
7
%
Fiduciary interest income
385
330
Total Risk and Insurance Services
11,748
10,818
9
%
(1
)%
1
%
8
%
Consulting
Mercer (a)
4,256
4,143
3
%
(1
)%
(2
)%
6
%
Oliver Wyman Group
2,436
2,266
8
%
—
2
%
5
%
Total Consulting
6,692
6,409
4
%
—
(1
)%
5
%
Corporate Eliminations
(49
)
(45
)
Total Revenue
$
18,391
$
17,182
7
%
—
1
%
7
%
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
Components of Revenue
Change*
Nine Months Ended
September 30,
% Change
GAAP Revenue*
Currency Impact
Acquisitions/
Dispositions/ Other
Impact**
Non-GAAP
Underlying Revenue
2024
2023
Marsh:
EMEA
$
2,684
$
2,482
8
%
—
—
8
%
Asia Pacific
1,069
980
9
%
(3
)%
6
%
6
%
Latin America
396
386
3
%
(8
)%
3
%
8
%
Total International
4,149
3,848
8
%
(1
)%
2
%
7
%
U.S./Canada
5,053
4,634
9
%
—
2
%
7
%
Total Marsh
$
9,202
$
8,482
8
%
(1
)%
2
%
7
%
Mercer:
Wealth (a)
$
1,909
$
1,853
3
%
—
(1
)%
4
%
Health (a)
1,605
1,559
3
%
(1
)%
(5
)%
9
%
Career
742
731
2
%
(2
)%
1
%
3
%
Total Mercer
$
4,256
$
4,143
3
%
(1
)%
(2
)%
6
%
(a)
Acquisitions, dispositions, and other in 2024 includes a net
gain of $21 million from the sale of the U.K. pension
administration and U.S. health and benefits administration
businesses, that comprised of a $66 million gain in Wealth, offset
by a $45 million loss in Health.
*
Rounded to whole percentages. Components
of revenue may not add due to rounding.
**
Acquisitions, dispositions, and other
includes the impact of current and prior year items excluded from
the calculation of non-GAAP underlying revenue for comparability
purposes. Details on these items are provided in the reconciliation
of non-GAAP revenue to GAAP revenue tables included in this
release.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures Three Months Ended
September 30 (Millions) (Unaudited)
Overview
The Company reports its financial results in accordance with
accounting principles generally accepted in the United States
(referred to in this release as in accordance with "GAAP" or
"reported" results). The Company also refers to and presents
certain additional non-GAAP financial measures, within the meaning
of Regulation G and item 10(e) Regulation S-K in accordance with
the Securities Exchange Act of 1934. These measures are: non-GAAP
revenue, adjusted operating income (loss), adjusted operating
margin, adjusted income, net of tax and adjusted earnings per share
(EPS). The Company has included reconciliations of these non-GAAP
financial measures to the most directly comparable financial
measure calculated in accordance with GAAP in the following
tables.
The Company believes these non-GAAP financial measures provide
useful supplemental information that enables investors to better
compare the Company’s performance across periods. Management also
uses these measures internally to assess the operating performance
of its businesses and to decide how to allocate resources. However,
investors should not consider these non-GAAP measures in isolation
from, or as a substitute for, the financial information that the
Company reports in accordance with GAAP. The Company's non-GAAP
measures include adjustments that reflect how management views its
businesses, and may differ from similarly titled non-GAAP measures
presented by other companies.
Adjusted Operating Income (Loss) and Adjusted Operating
Margin
Adjusted operating income (loss) is calculated by excluding the
impact of certain noteworthy items from the Company's GAAP
operating income (loss). The following tables identify these
noteworthy items and reconcile adjusted operating income (loss) to
GAAP operating income (loss), on a consolidated and reportable
segment basis, for the three and nine months ended September 30,
2024 and 2023. The following tables also present adjusted operating
margin. For the three and nine months ended September 30, 2024 and
2023, adjusted operating margin is calculated by dividing the sum
of adjusted operating income and identified intangible asset
amortization by consolidated or segment adjusted revenue. The
Company's adjusted revenue used in the determination of adjusted
operating margin is calculated by excluding the impact of certain
noteworthy items from the Company's GAAP revenue.
Risk & Insurance
Services
Consulting
Corporate/
Eliminations
Total
Three Months Ended September 30,
2024
Operating income (loss)
$
733
$
462
$
(87
)
$
1,108
Operating margin
21.2
%
20.4
%
N/A
19.5
%
Add (deduct) impact of noteworthy
items:
Restructuring (a)
22
14
18
54
Changes in fair value of contingent
consideration
5
1
—
6
Acquisition related costs (b)
15
1
2
18
Operating income adjustments
42
16
20
78
Adjusted operating income (loss)
$
775
$
478
$
(67
)
$
1,186
Total identified intangible amortization
expense
$
77
$
13
$
—
$
90
Adjusted operating margin
24.7
%
21.7
%
N/A
22.4
%
Three Months Ended September 30,
2023
Operating income (loss)
$
640
$
424
$
(68
)
$
996
Operating margin
20.0
%
19.2
%
N/A
18.5
%
Add (deduct) impact of noteworthy
items:
Restructuring (a)
26
17
9
52
Changes in fair value of contingent
consideration
4
—
—
4
Acquisition related costs (b)
—
5
—
5
Other
1
1
—
2
Operating income adjustments
31
23
9
63
Adjusted operating income (loss)
$
671
$
447
$
(59
)
$
1,059
Total identified intangible amortization
expense
$
74
$
11
$
—
$
85
Adjusted operating margin
23.4
%
20.8
%
N/A
21.3
%
(a)
Costs primarily include severance and lease exit charges for
activities focused on workforce actions, rationalization of
technology and functional resources, and reductions in real
estate.
(b) Primarily reflects one-time acquisition related retention
costs.
Marsh & McLennan
Companies, Inc.
Reconciliation of Non-GAAP
Measures
Nine Months Ended September
30
(Millions) (Unaudited)
Risk & Insurance
Services
Consulting
Corporate/
Eliminations
Total
Nine Months Ended September 30,
2024
Operating income (loss)
$
3,595
$
1,304
$
(224
)
$
4,675
Operating margin
30.6
%
19.5
%
N/A
25.4
%
Add (deduct) impact of noteworthy
items:
Restructuring (a)
73
30
37
140
Changes in contingent consideration
17
4
—
21
Acquisition and disposition related costs
(b)
27
31
2
60
Disposal of businesses (c)
—
(21
)
—
(21
)
Operating income adjustments
117
44
39
200
Adjusted operating income (loss)
$
3,712
$
1,348
$
(185
)
$
4,875
Total identified intangible amortization
expense
$
233
$
36
$
—
$
269
Adjusted operating margin
33.6
%
20.7
%
N/A
28.0
%
Nine Months Ended September 30,
2023
Operating income (loss)
$
3,192
$
1,223
$
(236
)
$
4,179
Operating margin
29.5
%
19.1
%
N/A
24.3
%
Add (deduct) impact of noteworthy
items:
Restructuring (a)
89
33
48
170
Changes in contingent consideration
20
1
—
21
Acquisition related costs (b)
—
32
—
32
Disposal of businesses (c)
—
17
—
17
JLT legacy legal charges (d)
—
(51
)
—
(51
)
Other
1
1
—
2
Operating income adjustments
110
33
48
191
Adjusted operating income (loss)
$
3,302
$
1,256
$
(188
)
$
4,370
Total identified intangible amortization
expense
$
221
$
36
$
—
$
257
Adjusted operating margin
32.6
%
20.1
%
N/A
26.9
%
(a)
Costs primarily include severance
and lease exit charges for activities focused on workforce actions,
rationalization of technology and functional resources, and
reductions in real estate.
(b)
Primarily reflects exit costs for
the disposition of the Mercer U.K. pension administration and U.S.
health and benefits administration businesses and one-time
acquisition related retention costs. Amounts in 2023 include
integration costs related to the Westpac superannuation fund
transaction.
(c)
Net gain on sale of the Mercer
U.K. pension administration and U.S. health and benefits
administration businesses. In 2023, the amount reflects a loss on
sale of a small individual financial advisory business in Canada.
These amounts are included in revenue in the consolidated
statements of income and excluded from non-GAAP revenue and
adjusted revenue used in the calculation of adjusted operating
margin.
(d)
Insurance and indemnity
recoveries for a legacy JLT E&O matter relating to suitability
of advice provided to individuals for defined benefit pension
transfers in the U.K.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures Three and Nine Months
Ended September 30 (In millions, except per share data)
(Unaudited)
Adjusted income, net of tax is calculated as the Company's GAAP
income from continuing operations, adjusted to reflect the after
tax impact of the operating income adjustments in the preceding
tables and the additional items listed below. Adjusted EPS is
calculated by dividing the Company’s adjusted income, net of tax,
by the average number of shares outstanding-diluted for the
relevant period. The following tables reconcile adjusted income,
net of tax to GAAP income from continuing operations and adjusted
EPS to GAAP EPS for the three and nine months ended September 30,
2024 and 2023.
Three Months Ended September
30, 2024
Three Months Ended
September 30, 2023
Amount
Adjusted EPS
Amount
Adjusted EPS
Net income before non-controlling
interests, as reported
$
752
$
738
Less: Non-controlling interest, net of
tax
5
8
Subtotal
$
747
$
1.51
$
730
$
1.47
Operating income adjustments
$
78
$
63
Investments adjustment
—
1
Income tax effect of adjustments (a)
(15
)
(12
)
63
0.12
52
0.10
Adjusted income, net of tax
$
810
$
1.63
$
782
$
1.57
Nine Months Ended
September 30, 2024
Nine Months Ended
September 30, 2023
Amount
Adjusted EPS
Amount
Adjusted EPS
Net income before non-controlling
interests, as reported
$
3,316
$
3,037
Less: Non-controlling interest, net of
tax
44
37
Subtotal
$
3,272
$
6.59
$
3,000
$
6.01
Operating income adjustments
$
200
$
191
Investments adjustment
(2
)
2
Pension settlement adjustment
2
—
Income tax effect of adjustments (a)
(30
)
(45
)
170
0.34
148
0.30
Adjusted income, net of tax
$
3,442
$
6.93
$
3,148
$
6.31
(a)
For items with an income tax impact, the tax effect was
calculated using an effective tax rate based on the tax
jurisdiction for each item.
Marsh & McLennan Companies, Inc.
Supplemental
Information
Three and Nine Months Ended
September 30
(Millions) (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Consolidated
Compensation and benefits
$
3,442
$
3,287
$
10,366
$
9,831
Other operating expenses
1,147
1,099
3,350
3,172
Total expenses
$
4,589
$
4,386
$
13,716
$
13,003
Depreciation and amortization expense
$
90
$
95
$
276
$
270
Identified intangible amortization
expense
90
85
269
257
Total
$
180
$
180
$
545
$
527
Risk and Insurance Services
Compensation and benefits (a)
$
2,095
$
1,938
$
6,321
$
5,834
Other operating expenses (a)
625
612
1,832
1,792
Total expenses
$
2,720
$
2,550
$
8,153
$
7,626
Depreciation and amortization expense
$
48
$
49
$
140
$
135
Identified intangible amortization
expense
77
74
233
221
Total
$
125
$
123
$
373
$
356
Consulting
Compensation and benefits (a)
$
1,309
$
1,316
$
3,937
$
3,887
Other operating expenses (a)
491
466
1,451
1,299
Total expenses
$
1,800
$
1,782
$
5,388
$
5,186
Depreciation and amortization expense
$
25
$
30
$
88
$
78
Identified intangible amortization
expense
13
11
36
36
Total
$
38
$
41
$
124
$
114
(a)
The Company reclassified certain prior
period amounts between Compensation and benefits and Other
operating expenses for each reporting segment for comparability
purposes. The reclassification had no impact on consolidated or
reporting segment total expenses.
Marsh & McLennan
Companies, Inc.
Consolidated Balance
Sheets
(Millions)
(Unaudited)
September 30,
2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,798
$
3,358
Cash and cash equivalents held in a
fiduciary capacity
11,923
10,794
Net receivables
7,422
6,418
Other current assets
1,143
1,178
Total current assets
22,286
21,748
Goodwill and intangible assets
20,955
19,861
Fixed assets, net
884
882
Pension related assets
2,384
2,051
Right of use assets
1,487
1,541
Deferred tax assets
242
357
Other assets
1,626
1,590
TOTAL ASSETS
$
49,864
$
48,030
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt
$
518
$
1,619
Accounts payable and accrued
liabilities
3,099
3,403
Accrued compensation and employee
benefits
2,785
3,346
Current lease liabilities
313
312
Accrued income taxes
565
321
Dividends payable
401
—
Fiduciary liabilities
11,923
10,794
Total current liabilities
19,604
19,795
Long-term debt
12,330
11,844
Pension, post-retirement and
post-employment benefits
704
779
Long-term lease liabilities
1,618
1,661
Liabilities for errors and omissions
330
314
Other liabilities
1,396
1,267
Total equity
13,882
12,370
TOTAL LIABILITIES AND EQUITY
$
49,864
$
48,030
Marsh & McLennan
Companies, Inc.
Consolidated Statements of
Cash Flows
(Millions) (Unaudited)
Nine Months Ended
September 30,
2024
2023
Operating cash flows:
Net income before non-controlling
interests
$
3,316
$
3,037
Adjustments to reconcile net income to
cash provided by operations:
Depreciation and amortization
545
527
Non-cash lease expense
206
215
Share-based compensation expense
283
273
Net gain on investments, disposition of
assets and other
(87
)
(7
)
Changes in assets and liabilities:
Accrued compensation and employee
benefits
(582
)
(458
)
Provision for taxes, net of payments and
refunds
233
242
Net receivables
(821
)
(670
)
Other changes to assets and
liabilities
(256
)
(201
)
Contributions to pension and other benefit
plans in excess of current year credit
(262
)
(246
)
Operating lease liabilities
(229
)
(237
)
Net cash provided by operations
2,346
2,475
Financing cash flows:
Purchase of treasury shares
(900
)
(900
)
Proceeds from issuance of debt
988
2,170
Repayments of debt
(1,613
)
(12
)
Payment of bridge loan commitment fees
(23
)
—
Net issuance of common stock from treasury
shares
44
20
Net distributions of non-controlling
interests and deferred/contingent consideration
(122
)
(342
)
Dividends paid
(1,110
)
(944
)
Change in fiduciary liabilities
916
1,223
Net cash (used for) provided by
financing activities
(1,820
)
1,215
Investing cash flows:
Capital expenditures
(240
)
(296
)
Purchases of long term investments and
other
(17
)
(28
)
Sales of long term investments
17
18
Dispositions
106
(18
)
Acquisitions, net of cash and cash held in
a fiduciary capacity acquired
(1,042
)
(619
)
Net cash used for investing
activities
(1,176
)
(943
)
Effect of exchange rate changes on
cash, cash equivalents, and cash and cash equivalents held in a
fiduciary capacity
219
(120
)
(Decrease)/increase in cash, cash
equivalents, and cash and cash equivalents held in a fiduciary
capacity
(431
)
2,627
Cash, cash equivalents, and cash and
cash equivalents held in a fiduciary capacity at beginning of
period
14,152
12,102
Cash, cash equivalents, and cash and
cash equivalents held in a fiduciary capacity at end of
period
$
13,721
$
14,729
Reconciliation of cash, cash
equivalents, and cash and cash equivalents held in a fiduciary
capacity to the Consolidated Balance Sheets
Balance at September 30,
2024
2023
(In millions)
Cash and cash equivalents
$
1,798
$
2,901
Cash and cash equivalents held in a
fiduciary capacity
11,923
11,828
Total cash, cash equivalents, and cash and
cash equivalents held in a fiduciary capacity
$
13,721
$
14,729
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures Three Months Ended
September 30 (Millions) (Unaudited)
Non-GAAP revenue isolates the impact of foreign exchange rate
movements and certain transaction-related items from the current
period GAAP revenue. The non-GAAP revenue measure is presented on a
constant currency basis, excluding the impact of foreign currency
fluctuations. The Company isolates the impact of foreign exchange
rate movements period over period, by translating the current
period foreign currency GAAP revenue into U.S. Dollars based on the
difference in the current and corresponding prior period exchange
rates. Similarly, certain other items such as acquisitions and
dispositions, including transfers among businesses, may impact
period over period comparisons of revenue and are consistently
excluded from current and prior period GAAP revenues for
comparability purposes. Percentage changes, referred to as non-GAAP
underlying revenue, are calculated by dividing the period over
period change in non-GAAP revenue by the prior period non-GAAP
revenue.
The following table provides the reconciliation of GAAP revenue
to non-GAAP revenue:
2024
2023
Three Months Ended September 30,
GAAP Revenue
Currency Impact
Acquisitions/
Dispositions/ Other Impact
Non-GAAP Revenue
GAAP Revenue
Acquisitions/ Dispositions/ Other
Impact
Non-GAAP Revenue
Risk and Insurance Services
Marsh
$
2,934
$
11
$
(68
)
$
2,877
$
2,700
$
(1
)
$
2,699
Guy Carpenter
381
1
—
382
359
—
359
Subtotal
3,315
12
(68
)
3,259
3,059
(1
)
3,058
Fiduciary interest income
138
—
(1
)
137
131
—
131
Total Risk and Insurance Services
3,453
12
(69
)
3,396
3,190
(1
)
3,189
Consulting
Mercer
1,452
5
(23
)
1,434
1,425
(67
)
1,358
Oliver Wyman Group
810
(2
)
(21
)
787
781
—
781
Total Consulting
2,262
3
(44
)
2,221
2,206
(67
)
2,139
Corporate Eliminations
(18
)
—
—
(18
)
(14
)
—
(14
)
Total Revenue
$
5,697
$
15
$
(113
)
$
5,599
$
5,382
$
(68
)
$
5,314
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
2024
2023
Three Months Ended September 30,
GAAP Revenue
Currency Impact
Acquisitions/
Dispositions/ Other Impact
Non-GAAP Revenue
GAAP Revenue
Acquisitions/
Dispositions/
Other Impact
Non-GAAP Revenue
Marsh:
EMEA
$
747
$
(5
)
$
(1
)
$
741
$
692
$
(1
)
$
691
Asia Pacific
342
—
(15
)
327
311
—
311
Latin America
134
14
(2
)
146
134
—
134
Total International
1,223
9
(18
)
1,214
1,137
(1
)
1,136
U.S./Canada
1,711
2
(50
)
1,663
1,563
—
1,563
Total Marsh
$
2,934
$
11
$
(68
)
$
2,877
$
2,700
$
(1
)
$
2,699
Mercer:
Wealth
$
625
$
(4
)
$
(9
)
$
612
$
635
$
(46
)
$
589
Health
520
5
(11
)
514
496
(21
)
475
Career
307
4
(3
)
308
294
—
294
Total Mercer
$
1,452
$
5
$
(23
)
$
1,434
$
1,425
$
(67
)
$
1,358
Note: Amounts in the tables above are
rounded to whole numbers.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures Nine Months Ended
September 30 (Millions) (Unaudited)
The following table provides the reconciliation of GAAP revenue
to non-GAAP revenue:
2024
2023
Nine Months Ended September 30,
GAAP Revenue
Currency Impact
Acquisitions/
Dispositions/ Other Impact
Non-GAAP Revenue
GAAP Revenue
Acquisitions/ Dispositions/ Other
Impact
Non-GAAP Revenue
Risk and Insurance Services
Marsh
$
9,202
$
50
$
(171
)
$
9,081
$
8,482
$
(2
)
$
8,480
Guy Carpenter
2,161
5
(3
)
2,163
2,006
(12
)
1,994
Subtotal
11,363
55
(174
)
11,244
10,488
(14
)
10,474
Fiduciary interest income
385
1
(2
)
384
330
—
330
Total Risk and Insurance Services
11,748
56
(176
)
11,628
10,818
(14
)
10,804
Consulting
Mercer (a)
4,256
30
(77
)
4,209
4,143
(159
)
3,984
Oliver Wyman Group
2,436
(3
)
(50
)
2,383
2,266
(1
)
2,265
Total Consulting
6,692
27
(127
)
6,592
6,409
(160
)
6,249
Corporate Eliminations
(49
)
—
—
(49
)
(45
)
—
(45
)
Total Revenue
$
18,391
$
83
$
(303
)
$
18,171
$
17,182
$
(174
)
$
17,008
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
2024
2023
Nine Months Ended September 30,
GAAP Revenue
Currency Impact
Acquisitions/
Dispositions/ Other Impact
Non-GAAP Revenue
GAAP Revenue
Acquisitions/ Dispositions/ Other
Impact
Non-GAAP Revenue
Marsh:
EMEA
$
2,684
$
(10
)
$
(3
)
$
2,671
$
2,482
$
(2
)
$
2,480
Asia Pacific
1,069
25
(54
)
1,040
980
—
980
Latin America
396
31
(10
)
417
386
—
386
Total International
4,149
46
(67
)
4,128
3,848
(2
)
3,846
U.S./Canada
5,053
4
(104
)
4,953
4,634
—
4,634
Total Marsh
$
9,202
$
50
$
(171
)
$
9,081
$
8,482
$
(2
)
$
8,480
Mercer:
Wealth (a)
$
1,909
$
2
$
(83
)
$
1,828
$
1,853
$
(94
)
$
1,759
Health (a)
1,605
14
11
1,630
1,559
(65
)
1,494
Career
742
14
(5
)
751
731
—
731
Total Mercer
$
4,256
$
30
$
(77
)
$
4,209
$
4,143
$
(159
)
$
3,984
(a)
Acquisitions, dispositions, and other in 2024 includes a net
gain of $21 million from the sale of the U.K. pension
administration and U.S. health and benefits administration
businesses, that comprised of a $66 million gain in Wealth, offset
by a $45 million loss in Health.
Note: Amounts in the tables above are
rounded to whole numbers.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241016843795/en/
Media: Erick R. Gustafson Marsh McLennan +1 202 263 7788
erick.gustafson@mmc.com
Investor: Sarah DeWitt Marsh McLennan +1 212 345 6750
sarah.dewitt@mmc.com
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