GAAP Revenue Increases 6%; Underlying
Revenue Rises 6%
Growth in GAAP Operating Income of 13% and
Adjusted Operating Income of 11%
Second Quarter GAAP EPS Rises 10% to $2.27
and Adjusted EPS Increases 10% to $2.41
Six Months GAAP EPS Rises 12% to $5.08 and
Adjusted EPS Increases 12% to $5.30
Marsh McLennan (NYSE: MMC), the world’s leading professional
services firm in the areas of risk, strategy and people, today
reported financial results for the second quarter ended June 30,
2024.
John Doyle, President and CEO, said: "We generated strong
results in the second quarter with 6% underlying revenue growth,
10% adjusted EPS growth, and 130 basis points of margin
expansion."
"We continued to invest in our talent and capabilities to
deliver for clients. We also deployed capital into high quality
acquisitions and recently announced a 15% increase in our dividend.
Our first half results leave us well positioned for another great
year in 2024."
Consolidated Results
Consolidated revenue in the second quarter of 2024 was $6.2
billion, an increase of 6% compared with the second quarter of
2023. On an underlying basis, revenue increased 6%. Operating
income rose 13% to $1.6 billion. Adjusted operating income, which
excludes noteworthy items as presented in the attached supplemental
schedules, rose 11% to $1.7 billion. Net income attributable to the
Company was $1.1 billion. Earnings per share increased 10% to
$2.27. Adjusted earnings per share increased 10% to $2.41.
For the six months ended June 30, 2024, consolidated revenue was
$12.7 billion, an increase of 8% on both a GAAP and underlying
basis compared to the prior period. Operating income was $3.6
billion, an increase of 12% from the prior year period. Adjusted
operating income rose 11% to $3.7 billion. Net income attributable
to the Company was $2.5 billion, or $5.08 per diluted share,
compared with $4.55 in the first six months of 2023. Adjusted
earnings per share increased 12% to $5.30.
Risk & Insurance Services
Risk & Insurance Services revenue was $4.0 billion in the
second quarter of 2024, an increase of 8%, or 7% on an underlying
basis. Operating income increased 12% to $1.3 billion, while
adjusted operating income increased 12% to $1.3 billion. For the
six months ended June 30, 2024, revenue was $8.3 billion, an
increase of 9%, or 8% on an underlying basis. Operating income rose
12% to $2.9 billion, and adjusted operating income increased 12% to
$2.9 billion.
Marsh's revenue in the second quarter of 2024 was $3.3 billion,
an increase of 8%, 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 7% growth in Asia Pacific. For the
six months ended June 30, 2024, Marsh’s underlying revenue growth
was 7%.
Guy Carpenter's revenue in the second quarter was $632 million,
an increase of 10%, or 11% on an underlying basis. For the six
months ended June 30, 2024, Guy Carpenter’s underlying revenue
growth was 9%.
Consulting
Consulting revenue was $2.2 billion in the second quarter of
2024, an increase of 2%, or 4% on an underlying basis. Operating
income increased 5% to $410 million, while adjusted operating
income increased 6% to $426 million. For the first six months ended
June 30, 2024, revenue was $4.4 billion, an increase of 5%, or 6%
on an underlying basis. Operating income rose 5% to $842 million,
and adjusted operating income increased 7% to $870 million.
Mercer's revenue in the second quarter was $1.4 billion, flat on
a GAAP basis, or an increase of 5% on an underlying basis. Health
revenue of $547 million increased 9% on an underlying basis. Wealth
revenue of $612 million increased 3% on an underlying basis. Career
revenue of $220 million increased 2% on an underlying basis. For
the six months ended June 30, 2024, Mercer’s revenue was $2.8
billion, an increase of 6% on an underlying basis.
Oliver Wyman’s revenue in the second quarter of 2024 was $837
million, an increase of 3% on an underlying basis. For the six
months ended June 30, 2024, Oliver Wyman’s revenue was $1.6
billion, an increase of 8% on an underlying basis.
Other Items
The Company repurchased 1.5 million shares of stock for $300
million in the second quarter of 2024. Through six months ended
June 30, 2024, the Company has repurchased 3.0 million shares of
stock for $600 million.
In the second quarter of 2024, the Company repaid $600 million
of senior notes that matured.
Last week, the Board of Directors increased the quarterly
dividend 15% to $0.815 per share, with the third quarter dividend
payable on August 15, 2024.
In June, Marsh McLennan Agency (MMA) completed the acquisition
of Fisher Brown Bottrell Insurance, Inc., one of the largest
bank-affiliated insurance agencies in the U.S.
Conference Call
A conference call to discuss second quarter 2024 results will be
held today at 8:30 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; and
- the regulatory, contractual and reputational risks that arise
based on insurance placement activities and insurer revenue
streams.
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
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Revenue
$
6,221
$
5,876
$
12,694
$
11,800
Expense:
Compensation and benefits
3,454
3,337
6,924
6,544
Other operating expenses
1,125
1,082
2,203
2,073
Operating expenses
4,579
4,419
9,127
8,617
Operating income
1,642
1,457
3,567
3,183
Other net benefit credits
66
60
133
118
Interest income
12
10
49
24
Interest expense
(156
)
(146
)
(315
)
(282
)
Investment income
1
3
2
5
Income before income taxes
1,565
1,384
3,436
3,048
Income tax expense
425
337
872
749
Net income before non-controlling
interests
1,140
1,047
2,564
2,299
Less: Net income attributable to
non-controlling interests
15
12
39
29
Net income attributable to the
Company
$
1,125
$
1,035
$
2,525
$
2,270
Net income per share attributable to
the Company:
- Basic
$
2.28
$
2.09
$
5.13
$
4.59
- Diluted
$
2.27
$
2.07
$
5.08
$
4.55
Average number of shares
outstanding:
- Basic
492
495
492
495
- Diluted
496
499
497
499
Shares outstanding at June 30
492
494
492
494
Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis Three Months
Ended June 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
June 30,
% Change
GAAP Revenue*
Currency Impact
Acquisitions/
Dispositions/ Other
Impact**
Non-GAAP
Underlying Revenue
2024
2023
Risk and Insurance Services
Marsh
$
3,265
$
3,038
8
%
(1
)%
2
%
7
%
Guy Carpenter
632
576
10
%
(1
)%
—
11
%
Subtotal
3,897
3,614
8
%
(1
)%
2
%
7
%
Fiduciary interest income
125
108
Total Risk and Insurance Services
4,022
3,722
8
%
(1
)%
2
%
7
%
Consulting
Mercer
1,379
1,374
—
(1
)%
(3
)%
5
%
Oliver Wyman Group
837
798
5
%
—
2
%
3
%
Total Consulting
2,216
2,172
2
%
(1
)%
(1
)%
4
%
Corporate Eliminations
(17
)
(18
)
Total Revenue
$
6,221
$
5,876
6
%
(1
)%
1
%
6
%
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
Components of Revenue
Change*
Three Months Ended
June 30,
% Change
GAAP Revenue*
Currency Impact
Acquisitions/
Dispositions/ Other
Impact**
Non-GAAP
Underlying Revenue
2024
2023
Marsh:
EMEA
$
912
$
858
6
%
—
—
7
%
Asia Pacific
391
357
9
%
(4
)%
6
%
7
%
Latin America
137
137
1
%
(10
)%
3
%
8
%
Total International
1,440
1,352
7
%
(2
)%
2
%
7
%
U.S./Canada
1,825
1,686
8
%
—
2
%
6
%
Total Marsh
$
3,265
$
3,038
8
%
(1
)%
2
%
7
%
Mercer:
Wealth
$
612
$
637
(4
)%
(1
)%
(6
)%
3
%
Health
547
518
6
%
(1
)%
(2
)%
9
%
Career
220
219
1
%
(3
)%
1
%
2
%
Total Mercer
$
1,379
$
1,374
—
(1
)%
(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 Six Months
Ended June 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*
Six Months Ended
June 30,
% Change
GAAP Revenue*
Currency Impact
Acquisitions/
Dispositions/ Other
Impact**
Non-GAAP
Underlying Revenue
2024
2023
Risk and Insurance Services
Marsh
$
6,268
$
5,782
8
%
(1
)%
2
%
7
%
Guy Carpenter
1,780
1,647
8
%
—
(1
)%
9
%
Subtotal
8,048
7,429
8
%
(1
)%
1
%
8
%
Fiduciary interest income
247
199
Total Risk and Insurance Services
8,295
7,628
9
%
(1
)%
1
%
8
%
Consulting
Mercer (a)
2,804
2,718
3
%
(1
)%
(1
)%
6
%
Oliver Wyman Group
1,626
1,485
9
%
—
2
%
8
%
Total Consulting
4,430
4,203
5
%
(1
)%
—
6
%
Corporate Eliminations
(31
)
(31
)
Total Revenue
$
12,694
$
11,800
8
%
(1
)%
1
%
8
%
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
Components of Revenue
Change*
Six Months Ended
June 30,
% Change
GAAP Revenue*
Currency Impact
Acquisitions/
Dispositions/ Other
Impact**
Non-GAAP
Underlying Revenue
2024
2023
Marsh:
EMEA
$
1,937
$
1,790
8
%
—
—
8
%
Asia Pacific
727
669
9
%
(4
)%
6
%
7
%
Latin America
262
252
4
%
(7
)%
3
%
8
%
Total International
2,926
2,711
8
%
(1
)%
2
%
8
%
U.S./Canada
3,342
3,071
9
%
—
2
%
7
%
Total Marsh
$
6,268
$
5,782
8
%
(1
)%
2
%
7
%
Mercer:
Wealth (a)
$
1,284
$
1,218
5
%
—
2
%
4
%
Health (a)
1,085
1,063
2
%
(1
)%
(6
)%
10
%
Career
435
437
—
(2
)%
—
2
%
Total Mercer
$
2,804
$
2,718
3
%
(1
)%
(1
)%
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
June 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 six months ended June 30, 2024 and
2023. The following tables also present adjusted operating margin.
For the three and six months ended June 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 June 30,
2024
Operating income (loss)
$
1,297
$
410
$
(65
)
$
1,642
Operating margin
32.2
%
18.5
%
N/A
26.4
%
Add (deduct) impact of noteworthy
items:
Restructuring (a)
29
5
10
44
Changes in fair value of contingent
consideration
7
2
—
9
Acquisition related costs (b)
11
9
—
20
Operating income adjustments
47
16
10
73
Adjusted operating income (loss)
$
1,344
$
426
$
(55
)
$
1,715
Total identified intangible amortization
expense
$
77
$
12
$
—
$
89
Adjusted operating margin
35.3
%
19.8
%
N/A
29.0
%
Three Months Ended June 30,
2023
Operating income (loss)
$
1,157
$
388
$
(88
)
$
1,457
Operating margin
31.1
%
17.9
%
N/A
24.8
%
Add (deduct) impact of noteworthy
items:
Restructuring (a)
31
7
27
65
Changes in fair value of contingent
consideration
10
—
—
10
Acquisition related costs (b)
—
10
—
10
Disposal of businesses
—
(2
)
—
(2
)
Operating income adjustments
41
15
27
83
Adjusted operating income (loss)
$
1,198
$
403
$
(61
)
$
1,540
Total identified intangible amortization
expense
$
73
$
14
$
—
$
87
Adjusted operating margin
34.2
%
19.2
%
N/A
27.7
%
(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 costs.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP
Measures
Six Months Ended June
30
(Millions) (Unaudited)
Risk & Insurance
Services
Consulting
Corporate/
Eliminations
Total
Six Months Ended June 30, 2024
Operating income (loss)
$
2,862
$
842
$
(137
)
$
3,567
Operating margin
34.5
%
19.0
%
N/A
28.1
%
Add (deduct) impact of noteworthy
items:
Restructuring (a)
51
16
19
86
Changes in contingent consideration
12
3
—
15
Acquisition and disposition related costs
(b)
12
30
—
42
Disposal of businesses (c)
—
(21
)
—
(21
)
Operating income adjustments
75
28
19
122
Adjusted operating income (loss)
$
2,937
$
870
$
(118
)
$
3,689
Total identified intangible amortization
expense
$
156
$
23
$
—
$
179
Adjusted operating margin
37.3
%
20.3
%
N/A
30.5
%
Six Months Ended June 30, 2023
Operating income (loss)
$
2,552
$
799
$
(168
)
$
3,183
Operating margin
33.5
%
19.0
%
N/A
27.0
%
Add (deduct) impact of noteworthy
items:
Restructuring (a)
63
16
39
118
Changes in contingent consideration
16
1
—
17
Acquisition related costs (b)
—
27
—
27
Disposal of businesses (c)
—
17
—
17
JLT legacy legal charges (d)
—
(51
)
—
(51
)
Operating income adjustments
79
10
39
128
Adjusted operating income (loss)
$
2,631
$
809
$
(129
)
$
3,311
Total identified intangible amortization
expense
$
147
$
25
$
—
$
172
Adjusted operating margin
36.4
%
19.8
%
N/A
29.5
%
(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 costs. 2023 includes 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 Six Months
Ended June 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 six months ended June 30, 2024
and 2023.
Three Months Ended
June 30, 2024
Three Months Ended
June 30, 2023
Amount
Adjusted EPS
Amount
Adjusted EPS
Net income before non-controlling
interests, as reported
$
1,140
$
1,047
Less: Non-controlling interest, net of
tax
15
12
Subtotal
$
1,125
$
2.27
$
1,035
$
2.07
Operating income adjustments
$
73
$
83
Investments adjustment
(1
)
(1
)
Pension settlement
1
—
Income tax effect of adjustments (a)
(4
)
(17
)
69
0.14
65
0.13
Adjusted income, net of tax
$
1,194
$
2.41
$
1,100
$
2.20
Six Months Ended
June 30, 2024
Six Months Ended
June 30, 2023
Amount
Adjusted EPS
Amount
Adjusted EPS
Net income before non-controlling
interests, as reported
$
2,564
$
2,299
Less: Non-controlling interest, net of
tax
39
29
Subtotal
$
2,525
$
5.08
$
2,270
$
4.55
Operating income adjustments
$
122
$
128
Investments adjustment
(2
)
1
Pension settlement adjustment
2
—
Income tax effect of adjustments (a)
(15
)
(33
)
107
0.22
96
0.19
Adjusted income, net of tax
$
2,632
$
5.30
$
2,366
$
4.74
(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 Six Months Ended
June 30
(Millions) (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Consolidated
Compensation and benefits
$
3,454
$
3,337
$
6,924
$
6,544
Other operating expenses
1,125
1,082
2,203
2,073
Total expenses
$
4,579
$
4,419
$
9,127
$
8,617
Depreciation and amortization expense
$
87
$
91
$
186
$
175
Identified intangible amortization
expense
89
87
179
172
Total
$
176
$
178
$
365
$
347
Risk and Insurance Services
Compensation and benefits (a)
$
2,108
$
1,965
$
4,226
$
3,896
Other operating expenses (a)
617
600
1,207
1,180
Total expenses
$
2,725
$
2,565
$
5,433
$
5,076
Depreciation and amortization expense
$
46
$
49
$
92
$
86
Identified intangible amortization
expense
77
73
156
147
Total
$
123
$
122
$
248
$
233
Consulting
Compensation and benefits (a)
$
1,314
$
1,336
$
2,628
$
2,571
Other operating expenses (a)
492
448
960
833
Total expenses
$
1,806
$
1,784
$
3,588
$
3,404
Depreciation and amortization expense
$
26
$
27
$
63
$
48
Identified intangible amortization
expense
12
14
23
25
Total
$
38
$
41
$
86
$
73
(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)
June 30,
2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,653
$
3,358
Cash and cash equivalents held in a
fiduciary capacity
11,497
10,794
Net receivables
7,739
6,418
Other current assets
1,133
1,178
Total current assets
22,022
21,748
Goodwill and intangible assets
20,154
19,861
Fixed assets, net
879
882
Pension related assets
2,187
2,051
Right of use assets
1,468
1,541
Deferred tax assets
285
357
Other assets
1,596
1,590
TOTAL ASSETS
$
48,591
$
48,030
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt
$
1,267
$
1,619
Accounts payable and accrued
liabilities
3,205
3,403
Accrued compensation and employee
benefits
2,086
3,346
Current lease liabilities
304
312
Accrued income taxes
505
321
Fiduciary liabilities
11,497
10,794
Total current liabilities
18,864
19,795
Long-term debt
12,278
11,844
Pension, post-retirement and
post-employment benefits
715
779
Long-term lease liabilities
1,586
1,661
Liabilities for errors and omissions
322
314
Other liabilities
1,261
1,267
Total equity
13,565
12,370
TOTAL LIABILITIES AND EQUITY
$
48,591
$
48,030
Marsh & McLennan
Companies, Inc.
Consolidated Statements of
Cash Flows
(Millions) (Unaudited)
Six Months Ended
June 30,
2024
2023
Operating cash flows:
Net income before non-controlling
interests
$
2,564
$
2,299
Adjustments to reconcile net income to
cash provided by operations:
Depreciation and amortization
365
347
Non-cash lease expense
132
143
Share-based compensation expense
193
191
Net gain on investments, disposition of
assets and other
(97
)
(9
)
Changes in assets and liabilities:
Accrued compensation and employee
benefits
(1,226
)
(1,101
)
Provision for taxes, net of payments and
refunds
214
245
Net receivables
(1,287
)
(1,029
)
Other changes to assets and
liabilities
(92
)
(98
)
Contributions to pension and other benefit
plans in excess of current year credit
(182
)
(164
)
Operating lease liabilities
(150
)
(159
)
Net cash provided by operations
434
665
Financing cash flows:
Purchase of treasury shares
(600
)
(600
)
Borrowings from term-loan and credit
facilities
—
200
Net proceeds from issuance of commercial
paper
749
308
Proceeds from issuance of debt
988
589
Repayments of debt
(1,609
)
(8
)
Net issuance of common stock from treasury
shares
(6
)
(21
)
Net distributions of non-controlling
interests and deferred/contingent consideration
(101
)
(332
)
Dividends paid
(706
)
(591
)
Change in fiduciary liabilities
901
682
Net cash (used for) provided by
financing activities
(384
)
227
Investing cash flows:
Capital expenditures
(167
)
(185
)
Purchases of long term investments and
other
(13
)
(23
)
Sales of long term investments
14
16
Dispositions
27
(17
)
Acquisitions, net of cash and cash held in
a fiduciary capacity acquired
(644
)
(292
)
Net cash used for investing
activities
(783
)
(501
)
Effect of exchange rate changes on
cash, cash equivalents, and cash and cash equivalents held in a
fiduciary capacity
(269
)
242
(Decrease)/increase in cash, cash
equivalents, and cash and cash equivalents held in a fiduciary
capacity
(1,002
)
633
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
$
13,150
$
12,735
Reconciliation of cash, cash
equivalents, and cash and cash equivalents held in a fiduciary
capacity to the Consolidated Balance Sheets
Balance at June 30,
2024
2023
(In millions)
Cash and cash equivalents
$
1,653
$
1,171
Cash and cash equivalents held in a
fiduciary capacity
11,497
11,564
Total cash, cash equivalents, and cash and
cash equivalents held in a fiduciary capacity
$
13,150
$
12,735
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures Three Months Ended
June 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 June 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
$
3,265
$
33
$
(64
)
$
3,234
$
3,038
$
(1
)
$
3,037
Guy Carpenter
632
6
—
638
576
—
576
Subtotal
3,897
39
(64
)
3,872
3,614
(1
)
3,613
Fiduciary interest income
125
1
—
126
108
—
108
Total Risk and Insurance Services
4,022
40
(64
)
3,998
3,722
(1
)
3,721
Consulting
Mercer
1,379
17
(26
)
1,370
1,374
(68
)
1,306
Oliver Wyman Group
837
3
(19
)
821
798
—
798
Total Consulting
2,216
20
(45
)
2,191
2,172
(68
)
2,104
Corporate Eliminations
(17
)
—
—
(17
)
(18
)
—
(18
)
Total Revenue
$
6,221
$
60
$
(109
)
$
6,172
$
5,876
$
(69
)
$
5,807
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
2024
2023
Three Months Ended June 30,
GAAP Revenue
Currency Impact
Acquisitions/
Dispositions/ Other Impact
Non-GAAP Revenue
GAAP Revenue
Acquisitions/
Dispositions/
Other Impact
Non-GAAP Revenue
Marsh:
EMEA
$
912
$
5
$
(1
)
$
916
$
858
$
(1
)
$
857
Asia Pacific
391
12
(20
)
383
357
—
357
Latin America
137
14
(4
)
147
137
—
137
Total International
1,440
31
(25
)
1,446
1,352
(1
)
1,351
U.S./Canada
1,825
2
(39
)
1,788
1,686
—
1,686
Total Marsh
$
3,265
$
33
$
(64
)
$
3,234
$
3,038
$
(1
)
$
3,037
Mercer:
Wealth
$
612
$
4
$
(12
)
$
604
$
637
$
(49
)
$
588
Health
547
7
(10
)
544
518
(19
)
499
Career
220
6
(4
)
222
219
—
219
Total Mercer
$
1,379
$
17
$
(26
)
$
1,370
$
1,374
$
(68
)
$
1,306
Note: Amounts in the tables above are
rounded to whole numbers.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures Six Months Ended June
30 (Millions) (Unaudited)
The following table provides the reconciliation of GAAP revenue
to non-GAAP revenue:
2024
2023
Six Months Ended June 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
$
6,268
$
39
$
(103
)
$
6,204
$
5,782
$
(1
)
$
5,781
Guy Carpenter
1,780
4
(3
)
1,781
1,647
(12
)
1,635
Subtotal
8,048
43
(106
)
7,985
7,429
(13
)
7,416
Fiduciary interest income
247
1
(1
)
247
199
—
199
Total Risk and Insurance Services
8,295
44
(107
)
8,232
7,628
(13
)
7,615
Consulting
Mercer (a)
2,804
25
(54
)
2,775
2,718
(92
)
2,626
Oliver Wyman Group
1,626
(1
)
(29
)
1,596
1,485
(1
)
1,484
Total Consulting
4,430
24
(83
)
4,371
4,203
(93
)
4,110
Corporate Eliminations
(31
)
—
—
(31
)
(31
)
—
(31
)
Total Revenue
$
12,694
$
68
$
(190
)
$
12,572
$
11,800
$
(106
)
$
11,694
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
2024
2023
Six Months Ended June 30,
GAAP Revenue
Currency Impact
Acquisitions/
Dispositions/ Other Impact
Non-GAAP Revenue
GAAP Revenue
Acquisitions/ Dispositions/ Other
Impact
Non-GAAP Revenue
Marsh:
EMEA
$
1,937
$
(5
)
$
(2
)
$
1,930
$
1,790
$
(1
)
$
1,789
Asia Pacific
727
25
(39
)
713
669
—
669
Latin America
262
17
(8
)
271
252
—
252
Total International
2,926
37
(49
)
2,914
2,711
(1
)
2,710
U.S./Canada
3,342
2
(54
)
3,290
3,071
—
3,071
Total Marsh
$
6,268
$
39
$
(103
)
$
6,204
$
5,782
$
(1
)
$
5,781
Mercer:
Wealth (a)
$
1,284
$
6
$
(74
)
$
1,216
$
1,218
$
(48
)
$
1,170
Health (a)
1,085
9
22
1,116
1,063
(44
)
1,019
Career
435
10
(2
)
443
437
—
437
Total Mercer
$
2,804
$
25
$
(54
)
$
2,775
$
2,718
$
(92
)
$
2,626
(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/20240717145202/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
Marsh and McLennan Compa... (NYSE:MMC)
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