Marsh & McLennan Companies, Inc. - MMC STOCK NEWS

Mercer, a Marsh McLennan (NYSE: MMC) business, has completed the acquisition of Cardano, strengthening its position as a leading pension services provider in the UK and Netherlands. The deal includes Cardano's UK Defined Contribution Master Trust, now:pensions, expanding Mercer's DC Master Trust solutions. Over 550 Cardano employees from London, Nottingham, and Rotterdam will join Mercer. The acquisition enhances Mercer's investment solutions and advisory capabilities for institutional investors globally, though financial terms were not disclosed.

Marsh McLennan (NYSE: MMC) has announced the pricing of a $7.25 billion Senior Notes offering across multiple tranches with varying maturities and interest rates. The company plans to use the proceeds to partially fund the pending acquisition of McGriff Insurance Services' parent company and for general corporate purposes. The Notes offering is expected to close on November 8, 2024. Most series of Notes include a special mandatory redemption provision at 101% of principal plus accrued interest if the McGriff transaction doesn't close by an agreed date.

Marsh McLennan (NYSE: MMC) reported strong financial results for Q3 2024, with GAAP revenue increasing 6% to $5.7 billion and underlying revenue rising 5%. The company saw GAAP operating income growth of 11% and adjusted operating income growth of 12%. GAAP EPS rose 3% to $1.51, while adjusted EPS increased 4% to $1.63. For the nine months ended September 30, 2024, GAAP EPS rose 10% to $6.59 and adjusted EPS increased 10% to $6.93.

The company also announced the acquisition of McGriff Insurance Services for $7.75 billion in cash. The Risk & Insurance Services segment saw an 8% revenue increase, while Consulting revenue grew by 3%. Marsh McLennan repurchased 1.4 million shares for $300 million in Q3 2024.

The 16th annual Mercer CFA Institute Global Pension Index (MCGPI) has been released, highlighting the need for retirement system improvements globally. The Netherlands retained its top spot as the world's leading retirement income system, followed by Iceland and Denmark. The report emphasizes the challenges posed by falling birth rates and increasing longevity.

Key findings include:

• The shift from defined benefit (DB) to defined contribution (DC) plans introduces new financial planning challenges for future retirees
• DC plans offer increased flexibility and personalization, which is important as people live longer and retirement concepts evolve
• Significant reforms are needed to meet retirees' financial needs and changing work expectations
• The Netherlands scored highest overall (84.8), as well as in adequacy (86.3)
• Iceland led in sustainability (84.3), while Finland topped the integrity sub-index (90.8)

The report calls for collaboration between governments, policymakers, the pension industry, and employers to ensure dignified and financially stable retirements for aging populations.

Mercer's 2024 Absence and Disability Management Survey reveals significant changes in paid leave benefits. Compliance with state and local mandates has become the top concern for employers, with 70% ranking it as a priority, up from 50% in 2021. To address this, 72% of employers have increased resources for compliance.

Paid parental leave has surged from 25% in 2015 to 73% in 2024, with an average of 8 weeks offered. Employers are also making these programs more inclusive, covering adoption (67%) and surrogacy (33%). Flexible PTO has increased, with 32% of employers offering it to some employees, up from 20% in 2021.

Companies are recognizing more diverse reasons for leave, including pregnancy loss (62%) and miscarriage (58%). The observance of Juneteenth as a company holiday has risen from 9% in 2021 to 41% in 2024, while Martin Luther King Jr. Day observance increased from 55% to 63%.

Marsh McLennan (NYSE: MMC) has announced an agreement to acquire McGriff Insurance Services, through its Marsh McLennan Agency business. McGriff, a leading U.S. provider of insurance broking and risk management services, generated $1.3 billion in revenue for the trailing twelve months ended June 30, 2024. The acquisition, valued at $7.75 billion in cash, will be funded by cash and debt financing. Marsh McLennan will also assume a deferred tax asset valued at approximately $500 million.

The transaction is expected to close by year-end, subject to regulatory approval. McGriff's team of over 3,500 employees, including CEO Read Davis, will join Marsh McLennan Agency while continuing to operate from their existing locations. This acquisition will enhance Marsh McLennan Agency's capabilities across commercial property and casualty, employee benefits, management liability, and personal lines.

WeBank and Oliver Wyman have released a report on global digital banking trends. Key findings include:

• By end of 2023, there were 235 licensed digital banks globally, with over 300 offering broader digital banking services
• Digital banks are exploring sustainable business models, diversified revenue streams, ecosystem resources, multi-market operations, and technological innovation
• Two effective business models have emerged: retail-driven for large populations and niche-focused for smaller markets
• Digital banks are leveraging unique ecosystem resources and expanding across multiple markets
• They play a important role in data infrastructure development and industry innovation
• Digital banks are now seen as 'catfish' promoting healthy competition rather than disruptors
• Leading digital banks have achieved economies of scale and strong profitability

The report predicts widening gaps between industry leaders and followers, with potential for establishing industry standards.

Marsh McLennan (NYSE: MMC), a global leader in risk, strategy and people, has announced its plans to release third quarter financial results on Thursday, October 17, 2024, before the market opens. The company will host an investor teleconference at 8:00 a.m. EDT on the same day, led by President and CEO John Doyle and CFO Mark McGivney. The event will include a question-and-answer session and will be accessible via a live audio webcast on marshmclennan.com. Interested participants can register online to receive dial-in numbers and a unique PIN for the call.

Marsh McLennan (NYSE: MMC) has announced a quarterly dividend of $0.815 per share on its outstanding common stock. The dividend is set to be paid on November 15, 2024, to stockholders of record as of October 4, 2024. This declaration by the Board of Directors demonstrates the company's commitment to returning value to its shareholders and maintaining a consistent dividend policy.