Marsh McLennan Reports Second Quarter 2024 Results
Marsh McLennan (NYSE: MMC) reported strong Q2 2024 results with 6% underlying revenue growth and 10% adjusted EPS growth. Key highlights include:
- GAAP revenue increased 6% to $6.2 billion
- Operating income rose 13% to $1.6 billion
- Adjusted operating income up 11% to $1.7 billion
- Earnings per share increased 10% to $2.27
- Adjusted EPS up 10% to $2.41
For the first half of 2024, consolidated revenue was $12.7 billion, up 8% on both GAAP and underlying basis. The company repurchased 1.5 million shares for $300 million in Q2 and increased its quarterly dividend by 15% to $0.815 per share.
- 6% increase in underlying revenue growth
- 13% growth in GAAP operating income to $1.6 billion
- 11% increase in adjusted operating income to $1.7 billion
- 10% rise in earnings per share to $2.27
- 10% growth in adjusted EPS to $2.41
- 8% increase in consolidated revenue to $12.7 billion for H1 2024
- 15% increase in quarterly dividend to $0.815 per share
- Risk & Insurance Services revenue up 8%, with 7% underlying growth
- Marsh's underlying revenue grew 7% in Q2 2024
- Guy Carpenter's revenue increased 10%, with 11% underlying growth
- Consulting revenue growth slower at 2% increase, or 4% on underlying basis
- Oliver Wyman's revenue growth modest at 3% on underlying basis in Q2 2024
Marsh McLennan has shown robust financial performance for the second quarter of 2024, with key metrics indicating healthy growth. The 6% increase in GAAP revenue and 10% growth in adjusted EPS illustrate that the company is effectively managing both revenue growth and cost control. A notable point is the 130 basis points margin expansion; this suggests improved operational efficiency or a favorable revenue mix.
Another important aspect is the 15% increase in the quarterly dividend. This signals confidence in future cash flows and is a direct benefit to shareholders, showing that management is committed to shareholder returns. Investors should watch for ongoing share repurchases and debt repayments, such as the
Short-term, the increased dividends and share repurchases are likely to support the stock price. Long-term, sustained revenue growth and margin improvements are positive indicators of the company's potential to generate ongoing shareholder value. However, competition and market conditions in the insurance and consulting sectors could pose risks.
Marsh McLennan's performance across various regions and sectors shows balanced growth, which is important for mitigating geographic-specific risks. With underlying revenue growth of 7% in international operations and specific regional growth markers, such as 8% in Latin America and 7% in Asia Pacific, it is evident that the company has a strong global footprint. This diversification helps cushion against localized economic downturns.
On the consulting front, Mercer and Oliver Wyman posted stable results, with underlying revenue growth of 5% and 8% respectively, reflecting resilience in their business models. The acquisition of Fisher Brown Bottrell Insurance, Inc. enhances their market position and client base, adding value through strategic acquisitions.
From an investor's perspective, this diversified revenue stream across different geographies and sectors reduces dependency on a single market and spreads risk, which is a positive factor for long-term investment stability. The consistent growth across different business units highlights the company's strong market positioning and capability to strategically allocate resources.
GAAP Revenue Increases
Growth in GAAP Operating Income of
Second Quarter GAAP EPS Rises
Six Months GAAP EPS Rises
John Doyle, President and CEO, said: "We generated strong results in the second quarter with
"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
Consolidated Results
Consolidated revenue in the second quarter of 2024 was
For the six months ended June 30, 2024, consolidated revenue was
Risk & Insurance Services
Risk & Insurance Services revenue was
Marsh's revenue in the second quarter of 2024 was
Guy Carpenter's revenue in the second quarter was
Consulting
Consulting revenue was
Mercer's revenue in the second quarter was
Oliver Wyman’s revenue in the second quarter of 2024 was
Other Items
The Company repurchased 1.5 million shares of stock for
In the second quarter of 2024, the Company repaid
Last week, the Board of Directors increased the quarterly dividend
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
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
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 |
% |
|
|
|
391 |
|
|
357 |
|
9 |
% |
|
(4 |
)% |
|
6 |
% |
|
7 |
% |
|
|
|
137 |
|
|
137 |
|
1 |
% |
|
(10 |
)% |
|
3 |
% |
|
8 |
% |
Total International |
|
|
1,440 |
|
|
1,352 |
|
7 |
% |
|
(2 |
)% |
|
2 |
% |
|
7 |
% |
|
|
|
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 |
% |
|
|
|
727 |
|
|
669 |
|
9 |
% |
|
(4 |
)% |
|
6 |
% |
|
7 |
% |
|
|
|
262 |
|
|
252 |
|
4 |
% |
|
(7 |
)% |
|
3 |
% |
|
8 |
% |
Total International |
|
|
2,926 |
|
|
2,711 |
|
8 |
% |
|
(1 |
)% |
|
2 |
% |
|
8 |
% |
|
|
|
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 |
|
|
||
* | 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 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 |
|
(c) |
Net gain on sale of the Mercer |
|
(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 |
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
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/
|
|
Non-GAAP Revenue |
|
GAAP Revenue |
|
Acquisitions/
|
|
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/
|
|
Non-GAAP Revenue |
|
GAAP Revenue |
|
Acquisitions/ Dispositions/ Other Impact |
|
Non-GAAP Revenue |
|||||||||
Marsh: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
EMEA |
|
$ |
912 |
|
$ |
5 |
|
$ |
(1 |
) |
|
$ |
916 |
|
$ |
858 |
|
$ |
(1 |
) |
|
$ |
857 |
|
|
|
391 |
|
|
12 |
|
|
(20 |
) |
|
|
383 |
|
|
357 |
|
|
— |
|
|
|
357 |
|
|
|
137 |
|
|
14 |
|
|
(4 |
) |
|
|
147 |
|
|
137 |
|
|
— |
|
|
|
137 |
Total International |
|
|
1,440 |
|
|
31 |
|
|
(25 |
) |
|
|
1,446 |
|
|
1,352 |
|
|
(1 |
) |
|
|
1,351 |
|
|
|
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/
|
|
Non-GAAP Revenue |
|
GAAP Revenue |
|
Acquisitions/
|
|
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/
|
|
Non-GAAP Revenue |
|
GAAP Revenue |
|
Acquisitions/
|
|
Non-GAAP Revenue |
||||||||||
Marsh: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EMEA |
|
$ |
1,937 |
|
$ |
(5 |
) |
|
$ |
(2 |
) |
|
$ |
1,930 |
|
$ |
1,790 |
|
$ |
(1 |
) |
|
$ |
1,789 |
|
|
|
727 |
|
|
25 |
|
|
|
(39 |
) |
|
|
713 |
|
|
669 |
|
|
— |
|
|
|
669 |
|
|
|
262 |
|
|
17 |
|
|
|
(8 |
) |
|
|
271 |
|
|
252 |
|
|
— |
|
|
|
252 |
Total International |
|
|
2,926 |
|
|
37 |
|
|
|
(49 |
) |
|
|
2,914 |
|
|
2,711 |
|
|
(1 |
) |
|
|
2,710 |
|
|
|
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 |
|
|
||
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
Source: Marsh McLennan
FAQ
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