Summary
Marsh & McLennan Companies, Inc. (MMC) reported consolidated revenue of $10.5 billion for the year ended December 31, 2009. The company operates across three segments: Risk and Insurance Services, Consulting, and Risk Consulting & Technology. Despite a challenging economic environment, the company demonstrated resilience, with its Risk and Insurance Services segment showing a revenue increase of 8% at Guy Carpenter, offsetting a slight decline at Marsh. The Consulting segment experienced a revenue decrease, largely due to reduced client spending on advisory services. The company addressed significant legal and regulatory matters, including a substantial settlement for class-action lawsuits, and incurred goodwill impairment charges primarily within its Risk Consulting & Technology segment. MMC's financial performance was impacted by these charges and the broader economic downturn, resulting in a net income of $227 million attributable to MMC for the year, a significant improvement from a net loss in the prior year. The company remains focused on expense management and strategic acquisitions to drive future growth.
Financial Highlights
51 data points| Revenue | $9.83B |
| Operating Expenses | $9.05B |
| Operating Income | $778.00M |
| Interest Expense | $241.00M |
| Net Income | $241.00M |
| EPS (Basic) | $0.43 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 522.00M |
| Shares Outstanding (Diluted) | 524.00M |
Key Highlights
- 1Consolidated revenue for 2009 was $10.5 billion, down from $11.5 billion in 2008, reflecting challenging economic conditions and a negative foreign currency impact.
- 2The Risk and Insurance Services segment, the largest by revenue, saw a slight decrease in overall revenue but reported improved operating income, driven by strong performance at Guy Carpenter.
- 3The Consulting segment experienced a revenue decline of 11% as clients reduced spending on advisory services, impacting both Mercer and Oliver Wyman Group.
- 4Risk Consulting & Technology segment revenue decreased by 28%, with significant goodwill impairment charges of $315 million recorded in 2009.
- 5The company settled securities and ERISA class-action lawsuits for $435 million, with insurance recoveries partially offsetting the charge.
- 6MMC made several strategic acquisitions in the Risk and Insurance Services segment, including John B. Collins Associates, Inc., Rattner Mackenzie Limited, International Advisory Services Ltd., and The NIA Group, LLC, to enhance its market position.
- 7Operating expenses decreased by 11% in 2009 compared to 2008, aided by restructuring actions and expense control measures, though partially offset by significant non-recurring charges.