01—Abstract
Summary
Summary of the 10-K filed February 27, 2014. Cited figures are marked; the original filing is the authoritative source.
Marsh & McLennan Companies, Inc. (MMC) demonstrated solid financial performance in 2013, reporting a consolidated revenue of $12.3 billiona, an increase of 3% from the prior year.
The company operates across two primary segments: Risk and Insurance Services (54%b of revenue) and Consulting (46% of revenue). The Risk and Insurance Services segment, led by Marsh and Guy Carpenter, saw a 4% revenue increase, driven by growth in both brokerage and reinsurance operations. The Consulting segment, encompassing Mercer and Oliver Wyman Group, experienced a 2% revenue increase, with Mercer showing stronger growth compared to Oliver Wyman.
Net income attributable to the Company rose to $1.36 billionc, a 15% increase from 2012, resulting in diluted EPS of $2.43. The company also continued its share repurchase program, buying back $550 million in stock during 2013, signaling a commitment to returning value to shareholders. MMC's financial health appears robust, with a strong operating income and continued revenue growth across its diversified service offerings.
02—Key points
Key Highlights
- Consolidated revenue grew by 3% to $12.3 billion in 2013.
- Net income attributable to the Company increased by 15% to $1.36 billion.
- Diluted Earnings Per Share (EPS) was $2.43 in 2013.
- Risk and Insurance Services segment revenue grew by 4%, with Marsh up 4% and Guy Carpenter up 5%.
- Consulting segment revenue increased by 2%, with Mercer up 4% and Oliver Wyman flat.
- The company repurchased $550 million of its common stock in 2013.
- Operating income increased by 14% to $2.1 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 27, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $12.26B$11.92B | +2.8% |
| Operating Expenses | $10.18B$10.10B | +0.9% |
| Operating Income | $2.08B$1.83B | +13.6% |
| Interest Expense | $167.00M$181.00M | −7.7% |
| Net Income | $1.36B$1.18B | +15.4% |
| EPS (Basic) | $2.47$2.16 | +14.4% |
| EPS (Diluted) | $2.43$2.13 | +14.1% |
| Shares Outstanding (Basic) | 549.00M544.00M | +0.9% |
| Shares Outstanding (Diluted) | 558.00M552.00M | +1.1% |
05—Questions
Frequently Asked Questions
What are Marsh & McLennan Companies' primary business segments?
Marsh & McLennan Companies operates through two main segments: Risk and Insurance Services (including Marsh and Guy Carpenter) and Consulting (including Mercer and Oliver Wyman Group).
How did the company's revenue perform in 2013?
In 2013, Marsh & McLennan Companies reported consolidated revenue of $12.3 billion, a 3% increase compared to the previous year. The Risk and Insurance Services segment grew by 4%, while the Consulting segment grew by 2%.
What is the company's approach to capital allocation, specifically regarding share repurchases?
In 2013, Marsh & McLennan Companies repurchased $550 million of its common stock under an authorized $1 billion repurchase program, indicating a commitment to returning capital to shareholders.
What was the company's profitability in 2013?
The company reported a net income attributable to the Company of $1.36 billion in 2013, a 15% increase from 2012, with diluted earnings per share of $2.43.
06—Continue