Early Access

10-KPeriod: FY2014

MARSH & MCLENNAN COMPANIES, INC. Annual Report, Year Ended Dec 31, 2014

Filed February 26, 2015For Securities:MRSHMMC

Summary

Marsh & McLennan Companies, Inc. (MMC), a global professional services firm, reported solid financial performance for the year ended December 31, 2014. The company operates in two primary segments: Risk and Insurance Services, and Consulting. Risk and Insurance Services, which includes Marsh and Guy Carpenter, generated 54% of the company's revenue, driven by strong performance in insurance and reinsurance broking and risk advisory services. The Consulting segment, comprised of Mercer and Oliver Wyman Group, accounted for 46% of revenue, with notable growth in Oliver Wyman Group's consulting services. Financially, MMC demonstrated revenue growth, with consolidated revenue reaching $12.95 billion, a 6% increase from the prior year, driven by underlying revenue growth across both segments. The company also managed its expenses effectively, leading to an increase in operating income to $2.3 billion. MMC continued to return value to shareholders through share repurchases, authorizing up to $2 billion in repurchases and completing $800 million in 2014. The company's financial health appears stable, supported by strong operating cash flows and a diversified business model.

Financial Highlights

50 data points
Beta

Revenue

$12.95B

Net Income

$1.47B

0.1% Net Margin

EPS (Diluted)

$2.65

Total Assets

$17.79B

Cash & Equivalents

$1.96B

Free Cash Flow

$1.75B

Financial Statements
Beta
Revenue$12.95B
Operating Expenses$10.65B
Operating Income$2.30B
Interest Expense$165.00M
Net Income$1.47B
EPS (Basic)$2.69
EPS (Diluted)$2.65
Shares Outstanding (Basic)545.00M
Shares Outstanding (Diluted)553.00M

Key Highlights

  • 1Consolidated revenue grew 6% to $12.95 billion in 2014, with underlying revenue growth of 5%.
  • 2The Risk and Insurance Services segment (Marsh, Guy Carpenter) represented 54% of revenue, showing 5% growth.
  • 3The Consulting segment (Mercer, Oliver Wyman Group) represented 46% of revenue, with a strong 17% reported growth driven by Oliver Wyman Group.
  • 4Operating income increased 11% to $2.3 billion, reflecting effective expense management.
  • 5The company repurchased $800 million of its common stock in 2014, with an additional $1.3 billion authorized.
  • 6Significant acquisitions were completed in both segments throughout 2014 to expand service offerings and geographic reach.
  • 7The company maintained a solid financial position with total assets of $17.84 billion and total equity of $7.13 billion.

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