01—Abstract
Summary
Summary of the 10-K filed February 26, 2015. Cited figures are marked; the original filing is the authoritative source.
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%a 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 billionb, 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 billionc 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.
02—Key points
Key Highlights
- Consolidated revenue grew 6% to $12.95 billion in 2014, with underlying revenue growth of 5%.
- The Risk and Insurance Services segment (Marsh, Guy Carpenter) represented 54% of revenue, showing 5% growth.
- The Consulting segment (Mercer, Oliver Wyman Group) represented 46% of revenue, with a strong 17% reported growth driven by Oliver Wyman Group.
- Operating income increased 11% to $2.3 billion, reflecting effective expense management.
- The company repurchased $800 million of its common stock in 2014, with an additional $1.3 billion authorized.
- Significant acquisitions were completed in both segments throughout 2014 to expand service offerings and geographic reach.
- The company maintained a solid financial position with total assets of $17.84 billion and total equity of $7.13 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2014filed February 26, 2015Financial Statements
FY2014 against FY2013
| Line item | FY2014FY2013 | Change |
|---|---|---|
| Revenue | $12.95B$12.26B | +5.6% |
| Operating Expenses | $10.65B$10.18B | +4.6% |
| Operating Income | $2.30B$2.08B | +10.8% |
| Interest Expense | $165.00M$167.00M | −1.2% |
| Net Income | $1.47B$1.36B | +8.0% |
| EPS (Basic) | $2.69$2.47 | +8.9% |
| EPS (Diluted) | $2.65$2.43 | +9.1% |
| Shares Outstanding (Basic) | 545.00M549.00M | −0.7% |
| Shares Outstanding (Diluted) | 553.00M558.00M | −0.9% |
05—Questions
Frequently Asked Questions
What were the main business segments of Marsh & McLennan Companies in 2014?
Marsh & McLennan Companies operated through two main segments: Risk and Insurance Services (including Marsh and Guy Carpenter) and Consulting (including Mercer and Oliver Wyman Group).
How did revenue grow in 2014?
Consolidated revenue increased by 6% to $12.95 billion in 2014. The Risk and Insurance Services segment grew 5% (3% underlying), and the Consulting segment grew 6% (6% underlying), with Oliver Wyman Group showing particularly strong underlying growth of 15%.
What was the company's profitability like in 2014?
Operating income increased by 11% to $2.3 billion in 2014 compared to 2013, indicating effective expense management alongside revenue growth.
What was the company's approach to shareholder returns in 2014?
Marsh & McLennan Companies actively returned capital to shareholders through share repurchases. In 2014, the company repurchased $800 million worth of its common stock and had an additional $1.3 billion authorized for future repurchases.
06—Continue