Summary
Marsh & McLennan Companies, Inc. (MMC) is a global professional services firm specializing in risk, strategy, and people advisory. In 2015, the company generated approximately $12.9 billion in revenue, with its Risk and Insurance Services segment (Marsh, Guy Carpenter) accounting for 53% and its Consulting segment (Mercer, Oliver Wyman Group) accounting for 47%. The company demonstrated resilience, achieving underlying revenue growth across both segments despite a strong U.S. dollar negatively impacting translated earnings. Operational efficiencies led to a decrease in consolidated operating expenses on a reported basis, contributing to a 5% increase in operating income to $2.4 billion and a 10% increase in diluted EPS from continuing operations to $2.98. MMC's strategic focus on growth through acquisitions continued in 2015, with 21 acquisitions completed across its segments. The company also actively returned capital to shareholders through share repurchases totaling $1.4 billion and dividends. While facing competitive markets and economic uncertainties, MMC's diversified business model and global presence position it for continued performance. Investors should note the significant amount of goodwill and intangible assets on the balance sheet, which represents a substantial portion of total assets, indicating a strategy heavily reliant on acquisitions.
Financial Highlights
51 data points| Revenue | $12.89B |
| Operating Expenses | $10.47B |
| Operating Income | $2.42B |
| Interest Expense | $163.00M |
| Net Income | $1.60B |
| EPS (Basic) | $3.01 |
| EPS (Diluted) | $2.98 |
| Shares Outstanding (Basic) | 531.00M |
| Shares Outstanding (Diluted) | 536.00M |
Key Highlights
- 1Consolidated revenue was $12.9 billion in 2015, with underlying revenue growth of 4%.
- 2Operating income increased by 5% to $2.4 billion, with diluted EPS from continuing operations rising to $2.98.
- 3Risk and Insurance Services segment revenue grew 3% on an underlying basis, driven by Marsh (+3%) and Guy Carpenter (+2%).
- 4Consulting segment revenue grew 5% on an underlying basis, with Mercer (+4%) and Oliver Wyman Group (+7%) showing positive momentum.
- 5The company completed 21 acquisitions in 2015, investing $1.2 billion in cash and deferred consideration.
- 6Shareholder returns were significant, with $1.4 billion in share repurchases and $632 million in dividends paid.
- 7Goodwill and intangible assets amounted to $8.9 billion at year-end 2015, representing a substantial portion of total assets.