10-KPeriod: FY2016

MARSH & MCLENNAN COMPANIES, INC. Annual Report, Year Ended Dec 31, 2016

Filed February 24, 2017For Securities:MRSHMMC

Summary

Marsh & McLennan Companies, Inc. (MMC) operates as a global professional services firm, delivering advice and solutions in risk, strategy, and people. In 2016, the company generated over $13 billion in revenue, with approximately 60,000 employees across more than 130 countries. The business is structured into two main segments: Risk and Insurance Services (54% of revenue) and Consulting (46% of revenue). The Risk and Insurance Services segment, primarily through Marsh and Guy Carpenter, focuses on risk management, insurance broking, and reinsurance. The Consulting segment, through Mercer and Oliver Wyman Group, offers services in health, retirement, talent, investments, and management consulting. Financially, MMC demonstrated solid performance in 2016, with consolidated revenue reaching $13.21 billion, a 2% increase from the prior year. Operating income also grew by 10% to $2.66 billion. Diluted earnings per share from continuing operations were $3.38, reflecting an increase from $2.98 in 2015. The company actively engaged in share repurchases, investing $800 million in 2016, and continued to pay dividends, underscoring a commitment to returning value to shareholders. Acquisitions played a role in growth, with nine acquisitions in the Risk and Insurance Services segment and six in the Consulting segment during 2016.

Financial Highlights

51 data points
Beta

Revenue

$13.21B

Net Income

$1.77B

13.4% Net Margin

EPS (Diluted)

$3.38

Total Assets

$18.19B

Cash & Equivalents

$1.03B

Free Cash Flow

$1.75B

Financial Statements
Beta
Revenue$13.21B
Operating Expenses$10.78B
Operating Income$2.43B
Interest Expense$189.00M
Net Income$1.77B
EPS (Basic)$3.41
EPS (Diluted)$3.38
Shares Outstanding (Basic)519.00M
Shares Outstanding (Diluted)524.00M

Key Highlights

  • 1Consolidated revenue grew to $13.21 billion in 2016, up 2% from $12.89 billion in 2015.
  • 2Operating income increased by 10% to $2.66 billion in 2016.
  • 3Diluted EPS from continuing operations was $3.38 in 2016, up from $2.98 in 2015.
  • 4The Risk and Insurance Services segment generated $7.14 billion in revenue, a 4% increase.
  • 5The Consulting segment generated $6.11 billion in revenue, a 1% increase.
  • 6The company repurchased $800 million of its common stock in 2016.
  • 7MMC completed multiple acquisitions across both its Risk and Insurance Services and Consulting segments throughout 2016.

Frequently Asked Questions

Marsh & McLennan Companies operated through two primary segments: Risk and Insurance Services, which accounted for 54% of revenue and included businesses like Marsh and Guy Carpenter, and Consulting, which accounted for 46% of revenue and included businesses like Mercer and Oliver Wyman Group.

In 2016, consolidated revenue increased by 2% to $13.21 billion, and operating income saw a significant increase of 10% to $2.66 billion. Diluted EPS from continuing operations also rose to $3.38 from $2.98 in the prior year.

In 2016, Marsh & McLennan Companies focused on returning value to shareholders through share repurchases, buying back $800 million of its common stock. The company also continued to pay dividends to its shareholders.

Yes, Marsh & McLennan Companies was active in acquisitions during 2016, completing nine acquisitions within its Risk and Insurance Services segment and six acquisitions within its Consulting segment to support its growth strategy.