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| 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.