01—Abstract
Summary
Summary of the 10-K filed February 13, 2023. Cited figures are marked; the original filing is the authoritative source.
Marsh & McLennan Companies, Inc. (MRSH) reported solid revenue growth in 2022, with consolidated revenue reaching $20.7 billiona, a 5% increase (9% on an underlying basis) from the prior year.
This growth was driven by strong demand across both its Risk and Insurance Services and Consulting segments, reflecting the company's ability to navigate complex global environments for its clients. Operating income saw a slight decrease of 1% to $4.3 billionb, impacted by higher expenses related to increased headcount, incentive compensation, and restructuring activities amounting to $427 million. The company continues to focus on strategic growth through acquisitions, completing 20 in 2022.
These included significant entities in both the Risk and Insurance Services and Consulting sectors, demonstrating an ongoing commitment to expanding its market reach and service offerings. Marsh McLennan's financial health remains robust, supported by consistent operating cash flow and active capital management, including share repurchases and dividend payments.
02—Key points
Key Highlights
- Consolidated revenue increased by 5% to $20.7 billion in 2022, with underlying revenue growth of 9%, driven by strong demand across both business segments.
- Operating income was $4.3 billion, a 1% decrease, impacted by a 6% increase in expenses attributed to higher headcount, incentive compensation, and restructuring costs.
- The Risk and Insurance Services segment revenue grew 5% (9% underlying) to $12.6 billion, with stable operating income.
- The Consulting segment revenue increased 5% (8% underlying) to $8.1 billion, with operating income growing to $1.6 billion.
- The company completed 20 acquisitions in 2022, demonstrating a continued strategy of inorganic growth and market expansion.
- Restructuring activities resulted in charges of $427 million, primarily related to workforce actions, technology rationalization, and real estate reductions, with expected savings in 2023.
- The company repurchased $1.9 billion of its common stock in 2022, underscoring its commitment to returning capital to shareholders.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 13, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $20.72B$19.82B | +4.5% |
| Operating Expenses | $16.44B$15.51B | +6.0% |
| Operating Income | $4.28B$4.31B | −0.7% |
| Interest Expense | $469.00M$444.00M | +5.6% |
| Net Income | $3.05B$3.14B | −3.0% |
| EPS (Basic) | $6.11$6.20 | −1.5% |
| EPS (Diluted) | $6.04$6.13 | −1.5% |
| Shares Outstanding (Basic) | 499.00M507.00M | −1.6% |
| Shares Outstanding (Diluted) | 505.00M513.00M | −1.6% |
05—Questions
Frequently Asked Questions
What was Marsh McLennan's revenue performance in 2022?
Marsh McLennan reported consolidated revenue of $20.7 billion in 2022, representing a 5% increase over 2021. On an underlying basis, excluding the impact of foreign currency exchange, acquisitions, and dispositions, revenue increased by 9%.
How did the company's operating income perform in 2022?
Operating income was $4.3 billion in 2022, a slight decrease of 1% compared to $4.31 billion in 2021. This was primarily due to a 6% increase in operating expenses, driven by higher headcount, incentive compensation, and restructuring costs.
What were the key drivers of revenue growth in 2022?
Revenue growth was driven by sustained strong demand for the company's advisory and services across both its Risk and Insurance Services and Consulting segments, supported by a growing global economy. Specific drivers included new business growth and solid client retention.
What is the company's strategy regarding acquisitions?
Marsh McLennan continues to pursue a growth strategy that includes acquisitions. In 2022, the company completed 20 acquisitions across its business segments, aiming to expand its market reach and enhance its service offerings.
06—Continue