10-KPeriod: FY2024

MARSH & MCLENNAN COMPANIES, INC. Annual Report, Year Ended Dec 31, 2024

Filed February 10, 2025For Securities:MRSHMMC

Summary

Marsh McLennan Companies, Inc. (MRSH) reported a solid performance for the fiscal year ending December 30, 2024, with consolidated revenue reaching $24.5 billion, an increase of 8% year-over-year. This growth was driven by strong performance across both its Risk and Insurance Services segment (up 9%) and Consulting segment (up 5%), with underlying revenue increases of 8% and 6%, respectively. The company's strategic acquisitions, including the significant purchase of McGriff Insurance Services for $7.75 billion, contributed to this expansion, although also increasing debt levels. Key financial highlights include a 10% increase in operating income to $5.8 billion and a 9% rise in diluted earnings per share to $8.18. Marsh McLennan also demonstrated a commitment to shareholder returns by repurchasing $900 million of its stock and increasing dividends paid. The company continues to focus on talent development, including AI skills, and navigating a complex geopolitical and macroeconomic environment. Investors should note the company's robust revenue growth, driven by core business operations and strategic acquisitions, while also monitoring the integration of McGriff and the impact of broader economic trends.

Financial Highlights

51 data points
Beta

Revenue

$24.46B

Net Income

$4.06B

16.6% Net Margin

EPS (Diluted)

$8.18

Total Assets

$56.48B

Cash & Equivalents

$2.40B

Free Cash Flow

$3.99B

Financial Statements
Beta
Revenue$24.46B
Operating Expenses$18.64B
Operating Income$5.82B
Net Income$4.06B
EPS (Basic)$8.26
EPS (Diluted)$8.18
Shares Outstanding (Basic)492.00M
Shares Outstanding (Diluted)496.00M

Key Highlights

  • 1Consolidated revenue increased by 8% to $24.5 billion in 2024.
  • 2Risk and Insurance Services segment revenue grew by 9% to $15.4 billion.
  • 3Consulting segment revenue increased by 5% to $9.1 billion.
  • 4Operating income rose by 10% to $5.8 billion.
  • 5Diluted earnings per share increased by 9% to $8.18.
  • 6The company completed the significant acquisition of McGriff Insurance Services for $7.75 billion.
  • 7Share repurchases totaled $900 million, and dividends paid increased to $1.5 billion.

Frequently Asked Questions

Revenue growth was primarily driven by strong client demand for the company's advice and solutions across both the Risk and Insurance Services and Consulting segments. Specific drivers included strong retention and new business growth at Marsh and Guy Carpenter, alongside continued economic growth in most major markets and the impact of inflation.

The acquisition of McGriff Insurance Services for $7.75 billion on November 15, 2024, significantly increased the company's goodwill and debt levels. McGriff's results of operations from the acquisition date were included in Marsh McLennan's consolidated results, contributing to revenue growth in the Risk and Insurance Services segment. The company incurred approximately $63 million in acquisition and retention costs related to McGriff in 2024 and expects to incur between $450 million and $500 million in retention incentives over the next three years.

Marsh McLennan has a comprehensive cybersecurity risk management program coordinated by cross-functional teams, based on industry standards like the NIST Cybersecurity Framework. This program includes assessing third-party vendors, implementing technical IT controls such as multi-factor authentication, and maintaining formal policies for incident response. Regular cybersecurity training is provided to all employees, and the Board of Directors has oversight responsibility for risk management, including cybersecurity matters.