What were the primary drivers of revenue growth in the first quarter of 2011?

Revenue growth was primarily driven by increases in both the Risk and Insurance Services segment (up 10% to $1.63 billion) and the Consulting segment (up 9% to $1.26 billion). On an underlying basis, excluding currency impacts and acquisitions/dispositions, revenue increased by 5% overall, with Risk and Insurance Services up 4% and Consulting up 6%.

How did the company's acquisition strategy impact its financial performance?

The company continued to execute its acquisition strategy, with several acquisitions made in the Risk and Insurance Services segment in early 2011, such as RJF Agencies and Hampton Roads Bonding, contributing to revenue growth. The filing notes that acquisitions accounted for a 7% increase in Marsh's revenue and a 2% increase in Mercer's revenue in the first quarter.

What is the company's outlook on its effective tax rate?

The company reported an effective tax rate of 28.6% for the first quarter of 2011, which included a benefit from the settlement of an IRS audit. Excluding this benefit, the effective tax rate was 31.6%. The company anticipates that the effective tax rate will continue to be variable but expects the degree of variation to moderate.

How is the company managing its debt and capital resources?

The company used $128 million in net financing activities during the first quarter of 2011, primarily for dividend payments ($117 million). There were no borrowings outstanding under its $1.0 billion revolving credit facility. Long-term debt remained substantial at $2.77 billion, with the company actively managing its debt structure, including hedging interest rate risk on a portion of its senior notes.

MRSH/MMC 10-Q Quarterly Report Q1 FY2011 — Revenue, Net Income, EPS

Summary

Marsh & McLennan Companies, Inc. (MRSH) reported strong first-quarter 2011 results, with consolidated revenue increasing by 9% to $2.9 billion and operating income rising 11% to $472 million year-over-year. This growth was primarily driven by solid performance in both the Risk and Insurance Services and Consulting segments, with underlying revenue increasing by 5% overall. The company also benefited from a favorable effective tax rate due to the settlement of an IRS audit, which, when excluded, still shows underlying operational strength. Investments in strategic acquisitions, particularly within the Marsh & McLennan Agency segment, are contributing to revenue growth and expanding market share.

Financial Highlights

49 data points

Beta

Revenue

$2.88B

Net Income

$331.00M

0.1% Net Margin

EPS (Diluted)

$0.58

Total Assets

$15.07B

Cash & Equivalents

$1.33B

Free Cash Flow

-$443.00M

Financial Statements

Beta

Revenue	$2.88B
Operating Expenses	$2.41B
Operating Income	$472.00M
Interest Expense	$51.00M
Net Income	$331.00M
EPS (Basic)	$0.59
EPS (Diluted)	$0.58
Shares Outstanding (Basic)	544.00M
Shares Outstanding (Diluted)	552.00M

Key Highlights

1Consolidated revenue grew 9% to $2.9 billion, with underlying revenue up 5% year-over-year.
2Operating income increased 11% to $472 million, driven by strong performance in both Risk and Insurance Services and Consulting segments.
3Risk and Insurance Services revenue grew 10% (4% underlying), with Marsh and Guy Carpenter showing positive momentum.
4Consulting segment revenue rose 9% (6% underlying), supported by growth in Mercer and Oliver Wyman.
5The company benefited from an effective tax rate reduction due to IRS audit settlement, though underlying operational performance remains robust.
6Acquisitions in the Marsh & McLennan Agency initiative are contributing to revenue growth and market expansion.
7Net income attributable to the company increased to $325 million, or $0.58 per diluted share, from $248 million, or $0.45 per diluted share, in the prior year's quarter.

MARSH & MCLENNAN COMPANIES, INC. Quarterly Report for Q1 Ended Mar 31, 2011

Summary

Financial Highlights

Key Highlights

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