MARSH & MCLENNAN COMPANIES, INC. Quarterly Report for Q1 Ended Mar 31, 2013

Summary

Marsh & McLennan Companies, Inc. (MRSH) reported a solid first quarter for 2013, with revenue increasing by 2% to $3.1 billion and operating income rising by 15% to $607 million compared to the prior year period. This growth was driven by strong performance in the Risk and Insurance Services segment, which saw a 5% revenue increase, while the Consulting segment's revenue was flat on an underlying basis. The company also demonstrated effective expense management, with consolidated operating expenses slightly decreasing year-over-year. Key financial metrics showed improvement, with diluted earnings per share from continuing operations at $0.72, up from $0.63 in the previous year. The company's balance sheet remains robust, although cash and cash equivalents decreased significantly from December 31, 2012, due to operational cash usage and debt repayments. The company also continued its share repurchase program, reflecting confidence in its financial position and commitment to shareholder returns.

Key Highlights

• 1Total revenue increased by 2% to $3.1 billion for the first quarter of 2013 compared to the prior year.
• 2Operating income saw a substantial increase of 15% to $607 million.
• 3Diluted EPS from continuing operations improved to $0.72 from $0.63 in the prior year.
• 4Risk and Insurance Services segment revenue grew 5% on a reported basis, driven by Marsh and Guy Carpenter.
• 5Consulting segment revenue was flat on an underlying basis, with Mercer showing growth and Oliver Wyman experiencing a decline.
• 6The company repurchased approximately $100 million of its common stock during the quarter.
• 7Cash and cash equivalents decreased from $2.3 billion at the end of 2012 to $1.3 billion at the end of the first quarter of 2013, partly due to debt repayments.

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