MARSH & MCLENNAN COMPANIES, INC. Quarterly Report for Q3 Ended Sep 30, 2015

Summary

Marsh & McLennan Companies, Inc. (MRSH) reported its financial results for the quarterly period ended September 30, 2015. For the third quarter, the company saw a slight decrease in reported revenue to $3.115 billion, down from $3.141 billion in the prior year, primarily due to foreign currency headwinds. However, underlying revenue showed a healthy increase of 4%, indicating strong operational performance. Net income attributable to the Company increased to $323 million, or $0.61 per diluted share, compared to $297 million, or $0.54 per diluted share, in the prior year's third quarter. This improvement was driven by a decrease in operating expenses and a favorable impact from the termination of a U.S. retiree medical plan. The company also continued its share repurchase program, demonstrating a commitment to returning capital to shareholders.

Key Highlights

• 1Reported Q3 2015 revenue of $3.115 billion, a 1% decrease year-over-year, but underlying revenue increased by 4%.
• 2Net income attributable to the Company rose to $323 million in Q3 2015, up from $297 million in Q3 2014.
• 3Diluted EPS from continuing operations was $0.60 in Q3 2015, an increase from $0.54 in Q3 2014.
• 4Operating income increased by 4% to $461 million in Q3 2015, driven by a 2% decrease in operating expenses.
• 5The company continued to repurchase shares, buying back approximately 9.9 million shares for $550 million in Q3 2015, with approximately $1.2 billion remaining authorization.
• 6The Risk and Insurance Services segment revenue decreased 2% but underlying revenue grew 2%; the Consulting segment revenue was flat but underlying revenue grew 6%.
• 7The company's effective tax rate for Q3 2015 was 27.9%, down from 29.6% in Q3 2014.

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