Summary
Marsh & McLennan Companies, Inc. (MRSH) reported solid financial results for the nine months ended September 30, 2017. Revenue grew 5% to $10.3 billion, driven by underlying growth of 3% across both its Risk and Insurance Services and Consulting segments. Net income attributable to the Company increased by 10% to $1.46 billion, leading to a diluted EPS of $2.81, an 11% increase year-over-year. This growth was supported by strategic acquisitions and disciplined expense management, although operating expenses also increased due to acquisitions and higher salaries. Key financial strengths include a robust operating income of $2.17 billion and healthy cash flow generation from operations of $1.14 billion for the nine-month period. The company continued to return capital to shareholders through share repurchases ($600 million year-to-date) and dividends ($545 million year-to-date). The company is navigating ongoing regulatory investigations in the aviation and motor insurance sectors in Europe, which it is cooperating with. Marsh & McLennan's balance sheet remains strong, with total assets of $19.69 billion and total equity of $7.13 billion. The company's liquidity is sufficient, with $1.08 billion in cash and cash equivalents. Management is focused on strategic acquisitions and organic growth initiatives while managing operational costs and regulatory complexities.
Financial Highlights
51 data points| Revenue | $3.34B |
| Operating Expenses | $2.81B |
| Operating Income | $535.00M |
| Interest Expense | $60.00M |
| Net Income | $393.00M |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.76 |
| Shares Outstanding (Basic) | 512.00M |
| Shares Outstanding (Diluted) | 519.00M |
Key Highlights
- 1Consolidated revenue increased 5% to $10.3 billion for the first nine months of 2017, with underlying revenue growth of 3% in both the Risk & Insurance Services and Consulting segments.
- 2Net income attributable to the Company rose 10% to $1.46 billion for the first nine months of 2017.
- 3Diluted Earnings Per Share (EPS) increased 11% to $2.81 for the first nine months of 2017.
- 4Operating income for the nine-month period grew 7% to $2.17 billion.
- 5Cash flow from operations remained strong at $1.14 billion for the first nine months of 2017.
- 6The company repurchased approximately $600 million of its common stock and paid $545 million in dividends during the first nine months of 2017.
- 7Marsh & McLennan is cooperating with ongoing investigations by the European Commission and the UK's Financial Conduct Authority related to the aviation and motor insurance sectors.