MARSH & MCLENNAN COMPANIES, INC. Quarterly Report for Q1 Ended Mar 31, 2022

Summary

Marsh & McLennan Companies, Inc. (MRSH) reported a solid first quarter for 2022, with consolidated revenue increasing by 9% year-over-year to $5.5 billion, driven by robust performance in both its Risk & Insurance Services and Consulting segments. The company saw underlying revenue growth of 10% driven by strong client demand for its advisory and solutions. Net income attributable to the company rose to $1.07 billion, or $2.10 per diluted share, up from $983 million, or $1.91 per diluted share, in the prior year's quarter. Despite a $52 million loss related to the deconsolidation of its Russian businesses, the company demonstrated resilience. Marsh McLennan also continued to return capital to shareholders through share repurchases, amounting to $500 million in the first quarter, and authorized an additional $5 billion in buybacks. The company maintains a strong liquidity position with significant available credit facilities and a stable outlook from credit rating agencies.

Key Highlights

• 1Consolidated revenue increased 9% to $5.5 billion, with underlying revenue growth of 10%, indicating strong client demand.
• 2Net income attributable to the Company grew to $1.07 billion, leading to a diluted EPS of $2.10, a 10% increase year-over-year.
• 3Risk and Insurance Services segment revenue increased 10% to $3.5 billion, while Consulting segment revenue rose 7% to $2.0 billion.
• 4The company recorded a $52 million loss related to the deconsolidation of its Russian businesses due to geopolitical events.
• 5Operating expenses increased 10% primarily due to higher headcount and incentive compensation.
• 6The company repurchased $500 million of its common stock in Q1 2022 and announced an additional $5 billion share repurchase authorization.
• 7Interest expense decreased to $110 million, reflecting lower average debt levels.

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