10-QPeriod: Q2 FY2024

MARSH & MCLENNAN COMPANIES, INC. Quarterly Report for Q2 Ended Jun 30, 2024

Filed July 18, 2024For Securities:MRSHMMC

Summary

Marsh & McLennan Companies, Inc. reported solid financial results for the second quarter and first half of 2024, demonstrating consistent growth across its business segments. Total revenue for the second quarter increased by 6% year-over-year to $6.2 billion, with an 8% increase for the first half to $12.7 billion. This growth was driven by strong performance in the Risk and Insurance Services (RIS) segment, which saw an 8% revenue increase in Q2 and 9% in H1, fueled by demand for risk advisory and insurance solutions. The Consulting segment also showed growth, with revenue up 2% in Q2 and 5% in H1, supported by Mercer and Oliver Wyman Group. Profitability improved significantly, with operating income rising 13% in Q2 and 12% in H1. Diluted Earnings Per Share (EPS) increased by 10% in Q2 to $2.27 and 12% in H1 to $5.08. The company continued its strategic M&A activity, completing several acquisitions in both segments to enhance its service offerings. Marsh & McLennan also actively returned capital to shareholders through share repurchases and dividend payments, underscoring a commitment to shareholder value.

Financial Highlights

49 data points
Beta

Revenue

$6.22B

Net Income

$1.13B

18.1% Net Margin

EPS (Diluted)

$2.27

Total Assets

$48.59B

Cash & Equivalents

$1.65B

Free Cash Flow

$1.14B

Financial Statements
Beta
Revenue$6.22B
Operating Expenses$4.58B
Operating Income$1.64B
Net Income$1.13B
EPS (Basic)$2.28
EPS (Diluted)$2.27
Shares Outstanding (Basic)492.00M
Shares Outstanding (Diluted)496.00M

Key Highlights

  • 1Consolidated revenue grew 6% in Q2 2024 to $6.2 billion and 8% in H1 2024 to $12.7 billion.
  • 2Operating income increased by 13% in Q2 and 12% in H1, indicating strong profitability.
  • 3Risk and Insurance Services (RIS) revenue saw robust growth of 8% in Q2 and 9% in H1, driven by demand for services.
  • 4Consulting segment revenue increased by 2% in Q2 and 5% in H1, showing steady performance.
  • 5Diluted EPS rose 10% in Q2 to $2.27 and 12% in H1 to $5.08.
  • 6The company continued strategic acquisitions, completing multiple deals in both segments.
  • 7Shareholders were rewarded with dividends and ongoing share repurchases, with $600 million in repurchases in H1 2024.

Frequently Asked Questions

Consolidated revenue for the second quarter of 2024 was $6.2 billion, an increase of 6% compared to $5.9 billion in the second quarter of 2023. This growth was observed across both the Risk and Insurance Services and Consulting segments.

Revenue growth in the Risk and Insurance Services segment, which rose 8% year-over-year in Q2 2024, was driven by strong new business and solid renewals at Marsh, as well as growth across most geographies and specialties at Guy Carpenter. Continued economic growth, inflation, and increased fiduciary income also contributed.

Marsh & McLennan is returning capital to shareholders through both dividends and share repurchases. In the first six months of 2024, the company repurchased 3.0 million shares for $600 million. The Board of Directors also declared a quarterly dividend of $0.815 per share, payable in August 2024.

Yes, the company continued its acquisition strategy. For the six months ended June 30, 2024, Marsh & McLennan completed 5 acquisitions in its Risk and Insurance Services segment and 4 acquisitions in its Consulting segment.