01—Abstract
Summary
Summary of the 10-Q filed July 18, 2024. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 $2.27b 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.
02—Key points
Key Highlights
- Consolidated revenue grew 6% in Q2 2024 to $6.2 billion and 8% in H1 2024 to $12.7 billion.
- Operating income increased by 13% in Q2 and 12% in H1, indicating strong profitability.
- Risk and Insurance Services (RIS) revenue saw robust growth of 8% in Q2 and 9% in H1, driven by demand for services.
- Consulting segment revenue increased by 2% in Q2 and 5% in H1, showing steady performance.
- Diluted EPS rose 10% in Q2 to $2.27 and 12% in H1 to $5.08.
- The company continued strategic acquisitions, completing multiple deals in both segments.
- Shareholders were rewarded with dividends and ongoing share repurchases, with $600 million in repurchases in H1 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed July 18, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $6.22B$5.88B | +5.9% |
| Operating Expenses | $4.58B$4.42B | +3.6% |
| Operating Income | $1.64B$1.46B | +12.7% |
| Net Income | $1.13B$1.03B | +8.7% |
| EPS (Basic) | $2.28$2.09 | +9.1% |
| EPS (Diluted) | $2.27$2.07 | +9.7% |
| Shares Outstanding (Basic) | 492.00M495.00M | −0.6% |
| Shares Outstanding (Diluted) | 496.00M499.00M | −0.6% |
05—Questions
Frequently Asked Questions
How did Marsh & McLennan's revenue perform in the second quarter of 2024 compared to the previous year?
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.
What was the key driver behind the revenue growth in the Risk and Insurance Services segment?
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.
How is the company returning capital to shareholders?
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.
Did the company undertake any acquisitions during the period?
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.
06—Continue