MARSH & MCLENNAN COMPANIES, INC. Quarterly Report for Q1 Ended Mar 31, 2025

Summary

Marsh & McLennan Companies, Inc. (MRSH) reported solid performance for the first quarter of 2025, with consolidated revenue increasing by 9% year-over-year to $7.1 billion. This growth was primarily driven by a 11% increase in the Risk and Insurance Services (RIS) segment and a 5% increase in the Consulting segment. Underlying revenue growth, which excludes currency impacts and acquisitions/dispositions, was 4% across both segments, indicating strong organic demand for the company's services. Despite revenue growth, diluted earnings per share saw a slight decrease to $2.79 from $2.82 in the prior year, primarily due to higher interest expenses. The company maintained its strong financial position, completing strategic acquisitions in the RIS segment and repurchasing $300 million of its stock. The company also continues to manage its capital effectively through debt repayment and dividend declarations.

Key Highlights

• 1Consolidated revenue for Q1 2025 grew 9% to $7.1 billion, with underlying revenue up 4%.
• 2Risk and Insurance Services (RIS) revenue increased 11% (4% underlying), driven by Marsh (+15% reported, +5% underlying) and Guy Carpenter (+5% reported, +5% underlying).
• 3Consulting revenue increased 5% (4% underlying), with Mercer up 5% (4% underlying) and Oliver Wyman Group up 4% (4% underlying).
• 4Diluted EPS decreased slightly to $2.79 from $2.82 in Q1 2024, mainly due to higher interest expenses.
• 5The company completed 3 acquisitions in the RIS segment for $62 million.
• 6Share repurchases totaled $300 million in the quarter, with approximately $2.0 billion remaining under the authorization.
• 7Operating income for RIS was stable year-over-year at $1.6 billion, while Consulting operating income increased to $456 million from $432 million.

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