Summary
Marsh & McLennan Companies (MMC) reported strong fourth quarter and full-year 2012 results, exceeding expectations and demonstrating growth across all operating segments. For the fourth quarter, GAAP diluted EPS was $0.47, and adjusted diluted EPS grew 13% to $0.52, reflecting solid performance. Full-year 2012 saw GAAP diluted EPS reach $2.13, with adjusted diluted EPS increasing 21% to $2.15. This growth was driven by strong underlying revenue increases of 5% in Risk and Insurance Services and 4% in Consulting on a constant currency basis. The company highlighted robust performance in its Marsh and Guy Carpenter businesses, with notable international growth, and positive contributions from Mercer and Oliver Wyman in the Consulting segment. MMC also reported an increase in cash and cash equivalents and a reduction in net debt, signaling improved financial health.
Key Highlights
- 1Reported strong Q4 2012 results with GAAP diluted EPS of $0.47 and adjusted diluted EPS of $0.52 (up 13%).
- 2Achieved full-year 2012 GAAP diluted EPS of $2.13 and adjusted diluted EPS of $2.15 (up 21%).
- 3Full-year underlying revenue growth of 4% driven by a 5% increase in Risk and Insurance Services and 3% in Consulting.
- 4Marsh business saw 5% underlying revenue growth for the full year, with strong international performance (13% in Latin America).
- 5Consulting segment, including Mercer and Oliver Wyman, contributed to overall revenue and profitability growth.
- 6Increased cash and cash equivalents to $2.3 billion from $2.1 billion and reduced net debt.
- 7Positive outlook expressed by CEO Dan Glaser, focusing on client service, employee engagement, and long-term profitable growth.