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MARSH & MCLENNAN COMPANIES, INC. 8-K Report, Financial Results (Jan 25, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 25, 2024
Period End
January 25, 2024
Securities
MRSHMMC
In the record · 2016–202610-K1110-Q338-K115

MRSH filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 115 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’18Mar ’18
  2. Leadership change8-K · Mar ’20Mar ’20
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Material agreement8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed January 25, 2024. Cited figures are marked; the original filing is the authoritative source.

Marsh & McLennan (MMC, which the filing and press release refer to as Marsh McLennan) reported fourth-quarter and full-year 2023 results on January 25, 2024.

Full-year 2023 revenue reached $22.7 billiona, up 10% on a GAAP basis and 9% on an underlying basis. GAAP operating income rose 23% to $5.3 billion and adjusted operating income rose 17% to $5.6 billion, with adjusted operating margin expanding to 26.0%, which management described as the 16th consecutive year of reported margin expansion. GAAP diluted EPS was $7.53 (up 25%), and adjusted EPS grew 17% to $7.99.

Fourth-quarter results were strong: revenue of $5.6 billionb grew 11% (7% underlying), and GAAP diluted EPS of $1.52 rose 63%, while adjusted EPS increased 14% to $1.68. Risk & Insurance Services led growth, with Guy Carpenter's Q4 revenue up 48% reported (9% underlying) and Consulting adjusted operating income up 18% in the quarter. Mercer's Health and Wealth lines were key drivers, while Marsh's underlying growth was 6% in Q4 and 8% for the full year.

Capital allocation included $1.15 billionc of share repurchases in 2023 (6.4 million shares), $1.3 billion in dividends, $976 million in acquisitions (including Honan in Australia/New Zealand), and repayment of $250 million of senior notes. Total debt rose meaningfully, with short-term debt at $1.6 billion and long-term debt at $11.8 billion at year-end. Note that this 8-K furnishes the earnings release under Item 2.02 and is not a comprehensive filing, so forward guidance and detailed risk disclosures are not included here.

02—Key points

Key Highlights

  1. Full-year 2023 revenue of $22.7 billion grew 10% GAAP and 9% underlying, with GAAP operating income up 23% to $5.3 billion.
  2. Adjusted EPS rose 17% to $7.99 for the full year; GAAP diluted EPS was $7.53, up 25%.
  3. Fourth-quarter revenue of $5.6 billion increased 11% (7% underlying); GAAP EPS of $1.52 more than doubled the prior-year quarter's $0.93, while adjusted EPS grew 14% to $1.68.
  4. Adjusted operating margin expanded to 26.0% for 2023, marking the 16th consecutive year of reported margin expansion according to management.
  5. Risk & Insurance Services grew 11% for the year (8% underlying in Q4), with Guy Carpenter revenue up 12% for the year and Marsh up 8% on both GAAP and underlying bases.
  6. Consulting revenue of $8.7 billion grew 7% for the year, with Mercer's health and wealth businesses and Oliver Wyman driving growth; Oliver Wyman revenue reached $3.1 billion.
  7. The company returned capital through $1.15 billion of share repurchases and $1.3 billion of dividends, while spending $976 million on acquisitions in 2023, including Honan Insurance Group.

03—Questions

Frequently Asked Questions

  1. What were Marsh McLennan's headline financial results for 2023?

    For full-year 2023, revenue was $22.7 billion, up 10% (9% underlying). GAAP operating income was $5.3 billion (up 23%), adjusted operating income was $5.6 billion (up 17%), GAAP diluted EPS was $7.53 (up 25%), and adjusted EPS was $7.99 (up 17%).

  2. How did the fourth quarter of 2023 compare with the prior year?

    Q4 2023 revenue was $5.6 billion, up 11% (7% underlying). GAAP diluted EPS was $1.52 versus $0.93 in Q4 2022, and adjusted EPS rose 14% to $1.68. Q4 GAAP operating income was $1.1 billion, compared with $680 million a year earlier, largely reflecting lower restructuring and other noteworthy charges.

  3. Which business segments drove growth?

    Risk & Insurance Services grew 11% in 2023, led by Guy Carpenter (up 12%) and Marsh (up 8%). Consulting grew 7%, with Mercer's Health (up 10% underlying) and Wealth lines contributing and Oliver Wyman up 8% underlying. Segment adjusted operating margins were 31.3% for R&IS and 20.4% for Consulting for the year.

  4. How is the company deploying its capital?

    In 2023 the company repurchased $1.15 billion of stock (6.4 million shares), paid $1.3 billion in dividends, invested $416 million in capital expenditures, and spent $976 million on acquisitions, including Honan Insurance Group. It also repaid $250 million of senior notes in October 2023, while total debt increased, with long-term debt at $11.8 billion at year-end.

  5. What are the limitations of this 8-K filing for investors?

    This 8-K furnishes the earnings press release under Item 2.02 and is not deemed filed for Section 18 purposes. It does not contain full-year guidance, a complete risk factor discussion, or the detailed MD&A found in the Form 10-K. Investors should review the 10-K and the conference call for outlook and additional context. Figures are also unaudited in this release, and adjusted (non-GAAP) measures exclude noteworthy items.

04—Continue

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