Marsh McLennan reports strong third quarter results

Marsh McLennan announced its financial results for the third quarter ended September 30, 2024.

The company reported consolidated revenue of $5.7 billion for the period, up 6% from the same threshold in 2023. On an underlying basis, sales rose 5%. Operating income rose 11% to $1.1 billion, while adjusted operating income, which excludes certain items, rose 12% to $1.2 billion.

The company’s net income attributable to shareholders was $747 million and earnings per share (EPS) increased 3% to $1.51. Adjusted earnings per share rose 4% to $1.63, with last year’s results including a 10 cent per share benefit from a favorable tax item.

For the first nine months of 2024, Marsh McLennan’s consolidated revenue totaled $18.4 billion, an increase of 7% on both a GAAP and adjusted basis compared to the same period in 2023.

Operating income increased 12% to $4.7 billion, while adjusted operating income increased 12% to $4.9 billion. Net income for the nine months was $3.3 billion, or $6.59 per diluted share, compared with $6.01 a year earlier. Adjusted earnings per share rose 10% to $6.93.

Risk and insurance services

The risk and insurance services segment generated third-quarter revenue of $3.5 billion, up 8% or 6% on an adjusted basis. Operating income increased 15% to $733 million, and adjusted operating income increased 16% to $775 million.

For the nine months ended September 30, 2024, revenue in this segment was $11.7 billion, up 9% or 8% on an adjusted basis. Operating income increased 13% to $3.6 billion and adjusted operating income increased 12% to $3.7 billion.

Marsh, a key part of this segment, reported third-quarter revenue of $2.9 billion, up 9% or 7% on an adjusted basis. US/Canada growth was 6%, while international business grew 7%, with 8% growth in Latin America, 7% in EMEA and 5% in Asia Pacific. For the first nine months of 2024, Marsh’s underlying sales growth was 7%.

Guy Carpenter, the group’s reinsurance specialist, reported third-quarter revenue of $381 million, up 6% or 7% on an adjusted basis. For the first nine months, Guy Carpenter’s underlying sales growth was 8%.

Consulting company

Consulting revenue reached $2.3 billion in the third quarter, up 3% or 4% on an adjusted basis. Operating income increased 9% to $462 million, and adjusted operating income increased 7% to $478 million.

For the nine months ended September 30, 2024, advisory revenue was $6.7 billion, up 4% or 5% on an adjusted basis. Operating income increased 7% to $1.3 billion, and adjusted operating income increased 7% to $1.3 billion.

Mercer, a key player in the consulting segment, reported third-quarter revenue of $1.5 billion with underlying revenue growth of 5%. Healthcare revenue increased 8%, asset income increased 4% and career income increased 5%. For the first nine months of 2024, Mercer’s revenue rose 6% on an adjusted basis to total $4.3 billion.

Oliver Wyman, another consulting unit, reported third-quarter revenue of $810 million, up 4% or 1% on an adjusted basis. In the first nine months, Oliver Wyman’s revenue rose 5% on an adjusted basis to $2.4 billion.

Acquisitions and other developments

In the third quarter, Marsh McLennan repurchased 1.4 million shares for $300 million. In the nine months ended September 30, 2024, the company repurchased 4.3 million shares for $900 million.

On September 29, Marsh McLennan entered into an agreement to acquire McGriff Insurance Services, a U.S.-based insurance brokerage firm with revenue of $1.3 billion for the trailing 12 months ended June 30, 2024.

The acquisition, valued at $7.75 billion in cash, is expected to close by year-end, subject to regulatory approvals.

John Doyle (pictured above), president and CEO of Marsh McLennan, highlighted the company’s performance and acquisitions in a statement.

“This was a milestone quarter for Marsh McLennan as we delivered strong results and announced the acquisition of McGriff Insurance Services,” he said. “Our performance demonstrated continued momentum with underlying revenue growth of 5%, margin expansion of 110 basis points and adjusted EPS growth of 4% and 11%, respectively, excluding a one-time tax benefit a year ago. We remain on track for another great year in 2024.”

Doyle highlighted McGriff’s strong leadership and growth, saying it complements the capabilities of the Marsh McLennan Agency. He added that the companies’ merger will further strengthen their ability to serve customers.

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