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Marsh & McLennan Companies, Inc. (MMC) is a global professional services firm that specializes in risk management, insurance broking, reinsurance services, and consulting. The company operates through two main segments: Risk and Insurance Services, and Consulting, offering a range of services from insurance and reinsurance to health, wealth, and career advice, as well as strategic consulting . MMC's diverse offerings cater to a wide array of client needs, positioning it as a leader in both the insurance and consulting industries.
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Risk and Insurance Services - Provides comprehensive risk management, insurance broking, and reinsurance services through its subsidiaries, Marsh and Guy Carpenter.
- Marsh - The world's leading insurance broker and risk advisor, offering a wide range of insurance and risk management solutions.
- Guy Carpenter - A reinsurance intermediary and advisor, delivering strategic reinsurance and risk management services.
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Consulting - Offers health, wealth, and career advice, along with strategic, economic, and brand consulting services through its subsidiaries, Mercer and Oliver Wyman Group.
- Mercer - Provides consulting services in health, wealth, and career, helping clients improve the health and financial well-being of their employees.
- Oliver Wyman Group - Delivers strategic, economic, and brand consulting services, assisting clients in navigating complex business challenges.
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The acquisition of McGriff Insurance Services is expected to be modestly accretive to adjusted EPS, excluding amortization, in year 1 and become more meaningfully accretive in year 2 and beyond ; can you provide more specific guidance on the revenue growth and margin assumptions underpinning this expectation?
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With your plan to change how you report adjusted EPS by excluding the impact of acquisition-related amortization starting next year , how do you address potential concerns about transparency and the comparability of your results to prior periods and peers?
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Given that the Marsh Global Insurance Market Index was down 1% in the third quarter , and that approximately half of your business at Marsh is sensitive to P&C pricing through commission , how do you anticipate the continued softening of the market impacting your organic growth?
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As business continues to flow to the non-admitted market , what strategies are you implementing to mitigate potential loss of share in this area, and does the McGriff acquisition provide any capabilities to help you in the non-admitted market?
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Considering the rising frequency and severity of extreme weather events like Hurricanes Helene and Milton and the associated protection gap between economic and insured losses , how is Marsh McLennan positioning itself to address this gap and what specific measures are being taken to develop alternative solutions such as community-based parametric products?
Competitors mentioned in the company's latest 10K filing.
- Insurance and reinsurance brokerage firms: Compete on a global, regional, national, or local scale in every geography in which the company operates .
- Insurance and reinsurance companies: Market, distribute, and service their products without the assistance of brokers .
- Commercial and investment banks, accounting firms, consultants, and online platforms: Provide risk-related services and products or alternatives to traditional insurance brokerage services .
- Third-party capital providers: Entered the insurance and reinsurance risk transfer market offering products and capital directly to the company’s clients .
- Managing general agents, affinity programs, and private client services providers: Compete with the company's offerings .
- Independent consulting, broking, and outsourcing firms: Compete in the consulting business .
- Consulting, broking, and outsourcing operations affiliated with larger accounting, information systems, technology, and financial services firms .
- Insurers and non-traditional competitors: Compete in the health benefits space, including payroll firms, large consumer businesses, and digitally oriented consultancies .
- Investment consulting firms, investment management firms, and other financial institutions: Compete with Mercer's investments business .
Recent developments and announcements about MMC.
Financial Reporting
- Full-Year Revenue: $24.5 billion, marking an 8% increase compared to 2023, with a 7% growth on an underlying basis.
- Fourth Quarter Revenue: $6.1 billion, a 9% increase from the same period in 2023, or 7% on an underlying basis.
- Operating Income: For the full year, operating income was $5.8 billion, with adjusted operating income rising 11% to $6.2 billion.
- Net Income: The net income attributable to the company for the full year was $4.1 billion.
- Earnings Per Share (EPS): Full-year GAAP EPS was $8.18, with adjusted EPS increasing by 10% to $8.80. Fourth quarter GAAP EPS was $1.59, with adjusted EPS increasing by 11% to $1.87.
- Risk & Insurance Services: Fourth quarter revenue was $3.6 billion, an 11% increase, or 8% on an underlying basis. For the year, revenue was $15.4 billion, a 9% increase.
- Consulting: Fourth quarter revenue was $2.4 billion, a 6% increase. For the year, revenue was $9.1 billion, a 5% increase.
Earnings Report
Marsh McLennan (MMC) has released its earnings results for the fourth quarter and full year of 2024. Key highlights include:
The company also highlighted its strategic achievements, including the largest year of acquisitions in its history, and expressed confidence in its positioning for 2025.