On January 30, 2025, Marsh & McLennan Companies Inc (MMC, Financial) released its 8-K filing, showcasing impressive financial results for the fourth quarter and full year of 2024. The company, a global leader in professional services, reported significant growth in revenue and earnings, surpassing analyst estimates.

Company Overview

Marsh & McLennan Companies Inc (MMC, Financial) is a professional services firm providing advice and solutions in risk, strategy, and human capital. It operates through two main segments: risk and insurance services, and consulting. The risk and insurance services segment includes Marsh, an insurance broker, and Guy Carpenter, a risk and reinsurance specialist. The consulting division comprises Mercer, a provider of human resource services, and Oliver Wyman, a management and economic consultancy. Approximately half of its revenue is generated outside the United States.

Performance Highlights

Marsh & McLennan reported a consolidated revenue of $6.1 billion for the fourth quarter of 2024, marking a 9% increase compared to the same period in 2023. This growth was driven by a 7% increase on an underlying basis. The company's operating income for the quarter was $1.1 billion, with adjusted operating income rising 9% to $1.3 billion. Net income attributable to the company was $788 million, with earnings per share (EPS) increasing by 5% to $1.59. Adjusted EPS saw an 11% increase to $1.87, benefiting from favorable discrete tax items.

Full-Year Achievements

For the full year 2024, Marsh & McLennan achieved a revenue of $24.5 billion, an 8% increase from 2023. The company's operating income was $5.8 billion, with adjusted operating income rising 11% to $6.2 billion. Net income attributable to the company was $4.1 billion, with a 9% increase in EPS to $8.18. Adjusted EPS increased by 10% to $8.80, reflecting the company's strong financial performance and strategic execution.

Segment Performance

The Risk & Insurance Services segment reported a revenue of $3.6 billion in Q4 2024, an 11% increase from the previous year. Operating income for this segment was $770 million, with adjusted operating income rising 13% to $893 million. For the full year, the segment's revenue was $15.4 billion, a 9% increase from 2023.

In the Consulting segment, revenue for Q4 2024 was $2.4 billion, a 6% increase from the previous year. Operating income was $466 million, with adjusted operating income increasing 1% to $484 million. Full-year revenue for the segment was $9.1 billion, a 5% increase from 2023.

Strategic Acquisitions and Share Repurchases

Marsh & McLennan completed the acquisition of McGriff Insurance Services, LLC for $7.75 billion in cash, marking the largest year of acquisitions in the company's history. Additionally, the company repurchased 4.3 million shares for $900 million in 2024, reflecting its commitment to returning value to shareholders.

Financial Metrics and Analysis

Key financial metrics from the income statement include a 9% increase in operating income to $1.1 billion for Q4 2024, and a 9% increase in net income to $788 million. The balance sheet and cash flow statements indicate strong financial health, with significant cash reserves and strategic investments in growth initiatives.

John Doyle, President and CEO, stated, "Our fourth quarter results capped a terrific year for Marsh McLennan. We delivered on our strategic objectives, generated excellent financial performance, and had the largest year of acquisitions in our history."

Conclusion

Marsh & McLennan Companies Inc (MMC, Financial) has demonstrated robust financial performance in 2024, driven by strategic acquisitions and strong revenue growth across its segments. The company's ability to exceed analyst estimates and achieve significant earnings growth positions it well for continued success in 2025. Value investors may find the company's consistent performance and strategic initiatives appealing as they consider investment opportunities.

Explore the complete 8-K earnings release (here) from Marsh & McLennan Companies Inc for further details.