MMC Marsh and McLennan Companies Inc

• Full-Year Revenue Growth of 8%; Underlying Revenue Growth of 7%
• Full-Year GAAP Operating Income Increases 10%; Adjusted Operating Income Increases 11%
• Full-Year GAAP EPS of $8.18; Adjusted EPS Increases 10% to $8.80
• Fourth Quarter GAAP EPS of $1.59; Adjusted EPS Increases 11% to $1.87

Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, today reported financial results for the fourth quarter and year ended December 31, 2024.

John Doyle, President and CEO, said: "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. For the full year, we generated 7% underlying revenue growth, 10% adjusted EPS growth and 80 basis points of adjusted margin expansion, marking our 17th consecutive year of reported margin expansion."

"We are well positioned for another strong year in 2025, reflecting our unique capabilities and the enduring value we bring to clients."

Consolidated Results

Consolidated revenue in the fourth quarter of 2024 was $6.1 billion, an increase of 9% compared with the fourth quarter of 2023, or 7% on an underlying basis. Operating income was $1.1 billion. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 9% to $1.3 billion. Net income attributable to the Company was $788 million. Earnings per share increased 5% to $1.59. Adjusted earnings per share increased 11% to $1.87 and included a benefit of 5 cents per share from favorable discrete tax items, as well as a headwind of 2 cents per share from foreign exchange.

For the full year 2024, revenue was $24.5 billion, an increase of 8% compared with 2023, or 7% on an underlying basis. Operating income was $5.8 billion, and adjusted operating income rose 11% to $6.2 billion. Net income attributable to the Company was $4.1 billion. Earnings per share increased 9% to $8.18. Adjusted earnings per share increased 10% to $8.80.

Risk & Insurance Services

Risk & Insurance Services revenue was $3.6 billion in the fourth quarter of 2024, an increase of 11%, or 8% on an underlying basis. Operating income was $770 million. Adjusted operating income increased 13% to $893 million. For the year 2024, revenue was $15.4 billion, an increase of 9% compared with 2023, or 8% on an underlying basis. Operating income was $4.4 billion. Adjusted operating income rose 13% to $4.6 billion.

Marsh's revenue in the fourth quarter of 2024 was $3.3 billion, an increase of 15%, or 8% on an underlying basis. In U.S./Canada, underlying revenue rose 8%. International operations produced underlying revenue growth of 9%, including 13% in Latin America, 9% in EMEA, and 6% in Asia Pacific. For the year 2024, Marsh’s revenue growth was 10% compared to a year ago, or 7% on an underlying basis.

Guy Carpenter's fourth quarter revenue was $201 million, a decrease of 20%, or an increase of 7% on an underlying basis. For the year 2024, Guy Carpenter’s revenue grew 5% compared to a year ago, or 8% on an underlying basis.

Consulting

Consulting revenue was $2.4 billion in the fourth quarter of 2024, an increase of 6% on both a GAAP and underlying basis. Operating income was $466 million. Adjusted operating income increased 1% to $484 million. For the year 2024, revenue was $9.1 billion, an increase of 5% compared with 2023, or 6% on an underlying basis. Operating income was $1.8 billion. Adjusted operating income increased 6% to $1.8 billion.

Mercer’s revenue was $1.5 billion in the fourth quarter of 2024, an increase of 3%, or 5% on an underlying basis. Wealth revenue increased 4% on an underlying basis, Health revenue increased 5% on an underlying basis, and Career revenue increased 7% on an underlying basis. For the year 2024, Mercer’s revenue increased 3%, or 5% on an underlying basis.

Oliver Wyman’s revenue was $954 million in the fourth quarter of 2024, an increase of 11%, or 7% on an underlying basis. For the year 2024, Oliver Wyman’s revenue was $3.4 billion, an increase of 9%, or 6% on an underlying basis.

Other Items

The Company repurchased 4.3 million shares for $900 million in 2024.

On November 15, 2024, the Company completed the acquisition of McGriff Insurance Services, LLC ("McGriff"), a leading provider of insurance broking and risk management services in the United States, for $7.75 billion in cash consideration. As part of funding for the transaction, the Company issued $7.25 billion of senior notes on November 8, 2024.

Conference Call

A conference call to discuss fourth quarter 2024 results will be held today at 8:30 a.m. Eastern time. The live audio webcast may be accessed at marshmclennan.com. A replay of the webcast will be available approximately two hours after the event. The webcast is listen-only. Those interested in participating in the question-and-answer session may register here to receive the dial-in numbers and unique PIN to access the call.

About Marsh McLennan

Marsh McLennan (NYSE: MMC) is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit marshmclennan.com, follow us on LinkedIn and X.

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future events or results, use words like "anticipate," "assume," "believe," "continue," "estimate," "expect," "intend," "plan," "project" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would".

Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. Factors that could materially affect our future results include, among other things:

• the impact of geopolitical or macroeconomic conditions on us, our clients and the countries and industries in which we operate, including from multiple major wars and global conflicts, slower GDP growth or recession, lower interest rates, capital markets volatility, inflation and changes in insurance premium rates;
• the impact from lawsuits or investigations arising from errors and omissions, breaches of fiduciary duty or other claims against us in our capacity as a broker or investment advisor, including claims related to our investment business’ ability to execute timely trades;
• the increasing prevalence of ransomware, supply chain and other forms of cyber attacks, and their potential to disrupt our operations, or the operations of our third party vendors, and result in the disclosure of confidential client or company information;
• the financial and operational impact of complying with laws and regulations, including domestic and international sanctions regimes, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act, U.K. Anti Bribery Act and cybersecurity, data privacy and artificial intelligence regulations;
• our ability to attract, retain and develop industry leading talent;
• our ability to compete effectively and adapt to competitive pressures in each of our businesses, including from disintermediation as well as technological change, digital disruption and other types of innovation such as artificial intelligence;
• our ability to manage potential conflicts of interest, including where our services to a client conflict, or are perceived to conflict, with the interests of another client or our own interests;
• the impact of changes in tax laws, guidance and interpretations, such as the implementation of the Organization for Economic Cooperation and Development international tax framework, or the increasing number of challenges from tax authorities in the current global tax environment;
• the regulatory, contractual and reputational risks that arise based on insurance placement activities and insurer revenue streams;
• our failure to design and execute operating model changes that capture opportunities and efficiencies at the intersection of our businesses; and
• our ability to successfully integrate or achieve the intended benefits of the acquisition of McGriff.

The factors identified above are not exhaustive. Marsh McLennan and its subsidiaries (collectively, the "Company") operate in a dynamic business environment in which new risks emerge frequently. Accordingly, we caution readers not to place undue reliance on any forward-looking statements, which are based only on information currently available to us and speak only as of the dates on which they are made. The Company undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made.

Further information concerning Marsh McLennan and its businesses, including information about factors that could materially affect our results of operations and financial condition, is contained in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section and the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section of our most recently filed Annual Report on Form 10-K.

Marsh & McLennan Companies, Inc.

Consolidated Statements of Income

(In millions, except per share data)

(Unaudited)

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

$

6,067

 

 

$

5,554

 

 

$

24,458

 

 

$

22,736

 

Expense:

 

 

 

 

 

 

 

Compensation and benefits

 

3,630

 

 

 

3,268

 

 

 

13,996

 

 

 

13,099

 

Other operating expenses

 

1,295

 

 

 

1,183

 

 

 

4,645

 

 

 

4,355

 

Operating expenses

 

4,925

 

 

 

4,451

 

 

 

18,641

 

 

 

17,454

 

Operating income

 

1,142

 

 

 

1,103

 

 

 

5,817

 

 

 

5,282

 

Other net benefit credits

 

67

 

 

 

59

 

 

 

268

 

 

 

239

 

Interest income

 

22

 

 

 

38

 

 

 

83

 

 

 

78

 

Interest expense

 

(231

)

 

 

(151

)

 

 

(700

)

 

 

(578

)

Investment income (loss)

 

9

 

 

 

(1

)

 

 

12

 

 

 

5

 

Income before income taxes

 

1,009

 

 

 

1,048

 

 

 

5,480

 

 

 

5,026

 

Income tax expense

 

208

 

 

 

283

 

 

 

1,363

 

 

 

1,224

 

Net income before non-controlling interests

 

801

 

 

 

765

 

 

 

4,117

 

 

 

3,802

 

Less: Net income attributable to non-controlling interests

 

13

 

 

 

9

 

 

 

57

 

 

 

46

 

Net income attributable to the Company

$

788

 

 

$

756

 

 

$

4,060

 

 

$

3,756

 

Net income per share attributable to the Company:

 

 

 

 

 

 

 

- Basic

$

1.60

 

 

$

1.53

 

 

$

8.26

 

 

$

7.60

 

- Diluted

$

1.59

 

 

$

1.52

 

 

$

8.18

 

 

$

7.53

 

Average number of shares outstanding:

 

 

 

 

 

 

 

- Basic

 

491

 

 

 

493

 

 

 

492

 

 

 

494

 

- Diluted

 

496

 

 

 

498

 

 

 

496

 

 

 

499

 

Shares outstanding at December 31

 

491

 

 

 

492

 

 

 

491

 

 

 

492

 

 

Marsh & McLennan Companies, Inc.

Supplemental Information - Revenue Analysis

Three Months Ended December 31

(Millions) (Unaudited)

 

The Company advises clients in 130 countries. As a result, foreign exchange rate movements may impact period over period comparisons of revenue. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period over period comparisons of revenue. Non-GAAP underlying revenue measures the change in revenue from one period to the next by isolating these impacts.

 

 

 

 

 

 

 

Components of Revenue Change*

 

 

Three Months Ended December 31,

 

% Change GAAP Revenue*

 

Currency Impact

 

Acquisitions/ Dispositions/ Other Impact**

 

Non-GAAP Underlying Revenue

 

 

 

2024

 

 

 

2023

 

 

 

Risk and Insurance Services

 

 

 

 

 

 

 

 

 

 

 

 

Marsh

 

$

3,334

 

 

$

2,896

 

 

15

%

 

(1

)%

 

8

%

 

8

%

Guy Carpenter (a)

 

 

201

 

 

 

252

 

 

(20

)%

 

(1

)%

 

(25

)%

 

7

%

Subtotal

 

 

3,535

 

 

 

3,148

 

 

12

%

 

(1

)%

 

5

%

 

8

%

Fiduciary Interest Income

 

 

112

 

 

 

123

 

 

 

 

 

 

 

 

 

Total Risk and Insurance Services

 

 

3,647

 

 

 

3,271

 

 

11

%

 

(1

)%

 

5

%

 

8

%

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

Mercer

 

 

1,487

 

 

 

1,444

 

 

3

%

 

—

 

 

(1

)%

 

5

%

Oliver Wyman Group (b)

 

 

954

 

 

 

856

 

 

11

%

 

—

 

 

5

%

 

7

%

Total Consulting

 

 

2,441

 

 

 

2,300

 

 

6

%

 

—

 

 

1

%

 

6

%

Corporate Eliminations

 

 

(21

)

 

 

(17

)

 

 

 

 

 

 

 

 

Total Revenue

 

$

6,067

 

 

$

5,554

 

 

9

%

 

(1

)%

 

3

%

 

7

%

 

Revenue Details

 

The following table provides more detailed revenue information for certain of the components presented above:

 

 

 

 

 

 

 

Components of Revenue Change*

 

 

Three Months Ended December 31,

 

% Change GAAP Revenue*

 

Currency Impact

 

Acquisitions/ Dispositions/ Other Impact**

 

Non-GAAP Underlying Revenue

 

 

2024

 

2023

 

 

Marsh:

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

$

846

 

$

780

 

9

%

 

—

 

 

(1

)%

 

9

%

Asia Pacific

 

 

345

 

 

315

 

9

%

 

—

 

 

4

%

 

6

%

Latin America

 

 

179

 

 

173

 

3

%

 

(12

)%

 

2

%

 

13

%

Total International

 

 

1,370

 

 

1,268

 

8

%

 

(2

)%

 

1

%

 

9

%

U.S./Canada

 

 

1,964

 

 

1,628

 

21

%

 

—

 

 

13

%

 

8

%

Total Marsh

 

$

3,334

 

$

2,896

 

15

%

 

(1

)%

 

8

%

 

8

%

Mercer:

 

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

$

675

 

$

654

 

4

%

 

—

 

 

(1

)%

 

4

%

Health

 

 

495

 

 

502

 

(1

)%

 

(1

)%

 

(4

)%

 

5

%

Career

 

 

317

 

 

288

 

10

%

 

(1

)%

 

4

%

 

7

%

Total Mercer

 

$

1,487

 

$

1,444

 

3

%

 

—

 

 

(1

)%

 

5

%

(a)

 

 Acquisitions, dispositions, and other in 2023 includes a gain from a legal settlement with a competitor, excluding legal fees.

(b)

 

Acquisitions, dispositions, and other in 2024 includes a gain from the sale of a business in Oliver Wyman Group.

 

 

 

*

 

Rounded to whole percentages. Components of revenue may not add due to rounding.

**

 

Acquisitions, dispositions, and other includes the impact of current and prior year items excluded from the calculation of non-GAAP underlying revenue for comparability purposes. Details on these items are provided in the reconciliation of non-GAAP revenue to GAAP revenue tables included in this release.

 

Marsh & McLennan Companies, Inc.

Supplemental Information - Revenue Analysis

Twelve Months Ended December 31

(Millions) (Unaudited)

 

The Company advises clients in 130 countries. As a result, foreign exchange rate movements may impact period over period comparisons of revenue. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period over period comparisons of revenue. Non-GAAP underlying revenue measures the change in revenue from one period to the next by isolating these impacts.

 

 

 

 

 

 

 

Components of Revenue Change*

 

 

Twelve Months Ended December 31,

 

% Change GAAP Revenue*

 

Currency Impact

 

Acquisitions/ Dispositions/ Other Impact**

 

Non-GAAP Underlying Revenue

 

 

 

2024

 

 

 

2023

 

 

 

Risk and Insurance Services

 

 

 

 

 

 

 

 

 

 

 

 

Marsh

 

$

12,536

 

 

$

11,378

 

 

10

%

 

(1

)%

 

3

%

 

7

%

Guy Carpenter (a)

 

 

2,362

 

 

 

2,258

 

 

5

%

 

—

 

 

(3

)%

 

8

%

Subtotal

 

 

14,898

 

 

 

13,636

 

 

9

%

 

(1

)%

 

2

%

 

8

%

Fiduciary Interest Income

 

 

497

 

 

 

453

 

 

 

 

 

 

 

 

 

Total Risk and Insurance Services

 

 

15,395

 

 

 

14,089

 

 

9

%

 

(1

)%

 

2

%

 

8

%

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

Mercer (b)

 

 

5,743

 

 

 

5,587

 

 

3

%

 

(1

)%

 

(2

)%

 

5

%

Oliver Wyman Group (c)

 

 

3,390

 

 

 

3,122

 

 

9

%

 

—

 

 

3

%

 

6

%

Total Consulting

 

 

9,133

 

 

 

8,709

 

 

5

%

 

—

 

 

—

 

 

6

%

Corporate Eliminations

 

 

(70

)

 

 

(62

)

 

 

 

 

 

 

 

 

Total Revenue

 

$

24,458

 

 

$

22,736

 

 

8

%

 

—

 

 

1

%

 

7

%

 

Revenue Details

 

The following table provides more detailed revenue information for certain of the components presented above:

 

 

 

 

 

 

 

Components of Revenue Change*

 

 

Twelve Months Ended December 31,

 

% Change GAAP Revenue*

 

Currency Impact

 

Acquisitions/ Dispositions/ Other Impact**

 

Non-GAAP Underlying Revenue

 

 

2024

 

2023

 

 

Marsh:

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

$

3,530

 

$

3,262

 

8

%

 

—

 

—

 

 

8

%

Asia Pacific

 

 

1,414

 

 

1,295

 

9

%

 

(2

)%

5

%

 

6

%

Latin America

 

 

575

 

 

559

 

3

%

 

(9

)%

2

%

 

10

%

Total International

 

 

5,519

 

 

5,116

 

8

%

 

(1

)%

1

%

 

8

%

U.S./Canada

 

 

7,017

 

 

6,262

 

12

%

 

—

 

5

%

 

7

%

Total Marsh

 

$

12,536

 

$

11,378

 

10

%

 

(1

)%

3

%

 

7

%

Mercer:

 

 

 

 

 

 

 

 

 

 

 

Wealth (b)

 

$

2,584

 

$

2,507

 

3

%

 

—

 

(1

)%

 

4

%

Health (b)

 

 

2,100

 

 

2,061

 

2

%

 

(1

)%

(5

)%

 

8

%

Career

 

 

1,059

 

 

1,019

 

4

%

 

(2

)%

2

%

 

4

%

Total Mercer

 

$

5,743

 

$

5,587

 

3

%

 

(1

)%

(2

)%

 

5

%

  

(a)

Acquisitions, dispositions, and other in 2023 includes a gain from a legal settlement with a competitor, excluding legal fees.

(b)

Acquisitions, dispositions, and other in 2024 includes a net gain from the sale of the U.K. pension administration and U.S. health and benefits administration businesses, that comprised of a gain in Wealth, offset by a loss in Health.

(c)

Acquisitions, dispositions, and other in 2024 includes a gain from the sale of a business in Oliver Wyman Group.

 

 

*

Rounded to whole percentages. Components of revenue may not add due to rounding.

**

Acquisitions, dispositions, and other includes the impact of current and prior year items excluded from the calculation of non-GAAP underlying revenue for comparability purposes. Details on these items are provided in the reconciliation of non-GAAP revenue to GAAP revenue tables included in this release.

  

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Three Months Ended December 31

(Millions) (Unaudited)

 

Overview

  

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (referred to in this release as in accordance with "GAAP" or "reported" results). The Company also refers to and presents certain additional non-GAAP financial measures, within the meaning of Regulation G and item 10(e) Regulation S-K in accordance with the Securities Exchange Act of 1934. These measures are: non-GAAP revenue, adjusted operating income (loss), adjusted operating margin, adjusted income, net of tax and adjusted earnings per share (EPS). The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP in the following tables.

 

The Company believes these non-GAAP financial measures provide useful supplemental information that enables investors to better compare the Company’s performance across periods. Management also uses these measures internally to assess the operating performance of its businesses and to decide how to allocate resources. However, investors should not consider these non-GAAP measures in isolation from, or as a substitute for, the financial information that the Company reports in accordance with GAAP. The Company's non-GAAP measures include adjustments that reflect how management views its businesses, and may differ from similarly titled non-GAAP measures presented by other companies.

 

Adjusted Operating Income (Loss) and Adjusted Operating Margin

 

Adjusted operating income (loss) is calculated by excluding the impact of certain noteworthy items from the Company's GAAP operating income (loss). The following tables identify these noteworthy items and reconcile adjusted operating income (loss) to GAAP operating income (loss), on a consolidated and reportable segment basis, for the three and twelve months ended December 31, 2024 and 2023. The following tables also present adjusted operating margin. For the three and twelve months ended December 31, 2024 and 2023, adjusted operating margin is calculated by dividing the sum of adjusted operating income and identified intangible asset amortization by consolidated or segment adjusted revenue. The Company's adjusted revenue used in the determination of adjusted operating margin is calculated by excluding the impact of certain noteworthy items from the Company's GAAP revenue.

 

 

Risk & Insurance Services

 

Consulting

 

Corporate/ Eliminations

 

Total

Three Months Ended December 31, 2024

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

770

 

 

$

466

 

 

$

(94

)

 

$

1,142

 

Operating margin

 

 

21.1

%

 

 

19.1

%

 

 

N/A

 

 

 

18.8

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring (a)

 

 

75

 

 

 

49

 

 

 

12

 

 

 

136

 

Changes in contingent consideration

 

 

(8

)

 

 

2

 

 

 

—

 

 

 

(6

)

McGriff acquisition and retention related costs

 

 

58

 

 

 

—

 

 

 

1

 

 

 

59

 

Acquisition related costs

 

 

1

 

 

 

1

 

 

 

—

 

 

 

2

 

Disposal of businesses (b)

 

 

—

 

 

 

(34

)

 

 

—

 

 

 

(34

)

Other

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

(3

)

Operating income adjustments

 

 

123

 

 

 

18

 

 

 

13

 

 

 

154

 

Adjusted operating income (loss)

 

$

893

 

 

$

484

 

 

$

(81

)

 

$

1,296

 

Total identified intangible amortization expense

 

$

93

 

 

$

15

 

 

$

—

 

 

$

108

 

Adjusted operating margin

 

 

27.0

%

 

 

20.7

%

 

 

N/A

 

 

 

23.3

%

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2023

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

753

 

 

$

443

 

 

$

(93

)

 

$

1,103

 

Operating margin

 

 

23.0

%

 

 

19.2

%

 

 

N/A

 

 

 

19.9

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring (a)

 

 

88

 

 

 

29

 

 

 

14

 

 

 

131

 

Changes in contingent consideration

 

 

7

 

 

 

1

 

 

 

—

 

 

 

8

 

Acquisition and related costs

 

 

—

 

 

 

7

 

 

 

—

 

 

 

7

 

Legal claims (c)

 

 

(58

)

 

 

—

 

 

 

—

 

 

 

(58

)

Other

 

 

1

 

 

 

—

 

 

 

1

 

 

 

2

 

Operating income adjustments

 

 

38

 

 

 

37

 

 

 

15

 

 

 

90

 

Adjusted operating income (loss)

 

$

791

 

 

$

480

 

 

$

(78

)

 

$

1,193

 

Total identified intangible amortization expense

 

$

76

 

 

$

10

 

 

$

—

 

 

$

86

 

Adjusted operating margin

 

 

27.0

%

 

 

21.3

%

 

 

N/A

 

 

 

23.3

%

(a)

 

Costs primarily includes severance and lease exit charges for activities focused on workforce actions, rationalization of technology and functional resources, and reductions in real estate. 

(b)

 

Primarily gain on sale of a business in Oliver Wyman Group. The amounts are included in revenue in the consolidated statements of income and excluded from non-GAAP revenue and adjusted revenue used in the calculation of adjusted operating margin.

(c)

 

Reflects a legal settlement with a competitor, excluding legal fees. The amount is included in revenue in the consolidated statements of income and excluded from non-GAAP revenue and adjusted revenue used in the calculation of adjusted operating margin. 

 

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Twelve Months Ended December 31

Millions (Unaudited)

 

 

 

Risk & Insurance Services

 

Consulting

 

Corporate/ Eliminations

 

Total

Twelve Months Ended December 31, 2024

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

4,365

 

 

$

1,770

 

 

$

(318

)

 

$

5,817

 

Operating margin

 

 

28.4

%

 

 

19.4

%

 

 

N/A

 

 

 

23.8

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring (a)

 

 

148

 

 

 

79

 

 

 

49

 

 

 

276

 

Changes in contingent consideration

 

 

9

 

 

 

6

 

 

 

—

 

 

 

15

 

McGriff acquisition and retention related costs

 

 

60

 

 

 

—

 

 

 

3

 

 

 

63

 

Acquisition and disposition related costs (b)

 

 

26

 

 

 

32

 

 

 

—

 

 

 

58

 

Disposal of businesses (c)

 

 

—

 

 

 

(55

)

 

 

—

 

 

 

(55

)

Other

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

(3

)

Operating income adjustments

 

 

240

 

 

 

62

 

 

 

52

 

 

 

354

 

Adjusted operating income (loss)

 

$

4,605

 

 

$

1,832

 

 

$

(266

)

 

$

6,171

 

Total identified intangible amortization expense

 

$

326

 

 

$

51

 

 

$

—

 

 

$

377

 

Adjusted operating margin

 

 

32.0

%

 

 

20.7

%

 

 

N/A

 

 

 

26.8

%

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31, 2023

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

3,945

 

 

$

1,666

 

 

$

(329

)

 

$

5,282

 

Operating margin

 

 

28.0

%

 

 

19.1

%

 

 

N/A

 

 

 

23.2

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring (a)

 

 

177

 

 

 

62

 

 

 

62

 

 

 

301

 

Changes in contingent consideration

 

 

27

 

 

 

2

 

 

 

—

 

 

 

29

 

Acquisition and disposition related costs (b)

 

 

—

 

 

 

39

 

 

 

—

 

 

 

39

 

Disposal of businesses

 

 

—

 

 

 

17

 

 

 

—

 

 

 

17

 

JLT legacy legal charges (d)

 

 

—

 

 

 

(51

)

 

 

—

 

 

 

(51

)

Legal claims (e)

 

 

(58

)

 

 

—

 

 

 

—

 

 

 

(58

)

Other

 

 

2

 

 

 

1

 

 

 

1

 

 

 

4

 

Operating income adjustments

 

 

148

 

 

 

70

 

 

 

63

 

 

 

281

 

Adjusted operating income (loss)

 

$

4,093

 

 

$

1,736

 

 

$

(266

)

 

$

5,563

 

Total identified intangible amortization expense

 

$

297

 

 

$

46

 

 

$

—

 

 

$

343

 

Adjusted operating margin

 

 

31.3

%

 

 

20.4

%

 

 

N/A

 

 

 

26.0

%

(a)

 

Costs primarily includes severance and lease exit charges for activities focused on workforce actions, rationalization of technology and functional resources, and reductions in real estate.

(b)

 

Primarily reflects exit costs for the disposition of the Mercer U.K. pension administration and U.S. health and benefits administration businesses and one-time acquisition related retention costs. Amounts in 2023 include integration costs related to the Westpac superannuation fund transaction.

(c)

 

Net gain on sale of the Mercer U.K. pension administration and U.S. health and benefits administration businesses and sale of a business in Oliver Wyman Group. These amounts are included in revenue in the consolidated statements of income and excluded from non-GAAP revenue and adjusted revenue used in the calculation of adjusted operating margin.

(d)

 

Insurance and indemnity recoveries for a legacy JLT E&O matter relating to suitability of advice provided to individuals for defined benefit pension transfers in the U.K.

(e)

 

Reflects a legal settlement with a competitor, excluding legal fees. The amount is included in revenue in the consolidated statements of income and excluded from non-GAAP revenue and adjusted revenue used in the calculation of adjusted operating margin. 

 

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Three and Twelve Months Ended December 31

(In millions, except per share data)

(Unaudited)

 

Adjusted income, net of tax is calculated as the Company's GAAP income from continuing operations, adjusted to reflect the after tax impact of the operating income adjustments in the preceding tables and the additional items listed below. Adjusted EPS is calculated by dividing the Company’s adjusted income, net of tax, by the average number of shares outstanding-diluted for the relevant period. The following tables reconcile adjusted income, net of tax to GAAP income from continuing operations and adjusted EPS to GAAP EPS for the three and twelve months ended December 31, 2024 and 2023.

 

 

Three Months Ended December 31, 2024

 

Three Months Ended December 31, 2023

 

 

Amount

 

Adjusted EPS

 

Amount

 

Adjusted EPS

Net income before non-controlling interests, as reported

 

 

 

$

801

 

 

 

 

 

$

765

 

 

Less: Non-controlling interest, net of tax

 

 

 

 

13

 

 

 

 

 

 

9

 

 

Subtotal

 

 

 

$

788

 

$

1.59

 

 

 

$

756

 

$

1.52

Operating income adjustments

 

$

154

 

 

 

 

 

 

$

90

 

 

 

 

 

Investments adjustment

 

 

—

 

 

 

 

 

 

 

—

 

 

 

 

 

Pension settlement adjustment

 

 

1

 

 

 

 

 

 

 

—

 

 

 

 

 

Financing costs (a)

 

 

26

 

 

 

 

 

 

 

—

 

 

 

 

 

Income tax effect of adjustments (b)

 

 

(42

)

 

 

 

 

 

 

(8

)

 

 

 

 

 

 

 

 

 

139

 

 

0.28

 

 

 

 

82

 

 

0.16

Adjusted income, net of tax

 

 

 

$

927

 

$

1.87

 

 

 

$

838

 

$

1.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31, 2024

 

Twelve Months Ended December 31, 2023

 

 

Amount

 

Adjusted EPS

 

Amount

 

Adjusted EPS

Net income before non-controlling interests, as reported

 

 

 

$

4,117

 

 

 

 

 

$

3,802

 

 

Less: Non-controlling interest, net of tax

 

 

 

 

57

 

 

 

 

 

 

46

 

 

Subtotal

 

 

 

$

4,060

 

$

8.18

 

 

 

$

3,756

 

$

7.53

Operating income adjustments

 

$

354

 

 

 

 

 

 

$

281

 

 

 

 

 

Investments adjustment

 

 

(2

)

 

 

 

 

 

 

2

 

 

 

 

 

Pension settlement adjustment

 

 

3

 

 

 

 

 

 

 

—

 

 

 

 

 

Financing costs (a)

 

 

26

 

 

 

 

 

 

 

—

 

 

 

 

 

Income tax effect of adjustments (b)

 

 

(72

)

 

 

 

 

 

 

(53

)

 

 

 

 

 

 

 

 

 

309

 

 

0.62

 

 

 

 

230

 

 

0.46

Adjusted income, net of tax

 

 

 

$

4,369

 

$

8.80

 

 

 

$

3,986

 

$

7.99

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)  

Primarily reflects amortization of bridge financing fees related to the acquisition of McGriff.

(b)  

For items with an income tax impact, the tax effect was calculated using an effective tax rate based on the tax jurisdiction for each item.

 

Marsh & McLennan Companies, Inc.

Supplemental Information

Three and Twelve Months Ended December 31

(Millions) (Unaudited)

 

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

 

2024

 

2023

 

2024

 

2023

Consolidated

 

 

 

 

 

 

 

 

Compensation and benefits

 

$

3,630

 

$

3,268

 

$

13,996

 

$

13,099

Other operating expenses

 

 

1,295

 

 

1,183

 

 

4,645

 

 

4,355

Total expenses

 

$

4,925

 

$

4,451

 

$

18,641

 

$

17,454

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

93

 

$

100

 

$

369

 

$

370

Identified intangible amortization expense

 

 

108

 

 

86

 

 

377

 

 

343

Total

 

$

201

 

$

186

 

$

746

 

$

713

 

 

 

 

 

 

 

 

 

Risk and Insurance Services

 

 

 

 

 

 

 

 

Compensation and benefits

 

$

2,178

 

$

1,868

 

$

8,499

 

$

7,702

Other operating expenses

 

 

699

 

 

650

 

 

2,531

 

 

2,442

Total expenses

 

$

2,877

 

$

2,518

 

$

11,030

 

$

10,144

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

52

 

$

55

 

$

192

 

$

190

Identified intangible amortization expense

 

 

93

 

 

76

 

 

326

 

 

297

Total

 

$

145

 

$

131

 

$

518

 

$

487

 

 

 

 

 

 

 

 

 

Consulting

 

 

 

 

 

 

 

 

Compensation and benefits

 

$

1,421

 

$

1,362

 

$

5,358

 

$

5,249

Other operating expenses

 

 

554

 

 

495

 

 

2,005

 

 

1,794

Total expenses

 

$

1,975

 

$

1,857

 

$

7,363

 

$

7,043

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

26

 

$

28

 

$

114

 

$

106

Identified intangible amortization expense

 

 

15

 

 

10

 

 

51

 

 

46

Total

 

$

41

 

$

38

 

$

165

 

$

152

 

Marsh & McLennan Companies, Inc.

Consolidated Balance Sheets

(Millions) (Unaudited)

 

 

 

December 31, 2024

 

December 31, 2023

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

2,398

 

$

3,358

Cash and cash equivalents held in a fiduciary capacity

 

 

11,276

 

 

10,794

Net receivables

 

 

7,156

 

 

6,418

Other current assets

 

 

1,287

 

 

1,178

Total current assets

 

 

22,117

 

 

21,748

 

 

 

 

 

Goodwill and intangible assets

 

 

28,126

 

 

19,861

Fixed assets, net

 

 

859

 

 

882

Pension related assets

 

 

1,914

 

 

2,051

Right of use assets

 

 

1,498

 

 

1,541

Deferred tax assets

 

 

237

 

 

357

Other assets

 

 

1,730

 

 

1,590

TOTAL ASSETS

 

$

56,481

 

$

48,030

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

 

$

519

 

$

1,619

Accounts payable and accrued liabilities

 

 

3,402

 

 

3,403

Accrued compensation and employee benefits

 

 

3,620

 

 

3,346

Current lease liabilities

 

 

325

 

 

312

Accrued income taxes

 

 

376

 

 

321

Fiduciary liabilities

 

 

11,276

 

 

10,794

Total current liabilities

 

 

19,518

 

 

19,795

 

 

 

 

 

Long-term debt

 

 

19,428

 

 

11,844

Pension, post-retirement and post-employment benefits

 

 

840

 

 

779

Long-term lease liabilities

 

 

1,590

 

 

1,661

Liabilities for errors and omissions

 

 

305

 

 

314

Other liabilities

 

 

1,265

 

 

1,267

 

 

 

 

 

Total equity

 

 

13,535

 

 

12,370

TOTAL LIABILITIES AND EQUITY

 

$

56,481

 

$

48,030

 

Marsh & McLennan Companies, Inc.

Consolidated Statements of Cash Flows

(Millions) (Unaudited)

 

 

 

For the Years Ended December 31,

 

 

 

2024

 

 

 

2023

 

Operating cash flows:

 

 

 

 

Net income before non-controlling interests

 

$

4,117

 

 

$

3,802

 

Adjustments to reconcile net income to cash provided by operations:

 

 

 

 

Depreciation and amortization

 

 

746

 

 

 

713

 

Non-cash lease expense

 

 

280

 

 

 

288

 

Share-based compensation expense

 

 

368

 

 

 

363

 

Dispositions, changes to contingent consideration and net gain on investments

 

 

(134

)

 

 

—

 

 

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

Accrued compensation and employee benefits

 

 

92

 

 

 

195

 

Provision for taxes, net of payments and refunds

 

 

123

 

 

 

105

 

Net receivables

 

 

(467

)

 

 

(467

)

Other changes to assets and liabilities

 

 

(162

)

 

 

(90

)

Contributions to pension and other benefit plans in excess of current year credit

 

 

(352

)

 

 

(335

)

Operating lease liabilities

 

 

(309

)

 

 

(316

)

Net cash provided by operations

 

 

4,302

 

 

 

4,258

 

Financing cash flows:

 

 

 

 

Purchase of treasury shares

 

 

(900

)

 

 

(1,150

)

Proceeds from issuance of debt

 

 

8,170

 

 

 

2,169

 

Repayments of debt

 

 

(1,617

)

 

 

(266

)

Payment of bridge loan commitment fees

 

 

(23

)

 

 

—

 

Net issuance of common stock from treasury shares

 

 

84

 

 

 

51

 

Net distributions from non-controlling interests and deferred/contingent consideration

 

 

(157

)

 

 

(370

)

Dividends paid

 

 

(1,513

)

 

 

(1,298

)

Change in fiduciary liabilities

 

 

411

 

 

 

(255

)

Net cash provided by (used for) financing activities

 

 

4,455

 

 

 

(1,119

)

Investing cash flows:

 

 

 

 

Capital expenditures

 

 

(316

)

 

 

(416

)

Net purchases of long-term investments and other

 

 

(107

)

 

 

(46

)

Sales of long-term investments

 

 

55

 

 

 

38

 

Dispositions

 

 

89

 

 

 

(17

)

Acquisitions, net of cash and cash held in a fiduciary capacity acquired

 

 

(8,542

)

 

 

(976

)

Net cash used for investing activities

 

 

(8,821

)

 

 

(1,417

)

Effect of exchange rate changes on cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity

 

 

(414

)

 

 

328

 

Decrease in cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity

 

 

(478

)

 

 

2,050

 

Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at beginning of year

 

 

14,152

 

 

 

12,102

 

Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at end of year

 

$

13,674

 

 

$

14,152

 

Reconciliation of cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity to the Consolidated Balance Sheets

Balance at December 31,

 

2024

 

2023

(In millions)

 

 

 

 

Cash and cash equivalents

 

$

2,398

 

$

3,358

Cash and cash equivalents held in a fiduciary capacity

 

 

11,276

 

 

10,794

Total cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity

 

$

13,674

 

$

14,152

 

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Three Months Ended December 31

(Millions) (Unaudited)

 

Non-GAAP revenue isolates the impact of foreign exchange rate movements and certain transaction-related items from the current period GAAP revenue. The non-GAAP revenue measure is presented on a constant currency basis, excluding the impact of foreign currency fluctuations. The Company isolates the impact of foreign exchange rate movements period over period, by translating the current period foreign currency GAAP revenue into U.S. Dollars based on the difference in the current and corresponding prior period exchange rates. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period over period comparisons of revenue and are consistently excluded from current and prior period GAAP revenues for comparability purposes. Percentage changes, referred to as non-GAAP underlying revenue, are calculated by dividing the period over period change in non-GAAP revenue by the prior period non-GAAP revenue.

 

The following table provides the reconciliation of GAAP revenue to non-GAAP revenue:

 

 

 

2024

 

2023

Three Months Ended December 31,

 

GAAP Revenue

 

Currency Impact

 

Acquisitions/ Dispositions/ Other Impact

 

Non-GAAP Revenue

 

GAAP Revenue

 

Acquisitions/ Dispositions/ Other Impact

 

Non-GAAP Revenue

Risk and Insurance Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marsh

 

$

3,334

 

 

$

23

 

 

$

(220

)

 

$

3,137

 

 

$

2,896

 

 

$

(1

)

 

$

2,895

 

Guy Carpenter (a)

 

 

201

 

 

 

2

 

 

 

5

 

 

 

208

 

 

 

252

 

 

 

(58

)

 

 

194

 

Subtotal

 

 

3,535

 

 

 

25

 

 

 

(215

)

 

 

3,345

 

 

 

3,148

 

 

 

(59

)

 

 

3,089

 

Fiduciary Interest Income

 

 

112

 

 

 

—

 

 

 

(3

)

 

 

109

 

 

 

123

 

 

 

—

 

 

 

123

 

Total Risk and Insurance Services

 

 

3,647

 

 

 

25

 

 

 

(218

)

 

 

3,454

 

 

 

3,271

 

 

 

(59

)

 

 

3,212

 

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mercer

 

 

1,487

 

 

 

7

 

 

 

(74

)

 

 

1,420

 

 

 

1,444

 

 

 

(90

)

 

 

1,354

 

Oliver Wyman Group (b)

 

 

954

 

 

 

(2

)

 

 

(41

)

 

 

911

 

 

 

856

 

 

 

(1

)

 

 

855

 

Total Consulting

 

 

2,441

 

 

 

5

 

 

 

(115

)

 

 

2,331

 

 

 

2,300

 

 

 

(91

)

 

 

2,209

 

Corporate Eliminations

 

 

(21

)

 

 

—

 

 

 

—

 

 

 

(21

)

 

 

(17

)

 

 

—

 

 

 

(17

)

Total Revenue

 

$

6,067

 

 

$

30

 

 

$

(333

)

 

$

5,764

 

 

$

5,554

 

 

$

(150

)

 

$

5,404

 

 

Revenue Details

 

The following table provides more detailed revenue information for certain of the components presented above:

 

 

 

2024

 

2023

Three Months Ended December 31,

 

GAAP Revenue

 

Currency Impact

 

Acquisitions/ Dispositions/ Other Impact

 

Non-GAAP Revenue

 

GAAP Revenue

 

Acquisitions/ Dispositions/ Other Impact

 

Non-GAAP Revenue

Marsh:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

$

846

 

$

—

 

 

$

4

 

 

$

850

 

$

780

 

$

(1

)

 

$

779

Asia Pacific

 

 

345

 

 

—

 

 

 

(12

)

 

 

333

 

 

315

 

 

—

 

 

 

315

Latin America

 

 

179

 

 

20

 

 

 

(3

)

 

 

196

 

 

173

 

 

—

 

 

 

173

Total International

 

 

1,370

 

 

20

 

 

 

(11

)

 

 

1,379

 

 

1,268

 

 

(1

)

 

 

1,267

U.S./Canada

 

 

1,964

 

 

3

 

 

 

(209

)

 

 

1,758

 

 

1,628

 

 

—

 

 

 

1,628

Total Marsh

 

$

3,334

 

$

23

 

 

$

(220

)

 

$

3,137

 

$

2,896

 

$

(1

)

 

$

2,895

Mercer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

$

675

 

$

(2

)

 

$

(46

)

 

$

627

 

$

654

 

$

(52

)

 

$

602

Health

 

 

495

 

 

6

 

 

 

(16

)

 

 

485

 

 

502

 

 

(38

)

 

 

464

Career

 

 

317

 

 

3

 

 

 

(12

)

 

 

308

 

 

288

 

 

—

 

 

 

288

Total Mercer

 

$

1,487

 

$

7

 

 

$

(74

)

 

$

1,420

 

$

1,444

 

$

(90

)

 

$

1,354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)  

Acquisitions, dispositions, and other in 2023 includes a gain from a legal settlement with a competitor of $58 million, excluding legal fees.

(b)  

Acquisitions, dispositions, and other in 2024 includes a gain of $20 million from the sale of a business in Oliver Wyman Group.

   

 

Note: Amounts in the tables above are rounded to whole numbers.  

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Twelve Months Ended December 31

(Millions) (Unaudited)

 

The following table provides the reconciliation of GAAP revenue to Non-GAAP revenue:

 

 

 

2024

 

2023

Twelve Months Ended December 31,

 

GAAP Revenue

 

Currency Impact

 

Acquisitions/ Dispositions/ Other Impact

 

Non-GAAP Revenue

 

GAAP Revenue

 

Acquisitions/ Dispositions/ Other Impact

 

Non-GAAP Revenue

Risk and Insurance Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marsh

 

$

12,536

 

 

$

73

 

 

$

(391

)

 

$

12,218

 

 

$

11,378

 

 

$

(3

)

 

$

11,375

 

Guy Carpenter (a)

 

 

2,362

 

 

 

7

 

 

 

2

 

 

 

2,371

 

 

 

2,258

 

 

 

(70

)

 

 

2,188

 

Subtotal

 

 

14,898

 

 

 

80

 

 

 

(389

)

 

 

14,589

 

 

 

13,636

 

 

 

(73

)

 

 

13,563

 

Fiduciary Interest Income

 

 

497

 

 

 

1

 

 

 

(5

)

 

 

493

 

 

 

453

 

 

 

—

 

 

 

453

 

Total Risk and Insurance Services

 

 

15,395

 

 

 

81

 

 

 

(394

)

 

 

15,082

 

 

 

14,089

 

 

 

(73

)

 

 

14,016

 

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mercer (b)

 

 

5,743

 

 

 

37

 

 

 

(151

)

 

 

5,629

 

 

 

5,587

 

 

 

(249

)

 

 

5,338

 

Oliver Wyman Group (c)

 

 

3,390

 

 

 

(5

)

 

 

(91

)

 

 

3,294

 

 

 

3,122

 

 

 

(2

)

 

 

3,120

 

Total Consulting

 

 

9,133

 

 

 

32

 

 

 

(242

)

 

 

8,923

 

 

 

8,709

 

 

 

(251

)

 

 

8,458

 

Corporate Eliminations

 

 

(70

)

 

 

—

 

 

 

—

 

 

 

(70

)

 

 

(62

)

 

 

—

 

 

 

(62

)

Total Revenue

 

$

24,458

 

 

$

113

 

 

$

(636

)

 

$

23,935

 

 

$

22,736

 

 

$

(324

)

 

$

22,412

 

  Revenue Details  

The following table provides more detailed revenue information for certain of the components presented above:

 

 

 

2024

 

2023

Twelve Months Ended December 31,

 

GAAP Revenue

 

Currency Impact

 

Acquisitions/ Dispositions/ Other Impact

 

Non-GAAP Revenue

 

GAAP Revenue

 

Acquisitions/ Dispositions/ Other Impact

 

Non-GAAP Revenue

Marsh:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

$

3,530

 

$

(10

)

 

$

1

 

 

$

3,521

 

$

3,262

 

$

(3

)

 

$

3,259

Asia Pacific

 

 

1,414

 

 

25

 

 

 

(66

)

 

 

1,373

 

 

1,295

 

 

—

 

 

 

1,295

Latin America

 

 

575

 

 

51

 

 

 

(13

)

 

 

613

 

 

559

 

 

—

 

 

 

559

Total International

 

 

5,519

 

 

66

 

 

 

(78

)

 

 

5,507

 

 

5,116

 

 

(3

)

 

 

5,113

U.S./Canada

 

 

7,017

 

 

7

 

 

 

(313

)

 

 

6,711

 

 

6,262

 

 

—

 

 

 

6,262

Total Marsh

 

$

12,536

 

$

73

 

 

$

(391

)

 

$

12,218

 

$

11,378

 

$

(3

)

 

$

11,375

Mercer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth (b)

 

$

2,584

 

$

—

 

 

$

(129

)

 

$

2,455

 

$

2,507

 

$

(146

)

 

$

2,361

Health (b)

 

 

2,100

 

 

20

 

 

 

(5

)

 

 

2,115

 

 

2,061

 

 

(103

)

 

 

1,958

Career

 

 

1,059

 

 

17

 

 

 

(17

)

 

 

1,059

 

 

1,019

 

 

—

 

 

 

1,019

Total Mercer

 

$

5,743

 

$

37

 

 

$

(151

)

 

$

5,629

 

$

5,587

 

$

(249

)

 

$

5,338

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

 

Acquisitions, dispositions, and other in 2023 includes a gain from a legal settlement with a competitor of $58 million, excluding legal fees.

(b)

 

Acquisitions, dispositions, and other in 2024 includes a net gain of $35 million from the sale of the U.K. pension administration and U.S. health and benefits administration businesses, that comprised of a $70 million gain in Wealth, offset by a $35 million loss in Health.

(c)

 

Acquisitions, dispositions, and other in 2024 includes a gain of $20 million from the sale of a business in Oliver Wyman Group. 

   

 

Note: Amounts in the tables above are rounded to whole numbers.  

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Three Months and Twelve Months Ended

(In millions, except per share data)

(Unaudited)

 

Starting with the first quarter of 2025, the Company will change its methodology to report adjusted net income and adjusted EPS to exclude the impact of intangible amortization and other net benefit credits.

 

The Company believes these non-GAAP financial measures provide useful supplemental information that enables investors to better compare the Company’s performance across periods. Management also uses these measures internally to assess the operating performance of its businesses and to decide how to allocate resources. However, investors should not consider these non-GAAP measures in isolation from, or as a substitute for, the financial information that the Company reports in accordance with GAAP. The Company's non-GAAP measures include adjustments that reflect how management views its businesses, and may differ from similarly titled non-GAAP measures presented by other companies.

 

The following tables reconcile the adjusted income, net of tax and adjusted EPS for the full year and each quarter ended for 2024 and 2023, as previously reported, to the new reporting methodology, to provide comparability of results period over period:

 

 

Three Months Ended

 

Twelve Months Ended

 

March 31, 2024

 

June 30, 2024

 

September 30, 2024

 

December 31, 2024

 

December 31, 2024

 

Amount

 

Adjusted EPS

 

Amount

 

Adjusted EPS

 

Amount

 

Adjusted EPS

 

Amount

 

Adjusted EPS

 

Amount

 

Adjusted EPS

Adjusted income, net of tax, as previously reported

$

1,438

 

 

$

2.89

 

$

1,194

 

 

$

2.41

 

$

810

 

 

$

1.63

 

$

927

 

 

$

1.87

 

$

4,369

 

 

$

8.80

Total identified intangible amortization expense

$

90

 

 

 

 

$

89

 

 

 

 

$

90

 

 

 

 

$

108

 

 

 

 

$

377

 

 

 

Other net benefit credits (a)

 

(68

)

 

 

 

 

(67

)

 

 

 

 

(68

)

 

 

 

 

(68

)

 

 

 

 

(271

)

 

 

Income tax effect of above adjustments (b)

 

(7

)

 

 

 

 

(6

)

 

 

 

 

(7

)

 

 

 

 

(12

)

 

 

 

 

(32

)

 

 

 

 

15

 

 

 

0.03

 

 

16

 

 

 

0.03

 

 

15

 

 

 

0.03

 

 

28

 

 

 

0.06

 

 

74

 

 

 

0.15

Adjusted income, excluding impact of above adjustments, net of tax

$

1,453

 

 

$

2.92

 

$

1,210

 

 

$

2.44

 

$

825

 

 

$

1.66

 

$

955

 

 

$

1.93

 

$

4,443

 

 

$

8.95

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

March 31, 2023

 

June 30, 2023

 

September 30, 2023

 

December 31, 2023

 

December 31, 2023

 

Amount

 

Adjusted EPS

 

Amount

 

Adjusted EPS

 

Amount

 

Adjusted EPS

 

Amount

 

Adjusted EPS

 

Amount

 

Adjusted EPS

Adjusted income, net of tax, as previously reported

$

1,266

 

 

$

2.53

 

$

1,100

 

 

$

2.20

 

$

782

 

 

$

1.57

 

$

838

 

 

$

1.68

 

$

3,986

 

 

$

7.99

Total identified intangible amortization expense

$

85

 

 

 

 

$

87

 

 

 

 

$

85

 

 

 

 

$

86

 

 

 

 

$

343

 

 

 

Other net benefit credits (a)

 

(58

)

 

 

 

 

(60

)

 

 

 

 

(62

)

 

 

 

 

(59

)

 

 

 

 

(239

)

 

 

Income tax effect of above adjustments (b)

 

(8

)

 

 

 

 

(8

)

 

 

 

 

(7

)

 

 

 

 

(8

)

 

 

 

 

(31

)

 

 

 

 

19

 

 

 

0.04

 

 

19

 

 

 

0.04

 

 

16

 

 

 

0.03

 

 

19

 

 

 

0.04

 

 

73

 

 

 

0.15

Adjusted income, excluding impact of above adjustments, net of tax

$

1,285

 

 

$

2.57

 

$

1,119

 

 

$

2.24

 

$

798

 

 

$

1.60

 

$

857

 

 

$

1.72

 

$

4,059

 

 

$

8.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

 

Other net benefit credits excludes pension settlement adjustments included in adjusted income, net of tax, as previously reported. 

(b)

 

For items with an income tax impact, the tax effect was calculated using an effective tax rate based on the tax jurisdiction for each item.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250129602900/en/

Media Contact: Erick R. Gustafson Marsh McLennan +1 202 263 7788 erick.gustafson@mmc.com

Investor Contact: Jay Gelb Marsh McLennan +1 212 345 1569 jay.gelb@mmc.com