Marsh McLennan reports 7% underlying growth as adj EPS beats consensus

By Scott Vincent

Jan 30 - (The Insurer) - Marsh McLennan reported adjusted earnings per share of $1.87 for the fourth quarter of 2024, beating analysts consensus of $1.75.

Q4 adj EPS of $1.87 beats consensus of $1.75 (and up 11% YoY)

Marsh and Guy Carpenter Q4 underlying growth of 8% and 7% respectively

Q4 adj operating margin of 27%, in line with Q4 2023

FY adj operating margin expansion of 80 basis points

At group level, Marsh McLennan generated revenue of $6.1bn for the quarter, an increase of 9 percent compared with Q4 2023. Underlying growth totalled 7 percent for the quarter.

Adjusted operating income was up 9 percent to $1.3bn.

The risk and insurance services segment generated $3.6bn of revenue during Q4, with underlying growth of 8 percent.

The segment produced adjusted operating income of $893mn for the quarter, an increase of 13 percent.

Marsh accounted for $3.3bn of the segment’s revenue, with an 8 percent underlying increase.

Marsh’s underlying revenue growth totalled 8 percent in the US and Canada and 9 percent in its international operations, reflecting 13 percent growth in Latin America, 9 percent in EMEA and 6 percent in Asia Pacific.

Guy Carpenter's fourth quarter revenue totalled $201mn, down 20 percent year-on-year, but up 7 percent on an underlying basis.

For the full-year, risk and insurance services generated 8 percent underlying growth with revenue totalling $15.4bn. Marsh and Guy Carpenter saw full year underlying growth of 7 and 8 percent respectively.

John Doyle, Marsh McLennan’s 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 percent underlying revenue growth, 10 percent adjusted EPS growth and 80 basis points of adjusted margin expansion, marking our seventeenth 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."