Marsh McLennan Reports Fourth Quarter and Full-year 2023 Results

Full-Year Revenue Growth of 10%; Underlying Revenue Growth of 9%

Full-Year GAAP Operating Income Increases 23%; Adjusted Operating Income Increases 17%

Full-Year GAAP EPS of $7.53; Adjusted EPS Increases 17% to $7.99

Fourth Quarter GAAP EPS of $1.52; Adjusted EPS Increases 14% to $1.68

NEW YORK–(BUSINESS WIRE)–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, 2023.


John Doyle, President and CEO, said: “Our fourth quarter results highlight a strong finish to another outstanding year for Marsh McLennan. For the full year, we generated 9% underlying revenue growth, 17% adjusted EPS growth and 130 basis points of margin expansion, marking our 16th consecutive year of reported margin expansion. In addition, we continued to make substantial organic and inorganic investments in our business with significant acquisition activity in 2023.”

“Our results and investments have us well positioned for 2024 as we remain focused on supporting our clients and helping them thrive.”

Consolidated Results

Consolidated revenue in the fourth quarter of 2023 was $5.6 billion, an increase of 11% compared with the fourth quarter of 2022, or an increase of 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 16% to $1.2 billion. Net income attributable to the Company was $756 million. Earnings per share increased 63% to $1.52. Adjusted earnings per share increased 14% to $1.68.

For the full year 2023, revenue was $22.7 billion, an increase of 10% compared with 2022, or 9% on an underlying basis. Operating income was $5.3 billion, and adjusted operating income rose 17% to $5.6 billion. Net income attributable to the Company was $3.8 billion. Earnings per share increased 25% to $7.53. Adjusted earnings per share increased 17% to $7.99.

Risk & Insurance Services

Risk & Insurance Services revenue was $3.3 billion in the fourth quarter of 2023, an increase of 11%, or 8% on an underlying basis. Operating income was $753 million, compared with $472 million in the fourth quarter of 2022. Adjusted operating income increased 15% to $791 million. For the year 2023, revenue was $14.1 billion, an increase of 11% on both a GAAP and an underlying basis. Operating income was $3.9 billion. Adjusted operating income rose 17% to $4.1 billion.

Marsh’s revenue in the fourth quarter of 2023 was $2.9 billion, an increase of 7%, or 6% on an underlying basis. In U.S./Canada, underlying revenue rose 5%. International operations produced underlying revenue growth of 7%, reflecting 11% in Latin America, 10% in Asia Pacific, and 5% in EMEA. For the year 2023, Marsh’s revenue growth was 8% on both a GAAP and underlying basis.

Guy Carpenter’s fourth quarter revenue was $252 million, an increase of 48%, or 9% on an underlying basis. For the year 2023, Guy Carpenter’s revenue grew 12% compared to a year ago, or 10% on an underlying basis.

Consulting

Consulting revenue was $2.3 billion in the fourth quarter of 2023, an increase of 10%, or 7% on an underlying basis. Operating income increased 32% to $443 million, compared with $336 million in the fourth quarter of 2022. Adjusted operating income was $480 million, an increase of 18% compared with $407 million in the fourth quarter of 2022. For the year 2023, revenue was $8.7 billion, an increase of 7% on both a GAAP and underlying basis. Operating income was $1.7 billion. Adjusted operating income increased 13% to $1.7 billion.

Mercer’s revenue was $1.4 billion in the fourth quarter of 2023, an increase of 9%, or 5% on an underlying basis. Wealth revenue of $654 million increased 4% on an underlying basis. Health revenue of $502 million increased 9% on an underlying basis. Career revenue of $288 million increased 1% on an underlying basis. For the year 2023, Mercer’s revenue increased 5%, or 7% on an underlying basis.

Oliver Wyman’s revenue was $856 million in the fourth quarter of 2023, an increase of 9% on an underlying basis. For the year 2023, Oliver Wyman’s revenue was $3.1 billion, an increase of 8% on an underlying basis.

Other Items

The Company repurchased 1.3 million shares of stock for $250 million in the fourth quarter. For the year 2023, the Company repurchased 6.4 million shares for $1.15 billion.

On October 16, 2023, the Company repaid $250 million of senior notes that matured.

In November, Marsh completed the acquisition of Honan Insurance Group, a leading insurance broker in Australia and New Zealand.

Conference Call

A conference call to discuss fourth quarter 2023 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 the world’s leading professional services firm in the areas of risk, strategy and people. The Company’s more than 85,000 colleagues advise clients in over 130 countries. With annual revenue of $23 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses. Marsh provides data-driven risk advisory services and insurance solutions to commercial and consumer clients. Guy Carpenter develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities. Mercer delivers advice and technology-driven solutions that help organizations redefine the world of work, reshape retirement and investment outcomes, and unlock health and well being for a changing workforce. Oliver Wyman serves as a critical strategic, economic and brand advisor to private sector and governmental clients. For more information, visit marshmclennan.com, or 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, escalating conflict throughout the Middle East and rising tension in the South China Sea, slower GDP growth or recession, lower interest rates, capital markets volatility and inflation;
  • 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 disagreements with and challenges by tax authorities in the current global tax environment; and
  • the regulatory, contractual and reputational risks that arise based on insurance placement activities and insurer revenue streams.

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,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue

$

5,554

 

 

$

5,022

 

 

$

22,736

 

 

$

20,720

 

Expense:

 

 

 

 

 

 

 

Compensation and benefits

 

3,268

 

 

 

3,038

 

 

 

13,099

 

 

 

12,071

 

Other operating expenses

 

1,183

 

 

 

1,304

 

 

 

4,355

 

 

 

4,369

 

Operating expenses

 

4,451

 

 

 

4,342

 

 

 

17,454

 

 

 

16,440

 

Operating income

 

1,103

 

 

 

680

 

 

 

5,282

 

 

 

4,280

 

Other net benefit credits

 

59

 

 

 

57

 

 

 

239

 

 

 

235

 

Interest income

 

38

 

 

 

9

 

 

 

78

 

 

 

15

 

Interest expense

 

(151

)

 

 

(127

)

 

 

(578

)

 

 

(469

)

Investment (loss) income

 

(1

)

 

 

(6

)

 

 

5

 

 

 

21

 

Income before income taxes

 

1,048

 

 

 

613

 

 

 

5,026

 

 

 

4,082

 

Income tax expense

 

283

 

 

 

142

 

 

 

1,224

 

 

 

995

 

Net income before non-controlling interests

 

765

 

 

 

471

 

 

 

3,802

 

 

 

3,087

 

Less: Net income attributable to non-controlling interests

 

9

 

 

 

5

 

 

 

46

 

 

 

37

 

Net income attributable to the Company

$

756

 

 

$

466

 

 

$

3,756

 

 

$

3,050

 

Net income per share attributable to the Company:

 

 

 

 

 

 

 

– Basic

$

1.53

 

 

$

0.94

 

 

$

7.60

 

 

$

6.11

 

– Diluted

$

1.52

 

 

$

0.93

 

 

$

7.53

 

 

$

6.04

 

Average number of shares outstanding:

 

 

 

 

 

 

 

– Basic

 

493

 

 

 

496

 

 

 

494

 

 

 

499

 

– Diluted

 

498

 

 

 

501

 

 

 

499

 

 

 

505

 

Shares outstanding at December 31

 

492

 

 

 

495

 

 

 

492

 

 

 

495

 

Marsh & McLennan Companies, Inc.

Supplemental Information – Revenue Analysis

Three Months Ended December 31

(Millions) (Unaudited)

The Company advises clients in over 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

 

 

 

2023

 

 

 

2022

 

 

 

Risk and Insurance Services

 

 

 

 

 

 

 

 

 

 

 

 

Marsh

 

$

2,896

 

 

$

2,711

 

 

7

%

 

 

 

1

%

 

6

%

Guy Carpenter (a)

 

 

252

 

 

 

171

 

 

48

%

 

2

%

 

36

%

 

9

%

Subtotal

 

 

3,148

 

 

 

2,882

 

 

9

%

 

1

%

 

3

%

 

6

%

Fiduciary Interest Income

 

 

123

 

 

 

63

 

 

 

 

 

 

 

 

 

Total Risk and Insurance Services

 

 

3,271

 

 

 

2,945

 

 

11

%

 

1

%

 

3

%

 

8

%

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

Mercer

 

 

1,444

 

 

 

1,329

 

 

9

%

 

2

%

 

2

%

 

5

%

Oliver Wyman Group

 

 

856

 

 

 

765

 

 

12

%

 

2

%

 

1

%

 

9

%

Total Consulting

 

 

2,300

 

 

 

2,094

 

 

10

%

 

2

%

 

2

%

 

7

%

Corporate Eliminations

 

 

(17

)

 

 

(17

)

 

 

 

 

 

 

 

 

Total Revenue

 

$

5,554

 

 

$

5,022

 

 

11

%

 

1

%

 

2

%

 

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

 

 

 

2023

 

 

2022

 

 

Marsh:

 

 

 

 

 

 

 

 

 

 

 

 

EMEA (b)

 

$

780

 

$

733

 

6

%

 

3

%

 

(1

)%

 

5

%

Asia Pacific (b)

 

 

315

 

 

288

 

9

%

 

(1

)%

 

 

 

10

%

Latin America

 

 

173

 

 

162

 

7

%

 

(4

)%

 

 

 

11

%

Total International

 

 

1,268

 

 

1,183

 

7

%

 

1

%

 

(1

)%

 

7

%

U.S./Canada

 

 

1,628

 

 

1,528

 

7

%

 

 

 

2

%

 

5

%

Total Marsh

 

$

2,896

 

$

2,711

 

7

%

 

 

 

1

%

 

6

%

Mercer:

 

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

$

654

 

$

591

 

10

%

 

2

%

 

4

%

 

4

%

Health

 

 

502

 

 

455

 

10

%

 

1

%

 

 

 

9

%

Career

 

 

288

 

 

283

 

2

%

 

1

%

 

 

 

1

%

Total Mercer

 

$

1,444

 

$

1,329

 

9

%

 

2

%

 

2

%

 

5

%

(a)

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

(b)

In the first quarter of 2023, the Company began reporting the Marsh India operations in EMEA. Prior year results for India have been reclassified from Asia Pacific to EMEA for comparative purposes.

 

*

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 over 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

 

 

 

2023

 

 

 

2022

 

 

 

Risk and Insurance Services

 

 

 

 

 

 

 

 

 

 

 

 

Marsh

 

$

11,378

 

 

$

10,505

 

 

8

%

 

(1

)%

 

1

%

 

8

%

Guy Carpenter (a)

 

 

2,258

 

 

 

2,020

 

 

12

%

 

(1

)%

 

3

%

 

10

%

Subtotal

 

 

13,636

 

 

 

12,525

 

 

9

%

 

(1

)%

 

1

%

 

8

%

Fiduciary Interest Income

 

 

453

 

 

 

120

 

 

 

 

 

 

 

 

 

Total Risk and Insurance Services

 

 

14,089

 

 

 

12,645

 

 

11

%

 

(1

)%

 

1

%

 

11

%

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

Mercer

 

 

5,587

 

 

 

5,345

 

 

5

%

 

 

 

(1

)%

 

7

%

Oliver Wyman Group

 

 

3,122

 

 

 

2,794

 

 

12

%

 

1

%

 

3

%

 

8

%

Total Consulting

 

 

8,709

 

 

 

8,139

 

 

7

%

 

 

 

 

 

7

%

Corporate Eliminations

 

 

(62

)

 

 

(64

)

 

 

 

 

 

 

 

 

Total Revenue

 

$

22,736

 

 

$

20,720

 

 

10

%

 

 

 

1

%

 

9

%

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

 

 

 

2023

 

 

2022

 

 

Marsh:

 

 

 

 

 

 

 

 

 

 

 

EMEA (b)

 

$

3,262

 

$

2,997

 

9

%

 

 

 

 

9

%

Asia Pacific (b)

 

 

1,295

 

 

1,215

 

7

%

 

(3

)%

 

 

9

%

Latin America

 

 

559

 

 

502

 

11

%

 

(1

)%

 

 

13

%

Total International

 

 

5,116

 

 

4,714

 

9

%

 

(1

)%

 

 

9

%

U.S./Canada

 

 

6,262

 

 

5,791

 

8

%

 

 

2

%

 

7

%

Total Marsh

 

$

11,378

 

$

10,505

 

8

%

 

(1

)%

1

%

 

8

%

Mercer:

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

$

2,507

 

$

2,366

 

6

%

 

 

2

%

 

4

%

Health

 

 

2,061

 

 

2,017

 

2

%

 

 

(7

)%

 

10

%

Career

 

 

1,019

 

 

962

 

6

%

 

(1

)%

1

%

 

6

%

Total Mercer

 

$

5,587

 

$

5,345

 

5

%

 

 

(1

)%

 

7

%

(a)

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

(b)

In the first quarter of 2023, the Company began reporting the Marsh India operations in EMEA. Prior year results for India have been reclassified from Asia Pacific to EMEA for comparative purposes.

 

*

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, 2023 and 2022. The following tables also present adjusted operating margin. For the three and twelve months ended December 31, 2023 and 2022, 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, 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, excluding JLT (a)

 

 

79

 

 

 

29

 

 

 

14

 

 

 

122

 

Changes in fair value of contingent consideration

 

 

7

 

 

 

1

 

 

 

 

 

 

8

 

JLT integration and restructuring costs (b)

 

 

9

 

 

 

 

 

 

 

 

 

9

 

Legal settlement (c)

 

 

(58

)

 

 

 

 

 

 

 

 

(58

)

Westpac acquisition and integration related costs

 

 

 

 

 

7

 

 

 

 

 

 

7

 

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

%

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2022

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

472

 

 

$

336

 

 

$

(128

)

 

$

680

 

Operating margin

 

 

16.0

%

 

 

16.0

%

 

 

N/A

 

 

 

13.5

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring, excluding JLT (a)

 

 

119

 

 

 

54

 

 

 

60

 

 

 

233

 

Changes in fair value of contingent consideration

 

 

11

 

 

 

 

 

 

 

 

 

11

 

JLT integration and restructuring costs (b)

 

 

91

 

 

 

6

 

 

 

 

 

 

97

 

Westpac acquisition and integration related costs

 

 

 

 

 

13

 

 

 

 

 

 

13

 

JLT legacy legal charges

 

 

 

 

 

(2

)

 

 

 

 

 

(2

)

Disposal of businesses

 

 

(8

)

 

 

 

 

 

 

 

 

(8

)

Operating income adjustments

 

 

213

 

 

 

71

 

 

 

60

 

 

 

344

 

Adjusted operating income (loss)

 

$

685

 

 

$

407

 

 

$

(68

)

 

$

1,024

 

Total identified intangible amortization expense

 

$

68

 

 

$

12

 

 

$

 

 

$

80

 

Adjusted operating margin

 

 

25.6

%

 

 

20.0

%

 

 

N/A

 

 

 

22.0

%

(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)

Reflects adjustments to restructuring liabilities for lease exit charges for a legacy JLT U.K. location.

(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, 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, excluding JLT (a)

 

 

146

 

 

 

62

 

 

 

62

 

 

 

270

 

Changes in fair value of contingent consideration

 

 

27

 

 

 

2

 

 

 

 

 

 

29

 

JLT integration and restructuring costs (b)

 

 

31

 

 

 

 

 

 

 

 

 

31

 

JLT legacy legal charges (c)

 

 

 

 

 

(51

)

 

 

 

 

 

(51

)

Disposal of businesses (d)

 

 

 

 

 

17

 

 

 

 

 

 

17

 

Legal settlement (e)

 

 

(58

)

 

 

 

 

 

 

 

 

(58

)

Westpac acquisition and integration related costs

 

 

 

 

 

39

 

 

 

 

 

 

39

 

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

%

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31, 2022

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

3,089

 

 

$

1,553

 

 

$

(362

)

 

$

4,280

 

Operating margin

 

 

24.4

%

 

 

19.1

%

 

 

N/A

 

 

 

20.7

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring, excluding JLT (a)

 

 

157

 

 

 

61

 

 

 

94

 

 

 

312

 

Changes in fair value of contingent consideration

 

 

44

 

 

 

5

 

 

 

 

 

 

49

 

JLT integration and restructuring costs (b)

 

 

97

 

 

 

16

 

 

 

2

 

 

 

115

 

JLT legacy legal charges (c)

 

 

14

 

 

 

(13

)

 

 

 

 

 

1

 

JLT acquisition related costs

 

 

24

 

 

 

1

 

 

 

3

 

 

 

28

 

Disposal of businesses (d)

 

 

(8

)

 

 

(114

)

 

 

 

 

 

(122

)

Legal claims (f)

 

 

30

 

 

 

 

 

 

 

 

 

30

 

Westpac acquisition and integration related costs

 

 

 

 

 

21

 

 

 

 

 

 

21

 

Deconsolidation of Russian businesses and other related charges (g)

 

 

42

 

 

 

10

 

 

 

 

 

 

52

 

Operating income adjustments

 

 

400

 

 

 

(13

)

 

 

99

 

 

 

486

 

Adjusted operating income (loss)

 

$

3,489

 

 

$

1,540

 

 

$

(263

)

 

$

4,766

 

Total identified intangible amortization expense

 

$

291

 

 

$

47

 

 

$

 

 

$

338

 

Adjusted operating margin

 

 

29.8

%

 

 

19.7

%

 

 

N/A

 

 

 

24.7

%

Contacts

Media Contact:
Erick R. Gustafson

Marsh McLennan

+1 202 263 7788

[email protected]

Investor Contact:
Sarah DeWitt

Marsh McLennan

+1 212 345 6750

[email protected]

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