Marsh McLennan reported strong financial results for the fourth quarter and full-year 2024, achieving robust revenue growth and record-high acquisitions.
For the full year, Marsh McLennan reported revenue of $24.5 billion, an 8% increase from 2023, with underlying revenue growth of 7%. GAAP operating income rose 10% to $5.8 billion, while adjusted operating income climbed 11% to $6.2 billion. Net income for the year stood at $4.1 billion, with GAAP earnings per share (EPS) increasing 9% to $8.18, and adjusted EPS rising 10% to $8.80.
The fourth quarter saw revenue of $6.1 billion, up 9% from Q4 2023, or 7% on an underlying basis. Operating income reached $1.1 billion, with adjusted operating income up 9% to $1.3 billion. GAAP EPS increased 5% to $1.59, while adjusted EPS rose 11% to $1.87.
Revenue for the risk & insurance services segment grew 11% in Q4 to $3.6 billion, or 8% on an underlying basis. Full-year revenue reached $15.4 billion, reflecting a 9% increase (8% underlying). Adjusted operating income for the year climbed 13% to $4.6 billion.
Marsh, the company’s global insurance broking arm, recorded Q4 revenue of $3.3 billion, up 15%, or 8% on an underlying basis. Its international operations saw strong growth, with Latin America up 13%, EMEA up 9%, and Asia Pacific up 6%. Full-year revenue for Marsh increased 10% (7% underlying).
At the same time, Guy Carpenter, the group’s reinsurance business, reported Q4 revenue of $201 million, marking a 20% decline in GAAP terms but a 7% increase on an underlying basis. For the full year, Guy Carpenter’s revenue increased 5% (8% underlying).
Consulting revenue in Q4 reached $2.4 billion, up 6% on both a GAAP and underlying basis. Full-year revenue for the segment totalled $9.1 billion, reflecting a 5% increase (6% underlying). Adjusted operating income for the year rose 6% to $1.8 billion.
Mercer, Marsh’s HR and investment consulting unit, posted Q4 revenue of $1.5 billion, a 3% increase (5% underlying). Growth was led by Wealth (up 4% underlying), Health (up 5% underlying), and Career (up 7% underlying). For the full year, Mercer’s revenue increased 3% (5% underlying). Oliver Wyman, the firm’s management consulting arm, reported Q4 revenue of $954 million, up 11% (7% underlying). For the full year, Oliver Wyman’s revenue increased 9% (6% underlying) to $3.4 billion.
Marsh McLennan completed the acquisition of McGriff Insurance Services, LLC for $7.75 billion in November 2024, marking the largest acquisition in the company’s history. The company issued $7.25 billion in senior notes to support the transaction. Additionally, Marsh McLennan repurchased 4.3 million shares for $900 million during the year.
John Doyle, president and CEO of Marsh McLennan, expressed satisfaction with the company’s performance. “Our fourth quarter results capped a terrific year for Marsh McLennan,” he said. “We delivered on our strategic objectives, generated excellent financial performance, and executed 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.”
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