Marsh & McLennan Q4 Earnings Beat Estimates on Solid US Business

Core Viewpoint - Marsh & McLennan Companies, Inc. (MMC) reported strong fourth-quarter 2024 results, with adjusted earnings per share of $1.87, exceeding estimates and showing an 11% year-over-year increase [1][6]. Financial Performance - Consolidated revenues rose 9.4% year over year to $6.1 billion, surpassing the consensus estimate by 2.5% [2][3]. - Total operating expenses increased 10.6% year over year to $4.9 billion, driven by higher compensation and benefits costs [5][6]. - Adjusted operating income was $1.3 billion, an 8.6% increase year over year, but slightly below estimates [6]. Segment Performance - Risk and Insurance Services: Revenues increased 11% year over year to $3.6 billion, with adjusted operating income rising 13% to $893 million [7][8]. - Consulting: Revenues grew 6% year over year to $2.44 billion, with adjusted operating income rising 1% to $484 million [10][11]. Cash Flow and Capital Deployment - Operating cash flows for 2024 were $4.3 billion, a slight increase from the previous year [14]. - The company repurchased 4.3 million shares for $900 million in the fourth quarter [15]. Full-Year Update - For 2024, adjusted earnings per share were $8.80, up 10% from 2023, with consolidated revenues of $24.5 billion, an 8% year-over-year increase [16][17]. - Adjusted operating margin improved to 26.8%, up 80 basis points year over year [16]. Financial Position - As of December 31, 2024, cash and cash equivalents were $2.4 billion, down from $3.36 billion at the end of 2023 [13]. - Total assets increased to $56.5 billion, while long-term debt rose to $19.4 billion [13].