New York-based Marsh & McLennan Companies, Inc. (MMC) is a leading global professional-services firm and the world’s largest insurance broker, operating in more than 130 countries. Through its major brands, Marsh and Guy Carpenter in risk and insurance services, and Mercer and Oliver Wyman in consulting, MMC provides insurance broking, risk management, reinsurance solutions, human-capital advisory, and strategic consulting. Companies worth $10 billion or more are generally described as "large-cap stocks." ...

Financial Data and Key Metrics Changes - For the full year 2024, the company achieved organic revenue growth of 6% and total revenue growth of 17% [5][20] - Adjusted operating income increased by 17%, leading to a 10% growth in adjusted earnings per share (EPS) [5][20] - Free cash flow reached $2.8 billion, reflecting strong operating income growth and working capital improvements [29][20] Business Line Data and Key Metrics Changes - In Q4, organic revenue growth for commercial risk was 6%, driven by strength in North American core P&C business and international contributions [21][22] - Reinsurance organic revenue also grew by 6% in Q4, supported by strong treaty placements and interest in catastrophe bonds [23] - Health solutions experienced 5% growth in Q4, while wealth solutions delivered 8% organic revenue growth, driven by demand for pension risk transfer consulting [24] Market Data and Key Metrics Changes - The company noted a flat net market impact from growth and exposures in rates, with a modestly negative rate impact in reinsurance [24][25] - The overall market remains under-penetrated, with increasing demand driven by megatrends in trade, technology, weather, and workforce [76] Company Strategy and Development Direction - The company is executing its 3x3 plan, focusing on risk capital and human capital, Aon client leadership, and Aon Business Services [8][15] - The integration of NFP is progressing well, with expectations of achieving $45 million to $60 million in targeted acquired EBITDA in 2025 [19][42] - Continued investment in client-facing talent and innovative technology-driven solutions is prioritized to support growth [15][36] Management's Comments on Operating Environment and Future Outlook - Management highlighted increasing volatility and complexity in client environments, necessitating enhanced risk management solutions [6][7] - The company expects to maintain mid single-digit or greater organic revenue growth, continued margin expansion, and strong adjusted EPS growth in 2025 [5][36] - Management expressed confidence in achieving a double-digit compound annual growth rate (CAGR) in free cash flow from 2023 to 2026 [20][36] Other Important Information - The company paid down $2.1 billion in debt and returned $1.6 billion in capital to shareholders through dividends and share repurchases [19][29] - Adjusted operating margin for Q4 was 33.3%, reflecting a 140 basis point expansion [26] Q&A Session Summary Question: Integration of NFP and future M&A opportunities - Management confirmed that the integration of NFP is on track and expressed confidence in pursuing additional M&A opportunities as the platform becomes more integrated [43][44][46] Question: Growth in Reinsurance Solutions and ILS market - Management noted that the ILS business is a smaller component of reinsurance but is driving growth, with interest in catastrophe bonds and other innovative risk transfer solutions [51][53] Question: Retention improvement efforts and M&A Services rebound - Management highlighted strengthening retention rates, particularly in North America, and noted that M&A services are expected to pick up modestly [60][63] Question: Seasonal expectations for Q1 in commercial risk - Management indicated that there are no specific seasonal expectations for Q1, but they remain committed to achieving mid single-digit growth [72][74] Question: EPS growth guidance - Management provided detailed guidance on organic revenue growth and margin expansion, indicating confidence in achieving strong EPS growth [85][88]