Marsh McLennan (NYSE: MMC) has reported its financial results for the first quarter ending March 31, 2024. The company's consolidated revenue for the first quarter of 2024 was $6.5 billion, representing a 9% increase compared to the same period in 2023. On an underlying basis, revenue also increased by 9%.
Operating income saw a significant rise, increasing by 12% to $1.9 billion. Adjusted operating income, which excludes noteworthy items, also experienced a strong 11% growth, reaching $2.0 billion. Net income attributable to the company was reported at $1.4 billion.
Earnings per share (EPS) surged by 14% to $2.82, while adjusted EPS also rose by 14% to $2.89.
In terms of specific business segments, the company's risk & insurance services revenue reached $4.3 billion in the first quarter of 2024, marking a 9% increase on both a GAAP and underlying basis. Operating income for this segment increased by 12% to $1.6 billion, with adjusted operating income growing by 11% to the same amount.
Marsh, a key subsidiary within risk & insurance services, reported revenue of $3.0 billion for the first quarter of 2024, representing a 9% increase, or 8% on an underlying basis. The company witnessed underlying revenue growth of 8% in the U.S./Canada market, while its international operations saw underlying revenue growth of 8%, driven by strong performance in EMEA, Latin America, and Asia Pacific.
Consulting revenue for the first quarter of 2024 was $2.2 billion, reflecting a 9% increase on both a GAAP and underlying basis. Operating income in this segment increased by 5% to $432 million, while adjusted operating income surged by 9% to $444 million.
Mercer, another key segment, reported revenue of $1.4 billion in the first quarter, marking a 6% increase on both a GAAP and underlying basis. Within Mercer, health revenue of $538 million experienced a substantial 10% increase on an underlying basis, while wealth revenue reached $672 million, growing by 5% on an underlying basis. Career revenue of $215 million also increased by 1% on an underlying basis.
Furthermore, Oliver Wyman's revenue for the first quarter of 2024 was $789 million, indicating a significant 13% increase on an underlying basis.
The company also engaged in strategic financial activities during the first quarter of 2024, including the repurchase of 1.5 million shares of stock for $300 million. Additionally, it issued $1 billion of senior notes and repaid $1 billion of senior notes that matured.
In terms of acquisitions, Oliver Wyman completed the acquisition of Seatec Consulting in February, while Marsh McLennan Agency (MMA) concluded the acquisition of Querbes & Nelson and Louisiana Companies, and Mercer acquired Vanguard's U.S. outsourced chief investment officer (OCIO) business.
Marsh McLennan's strong performance in the first quarter of 2024 positions the company for continued success throughout the year, as it continues to navigate a dynamic and complex business environment. Following these announcements, the company's shares moved 2.4%, and are now trading at a price of $202.41. For the full picture, make sure to review Marsh & McLennan's 8-K report.
