Marsh McLennan announces full-year financial results
Marsh McLennan announces full-year financial results | Insurance Business Australia
Insurance News
Marsh McLennan announces full-year financial results
Find out how the brokerage giant performed…
Insurance News
By
Roxanne Libatique
Marsh McLennan (Marsh) has revealed its financial performance for the fourth quarter (Q4) and the year concluding on December 31, 2023 (FY23).
The results, presented by president and CEO John Doyle, gave the brokerage giant plenty of reasons for cheer.
Marsh McLennan Q4 2023 figures
The consolidated revenue for Q4 FY23 reached US$5.6 billion, an 11% increase from the same period in 2022, or 7% on an underlying basis.
Operating income reached US$1.1 billion, while adjusted operating income, excluding noteworthy items, surged by 16% to US$1.2 billion.
Net income attributable to Marsh McLennan stood at US$756 million, with earnings per share witnessing a 63% increase to US$1.52. Adjusted earnings per share marked a 14% rise to US$1.68.
Marsh McLennan full year financial figures
For the entire fiscal year 2023, Marsh reported revenue of US$22.7 billion, marking a 10% increase compared to 2022, or 9% on an underlying basis.
Operating income amounted to US$5.3 billion, with adjusted operating income rising by 17% to US$5.6 billion.
Net income attributable to the company reached US$3.8 billion, resulting in an earnings per share increase of 25% to US$7.53. Adjusted earnings per share experienced a 17% increase, reaching US$7.99.
Risk and insurance services figures
In the realm of risk & insurance services, Q4 FY23 saw revenue of US$3.3 billion, up by 11%, or 8% on an underlying basis. Operating income reached US$753 million, a notable increase from the US$472 million reported in the fourth quarter of 2022. Adjusted operating income rose by 15% to US$791 million.
For the entire year, revenue in risk & insurance services amounted to US$14.1 billion, demonstrating an 11% increase on both a GAAP and an underlying basis. Operating income for the year stood at US$3.9 billion, with adjusted operating income rising by 17% to US$4.1 billion.
Aside from financial figures, Marsh revealed that in Q4 FY23, the company repurchased 1.3 million shares of stock for US$250 million. Throughout the year 2023, a total of 6.4 million shares were repurchased for US$1.15 billion.
Additionally, on October 16, 2023, the company repaid US$250 million of senior notes that had matured. In November, Marsh successfully completed the acquisition of Honan Insurance Group, a leading insurance broker in Australia and New Zealand.
The results left Doyle delighted with the firm’s performance.
“Our fourth quarter results highlight a strong finish to another outstanding year for Marsh McLennan,” he said. “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.”
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