Marsh McLennan confirms full-year financial results
Marsh McLennan confirms full-year financial results | Insurance Business New Zealand
Insurance News
Marsh McLennan confirms full-year financial results
Find out how the major brokerage 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 $5.6 billion, an 11% increase from the same period in 2022, or 7% on an underlying basis.
Operating income reached $1.1 billion, while adjusted operating income, excluding noteworthy items, surged by 16% to $1.2 billion.
Net income attributable to Marsh McLennan stood at $756 million, with earnings per share witnessing a 63% increase to $1.52. Adjusted earnings per share marked a 14% rise to $1.68.
Marsh McLennan full year financial figures
For the entire fiscal year 2023, Marsh reported revenue of $22.7 billion, marking a 10% increase compared to 2022, or 9% on an underlying basis.
Operating income amounted to $5.3 billion, with adjusted operating income rising by 17% to $5.6 billion.
Net income attributable to the company reached $3.8 billion, resulting in an earnings per share increase of 25% to $7.53. Adjusted earnings per share experienced a 17% increase, reaching $7.99.
Risk and insurance services figures
In the realm of risk & insurance services, Q4 FY23 saw revenue of $3.3 billion, up by 11%, or 8% on an underlying basis. Operating income reached $753 million, a notable increase from the $472 million reported in the fourth quarter of 2022. Adjusted operating income rose by 15% to $791 million.
For the entire year, revenue in risk & insurance services amounted to $14.1 billion, demonstrating an 11% increase on both a GAAP and an underlying basis. Operating income for the year stood at $3.9 billion, with adjusted operating income rising by 17% to $4.1 billion.
Aside from financial figures, Marsh revealed that in Q4 FY23, the company repurchased 1.3 million shares of stock for $250 million. Throughout the year 2023, a total of 6.4 million shares were repurchased for $1.15 billion.
Additionally, on October 16, 2023, the company repaid $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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