We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Marsh & McLennan Companies, Inc. (MMC - Free Report) delivered third-quarter 2021 adjusted earnings per share of $1.08, surpassing the Zacks Consensus of Estimate by 9.1%. This upside is owing to a solid contribution from its Risk and Insurance Services as well as Consulting segments. The bottom line also improved 32% from the year-ago quarter’s level.
Consolidated revenues of $4.6 billion were up 16% year over year. The top line too beat the Zacks Consensus Estimate by 5.2% on the back of its strong Risk and Insurance Services as well as Consulting segments.
Total operating expenses of $3.8 billion in the third quarter were up 12.1% year over year due to higher compensation and benefits and other operating expense.
Marsh & McLennan Companies, Inc. Price, Consensus and EPS Surprise
Revenues of $2.7 billion were up 13% on an underlying basis. Adjusted operating income improved 21% to $469 million from the prior-year quarter’s level.
Marsh, a unit within this segment, generated revenues worth $2.4 billion, up 13% on an underlying basis. In the U.S./Canada, underlying revenues rose 16% year over year.
Underlying revenues from international operations rose 9% year over year including a 9% increase of the same in the Asia Pacific, a 12% rise in Latin America and an 8% hike in EMEA.
Revenues from another unit under this segment, Guy Carpenter, were up 15% year over year on an underlying basis in the quarter under review.
Consulting
Revenues were up 12% on an underlying basis to $1.9 billion. Adjusted operating income ascended 15% to $350 million as well.
A unit within this segment, Mercer, generated revenues of $1.3 billion, climbing 7% on an underlying basis. Wealth’s revenues rose 6% on an underlying basis. Health’s revenues were up 4% year over year while the same at Career was up 13% on an underlying basis. Another unit Oliver Wyman Group registered revenues worth $610 million, up 25% year over year on an underlying basis.
Share Repurchase Update
The company bought back shares worth $300 million in the quarter under review.
Financial Update
Marsh & McLennan exited the third quarter with cash and cash equivalents of $1.3 billion, down 33.1% from the level at 2020 end.
Net cash provided by operations stood at $2 billion at the end of the first nine months of 2021, up 3.8% from the year-ago quarter’s value.
As of Sep 30, 2021, Marsh & McLennan’s total assets were $32.9 billion, down 0.2% from the figure as of Dec 31, 2020.
Total equity was $9.8 billion, up 6.8% from the level at 2020 end.
Among other insurance industry players, which have reported third-quarter earnings so far, the bottom-line results of RLI Corp. (RLI - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) beat the respective Zacks Consensus Estimate while the same of The Progressive Corporation (PGR - Free Report) missed the mark.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Marsh & McLennan's (MMC) Q3 Earnings Beat Mark, Surge Y/Y
Marsh & McLennan Companies, Inc. (MMC - Free Report) delivered third-quarter 2021 adjusted earnings per share of $1.08, surpassing the Zacks Consensus of Estimate by 9.1%. This upside is owing to a solid contribution from its Risk and Insurance Services as well as Consulting segments. The bottom line also improved 32% from the year-ago quarter’s level.
Consolidated revenues of $4.6 billion were up 16% year over year. The top line too beat the Zacks Consensus Estimate by 5.2% on the back of its strong Risk and Insurance Services as well as Consulting segments.
Total operating expenses of $3.8 billion in the third quarter were up 12.1% year over year due to higher compensation and benefits and other operating expense.
Marsh & McLennan Companies, Inc. Price, Consensus and EPS Surprise
Marsh & McLennan Companies, Inc. price-consensus-eps-surprise-chart | Marsh & McLennan Companies, Inc. Quote
Quarterly Segmental Results
Risk and Insurance Services
Revenues of $2.7 billion were up 13% on an underlying basis. Adjusted operating income improved 21% to $469 million from the prior-year quarter’s level.
Marsh, a unit within this segment, generated revenues worth $2.4 billion, up 13% on an underlying basis. In the U.S./Canada, underlying revenues rose 16% year over year.
Underlying revenues from international operations rose 9% year over year including a 9% increase of the same in the Asia Pacific, a 12% rise in Latin America and an 8% hike in EMEA.
Revenues from another unit under this segment, Guy Carpenter, were up 15% year over year on an underlying basis in the quarter under review.
Consulting
Revenues were up 12% on an underlying basis to $1.9 billion. Adjusted operating income ascended 15% to $350 million as well.
A unit within this segment, Mercer, generated revenues of $1.3 billion, climbing 7% on an underlying basis. Wealth’s revenues rose 6% on an underlying basis. Health’s revenues were up 4% year over year while the same at Career was up 13% on an underlying basis. Another unit Oliver Wyman Group registered revenues worth $610 million, up 25% year over year on an underlying basis.
Share Repurchase Update
The company bought back shares worth $300 million in the quarter under review.
Financial Update
Marsh & McLennan exited the third quarter with cash and cash equivalents of $1.3 billion, down 33.1% from the level at 2020 end.
Net cash provided by operations stood at $2 billion at the end of the first nine months of 2021, up 3.8% from the year-ago quarter’s value.
As of Sep 30, 2021, Marsh & McLennan’s total assets were $32.9 billion, down 0.2% from the figure as of Dec 31, 2020.
Total equity was $9.8 billion, up 6.8% from the level at 2020 end.
Zacks Rank and Performance of Other Players
Marsh & McLennan carries a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other insurance industry players, which have reported third-quarter earnings so far, the bottom-line results of RLI Corp. (RLI - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) beat the respective Zacks Consensus Estimate while the same of The Progressive Corporation (PGR - Free Report) missed the mark.