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) reported fourth-quarter 2016 operating earnings per share of 89 cents, surpassing the Zacks Consensus Estimate of 84 cents per share. Earnings improved 25% year over year.
The quarter witnessed margin expansion in both Risk and Insurance Services and Consulting segments.
Quarterly Details
Marsh & McLennan’s consolidated revenues were $3.4 billion, up 1% or 3% on an underlying basis, year over year. Revenues came in line with the Zacks Consensus Estimate.
Total operating expenses of $2.73 billion decreased slightly from $2.74 billion in the year-ago quarter.
Revenues from the Risk and Insurance Services segment were $1.8 billion, up 5% on an underlying basis. However, adjusted operating income increased 15% year over year to $421 million.
A unit within this segment – Marsh – reported evenues of $1.6 billion, up 5% on an underlying basis. Underlying revenues grew 5% year over year in international operations, reflecting 7% growth in Latin America, 4% in Asia Pacific, 5% in EMEA (Europe, the Middle East and Africa) and 4% in the U.S.-Canada region.
Another unit Guy Carpenter's revenues came in at $222 million, up 3% year over year on an underlying basis.
The Consulting segment's revenues decreased 2% year over year on an underlying basis to $1.6 billion. Additionally, adjusted operating income increased 13% year over year to $299 million.
A unit within this segment – Mercer reportedevenues of $1.1 billion, up 1% on an underlying basis.
Another unit, Oliver Wyman Group’s revenue was $486 million, an increase of 4% on an underlying basis.
Financial Update
Marsh & McLennan exited the quarter with cash and cash equivalents of $1.1 billion, down from from $1.4 billion at year-end 2015.
As of Dec 31, 2016, Marsh & McLennan’s total assets were $18.2 billion, almost unchanged year over year.
Total equity was $6.3 billion, down from $6.6 billion at year-end 2015.
Capital Deployment
Marsh & McLennan bought back 2.6 million shares for $175 million during the quarter.
Developments During the Quarter
The company increased its share repurchase program to up to $ 2.5 billion.
Also, the company’s units made and announced a number of deals. Its unit Marsh & McLennan Agency announced that it will acquire J. Smith Lanier & Co., one of the largest, privately held insurance brokerage firms in the country. It also acquired Presidio Benefits Group, a San Francisco-based employee benefits consulting firm; Vero Insurance, Inc., a Vero Beach, Florida-based independent agency specializing in private client insurance services; and Benefits Advisory Group, an Atlanta-based employee benefits consulting firm.
Mercer, a wholly owned subsidiary of Marsh & McLennan Companies announced that it will acquire Thomsons Online Benefits, a leading global benefits software business. The unit also acquired the business of Sirota Consulting LLC and Pillar Administration, a global provider of employee engagement solutions, which established it as one of the largest outsourced superannuation providers in Australia.
Yet another unit Oliver Wyman announced the purchase of LShift Limited, an independent software development company.
Marsh & McLennan Companies, Inc. Price, Consensus and EPS Surprise
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Marsh & McLennan (MMC) Surpasses Q4 Earnings Estimates
Marsh & McLennan Companies, Inc. (MMC - Free Report) reported fourth-quarter 2016 operating earnings per share of 89 cents, surpassing the Zacks Consensus Estimate of 84 cents per share. Earnings improved 25% year over year.
The quarter witnessed margin expansion in both Risk and Insurance Services and Consulting segments.
Quarterly Details
Marsh & McLennan’s consolidated revenues were $3.4 billion, up 1% or 3% on an underlying basis, year over year. Revenues came in line with the Zacks Consensus Estimate.
Total operating expenses of $2.73 billion decreased slightly from $2.74 billion in the year-ago quarter.
Segment Results
Revenues from the Risk and Insurance Services segment were $1.8 billion, up 5% on an underlying basis. However, adjusted operating income increased 15% year over year to $421 million.
A unit within this segment – Marsh – reported evenues of $1.6 billion, up 5% on an underlying basis. Underlying revenues grew 5% year over year in international operations, reflecting 7% growth in Latin America, 4% in Asia Pacific, 5% in EMEA (Europe, the Middle East and Africa) and 4% in the U.S.-Canada region.
Another unit Guy Carpenter's revenues came in at $222 million, up 3% year over year on an underlying basis.
The Consulting segment's revenues decreased 2% year over year on an underlying basis to $1.6 billion. Additionally, adjusted operating income increased 13% year over year to $299 million.
A unit within this segment – Mercer reportedevenues of $1.1 billion, up 1% on an underlying basis.
Another unit, Oliver Wyman Group’s revenue was $486 million, an increase of 4% on an underlying basis.
Financial Update
Marsh & McLennan exited the quarter with cash and cash equivalents of $1.1 billion, down from from $1.4 billion at year-end 2015.
As of Dec 31, 2016, Marsh & McLennan’s total assets were $18.2 billion, almost unchanged year over year.
Total equity was $6.3 billion, down from $6.6 billion at year-end 2015.
Capital Deployment
Marsh & McLennan bought back 2.6 million shares for $175 million during the quarter.
Developments During the Quarter
The company increased its share repurchase program to up to $ 2.5 billion.
Also, the company’s units made and announced a number of deals. Its unit Marsh & McLennan Agency announced that it will acquire J. Smith Lanier & Co., one of the largest, privately held insurance brokerage firms in the country. It also acquired Presidio Benefits Group, a San Francisco-based employee benefits consulting firm; Vero Insurance, Inc., a Vero Beach, Florida-based independent agency specializing in private client insurance services; and Benefits Advisory Group, an Atlanta-based employee benefits consulting firm.
Mercer, a wholly owned subsidiary of Marsh & McLennan Companies announced that it will acquire Thomsons Online Benefits, a leading global benefits software business. The unit also acquired the business of Sirota Consulting LLC and Pillar Administration, a global provider of employee engagement solutions, which established it as one of the largest outsourced superannuation providers in Australia.
Yet another unit Oliver Wyman announced the purchase of LShift Limited, an independent software development company.
Marsh & McLennan Companies, Inc. Price, Consensus and EPS Surprise
Marsh & McLennan Companies, Inc. Price, Consensus and EPS Surprise | Marsh & McLennan Companies, Inc. Quote
Zacks Rank
Marsh & McLennan carries a Zacks Rank #3 (Hold).
Performance of Other Players
Other insurers Lincoln National Corp. (LNC - Free Report) , Torchmark Corp. and Unum Group (UNM - Free Report) each with a Zacks Rank #2 (Buy) reported better-than-expected fourth-quarter earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>