Marsh& McLennan Companies, Inc. ( MMC Quick Quote MMC - Free Report) delivered second-quarter 2021 adjusted earnings per share of $1.75, surpassing the Zacks Consensus of Estimate by 23.2%. This upside is owing to a solid contribution from its Risk and Insurance Services as well as Consulting segments. The bottom line also improved 32.6% from the year-ago quarter’s level. Marsh & McLennan’s consolidated revenues of $5 billion were up 20% year over year. The top line too beat the Zacks Consensus Estimate by 12.9% on the back of its strong Risk and Insurance Services as well as Consulting segments. Total operating expenses of $3.7 billion in the second quarter were up 14.7% year over year due to higher compensation and benefits. Quarterly Segmental Results Risk and Insurance Services Revenues were $3.1 billion, up 13% on an underlying basis. Adjusted operating income improved 22% to $927 million from the prior-year quarter’s level. Marsh, a unit within this segment, generated revenues worth $2.7 billion, up 14% on an underlying basis. In the U.S./Canada, underlying revenues rose 15% year over year. Underlying revenues from international operations rose 13% year over year including a 10% increase of the same in the Asia Pacific, a 2% rise in Latin America and a 16% hike in EMEA. Revenues from another unit under this segment, Guy Carpenter were up 12% 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 surged 34% to $356 million as well.
A unit within this segment, Mercer, generated revenues of $1.3 billion, climbing 6% on an underlying basis. Wealth’s revenues inched up 4% on an underlying basis. Health’s revenues were up 4% year over year while the same at Career was up 15% on an underlying basis. Another unit Oliver Wyman Group registered revenues worth $618 million, up 28% year over year on an underlying basis. Share Repurchase Update
The company bought back shares worth $322 million in the quarter under review.
Its board of directors hiked the quarterly dividend by 15% to 53.5 cents per share. Financial Update
Marsh & McLennan exited the second quarter with cash and cash equivalents of $888 million, down 57.1% from the level at 2020 end.
Net cash used for operations stood at $750 million at the end of the first six months of 2021, 29.8% above the year-ago quarter’s value. As of Jun 30, 2021, Marsh & McLennan’s total assets were $32.9 billion, down 0.3% from the figure as of Dec 31, 2020. Total equity was $10.2 billion, up 10.8% from the level at 2020 end. Zacks Rank and Performance of Other Players
Marsh & McLennan carries a Zacks Rank #3 (Hold), 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 second-quarter earnings so far, the bottom-line results of The Progressive Corporation ( PGR Quick Quote PGR - Free Report) , RLI Corp. ( RLI Quick Quote RLI - Free Report) and The Travelers Companies, Inc. ( TRV Quick Quote TRV - Free Report) beat the respective Zacks Consensus Estimate.