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Marsh & McLennan's (MMC) Q3 Earnings Beat Mark, Surge Y/Y

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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.

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.
 

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