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Marsh McLennan announces full-year results

Marsh McLennan announces full-year results | Insurance Business UK

Marsh McLennan announces full-year results

In its 150th year, insurance giant Marsh McLennan (Marsh) remained resilient despite the persistence of the COVID-19 pandemic, reporting 10% underlying revenue growth and 24% adjusted EPS growth for the financial year ended December 31, 2021 (FY21) – both the highest in more than two decades.

Specifically, the company’s revenue hit US$19.8 billion for 2021, a 15% increase compared with the figure in 2020, or 10% on an underlying basis.

Aside from the record underlying revenue growth and adjusted EPS growth, Marsh’s operating income totalled US$4.3 billion, and it grew its adjusted operating income by 18% to US$4.3 billion for the 14th consecutive year.

Meanwhile, the net income attributable to the company hit US$3.1 billion, the earnings per share increased by 56% to US$6.13, and the adjusted earnings per share increased by 24% to US$6.17, compared with US$4.97 in 2020.

“In our 150th year, we produced one of the finest results in our company’s history,” said Marsh president and CEO Dan Glaser. “I am proud of our colleagues’ hard work, dedication, and unwavering focus in achieving these results. With this outstanding year, we enter 2022 well-positioned for continued growth.”

Glaser also commended the company’s performance during the fourth quarter of 2021, boasting a consolidated revenue of US$5.1 billion, a 16% increase compared with the figure for the fourth quarter of 2020, or 10% on an underlying basis.

During the same period, Marsh’s operating income reached US$986 million (compared with US$571 million in the prior year period), while its adjusted operating income totalled US$905 million (compared with US$855 million in the prior year period).

In addition, the net income attributable to the company was US$803 million, or US$1.57 per diluted share, compared with US$0.73 in the fourth quarter of 2020. Lastly, the adjusted earnings per share hit US$1.36, compared with US$1.19 for the prior year period.

Focusing on its Risk & Insurance Services’ performance, Marsh reported a US$3.0 billion revenue in the fourth quarter of 2021, a 20% increase, or 9% on an underlying basis. During the same period, the business’s operating income totalled US$667 million, compared with US$463 million in the fourth quarter of 2020, and its adjusted operating income increased by 6% to US$557 million.

For 2021 overall, the business’s revenue was US$12.1 billion, an increase of 17%, or 10% on an underlying basis. Meanwhile, its operating income was US$3.1 billion, compared to US$2.3 billion in 2020, and its adjusted operating income rose by 17% to US$3.0 billion.

For consulting, Marsh reported a US$2.1 billion revenue in the fourth quarter of 2021, an increase of 10%, or 11% on an underlying basis. Meanwhile, the business’s operating income increased dramatically by 120% to US$395 million (compared with US$179 million in the fourth quarter of 2020), and its adjusted operating income was US$410 million (a 6% increase compared with US$387 million in the fourth quarter of 2020).

For 2021, the business’s revenue was US$7.8 billion, an increase of 12%, or 10% on an underlying basis. In addition, its operating income was US$1.5 billion (compared with US$1.0 billion in 2020), and its adjusted operating income increased by 19% to US$1.5 billion.