Marsh McLennan releases full-year results

Marsh McLennan releases full-year results | Insurance Business America

Marsh McLennan releases 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 $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 $4.3 billion, and it grew its adjusted operating income by 18% to $4.3 billion for the 14th consecutive year.

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

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“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 $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 $986 million (compared with $571 million in the prior year period), while its adjusted operating income totalled $905 million (compared with $855 million in the prior year period).

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

Focusing on its Risk & Insurance Services’ performance, Marsh reported a $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 $667 million, compared with $463 million in the fourth quarter of 2020, and its adjusted operating income increased by 6% to $557 million.

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

For consulting, Marsh reported a $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 $395 million (compared with $179 million in the fourth quarter of 2020), and its adjusted operating income was $410 million (a 6% increase compared with $387 million in the fourth quarter of 2020).

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