Marsh & McLennan reveals This fall and year-end outcomes
Marsh & McLennan Companies, Inc. (MMC) posted full year 2020 sales growth of 3% with a “strong fourth quarter” after the year ended.
The global services company, which heads insurance broker and risk management giant Marsh, as well as reinsurer Guy Carpenter and consulting firms Mercer and Oliver Wyman, had consolidated sales of $ 17.2 billion in 2020, up 3% from 2019 In the fourth quarter (Q4), the company raised $ 4.4 billion, up 4% over the year-ago quarter.
MMC’s operating income for the year was $ 3.1 billion and net income attributable to the company was $ 2.0 billion. For the fourth quarter, the group reported operating income of $ 571 million and net income attributable to the company of $ 374 million, or $ 0.73 per diluted share.
Risk and insurance services revenue – Marsh and Guy Carpenter – was $ 10.3 billion for the year, up 8% from 2019. Its fourth quarter contribution was $ 2.5 billion, an improvement 6% compared to the fourth quarter of 2019. Operating income also increased. In both periods, the annual figure increased from $ 1.8 billion in 2019 to $ 2.3 billion in 2020 and the figure in the fourth quarter increased from 365 million. USD to $ 463 million.
Marsh achieved sales growth of 7% in the reporting year. In the fourth quarter, the global brokerage posted revenue of $ 2.4 billion, up 7% from the year-ago quarter. The units in the USA and Canada performed particularly well with underlying sales growth of 7%. Underlying revenue from Marsh’s international operations was unchanged from the prior year period. This reflects underlying growth of 3% in Latin America and 1% in Asia Pacific and was partially offset by a 2% decline in EMEA.
Guy Carpenter’s revenue for the fourth quarter was $ 162 million – a further 7% increase over the same period last year. In the year under review, the reinsurer’s sales rose by 15%.
The President and CEO of MMC, Dan Glaser, commented on the results: “2020 was a year like no other. I’m proud of the way our colleagues rose to the challenge, helped customers and each other, and achieved an impressive financial performance. We ended the year with a strong fourth quarter with positive underlying sales growth. In 2020, we achieved sales growth of 3% based on an underlying sales growth of 1% and an adjusted EPS of 7%. We demonstrated our resilience as a company in 2020 and are well positioned to grow in 2021. “