{"id":516177,"date":"2021-07-22T07:03:08","date_gmt":"2021-07-22T11:03:08","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/marsh-mclennan-reports-second-quarter-2021-results\/"},"modified":"2021-07-22T07:03:08","modified_gmt":"2021-07-22T11:03:08","slug":"marsh-mclennan-reports-second-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/marsh-mclennan-reports-second-quarter-2021-results\/","title":{"rendered":"Marsh McLennan Reports Second Quarter 2021 Results"},"content":{"rendered":"

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Marsh McLennan Reports Second Quarter 2021 Results <\/b><\/p>\n

GAAP Revenue Increases 20%; Underlying Revenue Rises 13%<\/i><\/b><\/p>\n

Growth in GAAP Operating Income of 39% and Adjusted Operating Income of 24%<\/i><\/b><\/p>\n

Second Quarter EPS Rises to $1.60 from $1.12 and Adjusted EPS Increases 33% to $1.75<\/i><\/b><\/p>\n

Six Months EPS Rises to $3.51 from $2.60 and Adjusted EPS Increases 26% to $3.74<\/i><\/b><\/p>\n

NEW YORK–(BUSINESS WIRE<\/a>)–
\nMarsh McLennan (NYSE: MMC), the world\u2019s leading professional services firm in the areas of risk, strategy and people, today reported financial results for the second quarter ended June 30, 2021.\n<\/p>\n

\nDan Glaser, President and CEO, said: \u201cOur performance this quarter was outstanding. The company achieved the strongest underlying growth in two decades, and experienced an acceleration in growth across all of our businesses. We grew underlying revenue by 13%, adjusted operating income by 24%, and adjusted EPS by 33%.\n<\/p>\n

\n\u201cThese results are a direct reflection of the hard work and dedication of our colleagues around the world. We look forward to carrying this momentum into the second half of the year.\u201d\n<\/p>\n

Consolidated Results<\/span><\/p>\n

\nConsolidated revenue in the second quarter of 2021 was $5.0 billion, an increase of 20% compared with the second quarter of 2020. On an underlying basis, revenue increased 13%. Operating income was $1.2 billion, an increase of 39% from the prior year. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 24% to $1.2 billion. Net income attributable to the Company was $820 million, or $1.60 per diluted share, compared with $1.12 in the second quarter of 2020. Adjusted earnings per share rose 33% to $1.75 per diluted share compared with $1.32 for the prior year period.\n<\/p>\n

\nFor the six months ended June 30, 2021, consolidated revenue was $10.1 billion, an increase of 14%, or 9% on an underlying basis compared to the prior period. Operating income was $2.6 billion, an increase of 32% from the prior year period. Adjusted operating income rose 22% to $2.6 billion. Net income attributable to the Company was $1.8 billion. Fully diluted earnings per share was $3.51 compared with $2.60 in the first six months of 2020. Adjusted earnings per share increased 26% to $3.74 compared with $2.96 for the comparable period in 2020.\n<\/p>\n

Risk & Insurance Services<\/span><\/p>\n

\nRisk & Insurance Services revenue was $3.1 billion in the second quarter of 2021, an increase of 21%, or 13% on an underlying basis. Operating income rose 37% to $950 million, and adjusted operating income was $927 million, an increase of 22% from the prior year period. For the six months ended June 30, 2021, revenue was $6.4 billion, an increase of 15%, or 10% on an underlying basis. Operating income rose 30% to $2.0 billion, and adjusted operating income was $2.0 billion, an increase of 19% from the prior year period.\n<\/p>\n

\nMarsh’s revenue in the second quarter was $2.7 billion, an increase of 14% on an underlying basis. In US\/Canada, underlying revenue rose 15%. International operations produced underlying revenue growth of 13%, reflecting 16% growth in EMEA, 10% growth in Asia Pacific, and 2% in Latin America. For the six months ended June 30, 2021, Marsh\u2019s underlying revenue growth was 11% compared to the prior period a year ago.\n<\/p>\n

\nGuy Carpenter’s revenue in the second quarter was $488 million, an increase of 12% on an underlying basis. For the six months ended June 30, 2021, Guy Carpenter\u2019s underlying revenue growth was 8%.\n<\/p>\n

Consulting<\/span><\/p>\n

\nConsulting revenue in the second quarter was $1.9 billion, an increase of 17% or 12% on an underlying basis compared to the same period a year ago. Operating income increased 35% to $344 million, and adjusted operating income increased 34% to $356 million. For the first six months of 2021, revenue was $3.8 billion, an increase of 11%, or an increase of 8% on an underlying basis. Operating income of $705 million increased 31% and adjusted operating income increased 31% to $726 million.\n<\/p>\n

\nMercer’s revenue was $1.3 billion in the second quarter, an increase of 6% on an underlying basis. Career with revenue of $187 million, was up 15% on an underlying basis. Wealth revenue of $625 million increased 4% on an underlying basis, and Health revenue of $462 million increased 4% on an underlying basis. For the six months ended June 30, 2021, Mercer\u2019s revenue was $2.6 billion, an increase of 3% on an underlying basis compared to the same period a year ago.\n<\/p>\n

\nOliver Wyman\u2019s revenue was $618 million in the second quarter, an increase of 28% on an underlying basis. For the first six months ended June 30, 2021, Oliver Wyman\u2019s revenue was $1.2 billion, an increase of 19% on an underlying basis.\n<\/p>\n

Other Items<\/span><\/p>\n

\nThe Company repurchased 2.4 million shares of stock for $322 million in the second quarter. Through six months, the Company has repurchased 3.4 million shares for $434 million.\n<\/p>\n

\nLast week, the Board of Directors increased the quarterly dividend 15% to $0.535 per share, with the third quarter dividend payable on August 13, 2021.\n<\/p>\n

Conference Call<\/span><\/p>\n

\nA conference call to discuss second quarter 2021 results will be held today at 8:30 a.m. Eastern time. To participate in the teleconference, please dial +1 866 437 7574. Callers from outside the United States should dial +1 409 220 9376. The access code for both numbers is 5668714. The live audio webcast may be accessed at mmc.com<\/a>. A replay of the webcast will be available approximately two hours after the event.\n<\/p>\n

About Marsh McLennan<\/b><\/p>\n

Marsh McLennan<\/a> (NYSE: MMC) is the world\u2019s leading professional services firm in the areas of risk, strategy and people. The Company\u2019s 78,000 colleagues advise clients in 130 countries. With annual revenue of over $18 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses. Marsh<\/a> provides data-driven risk advisory services and insurance solutions to commercial and consumer clients. Guy Carpenter<\/a> develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities. Mercer<\/a> delivers advice and technology-driven solutions that help organizations redefine the world of work, reshape retirement and investment outcomes, and unlock health and well being for a changing workforce. Oliver Wyman<\/a> serves as a critical strategic, economic and brand advisor to private sector and governmental clients. For more information, visit mmc.com<\/a>, follow us on LinkedIn<\/a> and Twitter<\/a> or subscribe to BRINK<\/a><\/i>.\n<\/p>\n

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS<\/b><\/p>\n

\nThis press release contains “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management’s current views concerning future events or results, use words like “anticipate,” “assume,” “believe,” “continue,” “estimate,” “expect,” “intend,” “plan,” “project” and similar terms, and future or conditional tense verbs like “could,” “may,” “might,” “should,” “will” and “would”.\n<\/p>\n

\nForward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. Factors that could materially affect our future results include, among other things:\n<\/p>\n