TIDMMHM
Marsh & McLennan Companies, Inc. (NYSE:MMC), the world's
leading professional services firm in the areas of risk, strategy
and people, today reported financial results for the first quarter
ended March 31, 2020.
Dan Glaser, President and CEO, said, "Marsh & McLennan had
an excellent first quarter. We marked the one-year anniversary of
our acquisition of JLT and are realizing the benefits of the
combination. In the quarter, we grew total revenue 14% and
delivered strong underlying revenue growth of 5%, with underlying
growth across both Risk and Insurance Services and Consulting. We
also increased our adjusted operating income by 15%, adjusted
margin by 80 basis points and adjusted EPS by 8%.
Although the COVID-19 pandemic will affect all businesses in
2020, Marsh & McLennan has proven to be a resilient firm with
unique capabilities, talent and expertise that will allow us to
help our clients in this time of need."
Consolidated Results
Consolidated revenue in the first quarter of 2020 was $4.7
billion, an increase of 14%, or 5% on an underlying basis, compared
with the first quarter of 2019. Underlying revenue growth is
calculated as if Marsh & McLennan and Jardine Lloyd Thompson
were a combined company a year ago, but excludes the impact of
currency, other acquisitions, dispositions, and transfers among
businesses. Operating income was $1.1 billion compared with $938
million in the prior year. Adjusted operating income, which
excludes noteworthy items as presented in the attached supplemental
schedules, rose 15% to $1.2 billion.
Net income attributable to the Company was $754 million, or
$1.48 per diluted share, in the first quarter. This compares with
$716 million, or $1.40 per diluted share, in the prior year.
Adjusted earnings per share rose 8% to $1.64 compared with $1.52
for the prior year period.
Risk & Insurance Services
Risk & Insurance Services revenue was $2.9 billion in the
first quarter of 2020, an increase of 20% compared with the first
quarter 2019, or 5% on an underlying basis. Operating income of
$854 million increased 17% from the prior year. Adjusted operating
income rose 20% to $932 million compared with $775 million in the
prior year.
Marsh's revenue in the first quarter was $2.1 billion, an
increase of 5% on an underlying basis. In U.S./Canada, underlying
revenue also rose 5%. International operations produced underlying
revenue growth of 4%, reflecting growth of 6% in Asia Pacific, 4%
in EMEA and 3% in Latin America.
Guy Carpenter's revenue in the first quarter was $827 million,
an increase of 7% on an underlying basis.
Consulting
Consulting revenue in the first quarter was $1.8 billion, an
increase of 5%, or 3% on an underlying basis. Operating income
increased 1% to $282 million compared with $279 million in the
prior year. Adjusted operating income declined 1% to $289 million
compared with $291 million in the prior year.
Mercer's revenue was $1.3 billion in the first quarter, an
increase of 5% on an underlying basis. Health, with revenue of $486
million, rose 8% on an underlying basis. Wealth revenue of $592
million increased 3% on an underlying basis, and Career revenue of
$173 million increased 2% on an underlying basis.
Oliver Wyman's revenue was $511 million, flat with the first
quarter of 2019 on an underlying basis.
Other Items
In January, Marsh & McLennan Agency (MMA) closed the
acquisitions of Ironwood Insurance Services, LLC and Momentous
Insurance Brokerage. On April 1, 2020, MMA announced the
acquisition of Assurance Holdings, Inc., one of the leading
independent agencies in the U.S.
During the first quarter of 2020, the Company repaid $500
million of senior notes.
Conference Call
A conference call to discuss first quarter 2020 results will be
held today at 8:30 a.m. Eastern time. To participate in the
teleconference, please dial +1 888 204 4368. Callers from outside
the United States should dial +1 323 794 2423. The access code for
both numbers is 3870718. The live audio webcast may be accessed at
mmc.com. A replay of the webcast will be available approximately
two hours after the event.
About Marsh & McLennan Companies
Marsh & McLennan (NYSE: MMC) is the world's leading
professional services firm in the areas of risk, strategy and
people. The Company's 76,000 colleagues advise clients in over 130
countries. With annual revenue of $17 billion, Marsh & McLennan
helps clients navigate an increasingly dynamic and complex
environment through four market-leading businesses. Marsh advises
individual and commercial clients of all sizes on insurance broking
and innovative risk management solutions. Guy Carpenter develops
advanced risk, reinsurance and capital strategies that help clients
grow profitably and pursue emerging opportunities. Mercer delivers
advice and technology-driven solutions that help organizations
redefine the world of work, reshape retirement and investment
outcomes, and unlock health and wellbeing for a changing workforce.
Oliver Wyman serves as a critical strategic, economic and brand
advisor to private sector and governmental clients. For more
information, visit mmc.com, follow us on LinkedIn and Twitter
@mmc_global or subscribe to BRINK.
INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS
This 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."
Forward-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:
-- the financial and operational impact of the coronavirus global pandemic
on our revenue and ability to generate new business, our overall level of
profitability and cash flow, and our liquidity, particularly the
timeliness and ultimate collectability of our receivables;
-- the impact of disruption in the credit or financial markets, or changes
to our credit ratings, including as a result of COVID-19, on our ability
to access capital or repay our significant outstanding indebtedness on
favorable terms and our compliance with the covenants contained in the
agreements that govern our indebtedness;
-- the impact from lawsuits, other contingent liabilities and loss
contingencies arising from errors and omissions, breach of fiduciary duty
or other claims against us, including claims related to pandemic
coverage;
-- our ability to manage risks associated with our investment management and
related services business, particularly in the context of volatile equity
markets caused by COVID-19, including our ability to execute timely
trades in light of increased trading volume and to manage potential
conflicts of interest between investment consulting and fiduciary
management services;
-- our ability to compete effectively and adapt to changes in the
competitive environment, including to respond to technological change,
disintermediation, digital disruption and other types of innovation;
-- our ability to attract and retain industry leading talent;
-- our ability to maintain adequate safeguards to protect the security of
our information systems and confidential, personal or proprietary
information, particularly given the large volume of our vendor network
and the need to identify and patch software vulnerabilities, including
those in the existing JLT information systems;
-- the impact of investigations, reviews, or other activity by regulatory or
law enforcement authorities;
-- the financial and operational impact of complying with laws and
regulations where we operate and the risks of noncompliance with such
laws, including anti-corruption laws such as the U.S. Foreign Corrupt
Practices Act, U.K. Anti-Bribery Act, trade sanctions regimes and
cybersecurity and data privacy regulations such as the E.U.'s General
Data Protection Regulation;
-- the regulatory, contractual and reputational risks that arise based on
insurance placement activities and various insurer revenue streams;
-- our ability to successfully recover if we experience a business
continuity problem due to cyberattack, natural disaster or otherwise; and
-- the impact of changes in tax laws, guidance and interpretations,
including certain provisions of the U.S. Tax Cuts and Jobs Act, or
disagreements with tax authorities.
The factors identified above are not exhaustive. Marsh &
McLennan Companies and its subsidiaries operate in a dynamic
business environment in which new risks emerge frequently.
Accordingly, we caution readers not to place undue reliance on any
forward-looking statements, which are based only on information
currently available to us and speak only as of the dates on which
they are made. The Company undertakes no obligation to update or
revise any forward-looking statement to reflect events or
circumstances arising after the date on which it is made.
Further information concerning Marsh & McLennan Companies
and its businesses, including information about factors that could
materially affect our results of operations and financial
condition, is contained in the Company's filings with the
Securities and Exchange Commission, including the "Risk Factors"
section and the "Management's Discussion and Analysis of Financial
Condition and Results of Operations" section of our most recently
filed Annual Report on Form 10-K.
Marsh & McLennan Companies, Inc.
Consolidated Statements of Income
(In millions, except per share figures)
(Unaudited)
Three Months Ended
March 31,
2020 2019
Revenue $ 4,651 $4,071
Expense:
Compensation and Benefits 2,555 2,282
Other Operating Expenses 1,026 851
Operating Expenses 3,581 3,133
Operating Income 1,070 938
Other Net Benefit Credits 64 64
Interest Income 2 28
Interest Expense (127 ) (120 )
Investment (Loss) Income (2 ) 5
Acquisition Related Derivative Contracts -- 29
Income Before Income Taxes 1,007 944
Income Tax Expense 240 217
Net Income Before Non-Controlling
Interests 767 727
Less: Net Income Attributable to
Non-Controlling Interests 13 11
Net Income Attributable to the Company $ 754 $716
Net Income Per Share Attributable to the
Company:
- Basic $ 1.49 $1.42
- Diluted $ 1.48 $1.40
Average Number of Shares Outstanding
- Basic 505 505
- Diluted 510 511
Shares Outstanding at March 31 506 507
The Company acquired JLT on April 1, 2019 and JLT's results are
included in the Company's consolidated results of operations from
that date. The three month period ended March 31, 2019 does not
include JLT's results.
Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Three Months Ended March 31
(Millions) (Unaudited)
The Company conducts business in more than 130 countries. As a
result, foreign exchange rate movements may impact period-to-period
comparisons of revenue. Similarly, certain other items such as the
revenue impact of acquisitions and dispositions, including
transfers among businesses, may impact period-to-period comparisons
of revenue. Underlying revenue measures the change in revenue from
one period to the next by isolating these impacts.
The calculation of underlying revenue growth for the three
months ended March 31, 2020 includes the results of JLT. The column
"2019 Including JLT" includes JLT's prior year first quarter
revenue (See reconciliation of non-GAAP measures on page 12).
Components of Revenue Change
Including JLT*
% % Change
Change 2019 Including Acquisitions/
Three Months Ended GAAP Including JLT in Currency Dispositions/ Underlying
March 31, Revenue JLT 2019 Impact Other Impact Revenue
2020 2019
Risk and Insurance
Services
Marsh $2,061 $1,737 19% $1,969 5% (2)% 1% 5%
Guy Carpenter 827 663 25% 781 6% -- (1)% 7%
Subtotal 2,888 2,400 20% 2,750 5% (1)% 1% 6%
Fiduciary Interest
Income 23 23 27
Total Risk and
Insurance Services 2,911 2,423 20% 2,777 5% (1)% 1% 5%
Consulting
Mercer 1,251 1,155 8% 1,229 2% (2)% (2)% 5%
Oliver Wyman 511 518 (1)% 518 (1)% (1)% -- --
Total Consulting 1,762 1,673 5% 1,747 1% (1)% (1)% 3%
Corporate/Eliminations (22 ) (25 ) (25 )
Total Revenue $4,651 $4,071 14% $4,499 3% (1)% -- 5%
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
Components of Revenue Change
Including JLT*
% % Change
Three Months Change 2019 Including Acquisitions/
Ended March GAAP Including JLT in Currency Dispositions/ Underlying
31, Revenue JLT 2019 Impact Other Impact Revenue
2020 2019
Marsh:
EMEA $754 $633 19% $ 740 2 % (2)% -- 4%
Asia Pacific 238 165 44% 232 3 % (2)% (1)% 6%
Latin America 91 78 16% 100 (10 )% (10)% (3)% 3%
Total
International 1,083 876 24% 1,072 1 % (3)% -- 4%
U.S./Canada 978 861 14% 897 9 % -- 4% 5%
Total Marsh $2,061 $1,737 19% $ 1,969 5 % (2)% 1% 5%
Mercer:
Wealth 592 543 9% 598 (1 )% (2)% (2)% 3%
Health 486 442 10% 461 5 % (1)% (2)% 8%
Career 173 170 2% 170 2 % (2)% 1% 2%
Total Mercer $1,251 $1,155 8% $ 1,229 2 % (2)% (2)% 5%
* Components of revenue change may not add due to rounding.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures - Actual as Reported
Three Months Ended March 31
(Millions) (Unaudited)
Overview
The Company reports its financial results in accordance with
accounting principles generally accepted in the United States
(referred to in this release as "GAAP" or "reported" results). The
Company also refers to and presents below certain additional
non-GAAP financial measures, within the meaning of Regulation G
under the Securities Exchange Act of 1934. These measures are:
adjusted operating income (loss), adjusted operating margin,
adjusted income, net of tax and adjusted earnings per share (EPS).
The Company has included reconciliations of these non-GAAP
financial measures to the most directly comparable financial
measure calculated in accordance with GAAP in the following
tables.
The Company believes these non-GAAP financial measures provide
useful supplemental information that enables investors to better
compare the Company's performance across periods. Management also
uses these measures internally to assess the operating performance
of its businesses, to assess performance for employee compensation
purposes and to decide how to allocate resources. However,
investors should not consider these non-GAAP measures in isolation
from, or as a substitute for, the financial information that the
Company reports in accordance with GAAP. The Company's non-GAAP
measures include adjustments that reflect how management views our
businesses, and may differ from similarly titled non-GAAP measures
presented by other companies.
Adjusted Operating Income (Loss) and Adjusted Operating
Margin
Adjusted operating income (loss) is calculated by excluding the
impact of certain noteworthy items from the Company's GAAP
operating income or (loss). The following tables identify these
noteworthy items and reconcile adjusted operating income (loss) to
GAAP operating income or loss, on a consolidated and segment basis,
for the three months ended March 31, 2020 and 2019. The following
tables also present adjusted operating margin. In 2019, the Company
changed its methodology for calculating adjusted operating margin
due to the significant amount of identified intangible asset
amortization related to the JLT Transaction, on April 1, 2019. For
the three months ended March 31, 2020 and 2019, adjusted operating
margin is calculated by dividing the sum of adjusted operating
income plus identified intangible asset amortization by
consolidated or segment adjusted revenue.
The information presented below represents the actual as
reported results for the three months ended March 31, 2020 and
2019. Results for the three months ended March 31, 2019 are for MMC
only, as previously reported, and do not include JLT results.
Risk &
Insurance Corporate/
Services Consulting Eliminations Total
Three Months Ended
March 31, 2020
Operating income
(loss) $854 $ 282 $ (66 ) $1,070
Operating margin 29.4% 16.0 % N/A 23.0 %
Add (Deduct) impact
of Noteworthy
Items:
Restructuring,
excluding JLT (a) 2 4 3 9
Changes in contingent
consideration (b) 3 (4 ) -- (1 )
JLT integration and
restructuring costs
(c) 61 10 9 80
JLT
acquisition-related
costs (d) 12 1 -- 13
Disposal of
businesses (e) -- (4 ) -- (4 )
Operating income
adjustments 78 7 12 97
Adjusted operating
income (loss) $932 $ 289 $ (54 ) $1,167
Total identified
intangible
amortization
expense $72 $ 14 $ -- $86
Adjusted operating
margin 34.5% 17.2 % N/A 27.0 %
As Reported Results
Three Months Ended
March 31, 2019
Operating income
(loss), as reported $733 $ 279 $ (74 ) $938
Operating margin 30.2% 16.7 % N/A 23.0 %
Add (Deduct) impact
of Noteworthy
Items:
Restructuring,
excluding JLT (a) 5 11 2 18
Adjustments to
acquisition related
accounts (b) 10 1 -- 11
JLT integration and
restructuring costs
(c) 19 -- 17 36
JLT
acquisition-related
costs (d) 6 -- 5 11
Other 2 -- -- 2
Operating income
adjustments 42 12 24 78
Adjusted operating
income (loss) $775 $ 291 $ (50 ) $1,016
Total identified
intangible
amortization
expense $41 $ 10 $ -- $51
Adjusted operating
margin 33.6% 18.0 % N/A 26.2 %
(a) Includes severance and related charges from restructuring activities,
adjustments to restructuring liabilities for future rent under non-cancellable
leases and other real estate costs, and restructuring costs related to the
integration of recent acquisitions. Risk & Insurance Services reflects
severance and related charges from non-JLT merger integration costs.
Consulting reflects severance related to the Mercer restructuring program.
(b) Primarily includes the change in fair value as measured each quarter of
contingent consideration related to acquisitions.
(c) Includes costs incurred for staff reductions, lease related exit costs as
well as legal and consulting costs related to the JLT integration.
(d) Reflects retention costs in the Risk & Insurance Services and Consulting
segments and legal fees at corporate related to the closing of the JLT
Transaction.
(e) Reflects the gain on sale of India H&B business at Mercer.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Three Months Ended March 31,
(Millions) (Unaudited)
Adjusted income, net of tax is calculated as the Company's GAAP
income from continuing operations, adjusted to reflect the after
tax impact of the operating income adjustments set forth in the
preceding tables and investments gains or losses related to the
impact of mark-to-market adjustments on certain equity securities.
Adjustments also include JLT acquisition related items, including
change in fair value of derivative contracts, financing costs and
interest income on funds held in escrow. Adjusted EPS is calculated
by dividing the Company's adjusted income, net of tax, by MMC's
average number of shares outstanding-diluted for the relevant
period. The following tables reconcile adjusted income, net of tax
to GAAP income from continuing operations and adjusted EPS to GAAP
EPS for the three months ended March 31, 2020 and 2019. Results for
the three months ended March 31, 2019 are for MMC only, as
previously reported, and do not include JLT results.
Three Months Ended Three Months Ended
March 31, 2020 March 31, 2019
Adjusted Adjusted
Amount EPS Amount EPS
Net income
before
non-controlling
interests, as
reported $767 $727
Less:
Non-controlling
interest, net
of tax 13 11
Subtotal $754 $ 1.48 $716 $ 1.40
Operating income
adjustments $97 $78
Investments
adjustment (a) 1 (4 )
Change in fair
value of
acquisition
related
derivative
contracts (b) -- (29)
Financing costs
(c) -- 54
Interest on
funds held in
escrow (d) -- (25)
Impact of income
taxes on above
items (17) (12)
81 0.16 62 0.12
Adjusted income,
net of tax $835 $ 1.64 $778 $ 1.52
(a) The Company recorded mark-to-market losses of $1 million and gains of $4
million for the three month period ended March 31, 2020 and March 31, 2019,
respectively, which are included in investment (loss) income in the
consolidated statements of income.
(b) Reflects the change in fair value of derivatives that were not
redesignated as accounting hedges following the JLT acquisition, a deal
contingent foreign exchange contract and derivative contracts related to debt
issuances.
(c) Reflects interest expense on debt issuances and amortization of bridge
financing fees related to the acquisition of JLT (prior to April 1, 2019).
(d) Interest income earned on funds held in escrow related to the JLT
acquisition (prior to April 1, 2019).
Marsh & McLennan Companies, Inc.
Supplemental Information
Three Months Ended March 31,
(Millions) (Unaudited)
Three Months Ended
March 31,
2020 2019
Consolidated
Compensation and Benefits $ 2,555 $2,282
Other Operating Expenses 1,026 851
Total Expenses $ 3,581 $3,133
Depreciation and amortization expense $ 97 $74
Identified intangible amortization expense 86 51
Total $ 183 $125
Stock option expense $ 16 $15
Risk and Insurance Services
Compensation and Benefits $ 1,452 $1,221
Other Operating Expenses 605 469
Total Expenses $ 2,057 $1,690
Depreciation and amortization expense $ 52 $32
Identified intangible amortization expense 72 41
Total $ 124 $73
Consulting
Compensation and Benefits $ 991 $956
Other Operating Expenses 489 438
Total Expenses $ 1,480 $1,394
Depreciation and amortization expense $ 28 $24
Identified intangible amortization expense 14 10
Total $ 42 $34
The Company acquired JLT on April 1, 2019 and JLT's results are
included in the Company's consolidated results of operations from
that date. The three month period ended March 31, 2019 does not
include JLT's results.
Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets
(Millions)
(Unaudited)
March 31, December 31,
2020 2019
ASSETS
Current assets:
Cash and cash equivalents $ 1,480 $ 1,155
Net receivables 5,558 5,236
Other current assets 711 677
Total current assets 7,749 7,068
Goodwill and intangible assets 17,075 17,445
Fixed assets, net 850 858
Pension related assets 1,619 1,632
Right of use assets 1,885 1,921
Deferred tax assets 694 676
Other assets 1,519 1,757
TOTAL ASSETS $ 31,391 $ 31,357
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 2,409 $ 1,215
Accounts payable and accrued
liabilities 2,611 2,746
Accrued compensation and employee
benefits 1,018 2,197
Current lease liabilities 334 342
Accrued income taxes 256 179
Dividends payable 231 --
Total current liabilities 6,859 6,679
Fiduciary liabilities 7,661 7,344
Less - cash and investments held in a
fiduciary capacity (7,661 ) (7,344 )
-- --
Long-term debt 11,231 10,741
Pension, post-retirement and
post-employment benefits 2,248 2,336
Long-term lease liabilities 1,898 1,926
Liabilities for errors and omissions 343 335
Other liabilities 1,361 1,397
Total equity 7,451 7,943
TOTAL LIABILITIES AND EQUITY $ 31,391 $ 31,357
Marsh & McLennan Companies, Inc.
Consolidated Statements of Cash Flows
(Millions) (Unaudited)
Three Months Ended
March 31,
2020 2019
Operating cash flows:
Net income before non-controlling interests $ 767 $727
Adjustments to reconcile net income to cash
provided by operations:
Depreciation and Amortization 183 125
Non cash lease expense 80 68
Share-based compensation expense 72 57
Change in fair value of acquisition-related
derivative contracts and other (2 ) (61 )
Changes in Assets and Liabilities:
Accrued compensation and employee benefits (1,178 ) (886 )
Net receivables (313 ) (309 )
Other changes to assets and liabilities (64 ) 179
Contributions to pension & other benefit
plans in excess of current year
expense/credit (85 ) (80 )
Operating lease liabilities (86 ) (73 )
Effect of exchange rate changes (12 ) (23 )
Net cash used for operations (638 ) (276 )
Financing cash flows:
Borrowings from term-loan and credit
facilities 2,000 --
Net increase in commercial paper 193 748
Proceeds from issuance of debt -- 6,462
Repayments of debt (503 ) (3 )
Acquisition-related derivative payments -- (129 )
Net issuance of common stock from treasury
shares (68 ) (9 )
Net distributions of non-controlling
interests and deferred/contingent
consideration (50 ) (33 )
Dividends paid (232 ) (210 )
Net cash provided by financing activities 1,340 6,826
Investing cash flows:
Capital expenditures (118 ) (73 )
Net sales of long-term investments and other 73 26
Acquisitions (200 ) (140 )
Net cash used for investing activities (245 ) (187 )
Effect of exchange rate changes on cash and
cash equivalents (132 ) 47
Increase in cash and cash equivalents and
cash held in escrow 325 6,410
Cash and cash equivalents at beginning of
period 1,155 1,066
Cash balances, end of period:
Cash and cash equivalents at end of period $ 1,480 $1,117
Funds held in escrow for acquisition -- 6,359
Total $ 1,480 $7,476
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures - 2019 Revenue Including
JLT
Three Months Ended March 31, 2019
(Millions) (Unaudited)
On April 1, 2019, the Company completed its previously announced
acquisition of Jardine Lloyd Thompson Group, plc. JLT results of
operations for the three months ended March 31, 2020 are included
in the Company's results of operations for the first quarter of
2020. Prior periods in 2019 do not include JLT's results. Prior to
being acquired by the Company, JLT operated in three segments,
Specialty, Reinsurance and Employee Benefits. As of April 1, 2019,
the historical JLT businesses were combined into MMC operations as
follows: JLT Specialty was included by geography within Marsh, JLT
Reinsurance was included within Guy Carpenter and the majority of
the JLT Employee Benefits business was included in Mercer Health
and Wealth.
The JLT Transaction had a significant impact on the Company's
results of operations in 2019. The Company believes that in
addition to the change in reported GAAP revenue, a comparison of
2020 revenue to the combined 2019 revenue of MMC and JLT would
provide investors useful information about the year-over-year
results.
The table below sets forth revenue information as if the
companies were combined on January 1, 2019. Consolidated revenue in
2019 for the three months ended March 31, 2019 "MMC as previously
reported" does not include JLT revenue for the period from January
1 to March 31, 2019. The "2019 Including JLT" revenue information
set forth in the table below presents revenue information as if the
companies were combined on January 1, 2019 and is not necessarily
indicative of what the results would have been had we operated the
business since January 1, 2019.
The MMC revenue amounts are as previously reported by the
Company in its quarterly filings on Form 10-Q for the applicable
periods. JLT 2019 revenue information is derived using the same
policies and adjustments as the "JLT Supplemental Information -
Revenue Analysis" furnished to the SEC on June 6, 2019 on Form 8-K,
and includes the revenue from JLT's aerospace business.
Three Months Ended
March 31, 2019
MMC As Previously Reported
Risk & Insurance Services
Marsh $ 1,737
Guy Carpenter 663
Subtotal 2,400
Fiduciary Interest Income 23
Total Risk & Insurance Services 2,423
Consulting
Mercer 1,155
Oliver Wyman 518
Total Consulting 1,673
Corporate/Eliminations (25 )
Total Revenue $ 4,071
JLT 2019
Specialty (Marsh) $ 232
Reinsurance (Guy Carpenter) 118
Employee Benefits (Mercer) 74
Subtotal 424
Fiduciary Interest Income 4
Total Revenue $ 428
2019 Including JLT
Marsh $ 1,969
Guy Carpenter 781
Subtotal 2,750
Fiduciary Interest Income 27
Total Risk & Insurance Services 2,777
Consulting
Mercer 1,229
Oliver Wyman 518
Total Consulting 1,747
Corporate/Eliminations (25 )
Total Revenue $ 4,499
Media:
Erick R. Gustafson
Marsh & McLennan Companies
+1 202 263 7788
erick.gustafson@mmc.com
Investors:
Sarah DeWitt
Marsh & McLennan Companies
+1 212 345 6750
sarah.dewitt@mmc.com
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200430005430/en/
CONTACT:
Marsh & McLennan
SOURCE: Marsh & McLennan
Copyright Business Wire 2020
(END) Dow Jones Newswires
April 30, 2020 07:08 ET (11:08 GMT)
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