TIDMMHM
Marsh McLennan (NYSE: MMC), the world's leading professional
services firm in the areas of risk, strategy and people, today
reported financial results for the fourth quarter and year ended
December 31, 2022.
John Doyle, President and CEO, said: "2022 was an outstanding
year for Marsh McLennan. We generated underlying revenue growth of
9%, grew adjusted EPS by 11%, and expanded adjusted margins for the
15th consecutive year. We achieved these strong results while
continuing to invest in our talent and capabilities, both
organically and through acquisitions."
"It is a privilege to lead this exceptional firm. Our expertise
across the important areas of risk, strategy and people is more
relevant than ever as we help clients navigate an uncertain world.
I am excited about the possibilities ahead."
Consolidated Results
Consolidated revenue in the fourth quarter of 2022 was $5.0
billion, a decrease of 2% compared with the fourth quarter of 2021,
or an increase of 7% on an underlying basis. Operating income was
$680 million compared with $986 million in the prior year period.
Adjusted operating income, which excludes noteworthy items as
presented in the attached supplemental schedules, rose 13% to $1.0
billion, compared with $905 million in the prior year period. Net
income attributable to the Company was $466 million, or $0.93 per
diluted share, compared with $1.57 in the fourth quarter of 2021.
Adjusted earnings per share was $1.47, compared with $1.36 for the
prior year period.
For the year 2022, revenue was $20.7 billion, an increase of 5%
compared with 2021, or 9% on an underlying basis. Operating income
was $4.3 billion, and adjusted operating income rose 11% to $4.8
billion. Net income attributable to the Company was $3.0 billion.
Earnings per share decreased 1% to $6.04. Adjusted earnings per
share increased 11% to $6.85 compared with $6.17 in 2021.
Risk & Insurance Services
Risk & Insurance Services revenue was $2.9 billion in the
fourth quarter of 2022, a decrease of 3%, or an increase of 8% on
an underlying basis. Operating income was $472 million, compared
with $667 million in the fourth quarter of 2021. Adjusted operating
income increased 23% to $685 million. For the year 2022, revenue
was $12.6 billion, an increase of 5%, or 9% on an underlying basis.
Operating income was $3.1 billion. Adjusted operating income rose
15% to $3.5 billion.
Marsh's revenue in the fourth quarter of 2022 was $2.7 billion,
a decrease of 6%, or an increase of 6% on an underlying basis. In
U.S./Canada, underlying revenue rose 5%. International operations
produced underlying revenue growth of 8%, reflecting underlying
growth of 12% in Asia Pacific, 7% in EMEA, and 4% in Latin America.
For the year 2022, Marsh's revenue growth was 3%, or 8% on an
underlying basis.
Guy Carpenter's fourth quarter revenue was $171 million, an
increase of 1%, or 5% on an underlying basis. For the year 2022,
Guy Carpenter's revenue grew 8% compared to a year ago, or 9% on an
underlying basis.
Consulting
Consulting revenue was $2.1 billion in the fourth quarter of
2022, an increase of 6% on an underlying basis. Operating income
decreased 15% to $336 million, compared with $395 million in the
fourth quarter of 2021. Adjusted operating income was $407 million,
a decrease of 1% compared with $410 million in the fourth quarter
of 2021. For the year 2022, revenue was $8.1 billion, an increase
of 5%, or 8% on an underlying basis. Operating income was $1.6
billion, compared with $1.5 billion in 2021. Adjusted operating
income increased 4% to $1.5 billion.
Mercer's revenue was $1.3 billion in the fourth quarter of 2022,
a decrease of 3%, or an increase of 5% on an underlying basis.
Wealth, with revenue of $591 million, was unchanged on an
underlying basis. Health, with revenue of $455 million, increased
8% on an underlying basis. Career revenue of $283 million increased
12% on an underlying basis. For the year 2022, Mercer's revenue
increased 2%, or 6% on an underlying basis.
Oliver Wyman's revenue was $765 million in the fourth quarter of
2022, an increase of 8% on an underlying basis. For the year 2022,
Oliver Wyman's revenue was $2.8 billion, an increase of 13% on an
underlying basis.
Other Items
The Company repurchased 2.2 million shares of stock for $350
million in the fourth quarter. For the year 2022, the Company
repurchased 12.2 million shares for $1.9 billion.
In the fourth quarter of 2022, the Company raised $1 billion of
senior notes and repaid $350 million of senior notes due in March
2023.
In December, Marsh McLennan Agency (MMA) acquired HMS Insurance
Associates, Inc., a leading independent agency based in
Maryland.
The fourth quarter results include $344 million of noteworthy
items, primarily related to severance and lease exit charges for
activities focused on workforce actions, technology rationalization
and reductions in real estate.
Conference Call
A conference call to discuss fourth quarter 2022 results will be
held today at 8:30 a.m. Eastern time. The live audio webcast may be
accessed at marshmclennan.com. A replay of the webcast will be
available approximately two hours after the event. The webcast is
listen-only. Those interested in participating in the
question-and-answer session may register here to receive the
dial-in numbers and unique PIN to access the call.
About Marsh McLennan
Marsh McLennan (NYSE: MMC) is the world's leading professional
services firm in the areas of risk, strategy and people. The
Company's more than 85,000 colleagues advise clients in 130
countries. With annual revenue of over $20 billion, Marsh McLennan
helps clients navigate an increasingly dynamic and complex
environment through four market-leading businesses. Marsh provides
data-driven risk advisory services and insurance solutions to
commercial and consumer clients. 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 well being 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 marshmclennan.com, or follow us on LinkedIn
and Twitter.
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 impact of geopolitical or macroeconomic conditions on us, our clients
and the countries and industries in which we operate, including from
conflicts such as the war in Ukraine, slower GDP growth or recession,
capital markets volatility and inflation;
-- the increasing prevalence of ransomware, supply chain and other forms of
cyber attacks, and their potential to disrupt our operations and result
in the disclosure of confidential client or company information;
-- the impact from lawsuits or investigations arising from errors and
omissions, breaches of fiduciary duty or other claims against us in our
capacity as a broker or investment advisor, including claims related to
our investment business' ability to execute timely trades;
-- the financial and operational impact of complying with laws and
regulations, including domestic and international sanctions regimes,
anti-corruption laws such as the U.S. Foreign Corrupt Practices Act, U.K.
Anti Bribery Act and cybersecurity and data privacy regulations;
-- our ability to attract, retain and develop industry leading talent;
-- our ability to compete effectively and adapt to competitive pressures in
each of our businesses, including from disintermediation as well as
technological change, digital disruption and other types of innovation;
-- our ability to manage potential conflicts of interest, including where
our services to a client conflict, or are perceived to conflict, with the
interests of another client or our own interests;
-- the impact of changes in tax laws, guidance and interpretations, or
disagreements with tax authorities; and
-- the regulatory, contractual and reputational risks that arise based on
insurance placement activities and insurer revenue streams.
The factors identified above are not exhaustive. Marsh McLennan
and its subsidiaries (collectively, the "Company") 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 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 data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2022 2021 2022 2021
Revenue $ 5,022 $5,137 $ 20,720 $19,820
Expense:
Compensation and
benefits 3,038 2,905 12,071 11,425
Other operating
expenses 1,304 1,246 4,369 4,083
Operating
expenses 4,342 4,151 16,440 15,508
Operating income 680 986 4,280 4,312
Other net benefit
credits 57 66 235 277
Interest income 9 -- 15 2
Interest expense (127) (109) (469) (444)
Investment (loss)
income (6) 18 21 61
Income before
income taxes 613 961 4,082 4,208
Income tax
expense 142 154 995 1,034
Net income before
non-controlling
interests 471 807 3,087 3,174
Less: Net income
attributable to
non-controlling
interests 5 4 37 31
Net income
attributable to
the Company $ 466 $803 $ 3,050 $3,143
Net income per
share
attributable to
the Company
- Basic $ 0.94 $1.59 $ 6.11 $6.20
- Diluted $ 0.93 $1.57 $ 6.04 $6.13
Average number
of shares
outstanding
- Basic 496 504 499 507
- Diluted 501 511 505 513
Shares
outstanding at
December 31 495 504 495 504
Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Three Months Ended December 31
(Millions) (Unaudited)
The Company conducts business in 130 countries. As a result,
foreign exchange rate movements may impact period-to-period
comparisons of revenue. Similarly, certain other items such as
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.
Components of Revenue Change**
% Change
Revenue
% excl.
Three Months Change Marsh Acquisitions/
Ended December GAAP India Currency Dispositions/ Underlying
31, Revenue Gain* Impact Other Impact Revenue
2022 2021
Risk and
Insurance
Services
Marsh $2,711 $2,876 (6 ) % 4% (4 ) % 2 % 6 %
Guy Carpenter 171 170 1 % (4 ) % -- 5 %
Subtotal 2,882 3,046 (5 ) % 4% (4 ) % 2 % 6 %
Fiduciary
Interest
Income 63 3
Total Risk and
Insurance
Services 2,945 3,049 (3 ) % 6% (4 ) % 2 % 8 %
Consulting
Mercer 1,329 1,377 (3 ) % (6 ) % (2 ) % 5 %
Oliver Wyman
Group 765 722 6 % (5 ) % 3 % 8 %
Total
Consulting 2,094 2,099 -- (6 ) % -- 6 %
Corporate
Eliminations (17 ) (11 )
Total Revenue $5,022 $5,137 (2 ) % 3% (5 ) % 1 % 7 %
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
Components of Revenue Change**
%
Change
Revenue
% excl.
Three Months Change Marsh Acquisitions/
Ended December GAAP India Currency Dispositions/ Underlying
31, Revenue Gain* Impact Other Impact Revenue
2022 2021
Marsh:
EMEA $703 $713 (1) % (9) % -- 7 %
Asia Pacific 318 560 (43) % 8 % (11) % 7 % 12 %
Latin America 162 155 4 % -- -- 4 %
Total
International 1,183 1,428 (17) % 2 % (8) % 2 % 8 %
U.S./Canada 1,528 1,448 5 % (1) % 1 % 5 %
Total Marsh $2,711 $2,876 (6) % 4 % (4) % 2 % 6 %
Mercer:
Wealth $591 $648 (9) % (8) % (1) % --
Health 455 457 (1) % (4) % (4) % 8 %
Career 283 272 4 % (8) % -- 12 %
Total Mercer $1,329 $1,377 (3) % (6) % (2) % 5 %
* Percentage change excludes the gain from the consolidation of Marsh India of
$267 million from prior year's GAAP revenue.
** Components of revenue change may not add due to rounding.
Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Twelve Months Ended December 31
(Millions) (Unaudited)
The Company conducts business in 130 countries. As a result,
foreign exchange rate movements may impact period-to-period
comparisons of revenue. Similarly, certain other items such as
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.
Components of Revenue Change**
%
Change
Revenue
% excl.
Twelve Months Change Marsh Acquisitions/
Ended December GAAP India Currency Dispositions/ Underlying
31, Revenue Gain* Impact Other Impact Revenue
2022 2021
Risk and
Insurance
Services
Marsh $10,505 $10,203 3 % 6 % (3) % 1 % 8 %
Guy Carpenter 2,020 1,867 8 % (2) % 1 % 9 %
Subtotal 12,525 12,070 4 % 6 % (3) % 1 % 8 %
Fiduciary
Interest
Income 120 15
Total Risk and
Insurance
Services 12,645 12,085 5 % 7 % (3) % 1 % 9 %
Consulting
Mercer 5,345 5,254 2 % (5) % 1 % 6 %
Oliver Wyman
Group 2,794 2,535 10 % (4) % 1 % 13 %
Total
Consulting 8,139 7,789 5 % (5) % 1 % 8 %
Corporate
Eliminations (64) (54)
Total Revenue $20,720 $19,820 5 % 6 % (4) % 1 % 9 %
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
Components of Revenue Change**
%
Change
Revenue
% excl.
Twelve Months Change Marsh Acquisitions/
Ended December GAAP India Currency Dispositions/ Underlying
31, Revenue Gain* Impact Other Impact Revenue
2022 2021
Marsh:
EMEA $2,879 $2,946 (2) % (7) % (3) % 8 %
Asia Pacific 1,333 1,462 (9) % 12 % (8) % 6 % 13 %
Latin America 502 453 11 % (1) % -- 11 %
Total
International 4,714 4,861 (3) % 3 % (7) % -- 10 %
U.S./Canada 5,791 5,342 8 % -- 1 % 7 %
Total Marsh $10,505 $10,203 3 % 6 % (3) % 1 % 8 %
Mercer:
Wealth $2,366 $2,509 (6) % (6) % -- --
Health 2,017 1,855 9 % (3) % 3 % 9 %
Career 962 890 8 % (6) % -- 14 %
Total Mercer $5,345 $5,254 2 % (5) % 1 % 6 %
* Percentage change excludes the gain from the consolidation of Marsh India of
$267 million from prior year's GAAP revenue.
** Components of revenue change may not add due to rounding.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Three Months Ended December 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 in accordance with "GAAP" or
"reported" results). The Company also refers to and presents
certain additional non-GAAP financial measures, within the meaning
of Regulation G in accordance with 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,
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 its 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 (loss). The following tables identify these
noteworthy items and reconcile adjusted operating income (loss) to
GAAP operating income (loss), on a consolidated and reportable
segment basis, for the three and twelve months ended December 31,
2022 and 2021. The following tables also present adjusted operating
margin. For the three and twelve months ended December 31, 2022 and
2021, adjusted operating margin is calculated by dividing the sum
of adjusted operating income and identified intangible asset
amortization by consolidated or segment adjusted revenue.
Risk &
Insurance Corporate/
Services Consulting Eliminations Total
Three Months
Ended December
31, 2022
Operating income
(loss) $472 $ 336 $ (128 ) $680
Operating margin 16.0% 16.0 % N/A 13.5 %
Add (deduct)
impact of
noteworthy
items:
Restructuring,
excluding JLT
(a) 119 54 60 233
Changes in
contingent
consideration
(b) 11 -- -- 11
JLT integration
and
restructuring
costs (c) 91 6 -- 97
Pre-acquisition
related costs
(d) -- 13 -- 13
JLT legacy legal
charges -- (2 ) -- (2 )
Disposal of
businesses (8 ) -- -- (8 )
Operating income
adjustments 213 71 60 344
Adjusted
operating income
(loss) $685 $ 407 $ (68 ) $1,024
Total identified
intangible
amortization
expense $68 $ 12 $ -- $80
Adjusted
operating
margin 25.6% 20.0 % N/A 22.0 %
Three Months
Ended December
31, 2021
Operating income
(loss) $667 $ 395 $ (76 ) $986
Operating margin 21.9% 18.8 % N/A 19.2 %
Add (deduct)
impact of
noteworthy
items:
Restructuring,
excluding JLT
(a) 19 4 12 35
Changes in
contingent
consideration
(b) 45 1 -- 46
JLT integration
and
restructuring
costs (c) 15 15 2 32
JLT acquisition
related costs
and other (e) 45 1 -- 46
Legal claims (f) 33 -- -- 33
Gain on
consolidation of
business (g) (267) -- -- (267 )
JLT legacy legal
charges -- (6 ) -- (6 )
Operating income
adjustments (110) 15 14 (81 )
Adjusted
operating income
(loss) $557 $ 410 $ (62 ) $905
Total identified
intangible
amortization
expense $73 $ 14 $ -- $87
Adjusted
operating
margin 22.7% 20.2 % N/A 20.4 %
(a) Primarily includes severance and lease exit charges for activities
focused on workforce actions, rationalization of technology and
functional resources, and reductions in real estate. Costs also reflect
charges for Marsh's operational excellence program.
(b) Change in fair value of contingent consideration related to
acquisitions and dispositions measured each quarter.
(c) Primarily reflects lease exit charges for a legacy JLT U.K. location.
In 2021, costs incurred include severance, lease exit charges,
technology costs, and consulting services related to the integration of
JLT.
(d) Integration costs for the Westpac superannuation fund transaction in
Australia, which is expected to close in the first half of 2023.
(e) Retention costs and legal charges related to the acquisition of JLT.
(f) Settlement charges and legal costs related to strategic recruiting.
(g) Gain from the fair value re-measurement of the Company's previously
held equity method investment in Marsh India upon the Company
increasing its ownership interest from 49% to 92%. This amount is
included in revenue in the consolidated statements of income and
excluded from underlying revenue and adjusted revenue in the
calculation of adjusted operating margin.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Twelve Months Ended December 31
(Millions) (Unaudited)
Risk &
Insurance Corporate/
Services Consulting Eliminations Total
Twelve Months Ended
December 31, 2022
Operating income
(loss) $3,089 $ 1,553 $ (362 ) $4,280
Operating margin 24.4 % 19.1 % N/A 20.7 %
Add (deduct) impact
of noteworthy
items:
Restructuring,
excluding JLT (a) 157 61 94 312
Changes in contingent
consideration (b) 44 5 -- 49
JLT integration and
restructuring costs
(c) 97 16 2 115
JLT
acquisition-related
costs (d) 24 1 3 28
JLT legacy legal
charges (e) 14 (13 ) -- 1
Legal claims (f) 30 -- -- 30
Disposal of
businesses (g) (8 ) (114 ) -- (122 )
Pre-acquisition
related costs (h) -- 21 -- 21
Deconsolidation of
Russian businesses
and other related
charges (i) 42 10 -- 52
Operating income
adjustments 400 (13 ) 99 486
Adjusted operating
income (loss) $3,489 $ 1,540 $ (263 ) $4,766
Total identified
intangible
amortization
expense $291 $ 47 $ -- $338
Adjusted operating
margin 29.8 % 19.7 % N/A 24.7 %
Twelve Months Ended
December 31, 2021
Operating income
(loss) $3,080 $ 1,504 $ (272 ) $4,312
Operating margin 25.5 % 19.3 % N/A 21.8 %
Add (deduct) impact
of noteworthy
items:
Restructuring,
excluding JLT (a) 31 12 27 70
Changes in contingent
consideration (b) 63 (3 ) (3 ) 57
JLT integration and
restructuring costs
(c) 53 36 4 93
JLT acquisition
related costs and
other (d) 77 3 1 81
JLT legacy legal
charges (e) -- (69 ) -- (69 )
Legal claims (f) 60 -- 2 62
Disposal of
businesses (g) (52 ) 3 -- (49 )
Gain on consolidation
of business (j) (267 ) -- -- (267 )
Operating income
adjustments (35 ) (18 ) 31 (22 )
Adjusted operating
income (loss) $3,045 $ 1,486 $ (241 ) $4,290
Total identified
intangible
amortization
expense $309 $ 56 $ -- $365
Adjusted operating
margin 28.5 % 19.8 % N/A 23.9 %
(a) Primarily includes severance and lease exit charges for activities
focused on workforce actions, rationalization of technology and
functional resources, and reductions in real estate. Costs also reflect
charges for Marsh's operational excellence program.
(b) Change in fair value of contingent consideration related to
acquisitions and dispositions measured each quarter.
(c) Primarily reflects lease exit charges for a legacy JLT U.K. location.
In 2021, costs incurred include severance, lease exit charges,
technology costs, and consulting services related to the integration of
JLT.
(d) Retention costs and legal charges related to the acquisition of JLT.
(e) Charges and recoveries related to legacy JLT legal matters. 2021
reflects a reduction in the liability for a legacy JLT E&O relating to
suitability of advice provided to individuals for defined benefit
pension transfers in the U.K., as well as recoveries under indemnities
and insurance.
(f) Settlement charges and legal costs related to strategic recruiting.
(g) Primarily reflects a gain of $112 million during the second quarter of
2022 on the sale of the Mercer U.S. affinity business. In 2021, the
amount includes a gain of $49 million related to the sale of the U.K.
commercial networks business. These amounts are included in revenue in
the consolidated statements of income and excluded from underlying
revenue and adjusted revenue in the calculation of adjusted operating
margin.
(h) Integration costs for the Westpac superannuation fund transaction in
Australia, which is expected to close in the first half of 2023.
(i) Loss on deconsolidation of Russian businesses and other related
charges. The loss on deconsolidation of $39 million is included in
revenue in the consolidated statements of income and excluded from
underlying revenue and adjusted revenue used in the calculation of
adjusted operating margin.
(j) Gain from the fair value re-measurement of the Company's previously
held equity method investment in Marsh India upon the Company
increasing its ownership interest from 49% to 92%. The amount is
reflected in revenue in the consolidated statements of income and
excluded from underlying revenue and adjusted revenue in the
calculation of adjusted operating margin.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Three and Twelve Months Ended December 31
(In millions, except per share data)
(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 in the preceding
tables and the additional items listed below. Adjusted EPS is
calculated by dividing the Company's adjusted income, net of tax,
by 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 and twelve month periods ended December 31, 2022
and 2021.
Three Months Ended Three Months Ended
December 31, 2022 December 31, 2021
(In millions,
except per share Adjusted Adjusted
data) Amount EPS Amount EPS
Net income
before
non-controlling
interests, as
reported $471 $807
Less:
Non-controlling
interest, net
of tax 5 4
Subtotal $466 $ 0.93 $803 $ 1.57
Operating income
adjustments $344 $(81)
Investments
adjustment (a) 1 (4)
Pension
settlement
adjustment (b) 1 3
Income tax
effect of
adjustments
(c) (77) (33)
Impact of U.K.
tax rate change
(d) -- 5
269 0.54 (110) (0.21)
Adjusted income,
net of tax $735 $ 1.47 $693 $ 1.36
Twelve Months Ended Twelve Months Ended
December 31, 2022 December 31, 2021
(In millions,
except per share Adjusted Adjusted
data) Amount EPS Amount EPS
Net income
before
non-controlling
interests, as
reported $3,087 $3,174
Less:
Non-controlling
interest, net
of tax 37 31
Subtotal $3,050 $ 6.04 $3,143 $ 6.13
Operating income
adjustments $486 $(22)
Investments
adjustment (a) (3) (6)
Pension
settlement
adjustment (b) 2 5
Income tax
effect of
adjustments
(c) (78) (64)
Impact of U.K.
tax rate change
(d) -- 110
407 0.81 23 0.04
Adjusted income,
net of tax $3,457 $ 6.85 $3,166 $ 6.17
(a) Represents mark-to-market losses and gains related to the Company's
investments.
(b) Charges resulting from lump sum pension settlements elected by
participants.
(c) For items with an income tax impact, the tax effect was calculated
using an effective tax rate based on the tax jurisdiction for each
item.
(d) Reflects the re-measurement of the Company's U.K. deferred tax assets
and liabilities upon enactment of legislation that increased the
corporate income tax rate applicable to U.K. based entities from 19% to
25%, effective April 1, 2023.
Marsh & McLennan Companies, Inc.
Supplemental Information
Three and Twelve Months Ended December 31
(Millions) (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2022 2021 2022 2021
Consolidated
Compensation and
benefits $ 3,038 $2,905 $ 12,071 $11,425
Other operating
expenses 1,304 1,246 4,369 4,083
Total expenses $ 4,342 $4,151 $ 16,440 $15,508
Depreciation and
amortization
expense $ 122 $91 $ 381 $382
Identified
intangible
amortization
expense 80 87 338 365
Total $ 202 $178 $ 719 $747
Risk and
Insurance
Services
Compensation and
benefits $ 1,699 $1,630 $ 6,938 $6,506
Other operating
expenses 774 752 2,618 2,499
Total expenses $ 2,473 $2,382 $ 9,556 $9,005
Depreciation and
amortization
expense $ 55 $44 $ 178 $196
Identified
intangible
amortization
expense 68 73 291 309
Total $ 123 $117 $ 469 $505
Consulting
Compensation and
benefits $ 1,210 $1,148 $ 4,626 $4,435
Other operating
expenses 548 556 1,960 1,850
Total expenses $ 1,758 $1,704 $ 6,586 $6,285
Depreciation and
amortization
expense $ 32 $28 $ 111 $115
Identified
intangible
amortization
expense 12 14 47 56
Total $ 44 $42 $ 158 $171
Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets
(Millions) (Unaudited)
December 31, December 31,
2022 2021
ASSETS
Current assets:
Cash and cash equivalents $ 1,442 $ 1,752
Net receivables 5,852 5,586
Other current assets 1,005 926
Total current assets 8,299 8,264
Goodwill and intangible assets 18,788 19,127
Fixed assets, net 871 847
Pension related assets 2,127 2,270
Right of use assets 1,562 1,868
Deferred tax assets 358 551
Other assets 1,449 1,461
TOTAL ASSETS $ 33,454 $ 34,388
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 268 $ 17
Accounts payable and accrued liabilities 3,278 3,165
Accrued compensation and employee benefits 3,095 2,942
Current lease liabilities 310 332
Accrued income taxes 221 198
Total current liabilities 7,172 6,654
Fiduciary liabilities 10,660 9,622
Less - cash and cash equivalents held in a
fiduciary capacity (10,660) (9,622)
-- --
Long-term debt 11,227 10,933
Pension, post-retirement and
post-employment benefits 921 1,632
Long-term lease liabilities 1,667 1,880
Liabilities for errors and omissions 355 355
Other liabilities 1,363 1,712
Total equity 10,749 11,222
TOTAL LIABILITIES AND EQUITY $ 33,454 $ 34,388
Marsh & McLennan Companies, Inc.
Consolidated Statements of Cash Flows
(Millions) (Unaudited)
For the Years Ended
December 31,
2022 2021
Operating cash flows:
Net income before non-controlling interests $ 3,087 $3,174
Adjustments to reconcile net income to cash
provided by operations:
Depreciation and amortization 719 747
Non-cash lease expense 404 327
Deconsolidation of Russian businesses 39 --
Gain on consolidation of entity (2) (267)
Share-based compensation expense 367 348
Net gain on investments, disposition of assets
and other (137) (67)
Changes in assets and liabilities:
Accrued compensation and employee benefits 171 574
Provision for taxes, net of payments and refunds (54) (33)
Net receivables (492) (570)
Other changes to assets and liabilities 71 4
Contributions to pension and other benefit plans
in excess of current year credit (385) (372)
Operating lease liabilities (323) (349)
Net cash provided by operations 3,465 3,516
Financing cash flows:
Purchase of treasury shares (1,950) (1,159)
Proceeds from issuance of debt 984 743
Repayments of debt (365) (1,016)
Net issuance of common stock from treasury
shares (72) 60
Net distributions from non-controlling interests
and deferred/contingent consideration (189) (82)
Dividends paid (1,138) (1,026)
Increase in fiduciary liabilities 1,684 1,183
Net cash used for financing activities (1,046) (1,297)
Investing cash flows:
Capital expenditures (470) (406)
Purchase of long-term investments and other (13) (29)
Sales of long-term investments 86 46
Dispositions 119 84
Acquisitions, net of cash and cash held in a
fiduciary capacity acquired (572) (859)
Net cash used for investing activities (850) (1,164)
Effect of exchange rate changes on cash, cash
equivalents, and cash and cash equivalents held
in a fiduciary capacity (841) (355)
Increase in cash, cash equivalents, and cash and
cash equivalents held in a fiduciary capacity 728 700
Cash, cash equivalents, and cash and cash
equivalents held in a fiduciary capacity at
beginning of period 11,374 10,674
Cash, cash equivalents, and cash and cash
equivalents held in a fiduciary capacity at end
of period $ 12,102 $11,374
Reconciliation of cash, cash equivalents, and cash and cash equivalents
held in a fiduciary capacity to the Consolidated Balance Sheets
For the Years Ended December 31, 2022 2021
(In millions of dollars)
Cash and cash equivalents $1,442 $1,752
Cash and cash equivalents held in a fiduciary capacity 10,660 9,622
Total cash, cash equivalents, and cash and cash
equivalents held in a fiduciary capacity $12,102 $11,374
Media Contact:
Erick R. Gustafson
Marsh McLennan
+1 202 263 7788
erick.gustafson@mmc.com
Investor Contact:
Sarah DeWitt
Marsh McLennan
+1 212 345 6750
sarah.dewitt@mmc.com
View source version on businesswire.com:
https://www.businesswire.com/news/home/20230125005833/en/
CONTACT:
Marsh McLennan
SOURCE: Marsh McLennan
Copyright Business Wire 2023
(END) Dow Jones Newswires
January 26, 2023 07:00 ET (12:00 GMT)
Marsh & Mclennan Cos (LSE:MHM)
過去 株価チャート
から 12 2024 まで 1 2025
Marsh & Mclennan Cos (LSE:MHM)
過去 株価チャート
から 1 2024 まで 1 2025
