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Marsh & McLennan Companies Reports First Quarter 2016 Results

NEW YORK, Apr 28, 2016 (BUSINESS WIRE) -- Marsh & McLennan Companies, Inc. MMC, +0.54% a global professional services firm offering clients advice and solutions in risk, strategy and people, today reported financial results for the first quarter ended March 31, 2016.

Marsh & McLennan Companies President and CEO Dan Glaser said: "We are pleased with our performance in the first quarter. Underlying revenue increased 4% on a consolidated basis, reflecting growth across all operating companies. Underlying growth was 2% in Risk & Insurance Services and 6% in Consulting. Earnings per share increased 3% to $.91. Adjusted EPS was $.92.

"We are off to a strong start to the year, and believe the Company is well positioned to deliver underlying revenue growth, meaningful margin expansion in both operating segments and strong earnings per share growth in 2016," concluded Mr. Glaser.

Consolidated Results

Consolidated revenue in the first quarter of 2016 was $3.3 billion, an increase of 4% on both a reported and underlying basis compared with the first quarter of 2015. Operating income was $733 million, essentially flat compared with $735 million in the prior year. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, was $736 million, and net income attributable to the Company was $481 million. On a per share basis, net income attributable to the Company rose 3% to $.91 from $.88 last year. Adjusted earnings per share was $.92.

In March 2015, the Company terminated its post-65 retiree medical reimbursement program in the United States. As a result, the Company recognized a net credit of approximately $125 million, or about $0.15 per share, in the first quarter of 2015.

Risk & Insurance Services

Risk & Insurance Services revenue was $1.9 billion in the first quarter of 2016, an increase of 2% on an underlying basis. Risk & Insurance Services generated operating income of $535 million, and adjusted operating income of $543 million.

Marsh produced revenue in the first quarter of $1.5 billion, an increase of 2% on an underlying basis. International operations produced underlying revenue growth of 2%, reflecting growth of 1% in EMEA, 3% in Asia Pacific and 6% in Latin America. In US/Canada, underlying revenue rose 2%. Guy Carpenter's revenue in the first quarter was $374 million, an increase of 3% on an underlying basis.


Consulting generated revenue of $1.5 billion in the first quarter, an increase of 6% on an underlying basis. Operating income was $245 million, with adjusted operating income of $238 million.

Mercer produced revenue of $1 billion in the first quarter, an increase of 3% on an underlying basis. Health, with revenue of $400 million, grew 6% on an underlying basis; Investments, with revenue of $196 million, rose 1%; Talent, with revenue of $131 million, was up 1%; and Retirement, with revenue of $312 million, was flat. Oliver Wyman Group’s revenue was $439 million in the first quarter, an increase of 15% on an underlying basis.

Other Items

In March, the Company issued $350 million of 3.300% senior notes due in 2023, the net proceeds of which it intends to use for general corporate purposes. The Company repurchased 3.5 million shares of its common stock for $200 million in the first quarter.

Conference Call

A conference call to discuss first quarter 2016 results will be held today at 8:30 a.m. Eastern time. To participate in the teleconference, please dial +1 888 500 6973. Callers from outside the United States should dial +1 719 457 2646. The access code for both numbers is 4762012. The live audio webcast may be accessed at A replay of the webcast will be available approximately two hours after the event.

About Marsh & McLennan Companies

MARSH & McLENNAN COMPANIES MMC, +0.54% is a global professional services firm offering clients advice and solutions in the areas of risk, strategy and people. Marsh is a leader in insurance broking and risk management; Guy Carpenter is a leader in providing risk and reinsurance intermediary services; Mercer is a leader in talent, health, retirement and investment consulting; and Oliver Wyman is a leader in management consulting. With annual revenue of $13 billion and approximately 60,000 colleagues worldwide, Marsh & McLennan Companies provides analysis, advice and transactional capabilities to clients in more than 130 countries. The Company is committed to being a responsible corporate citizen and making a positive impact in the communities in which it operates. Visit for more information and follow us on LinkedIn and Twitter @MMC_Global.


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: our ability to maintain adequate safeguards to protect the security of confidential, personal or proprietary information; our ability to compete effectively and adapt to changes in the competitive environment, including to technological and other types of innovation; the impact of potential changes in global economic, political and market conditions on us and our clients, including the possibility of an exit by the United Kingdom from the European Union; our ability to successfully recover should we experience a business continuity problem due to cyberattack, natural disaster or otherwise; our exposure to potential civil remedies or criminal penalties if we fail to comply with U.S. and non-U.S. laws and regulations applicable in the jurisdictions in which we operate; the financial and operational impact of complying with laws and regulations in the...