Marsh & McLennan's Q3 2024: A Quarter of Growth and Acquisitions

Marsh & McLennan Companies, Inc. (MMC) reported strong financial results for the third quarter of 2024, marked by robust revenue growth and margin expansion. The global leader in risk, strategy, and people delivered a 6% increase in GAAP revenue and a 5% rise in underlying revenue. The company's adjusted operating income grew by 12%, with GAAP operating income increasing by 11%. John Doyle, President and CEO, attributed the success to the company's continued momentum and the acquisition of McGriff Insurance Services.


The Marsh unit within the Risk and Insurance Services segment contributed significantly to the company's overall revenue growth. Revenues for Marsh rose by 9% year over year and 7% on an underlying basis, outpacing the Zacks Consensus Estimate. The United States/Canada operations witnessed a 10% increase in revenues, while international operations, particularly Asia Pacific and EMEA, saw growth of 10% and 8%, respectively.


The acquisition of McGriff Insurance Services, announced on September 29, 2024, for $7.75 billion, is expected to complement Marsh McLennan Agency's capabilities and culture. The acquisition is anticipated to help the company better serve its clients and drive future growth.

The consulting segment also played a crucial role in the company's revenue growth. Mercer and Oliver Wyman, units within the segment, recorded underlying increases of 5% and 1% in revenues, respectively. The segment's adjusted operating income grew by 6.9%, beating the consensus estimate.


In conclusion, Marsh & McLennan's Q3 2024 earnings reflect the company's strong performance and strategic acquisitions. The robust growth in the Marsh unit and the consulting segment, along with the acquisition of McGriff Insurance Services, position the company well for continued success in the future.