Marsh & McLennan’s consolidated revenues of $4.4 billion were up 4% year over year. Moreover, the top line beat the Zacks Consensus Estimate by 3.7% on the back of its strong Risk and Insurance Services segment.
Total operating expenses of $3.8 billion in the fourth quarter were up 4.7% year over year due to higher compensation and benefits.
Risk and Insurance Services
Revenues at this segment were $2.5 billion, up 3% on an underlying basis. Adjusted operating income decreased 5% to $525 million from the prior-year quarter’s level.
Marsh, a unit within this segment, generated revenues of $2.4 billion, up 4% on an underlying basis. In the U.S./Canada, underlying revenues rose 7% year over year.
Underlying revenues from international operations were flat year over year including a 1% increase of the same in the Asia Pacific, a 3% rise in Latin America and a 2% drop in EMEA.
Revenues from another unit under this segment, Guy Carpenter, were up 5% year over year on an underlying basis in the quarter under review.
Consulting
Revenues were down 1% on an underlying basis to $1.9 billion. Also, adjusted operating income were up 8% to $387 million.
A unit within this segment, Mercer, generated revenues of $1.3 billion, down 3% on an underlying basis. Wealth’s revenues dipped 1% on an underlying basis. Health and Career’s revenues were down 2% and 7%, respectively, year over year on an underlying basis. Another unit Oliver Wyman Group registered revenues of $590 million, up 4% year over year on an underlying basis.
Financial Update
Marsh & McLennan exited the fourth quarter with cash and cash equivalents of $2.1 billion, up 80.9% % from the level at 2019 end.
Net cash provided by operating activities totaled $3.3 billion at the end of the fourth quarter, up 43.2% year over year.
As of Dec 31, 2020, Marsh & McLennan’s total assets were $33 billion, up 5.3% from the figure as of Dec 31, 2019.
Total equity was $9.2 billion, up 16.6% from the level at 2019 end.
Full-Year Results
For 2020, revenues of the company were $17.2 billion, up 1% on an underlying basis. Adjusted earnings per share for last year were up 7% year over year to $4.97.