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Marsh McLennan Reports Strong Fourth Quarter and Full-Year 2024 Results

1. MMC reported 9% revenue growth in Q4 2024 over Q4 2023. 2. Adjusted EPS increased by 11% to $1.87 in Q4 2024. 3. MMC made $7.75 billion acquisition of McGriff Insurance Services in November 2024. 4. The company achieved 17th year of consecutive margin expansion. 5. International operations contributed significantly with 9% underlying revenue growth.

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Why Bullish?

Strong financial performance and acquisitions typically correlate with increased stock prices.

How important is it?

The financial results and acquisitions significantly affect investor perceptions and potential stock valuation.

Why Long Term?

The acquisition and sustained revenue growth indicate future profitability and strategic positioning.

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MMCMGCMCO
NEW YORK--(BUSINESS WIRE)--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, 2024. John Doyle, President and CEO, said: "Our fourth quarter results capped a terrific year for Marsh McLennan. We delivered on our strategic objectives, generated excellent financial performance, and had the largest year of acquisitions in our history. For the full year, we generated 7% underlying revenue growth, 10% adjusted EPS growth and 80 basis points of adjusted margin expansion, marking our 17th consecutive year of reported margin expansion." "We are well positioned for another strong year in 2025, reflecting our unique capabilities and the enduring value we bring to clients." Consolidated Results Consolidated revenue in the fourth quarter of 2024 was $6.1 billion, an increase of 9% compared with the fourth quarter of 2023, or 7% on an underlying basis. Operating income was $1.1 billion. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 9% to $1.3 billion. Net income attributable to the Company was $788 million. Earnings per share increased 5% to $1.59. Adjusted earnings per share increased 11% to $1.87 and included a benefit of 5 cents per share from favorable discrete tax items, as well as a headwind of 2 cents per share from foreign exchange. For the full year 2024, revenue was $24.5 billion, an increase of 8% compared with 2023, or 7% on an underlying basis. Operating income was $5.8 billion, and adjusted operating income rose 11% to $6.2 billion. Net income attributable to the Company was $4.1 billion. Earnings per share increased 9% to $8.18. Adjusted earnings per share increased 10% to $8.80. Risk & Insurance Services Risk & Insurance Services revenue was $3.6 billion in the fourth quarter of 2024, an increase of 11%, or 8% on an underlying basis. Operating income was $770 million. Adjusted operating income increased 13% to $893 million. For the year 2024, revenue was $15.4 billion, an increase of 9% compared with 2023, or 8% on an underlying basis. Operating income was $4.4 billion. Adjusted operating income rose 13% to $4.6 billion. Marsh's revenue in the fourth quarter of 2024 was $3.3 billion, an increase of 15%, or 8% on an underlying basis. In U.S./Canada, underlying revenue rose 8%. International operations produced underlying revenue growth of 9%, including 13% in Latin America, 9% in EMEA, and 6% in Asia Pacific. For the year 2024, Marsh’s revenue growth was 10% compared to a year ago, or 7% on an underlying basis. Guy Carpenter's fourth quarter revenue was $201 million, a decrease of 20%, or an increase of 7% on an underlying basis. For the year 2024, Guy Carpenter’s revenue grew 5% compared to a year ago, or 8% on an underlying basis. Consulting Consulting revenue was $2.4 billion in the fourth quarter of 2024, an increase of 6% on both a GAAP and underlying basis. Operating income was $466 million. Adjusted operating income increased 1% to $484 million. For the year 2024, revenue was $9.1 billion, an increase of 5% compared with 2023, or 6% on an underlying basis. Operating income was $1.8 billion. Adjusted operating income increased 6% to $1.8 billion. Mercer’s revenue was $1.5 billion in the fourth quarter of 2024, an increase of 3%, or 5% on an underlying basis. Wealth revenue increased 4% on an underlying basis, Health revenue increased 5% on an underlying basis, and Career revenue increased 7% on an underlying basis. For the year 2024, Mercer’s revenue increased 3%, or 5% on an underlying basis. Oliver Wyman’s revenue was $954 million in the fourth quarter of 2024, an increase of 11%, or 7% on an underlying basis. For the year 2024, Oliver Wyman’s revenue was $3.4 billion, an increase of 9%, or 6% on an underlying basis. Other Items The Company repurchased 4.3 million shares for $900 million in 2024. On November 15, 2024, the Company completed the acquisition of McGriff Insurance Services, LLC ("McGriff"), a leading provider of insurance broking and risk management services in the United States, for $7.75 billion in cash consideration. As part of funding for the transaction, the Company issued $7.25 billion of senior notes on November 8, 2024. Conference Call A conference call to discuss fourth quarter 2024 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 a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit marshmclennan.com, follow us on LinkedIn and X. 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 multiple major wars and global conflicts, slower GDP growth or recession, lower interest rates, capital markets volatility, inflation and changes in insurance premium rates; 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 increasing prevalence of ransomware, supply chain and other forms of cyber attacks, and their potential to disrupt our operations, or the operations of our third party vendors, and result in the disclosure of confidential client or company information; 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, data privacy and artificial intelligence 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 such as artificial intelligence; 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, such as the implementation of the Organization for Economic Cooperation and Development international tax framework, or the increasing number of challenges from tax authorities in the current global tax environment; the regulatory, contractual and reputational risks that arise based on insurance placement activities and insurer revenue streams; our failure to design and execute operating model changes that capture opportunities and efficiencies at the intersection of our businesses; and our ability to successfully integrate or achieve the intended benefits of the acquisition of McGriff. 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 December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Revenue $ 6,067 $ 5,554 $ 24,458 $ 22,736 Expense: Compensation and benefits 3,630 3,268 13,996 13,099 Other operating expenses 1,295 1,183 4,645 4,355 Operating expenses 4,925 4,451 18,641 17,454 Operating income 1,142 1,103 5,817 5,282 Other net benefit credits 67 59 268 239 Interest income 22 38 83 78 Interest expense (231 ) (151 ) (700 ) (578 ) Investment income (loss) 9 (1 ) 12 5 Income before income taxes 1,009 1,048 5,480 5,026 Income tax expense 208 283 1,363 1,224 Net income before non-controlling interests 801 765 4,117 3,802 Less: Net income attributable to non-controlling interests 13 9 57 46 Net income attributable to the Company $ 788 $ 756 $ 4,060 $ 3,756 Net income per share attributable to the Company: - Basic $ 1.60 $ 1.53 $ 8.26 $ 7.60 - Diluted $ 1.59 $ 1.52 $ 8.18 $ 7.53 Average number of shares outstanding: - Basic 491 493 492 494 - Diluted 496 498 496 499 Shares outstanding at December 31 491 492 491 492   Marsh & McLennan Companies, Inc. Supplemental Information - Revenue Analysis Three Months Ended December 31 (Millions) (Unaudited)   The Company advises clients in 130 countries. As a result, foreign exchange rate movements may impact period over period comparisons of revenue. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period over period comparisons of revenue. Non-GAAP underlying revenue measures the change in revenue from one period to the next by isolating these impacts.   Components of Revenue Change* Three Months Ended December 31, % Change GAAP Revenue* Currency Impact Acquisitions/ Dispositions/ Other Impact** Non-GAAP Underlying Revenue 2024 2023 Risk and Insurance Services Marsh $ 3,334 $ 2,896 15 % (1 )% 8 % 8 % Guy Carpenter (a) 201 252 (20 )% (1 )% (25 )% 7 % Subtotal 3,535 3,148 12 % (1 )% 5 % 8 % Fiduciary Interest Income 112 123 Total Risk and Insurance Services 3,647 3,271 11 % (1 )% 5 % 8 % Consulting Mercer 1,487 1,444 3 % — (1 )% 5 % Oliver Wyman Group (b) 954 856 11 % — 5 % 7 % Total Consulting 2,441 2,300 6 % — 1 % 6 % Corporate Eliminations (21 ) (17 ) Total Revenue $ 6,067 $ 5,554 9 % (1 )% 3 % 7 %   Revenue Details   The following table provides more detailed revenue information for certain of the components presented above:   Components of Revenue Change* Three Months Ended December 31, % Change GAAP Revenue* Currency Impact Acquisitions/ Dispositions/ Other Impact** Non-GAAP Underlying Revenue 2024 2023 Marsh: EMEA $ 846 $ 780 9 % — (1 )% 9 % Asia Pacific 345 315 9 % — 4 % 6 % Latin America 179 173 3 % (12 )% 2 % 13 % Total International 1,370 1,268 8 % (2 )% 1 % 9 % U.S./Canada 1,964 1,628 21 % — 13 % 8 % Total Marsh $ 3,334 $ 2,896 15 % (1 )% 8 % 8 % Mercer: Wealth $ 675 $ 654 4 % — (1 )% 4 % Health 495 502 (1 )% (1 )% (4 )% 5 % Career 317 288 10 % (1 )% 4 % 7 % Total Mercer $ 1,487 $ 1,444 3 % — (1 )% 5 % (a)    Acquisitions, dispositions, and other in 2023 includes a gain from a legal settlement with a competitor, excluding legal fees. (b)   Acquisitions, dispositions, and other in 2024 includes a gain from the sale of a business in Oliver Wyman Group.   *   Rounded to whole percentages. Components of revenue may not add due to rounding. **   Acquisitions, dispositions, and other includes the impact of current and prior year items excluded from the calculation of non-GAAP underlying revenue for comparability purposes. Details on these items are provided in the reconciliation of non-GAAP revenue to GAAP revenue tables included in this release.   Marsh & McLennan Companies, Inc. Supplemental Information - Revenue Analysis Twelve Months Ended December 31 (Millions) (Unaudited)   The Company advises clients in 130 countries. As a result, foreign exchange rate movements may impact period over period comparisons of revenue. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period over period comparisons of revenue. Non-GAAP underlying revenue measures the change in revenue from one period to the next by isolating these impacts.   Components of Revenue Change* Twelve Months Ended December 31, % Change GAAP Revenue* Currency Impact Acquisitions/ Dispositions/ Other Impact** Non-GAAP Underlying Revenue 2024 2023 Risk and Insurance Services Marsh $ 12,536 $ 11,378 10 % (1 )% 3 % 7 % Guy Carpenter (a) 2,362 2,258 5 % — (3 )% 8 % Subtotal 14,898 13,636 9 % (1 )% 2 % 8 % Fiduciary Interest Income 497 453 Total Risk and Insurance Services 15,395 14,089 9 % (1 )% 2 % 8 % Consulting Mercer (b) 5,743 5,587 3 % (1 )% (2 )% 5 % Oliver Wyman Group (c) 3,390 3,122 9 % — 3 % 6 % Total Consulting 9,133 8,709 5 % — — 6 % Corporate Eliminations (70 ) (62 ) Total Revenue $ 24,458 $ 22,736 8 % — 1 % 7 %   Revenue Details   The following table provides more detailed revenue information for certain of the components presented above:   Components of Revenue Change* Twelve Months Ended December 31, % Change GAAP Revenue* Currency Impact Acquisitions/ Dispositions/ Other Impact** Non-GAAP Underlying Revenue 2024 2023 Marsh: EMEA $ 3,530 $ 3,262 8 % — — 8 % Asia Pacific 1,414 1,295 9 % (2 )% 5 % 6 % Latin America 575 559 3 % (9 )% 2 % 10 % Total International 5,519 5,116 8 % (1 )% 1 % 8 % U.S./Canada 7,017 6,262 12 % — 5 % 7 % Total Marsh $ 12,536 $ 11,378 10 % (1 )% 3 % 7 % Mercer: Wealth (b) $ 2,584 $ 2,507 3 % — (1 )% 4 % Health (b) 2,100 2,061 2 % (1 )% (5 )% 8 % Career 1,059 1,019 4 % (2 )% 2 % 4 % Total Mercer $ 5,743 $ 5,587 3 % (1 )% (2 )% 5 %    (a) Acquisitions, dispositions, and other in 2023 includes a gain from a legal settlement with a competitor, excluding legal fees. (b) Acquisitions, dispositions, and other in 2024 includes a net gain from the sale of the U.K. pension administration and U.S. health and benefits administration businesses, that comprised of a gain in Wealth, offset by a loss in Health. (c) Acquisitions, dispositions, and other in 2024 includes a gain from the sale of a business in Oliver Wyman Group. * Rounded to whole percentages. Components of revenue may not add due to rounding. ** Acquisitions, dispositions, and other includes the impact of current and prior year items excluded from the calculation of non-GAAP underlying revenue for comparability purposes. Details on these items are provided in the reconciliation of non-GAAP revenue to GAAP revenue tables included in this release. 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 and item 10(e) Regulation S-K in accordance with the Securities Exchange Act of 1934. These measures are: non-GAAP revenue, 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 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, 2024 and 2023. The following tables also present adjusted operating margin. For the three and twelve months ended December 31, 2024 and 2023, adjusted operating margin is calculated by dividing the sum of adjusted operating income and identified intangible asset amortization by consolidated or segment adjusted revenue. The Company's adjusted revenue used in the determination of adjusted operating margin is calculated by excluding the impact of certain noteworthy items from the Company's GAAP revenue. Risk & Insurance Services Consulting Corporate/ Eliminations Total Three Months Ended December 31, 2024 Operating income (loss) $ 770 $ 466 $ (94 ) $ 1,142 Operating margin 21.1 % 19.1 % N/A 18.8 % Add (deduct) impact of noteworthy items: Restructuring (a) 75 49 12 136 Changes in contingent consideration (8 ) 2 — (6 ) McGriff acquisition and retention related costs 58 — 1 59 Acquisition related costs 1 1 — 2 Disposal of businesses (b) — (34 ) — (34 ) Other (3 ) — — (3 ) Operating income adjustments 123 18 13 154 Adjusted operating income (loss) $ 893 $ 484 $ (81 ) $ 1,296 Total identified intangible amortization expense $ 93 $ 15 $ — $ 108 Adjusted operating margin 27.0 % 20.7 % N/A 23.3 % Three Months Ended December 31, 2023 Operating income (loss) $ 753 $ 443 $ (93 ) $ 1,103 Operating margin 23.0 % 19.2 % N/A 19.9 % Add (deduct) impact of noteworthy items: Restructuring (a) 88 29 14 131 Changes in contingent consideration 7 1 — 8 Acquisition and related costs — 7 — 7 Legal claims (c) (58 ) — — (58 ) Other 1 — 1 2 Operating income adjustments 38 37 15 90 Adjusted operating income (loss) $ 791 $ 480 $ (78 ) $ 1,193 Total identified intangible amortization expense $ 76 $ 10 $ — $ 86 Adjusted operating margin 27.0 % 21.3 % N/A 23.3 % (a)   Costs primarily includes severance and lease exit charges for activities focused on workforce actions, rationalization of technology and functional resources, and reductions in real estate.  (b)   Primarily gain on sale of a business in Oliver Wyman Group. The amounts are included in revenue in the consolidated statements of income and excluded from non-GAAP revenue and adjusted revenue used in the calculation of adjusted operating margin. (c)   Reflects a legal settlement with a competitor, excluding legal fees. The amount is included in revenue in the consolidated statements of income and excluded from non-GAAP revenue and adjusted revenue used 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 Services Consulting Corporate/ Eliminations Total Twelve Months Ended December 31, 2024 Operating income (loss) $ 4,365 $ 1,770 $ (318 ) $ 5,817 Operating margin 28.4 % 19.4 % N/A 23.8 % Add (deduct) impact of noteworthy items: Restructuring (a) 148 79 49 276 Changes in contingent consideration 9 6 — 15 McGriff acquisition and retention related costs 60 — 3 63 Acquisition and disposition related costs (b) 26 32 — 58 Disposal of businesses (c) — (55 ) — (55 ) Other (3 ) — — (3 ) Operating income adjustments 240 62 52 354 Adjusted operating income (loss) $ 4,605 $ 1,832 $ (266 ) $ 6,171 Total identified intangible amortization expense $ 326 $ 51 $ — $ 377 Adjusted operating margin 32.0 % 20.7 % N/A 26.8 % Twelve Months Ended December 31, 2023 Operating income (loss) $ 3,945 $ 1,666 $ (329 ) $ 5,282 Operating margin 28.0 % 19.1 % N/A 23.2 % Add (deduct) impact of noteworthy items: Restructuring (a) 177 62 62 301 Changes in contingent consideration 27 2 — 29 Acquisition and disposition related costs (b) — 39 — 39 Disposal of businesses — 17 — 17 JLT legacy legal charges (d) — (51 ) — (51 ) Legal claims (e) (58 ) — — (58 ) Other 2 1 1 4 Operating income adjustments 148 70 63 281 Adjusted operating income (loss) $ 4,093 $ 1,736 $ (266 ) $ 5,563 Total identified intangible amortization expense $ 297 $ 46 $ — $ 343 Adjusted operating margin 31.3 % 20.4 % N/A 26.0 % (a)   Costs primarily includes severance and lease exit charges for activities focused on workforce actions, rationalization of technology and functional resources, and reductions in real estate. (b)   Primarily reflects exit costs for the disposition of the Mercer U.K. pension administration and U.S. health and benefits administration businesses and one-time acquisition related retention costs. Amounts in 2023 include integration costs related to the Westpac superannuation fund transaction. (c)   Net gain on sale of the Mercer U.K. pension administration and U.S. health and benefits administration businesses and sale of a business in Oliver Wyman Group. These amounts are included in revenue in the consolidated statements of income and excluded from non-GAAP revenue and adjusted revenue used in the calculation of adjusted operating margin. (d)   Insurance and indemnity recoveries for a legacy JLT E&O matter relating to suitability of advice provided to individuals for defined benefit pension transfers in the U.K. (e)   Reflects a legal settlement with a competitor, excluding legal fees. The amount is included in revenue in the consolidated statements of income and excluded from non-GAAP revenue and adjusted revenue used 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 the 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 months ended December 31, 2024 and 2023.   Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Amount Adjusted EPS Amount Adjusted EPS Net income before non-controlling interests, as reported $ 801 $ 765 Less: Non-controlling interest, net of tax 13 9 Subtotal $ 788 $ 1.59 $ 756 $ 1.52 Operating income adjustments $ 154 $ 90 Investments adjustment — — Pension settlement adjustment 1 — Financing costs (a) 26 — Income tax effect of adjustments (b) (42 ) (8 ) 139 0.28 82 0.16 Adjusted income, net of tax $ 927 $ 1.87 $ 838 $ 1.68 Twelve Months Ended December 31, 2024 Twelve Months Ended December 31, 2023 Amount Adjusted EPS Amount Adjusted EPS Net income before non-controlling interests, as reported $ 4,117 $ 3,802 Less: Non-controlling interest, net of tax 57 46 Subtotal $ 4,060 $ 8.18 $ 3,756 $ 7.53 Operating income adjustments $ 354 $ 281 Investments adjustment (2 ) 2 Pension settlement adjustment 3 — Financing costs (a) 26 — Income tax effect of adjustments (b) (72 ) (53 ) 309 0.62 230 0.46 Adjusted income, net of tax $ 4,369 $ 8.80 $ 3,986 $ 7.99 (a)   Primarily reflects amortization of bridge financing fees related to the acquisition of McGriff. (b)   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.   Marsh & McLennan Companies, Inc. Supplemental Information Three and Twelve Months Ended December 31 (Millions) (Unaudited)   Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Consolidated Compensation and benefits $ 3,630 $ 3,268 $ 13,996 $ 13,099 Other operating expenses 1,295 1,183 4,645 4,355 Total expenses $ 4,925 $ 4,451 $ 18,641 $ 17,454 Depreciation and amortization expense $ 93 $ 100 $ 369 $ 370 Identified intangible amortization expense 108 86 377 343 Total $ 201 $ 186 $ 746 $ 713 Risk and Insurance Services Compensation and benefits $ 2,178 $ 1,868 $ 8,499 $ 7,702 Other operating expenses 699 650 2,531 2,442 Total expenses $ 2,877 $ 2,518 $ 11,030 $ 10,144 Depreciation and amortization expense $ 52 $ 55 $ 192 $ 190 Identified intangible amortization expense 93 76 326 297 Total $ 145 $ 131 $ 518 $ 487 Consulting Compensation and benefits $ 1,421 $ 1,362 $ 5,358 $ 5,249 Other operating expenses 554 495 2,005 1,794 Total expenses $ 1,975 $ 1,857 $ 7,363 $ 7,043 Depreciation and amortization expense $ 26 $ 28 $ 114 $ 106 Identified intangible amortization expense 15 10 51 46 Total $ 41 $ 38 $ 165 $ 152   Marsh & McLennan Companies, Inc. Consolidated Balance Sheets (Millions) (Unaudited)   December 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 2,398 $ 3,358 Cash and cash equivalents held in a fiduciary capacity 11,276 10,794 Net receivables 7,156 6,418 Other current assets 1,287 1,178 Total current assets 22,117 21,748 Goodwill and intangible assets 28,126 19,861 Fixed assets, net 859 882 Pension related assets 1,914 2,051 Right of use assets 1,498 1,541 Deferred tax assets 237 357 Other assets 1,730 1,590 TOTAL ASSETS $ 56,481 $ 48,030 LIABILITIES AND EQUITY Current liabilities: Short-term debt $ 519 $ 1,619 Accounts payable and accrued liabilities 3,402 3,403 Accrued compensation and employee benefits 3,620 3,346 Current lease liabilities 325 312 Accrued income taxes 376 321 Fiduciary liabilities 11,276 10,794 Total current liabilities 19,518 19,795 Long-term debt 19,428 11,844 Pension, post-retirement and post-employment benefits 840 779 Long-term lease liabilities 1,590 1,661 Liabilities for errors and omissions 305 314 Other liabilities 1,265 1,267 Total equity 13,535 12,370 TOTAL LIABILITIES AND EQUITY $ 56,481 $ 48,030   Marsh & McLennan Companies, Inc. Consolidated Statements of Cash Flows (Millions) (Unaudited)   For the Years Ended December 31, 2024 2023 Operating cash flows: Net income before non-controlling interests $ 4,117 $ 3,802 Adjustments to reconcile net income to cash provided by operations: Depreciation and amortization 746 713 Non-cash lease expense 280 288 Share-based compensation expense 368 363 Dispositions, changes to contingent consideration and net gain on investments (134 ) — Changes in assets and liabilities: Accrued compensation and employee benefits 92 195 Provision for taxes, net of payments and refunds 123 105 Net receivables (467 ) (467 ) Other changes to assets and liabilities (162 ) (90 ) Contributions to pension and other benefit plans in excess of current year credit (352 ) (335 ) Operating lease liabilities (309 ) (316 ) Net cash provided by operations 4,302 4,258 Financing cash flows: Purchase of treasury shares (900 ) (1,150 ) Proceeds from issuance of debt 8,170 2,169 Repayments of debt (1,617 ) (266 ) Payment of bridge loan commitment fees (23 ) — Net issuance of common stock from treasury shares 84 51 Net distributions from non-controlling interests and deferred/contingent consideration (157 ) (370 ) Dividends paid (1,513 ) (1,298 ) Change in fiduciary liabilities 411 (255 ) Net cash provided by (used for) financing activities 4,455 (1,119 ) Investing cash flows: Capital expenditures (316 ) (416 ) Net purchases of long-term investments and other (107 ) (46 ) Sales of long-term investments 55 38 Dispositions 89 (17 ) Acquisitions, net of cash and cash held in a fiduciary capacity acquired (8,542 ) (976 ) Net cash used for investing activities (8,821 ) (1,417 ) Effect of exchange rate changes on cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity (414 ) 328 Decrease in cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity (478 ) 2,050 Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at beginning of year 14,152 12,102 Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at end of year $ 13,674 $ 14,152 Reconciliation of cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity to the Consolidated Balance Sheets Balance at December 31, 2024 2023 (In millions) Cash and cash equivalents $ 2,398 $ 3,358 Cash and cash equivalents held in a fiduciary capacity 11,276 10,794 Total cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity $ 13,674 $ 14,152   Marsh & McLennan Companies, Inc. Reconciliation of Non-GAAP Measures Three Months Ended December 31 (Millions) (Unaudited)   Non-GAAP revenue isolates the impact of foreign exchange rate movements and certain transaction-related items from the current period GAAP revenue. The non-GAAP revenue measure is presented on a constant currency basis, excluding the impact of foreign currency fluctuations. The Company isolates the impact of foreign exchange rate movements period over period, by translating the current period foreign currency GAAP revenue into U.S. Dollars based on the difference in the current and corresponding prior period exchange rates. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period over period comparisons of revenue and are consistently excluded from current and prior period GAAP revenues for comparability purposes. Percentage changes, referred to as non-GAAP underlying revenue, are calculated by dividing the period over period change in non-GAAP revenue by the prior period non-GAAP revenue.   The following table provides the reconciliation of GAAP revenue to non-GAAP revenue:   2024 2023 Three Months Ended December 31, GAAP Revenue Currency Impact Acquisitions/ Dispositions/ Other Impact Non-GAAP Revenue GAAP Revenue Acquisitions/ Dispositions/ Other Impact Non-GAAP Revenue Risk and Insurance Services Marsh $ 3,334 $ 23 $ (220 ) $ 3,137 $ 2,896 $ (1 ) $ 2,895 Guy Carpenter (a) 201 2 5 208 252 (58 ) 194 Subtotal 3,535 25 (215 ) 3,345 3,148 (59 ) 3,089 Fiduciary Interest Income 112 — (3 ) 109 123 — 123 Total Risk and Insurance Services 3,647 25 (218 ) 3,454 3,271 (59 ) 3,212 Consulting Mercer 1,487 7 (74 ) 1,420 1,444 (90 ) 1,354 Oliver Wyman Group (b) 954 (2 ) (41 ) 911 856 (1 ) 855 Total Consulting 2,441 5 (115 ) 2,331 2,300 (91 ) 2,209 Corporate Eliminations (21 ) — — (21 ) (17 ) — (17 ) Total Revenue $ 6,067 $ 30 $ (333 ) $ 5,764 $ 5,554 $ (150 ) $ 5,404   Revenue Details   The following table provides more detailed revenue information for certain of the components presented above:   2024 2023 Three Months Ended December 31, GAAP Revenue Currency Impact Acquisitions/ Dispositions/ Other Impact Non-GAAP Revenue GAAP Revenue Acquisitions/ Dispositions/ Other Impact Non-GAAP Revenue Marsh: EMEA $ 846 $ — $ 4 $ 850 $ 780 $ (1 ) $ 779 Asia Pacific 345 — (12 ) 333 315 — 315 Latin America 179 20 (3 ) 196 173 — 173 Total International 1,370 20 (11 ) 1,379 1,268 (1 ) 1,267 U.S./Canada 1,964 3 (209 ) 1,758 1,628 — 1,628 Total Marsh $ 3,334 $ 23 $ (220 ) $ 3,137 $ 2,896 $ (1 ) $ 2,895 Mercer: Wealth $ 675 $ (2 ) $ (46 ) $ 627 $ 654 $ (52 ) $ 602 Health 495 6 (16 ) 485 502 (38 ) 464 Career 317 3 (12 ) 308 288 — 288 Total Mercer $ 1,487 $ 7 $ (74 ) $ 1,420 $ 1,444 $ (90 ) $ 1,354 (a)   Acquisitions, dispositions, and other in 2023 includes a gain from a legal settlement with a competitor of $58 million, excluding legal fees. (b)   Acquisitions, dispositions, and other in 2024 includes a gain of $20 million from the sale of a business in Oliver Wyman Group.     Note: Amounts in the tables above are rounded to whole numbers.   Marsh & McLennan Companies, Inc. Reconciliation of Non-GAAP Measures Twelve Months Ended December 31 (Millions) (Unaudited)   The following table provides the reconciliation of GAAP revenue to Non-GAAP revenue:   2024 2023 Twelve Months Ended December 31, GAAP Revenue Currency Impact Acquisitions/ Dispositions/ Other Impact Non-GAAP Revenue GAAP Revenue Acquisitions/ Dispositions/ Other Impact Non-GAAP Revenue Risk and Insurance Services Marsh $ 12,536 $ 73 $ (391 ) $ 12,218 $ 11,378 $ (3 ) $ 11,375 Guy Carpenter (a) 2,362 7 2 2,371 2,258 (70 ) 2,188 Subtotal 14,898 80 (389 ) 14,589 13,636 (73 ) 13,563 Fiduciary Interest Income 497 1 (5 ) 493 453 — 453 Total Risk and Insurance Services 15,395 81 (394 ) 15,082 14,089 (73 ) 14,016 Consulting Mercer (b) 5,743 37 (151 ) 5,629 5,587 (249 ) 5,338 Oliver Wyman Group (c) 3,390 (5 ) (91 ) 3,294 3,122 (2 ) 3,120 Total Consulting 9,133 32 (242 ) 8,923 8,709 (251 ) 8,458 Corporate Eliminations (70 ) — — (70 ) (62 ) — (62 ) Total Revenue $ 24,458 $ 113 $ (636 ) $ 23,935 $ 22,736 $ (324 ) $ 22,412   Revenue Details   The following table provides more detailed revenue information for certain of the components presented above:   2024 2023 Twelve Months Ended December 31, GAAP Revenue Currency Impact Acquisitions/ Dispositions/ Other Impact Non-GAAP Revenue GAAP Revenue Acquisitions/ Dispositions/ Other Impact Non-GAAP Revenue Marsh: EMEA $ 3,530 $ (10 ) $ 1 $ 3,521 $ 3,262 $ (3 ) $ 3,259 Asia Pacific 1,414 25 (66 ) 1,373 1,295 — 1,295 Latin America 575 51 (13 ) 613 559 — 559 Total International 5,519 66 (78 ) 5,507 5,116 (3 ) 5,113 U.S./Canada 7,017 7 (313 ) 6,711 6,262 — 6,262 Total Marsh $ 12,536 $ 73 $ (391 ) $ 12,218 $ 11,378 $ (3 ) $ 11,375 Mercer: Wealth (b) $ 2,584 $ — $ (129 ) $ 2,455 $ 2,507 $ (146 ) $ 2,361 Health (b) 2,100 20 (5 ) 2,115 2,061 (103 ) 1,958 Career 1,059 17 (17 ) 1,059 1,019 — 1,019 Total Mercer $ 5,743 $ 37 $ (151 ) $ 5,629 $ 5,587 $ (249 ) $ 5,338 (a) Acquisitions, dispositions, and other in 2023 includes a gain from a legal settlement with a competitor of $58 million, excluding legal fees. (b) Acquisitions, dispositions, and other in 2024 includes a net gain of $35 million from the sale of the U.K. pension administration and U.S. health and benefits administration businesses, that comprised of a $70 million gain in Wealth, offset by a $35 million loss in Health. (c) Acquisitions, dispositions, and other in 2024 includes a gain of $20 million from the sale of a business in Oliver Wyman Group.      Note: Amounts in the tables above are rounded to whole numbers.   Marsh & McLennan Companies, Inc. Reconciliation of Non-GAAP Measures Three Months and Twelve Months Ended (In millions, except per share data) (Unaudited)   Starting with the first quarter of 2025, the Company will change its methodology to report adjusted net income and adjusted EPS to exclude the impact of intangible amortization and other net benefit credits.   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 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.   The following tables reconcile the adjusted income, net of tax and adjusted EPS for the full year and each quarter ended for 2024 and 2023, as previously reported, to the new reporting methodology, to provide comparability of results period over period:   Three Months Ended Twelve Months Ended March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 31, 2024 Amount Adjusted EPS Amount Adjusted EPS Amount Adjusted EPS Amount Adjusted EPS Amount Adjusted EPS Adjusted income, net of tax, as previously reported $ 1,438 $ 2.89 $ 1,194 $ 2.41 $ 810 $ 1.63 $ 927 $ 1.87 $ 4,369 $ 8.80 Total identified intangible amortization expense $ 90 $ 89 $ 90 $ 108 $ 377 Other net benefit credits (a) (68 ) (67 ) (68 ) (68 ) (271 ) Income tax effect of above adjustments (b) (7 ) (6 ) (7 ) (12 ) (32 ) 15 0.03 16 0.03 15 0.03 28 0.06 74 0.15 Adjusted income, excluding impact of above adjustments, net of tax $ 1,453 $ 2.92 $ 1,210 $ 2.44 $ 825 $ 1.66 $ 955 $ 1.93 $ 4,443 $ 8.95 Three Months Ended Twelve Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 December 31, 2023 Amount Adjusted EPS Amount Adjusted EPS Amount Adjusted EPS Amount Adjusted EPS Amount Adjusted EPS Adjusted income, net of tax, as previously reported $ 1,266 $ 2.53 $ 1,100 $ 2.20 $ 782 $ 1.57 $ 838 $ 1.68 $ 3,986 $ 7.99 Total identified intangible amortization expense $ 85 $ 87 $ 85 $ 86 $ 343 Other net benefit credits (a) (58 ) (60 ) (62 ) (59 ) (239 ) Income tax effect of above adjustments (b) (8 ) (8 ) (7 ) (8 ) (31 ) 19 0.04 19 0.04 16 0.03 19 0.04 73 0.15 Adjusted income, excluding impact of above adjustments, net of tax $ 1,285 $ 2.57 $ 1,119 $ 2.24 $ 798 $ 1.60 $ 857 $ 1.72 $ 4,059 $ 8.14 (a)   Other net benefit credits excludes pension settlement adjustments included in adjusted income, net of tax, as previously reported.  (b) 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.

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