Q3 2024 Marsh & McLennan Companies Inc Earnings Call Transcript
Key Points
- Marsh & McLennan Companies Inc (MMC) reported a 5% underlying revenue growth in the third quarter, following a 10% growth in the same quarter last year.
- The company achieved a 12% increase in adjusted operating income and expanded its adjusted operating margin by 110 basis points.
- Marsh & McLennan Companies Inc (MMC) completed $300 million in share repurchases during the quarter.
- The acquisition of McGriff Insurance Services is expected to be modestly accretive to adjusted EPS in the first year and more significantly accretive in subsequent years.
- The company is on track for its largest M&A year in history, with nearly $10 billion committed to acquisitions year-to-date.
- The impact of Hurricanes Helene and Milton is expected to be significant, potentially affecting 2025 property insurance and reinsurance pricing.
- Oliver Wyman's revenue growth was only 1% in the quarter, reflecting a tough comparison to the previous year's growth.
- The company anticipates a decline in fiduciary income by approximately $30 million in the fourth quarter due to recent rate cuts and seasonal drops.
- Interest expense increased to $154 million in the third quarter, up from $145 million in the same quarter last year.
- The adjusted effective tax rate increased to 26.7% from 20.5% in the third quarter of the previous year.
Welcome to Marsh McLennan earnings conference call. Today's call is being recorded. Third-quarter 2024 financial results and supplemental information were issued earlier this morning. They are available on the company's website at marshmclennan.com.
Please note that remarks made today may include forward-looking statements. Forward-looking statements are subject to risks and uncertainties, and a variety of factors may cause actual results to differ materially from those contemplated by such statements. For more detailed discussion of those factors, please refer to our earnings release for this quarter into our most recent SEC filings, including our most recent Form 10-K, all of which are available on the Marsh McLennan website.
During the call today, we may discuss certain non-GAAP financial measures. For reconciliation of those measures to the most recently comparable GAAP measures, please refer to the schedule in today's earnings release. (Operator Instructions)
I'll now turn the call over to John Doyle, President and CEO of Marsh & McLennan.
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