Earnings Results • Underlying revenue growth of 9% in Q1 2024, with strong growth across all businesses • Adjusted operating income grew 11% and adjusted operating margin expanded 80 basis points to 32% • Adjusted EPS increased 14% to $2.89
Future Guidance • Expect mid-single-digit or better underlying revenue growth for full year 2024 • Anticipate margin expansion, particularly in the second half, and strong growth in adjusted EPS • Outlook assumes current macro conditions persist, but meaningful uncertainty remains
Marsh McLennan delivered strong first quarter 2024 results, with 9% underlying revenue growth across all businesses, building on the momentum from the previous year. The company saw an 11% increase in adjusted operating income and an 80 basis point expansion in adjusted operating margin to 32%. Adjusted EPS grew 14% to $2.89. The strong performance was driven by solid demand for the company’s services amid a complex risk environment characterized by geopolitical tensions, economic uncertainty, elevated inflation and interest rates, and rising healthcare costs.
The insurance and reinsurance markets remained stable, with increased client demand and adequate capacity. Marsh McLennan continued to make strategic investments in talent, capabilities, and acquisitions to strengthen its market position and sustain long-term growth. The company also emphasized its commitment to generating exceptional financial performance while having a positive impact on communities through its ESG efforts.
Looking ahead, Marsh McLennan expects mid-single-digit or better underlying revenue growth, margin expansion (particularly in the second half), and strong adjusted EPS growth for the full year 2024. However, the company acknowledges that meaningful uncertainty remains, and the economic backdrop could differ from its assumptions.
Notable quotes: • “Marsh McLennan had a strong start to 2024. Our first quarter results were excellent, and we are well positioned for another good year.” - John Doyle, President and CEO • “Our adjusted operating margin expanded 80 basis points compared to the first quarter of 2023. We had adjusted EPS growth of 14%. And we completed $300 million of share repurchases in the quarter.” - John Doyle • “Primary insurance rates increased, with the Marsh Global Insurance Market Index up 1% overall in the quarter. Property rates increased 3% versus 6% in the fourth quarter. Casualty was up 3%, in line with last quarter.” - John Doyle