MMC revenues dip in 2015 despite solid Q4
Marsh & McLennan Companies (MMC) reported a slight drop in revenues in 2015, despite solid results from its fourth quarter.
Its consolidated revenue hit $12.9 billion in 2015, a slight decrease compared with $13 billion in 2014, although it was an increase of 4 percent on an underlying basis. MMC posted revenue of $3.3 billion in the fourth quarter of 2015, an increase of 3 percent from the fourth quarter of 2014.
However, its profits in 2015 hiked to $1.6 billion, compared with $1.5 billion in the prior year and its operating income was $2.4 billion, an increase of 5 percent from the prior year.
Within its risk and insurance services lines, which includes Guy Carpenter and Marsh, revenue remained stable at $6.9 billion.
Broker Marsh’s revenue was $5.7 billion in 2015, a slight decrease from $5.8 billion in 2014. Guy Carpenter’s revenue also fell slightly to $1.1 billion in 2015, compared with $1.2 billion in 2014.
Dan Glaser, MMC president and chief executive officer (CEO), said: "We capped off a successful year with an outstanding fourth quarter, posting our highest underlying revenue growth of 2015 at 5 percent. In 2015, we produced underlying revenue growth of 4 percent on a consolidated basis. Our adjusted operating margin expanded 100 basis points, with higher margins in both segments for the sixth consecutive year.
"We believe we are well positioned to deliver underlying revenue growth, margin expansion and strong EPS growth in 2016."
