trending Market Intelligence /marketintelligence/en/news-insights/trending/in3hx2t_dnfezyoiomahta2 content esgSubNav
In This List

Marsh & McLennan sees 4% underlying revenue growth in Q4'17

Blog

The Big Picture 2022 Insurance Industry Outlook

Podcast

Next in Tech | Episode 37: Insurance impacts on technology and vice versa

Case Study

A Prestigious Global Business School Gains a Competitive Edge

Video

S&P Capital IQ Pro | Unrivaled Sector Coverage


Marsh & McLennan sees 4% underlying revenue growth in Q4'17

Marsh & McLennan Cos. Inc. reported fourth-quarter 2017 net income attributable to the company of $29 million, or 6 cents per share, compared to $436 million, or 85 cents per share, in the year-ago period.

Adjusted EPS for the quarter was $1.05, versus 89 cents in the year-ago period.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was 94 cents.

The effective tax rate in the fourth quarter and full year 2017 reflects the estimated impact of the enactment of U.S. tax reform. An aggregate provisional charge of $460 million reflects a $220 million write-down of the company's net deferred tax assets to reflect the decrease of the U.S. federal corporate income tax rate to 21% from 35% and a $240 million charge related to deemed repatriation.

Consolidated revenue for the quarter rose 10% year over year to $3.69 billion from $3.36 billion in the year-ago period. Revenue rose 4% year over year on an underlying basis. Revenue from risk and insurance services was up 9% year over year, or 3% on an underlying basis, to $1.96 billion from $1.79 billion. Consulting revenue was $1.74 billion, up from $1.58 billion in the fourth quarter of 2016.

During the quarter, Marsh & McLennan repurchased 3.6 million shares of stock for $300 million.

For 2017, net income attributable to the company was $1.49 billion, or $2.87 per share, compared to $1.77 billion, or $3.38 per share, in 2016.

Adjusted EPS for the 12-month period was $3.92, versus $3.42 in 2016.

The S&P Capital IQ consensus normalized EPS estimate for 2017 was $3.80.