Marsh & McLennan Companies, Inc. (MMC) is a US-based global professional services and insurance brokerage firm. In 2007, it had over 57,000 employees and annual revenues of $10.49 billion. Marsh & McLennan Companies was ranked the 221st largest corporation in the United States by the 2009 Fortune 500 list, and the 5th largest U.S. company in the diversified financial industry. It has its headquarters in Midtown Manhattan, New York City.
NEW YORK, NEW YORK, August 2, 2005 - Marsh & McLennan Companies, Inc. (MMC) today reported financial results for the second quarter and six months ended June 30, 2005. Consolidated revenues for the quarter increased 2 percent to $3.1 billion. Net income was $166 million, or $.31 per share, compared with $389 million, or $.73 per share, in last year's second quarter. For the six months of 2005, consolidated revenues rose 1 percent to $6.3 billion. Net income was $300 million, or $.56 per share, compared with $835 million, or $1.56 per share, last year. Current year results include charges for restructuring, employee retention, and incremental regulatory and compliance expenses. Excluding noteworthy items, earnings per share would have been $.43 and $.95, respectively, for the second quarter and six months of 2005, compared with $.73 and $1.69, respectively, for the same periods of 2004.
Michael G. Cherkasky, president and chief executive officer of MMC, said: "Although much of our focus has been on the restructuring and turnaround at Marsh, we have made significant strides across all of MMC's businesses to position the company for long-term profitable growth. A number of our businesses had very strong results this quarter, such as Kroll, Mercer Management Consulting, and Mercer Oliver Wyman. Within Mercer Human Resource Consulting, there is increased demand for bundled solutions in retirement and benefits outsourcing, and the early response by U.S. clients to the launch of Mercer Global Investments products has been excellent. At Putnam, investment performance continues to improve, mutual fund redemptions are stable, and sales initiatives in both retail and institutional channels are showing promise. At Marsh, we are proud of the tremendous job our colleagues are doing in a very complex operating environment. We are working on all fronts to bring our costs in line with revenues and implement business reforms that we believe are setting the new standard in the industry for transparency and compliance as we continue to deliver world-class risk management advice and services to clients."
Risk and Insurance Services
Risk and insurance services revenues declined 11 percent in the second quarter to $1.5 billion. Underlying revenues, which exclude acquisitions, dispositions, and foreign exchange, declined 13 percent. During the quarter, the insurance marketplace saw continued reductions in commercial premium rates. These conditions are expected to continue through the end of this year.
Marsh's risk management and insurance broking revenues of $1 billion in the second quarter were 18 percent lower compared with last year. Excluding the effect of market services revenues, underlying revenues declined 8 percent, an improvement of 3 percentage points from the first quarter of 2005.
Guy Carpenter's revenues declined 9 percent in the second quarter to $192 million, or 11 percent on an underlying basis. The effects of higher risk retention by clients and lower premium rates in the reinsurance marketplace were offset partially by new business. These conditions are likely to continue through the remainder of the year.
Related insurance services revenues rose 23 percent in the second quarter to $303 million, an increase of 17 percent on an underlying basis. Performance was excellent in all businesses for both the quarter and the first half of the year, with particularly strong growth reported by claims management, which increased revenues 30 percent in the quarter.
Risk Consulting and Technology
Kroll reported revenues of $267 million in the second quarter, with double-digit revenue growth over prior-year pre-acquisition levels. The technology services group achieved strong performance in legal technologies, background screening, and mortgage-related service offerings. The corporate advisory and restructuring practice, which is part of Kroll's consulting services group, also recorded double-digit revenue growth.
Marsh and McLennan Companies is the premier global professional services firm, providing advice and solutions in the areas of risk, strategy and human capital. Through our market leading brands, and approximately 50,000 colleagues in more than 100 countries, Marsh & McLennan Companies helps clients identify, plan for and respond to critical business issues and risks.
People power our business and that's why you'll find that Marsh & McLennan Companies Corporate and our Operating Companies are committed to attracting and retaining the very best talent.
At Marsh & McLennan Companies we afford our employees global opportunities and challenging assignments in an environment where all colleagues are enabled to grow and succeed.
More than 75% of the companies in the Fortune 1000 are among Marsh & McLennan Companies's clients. From small and mid-sized companies to the world's largest multinationals, our clients demand the innovative solutions that only our varied, skilled and expert workforce provides.
Whether you're a recent graduate or someone who brings seasoned expertise, the Marsh & McLennan Companies family of companies encourages you to learn more about the opportunities we can offer you — and what you can contribute to the company.
Cons
Very political environment
Senior mgmt in region is incompetent
Finger pointing is the name of the game although at the surface people try to be nice, but there is a lot of back stabbing and layig of blames. The buck does not stop at who's accountable as they would like to sell
Zero transparency mgmt style
Do not believe in staff and staff development and retention.Prefers to look outside rather then develop internally
Very underhanded in managing people
Fire fighting mode at all times because managment is very shortsighted in what needs to be done to resolve issues in the long term.
Senior mgmt expects to know everytime u sneeze. Micro mgmt and Mgmt likes to mangage all the way down to the lowest level resulting in constant firefighting or daily incidents, but conveniently ignore the larger picture for long term sustainability
All lot of talk, but dont believe them cos they chage everyday
The IT organisation needs to deperate overhaul of its senior mgmt if they ever want to be successful
Marsh & McLennan on Tuesday reported a 57% decline in net income as the world's largest insurance broker continued to feel the effects of a scandal that rocked its industry last year.
Chief Executive Michael Cherkasky said during a conference call with analysts that the company's recovery from regulatory troubles has been slow and that the Marsh brokerage unit hasn't generated as much new business as hoped.
Net income came in at $166 million, or 31 cents a share, down from $389 million, or 73 cents a share, reported a year earlier, the New York-based company (MMC 29.37, +0.08, +0.27%) said.
Revenue rose 2% to $3.1 billion, in line with the average forecast of analysts surveyed by Thomson First Call.
The recent quarter included charges for restructuring, employee retention and regulatory and compliance expenses - many of which stem from last year's scandal. Excluding those one-time items, earnings would have been 43 cents a share.
The company, which also owns mutual fund manager Putnam Investments and consulting firm Mercer, was expected to earn 41 cents a share in the period, according to an analyst survey.
"We view earnings quality as low because certain charges that Marsh & McLennan excludes, such as employee retention costs and incremental regulatory and compliance costs could be recurring," Jay Gelb, an analyst at Lehman Brothers, wrote in a note to clients.
The company's results were also buoyed by a lower tax rate, which added 2 cents a share, Gelb noted.
The Marsh & McLennan Companies Benefits Program is a substantial and valuable part of the total rewards the Company provides to employees.
Marsh & McLennan Companies and its Operating Companies offer a competitive benefits package including healthcare, insurance, investment and retirement plans in addition to a wide selection of employee programs such as education, legal, identity theft and employee assistance for eligible employees.
Benefits and programs include but are not limited to:
Healthcare
Medical Plans
Dental Plan
Prescription Drug
Vision Plans
Spending Account Plans
Insurance
Life Insurance Plans
Long Term Care Plan
Business Travel Accident Plan
Personal Accident Plan
Umbrella Liability Plan
Disability Plans
Investment and Retirement
The Stock Purchase Plan
The 401(k) Savings & Investment Plan
Marsh & McLennan Companies Supplemental Savings & Investment Plan
Mercer HR Services Retirement Plan, for eligible employees
The Marsh & McLennan Companies Retirement Plan, for eligible employees
Employee Programs
Education Programs
Tuition Assistance Program
Scholarship Program
Other Protection
Choice Auto and Home Insurance Program
Pet Insurance Plan
Legal Assistance Plan
Identity Theft Plan
Additional Benefits
Employee Assistance Program (EAP)
Family Resource Program
Matching Gifts Program
Transportation Reimbursement Incentive Program (TRIP)
NEW YORK, NEW YORK, August 2, 2005 - Marsh & McLennan Companies, Inc. (MMC) today reported financial results for the second quarter and six months ended June 30, 2005. Consolidated revenues for the quarter increased 2 percent to $3.1 billion. Net income was $166 million, or $.31 per share, compared with $389 million, or $.73 per share, in last year's second quarter. For the six months of 2005, consolidated revenues rose 1 percent to $6.3 billion. Net income was $300 million, or $.56 per share, compared with $835 million, or $1.56 per share, last year. Current year results include charges for restructuring, employee retention, and incremental regulatory and compliance expenses. Excluding noteworthy items, earnings per share would have been $.43 and $.95, respectively, for the second quarter and six months of 2005, compared with $.73 and $1.69, respectively, for the same periods of 2004.
Michael G. Cherkasky, president and chief executive officer of MMC, said: "Although much of our focus has been on the restructuring and turnaround at Marsh, we have made significant strides across all of MMC's businesses to position the company for long-term profitable growth. A number of our businesses had very strong results this quarter, such as Kroll, Mercer Management Consulting, and Mercer Oliver Wyman. Within Mercer Human Resource Consulting, there is increased demand for bundled solutions in retirement and benefits outsourcing, and the early response by U.S. clients to the launch of Mercer Global Investments products has been excellent. At Putnam, investment performance continues to improve, mutual fund redemptions are stable, and sales initiatives in both retail and institutional channels are showing promise. At Marsh, we are proud of the tremendous job our colleagues are doing in a very complex operating environment. We are working on all fronts to bring our costs in line with revenues and implement business reforms that we believe are setting the new standard in the industry for transparency and compliance as we continue to deliver world-class risk management advice and services to clients."
Risk and Insurance Services
Risk and insurance services revenues declined 11 percent in the second quarter to $1.5 billion. Underlying revenues, which exclude acquisitions, dispositions, and foreign exchange, declined 13 percent. During the quarter, the insurance marketplace saw continued reductions in commercial premium rates. These conditions are expected to continue through the end of this year.
Marsh's risk management and insurance broking revenues of $1 billion in the second quarter were 18 percent lower compared with last year. Excluding the effect of market services revenues, underlying revenues declined 8 percent, an improvement of 3 percentage points from the first quarter of 2005.
Guy Carpenter's revenues declined 9 percent in the second quarter to $192 million, or 11 percent on an underlying basis. The effects of higher risk retention by clients and lower premium rates in the reinsurance marketplace were offset partially by new business. These conditions are likely to continue through the remainder of the year.
Related insurance services revenues rose 23 percent in the second quarter to $303 million, an increase of 17 percent on an underlying basis. Performance was excellent in all businesses for both the quarter and the first half of the year, with particularly strong growth reported by claims management, which increased revenues 30 percent in the quarter.
Risk Consulting and Technology
Kroll reported revenues of $267 million in the second quarter, with double-digit revenue growth over prior-year pre-acquisition levels. The technology services group achieved strong performance in legal technologies, background screening, and mortgage-related service offerings. The corporate advisory and restructuring practice, which is part of Kroll's consulting services group, also recorded double-digit revenue growth.
Marsh and McLennan Companies is the premier global professional services firm, providing advice and solutions in the areas of risk, strategy and human capital. Through our market leading brands, and approximately 50,000 colleagues in more than 100 countries, Marsh & McLennan Companies helps clients identify, plan for and respond to critical business issues and risks.
People power our business and that's why you'll find that Marsh & McLennan Companies Corporate and our Operating Companies are committed to attracting and retaining the very best talent.
At Marsh & McLennan Companies we afford our employees global opportunities and challenging assignments in an environment where all colleagues are enabled to grow and succeed.
More than 75% of the companies in the Fortune 1000 are among Marsh & McLennan Companies's clients. From small and mid-sized companies to the world's largest multinationals, our clients demand the innovative solutions that only our varied, skilled and expert workforce provides.
Whether you're a recent graduate or someone who brings seasoned expertise, the Marsh & McLennan Companies family of companies encourages you to learn more about the opportunities we can offer you — and what you can contribute to the company.
Cons
Very political environment
Senior mgmt in region is incompetent
Finger pointing is the name of the game although at the surface people try to be nice, but there is a lot of back stabbing and layig of blames. The buck does not stop at who's accountable as they would like to sell
Zero transparency mgmt style
Do not believe in staff and staff development and retention.Prefers to look outside rather then develop internally
Very underhanded in managing people
Fire fighting mode at all times because managment is very shortsighted in what needs to be done to resolve issues in the long term.
Senior mgmt expects to know everytime u sneeze. Micro mgmt and Mgmt likes to mangage all the way down to the lowest level resulting in constant firefighting or daily incidents, but conveniently ignore the larger picture for long term sustainability
All lot of talk, but dont believe them cos they chage everyday
The IT organisation needs to deperate overhaul of its senior mgmt if they ever want to be successful
Marsh & McLennan on Tuesday reported a 57% decline in net income as the world's largest insurance broker continued to feel the effects of a scandal that rocked its industry last year.
Chief Executive Michael Cherkasky said during a conference call with analysts that the company's recovery from regulatory troubles has been slow and that the Marsh brokerage unit hasn't generated as much new business as hoped.
Net income came in at $166 million, or 31 cents a share, down from $389 million, or 73 cents a share, reported a year earlier, the New York-based company (MMC 29.37, +0.08, +0.27%) said.
Revenue rose 2% to $3.1 billion, in line with the average forecast of analysts surveyed by Thomson First Call.
The recent quarter included charges for restructuring, employee retention and regulatory and compliance expenses - many of which stem from last year's scandal. Excluding those one-time items, earnings would have been 43 cents a share.
The company, which also owns mutual fund manager Putnam Investments and consulting firm Mercer, was expected to earn 41 cents a share in the period, according to an analyst survey.
"We view earnings quality as low because certain charges that Marsh & McLennan excludes, such as employee retention costs and incremental regulatory and compliance costs could be recurring," Jay Gelb, an analyst at Lehman Brothers, wrote in a note to clients.
The company's results were also buoyed by a lower tax rate, which added 2 cents a share, Gelb noted.
The Marsh & McLennan Companies Benefits Program is a substantial and valuable part of the total rewards the Company provides to employees.
Marsh & McLennan Companies and its Operating Companies offer a competitive benefits package including healthcare, insurance, investment and retirement plans in addition to a wide selection of employee programs such as education, legal, identity theft and employee assistance for eligible employees.
Benefits and programs include but are not limited to:
Healthcare
Medical Plans
Dental Plan
Prescription Drug
Vision Plans
Spending Account Plans
Insurance
Life Insurance Plans
Long Term Care Plan
Business Travel Accident Plan
Personal Accident Plan
Umbrella Liability Plan
Disability Plans
Investment and Retirement
The Stock Purchase Plan
The 401(k) Savings & Investment Plan
Marsh & McLennan Companies Supplemental Savings & Investment Plan
Mercer HR Services Retirement Plan, for eligible employees
The Marsh & McLennan Companies Retirement Plan, for eligible employees
Employee Programs
Education Programs
Tuition Assistance Program
Scholarship Program
Other Protection
Choice Auto and Home Insurance Program
Pet Insurance Plan
Legal Assistance Plan
Identity Theft Plan
Additional Benefits
Employee Assistance Program (EAP)
Family Resource Program
Matching Gifts Program
Transportation Reimbursement Incentive Program (TRIP)