Consolidated revenue in the fourth quarter of 2019 was USD 4.3 billion, an increase of 15% compared with the fourth quarter of 2018, or 3% on an underlying basis. Operating income was USD 592 million compared with USD 621 million in the prior year period. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 17% to USD 856 million. Net income attributable to the company was USD 391 million, or USD 0.76 per diluted share, compared with USD 0.30 in the fourth quarter of 2018.
For the year 2019, revenue was USD 16.7 billion, an increase of 11% compared with 2018, or 4% on an underlying basis. Operating income was USD 2.7 billion, while adjusted operating income rose 14% to USD 3.4 billion. Net income attributable to the Company was USD 1.7 billion.
MMC FY2019 (12 months) figures, changes y-o-y
- Revenue: USD 16,652 million (+11.4%), of which:
- Marsh EMEA: USD 2,482 million (+16.4%)
- Marsh Asia Pacific: USD 953 million (+39.5%)
- Marsh Latin America: USD 460 million (+15.0%)
- Marsh U.S. / Canada: USD 4,119 million (+12.5%)
- Guy Carpenter: USD 1,480 million (+15.1%)
- Mercer Wealth: USD 2,369 million (+8.4%)
- Mercer Health: USD 1,796 million (+3.5%)
- Mercer Career: USD 856 million (+5.4%)
- Oliver Wyman Group: USD 2,122 million (+3.7%)
- Operating Expenses: USD 13,975 million (14.7%)
- Operating Income: USD 2,677 million (-3.0%)
- Investment Income: USD 22 million (12M2018: USD (12) million)
- Net Income Attributable to the Company: USD 1,742 million (+5.6%)
Risk & Insurance Services revenue was USD 2.4 billion in the fourth quarter of 2019, an increase of 24%, or 3% on an underlying basis. Operating income was USD 365 million, compared with USD 383 million in the fourth quarter of 2018. Adjusted operating income increased 31% to USD 550 million. For the year 2019, revenue was USD 9.6 billion, an increase of 17%, or 4% on an underlying basis. Operating income was USD 1.8 billion, compared to USD 1.9 billion for the full year of 2018. Adjusted operating income rose 17% to USD 2.3 billion.
Marsh's revenue in the fourth quarter of 2019 was USD 2.2 billion, an increase of 23%, or 3% on an underlying basis. In U.S./Canada, underlying revenue rose 4%. International operations produced underlying revenue growth of 1%, reflecting underlying growth of 7% in Asia Pacific and 2% in Latin America, partially offset by a decline of 1% in EMEA. For the year 2019, Marsh's revenue growth was 17%, or 4% on an underlying basis.
Guy Carpenter's fourth quarter revenue was USD 152 million, up 10% on an underlying basis. For the year 2019, Guy Carpenter's underlying revenue growth was 5%.
Consulting revenue was USD 1.9 billion in the fourth quarter of 2019, an increase of 4%, or 2% on an underlying basis. Operating income of USD 336 million rose 14%. Adjusted operating income was flat at USD 359 million. For the year 2019, revenue was USD 7.1 billion, up 5%, or 3% on an underlying basis.
Operating income increased 10% to USD 1.2 billion, and adjusted operating income increased 9% to USD 1.3 billion.
Mercer's revenue was USD 1.3 billion in the fourth quarter of 2019, an increase of 8%, or 4% on an underlying basis. Health, with revenue of USD 455 million, was up 6% on an underlying basis. Career revenue of USD 250 million increased 4% on an underlying basis, and Wealth revenue of USD 621 million increased 2% on an underlying basis. For the year 2019, Mercer's revenue growth was 6%, or 2% on an underlying basis.
Oliver Wyman's revenue was USD 559 million in the fourth quarter of 2019, a decrease of 2% on an underlying basis. For the year 2019, Oliver Wyman's revenue increased to USD 2.1 billion, up 6% on an underlying basis.
Dan GLASER, President and CEO of MMC, said:
"2019 was a historic year for Marsh & McLennan. We closed the largest transaction in our Company's history, maintained our momentum through the integration and met our key milestones. We grew total revenue 11% and generated 4% underlying growth. We increased our adjusted operating income by 14%, adjusted margin by 110 basis points and adjusted EPS by 7%. With a solid fourth quarter, we enter 2020 well positioned for continued growth."
More financial information about MMC is available at mmc.com
Source: mmc.com
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