Marsh & McLennan Companies, Inc. (MMC) reported second quarter 2022 results this morning, with adjusted earnings per share (EPS) of $1.89 and consolidated revenue of $5.4 billion, up 7% compared to the second quarter of 2021. Here are five things you should know about the MMC earnings call:
Marsh & McLennan Earnings Report Highlights
- The company reported organic growth of 10% during 2Q22 (vs. 10% during 1Q22), reflecting strength across the company. This is the fifth consecutive quarter of 10% or higher double-digit growth.
- While pricing was strong during the second quarter, insurance rates are continuing to moderate. MMC’s global proprietary pricing index showed price increases within the Property & Casualty (P&C) insurance market of 9% year-over-year, which is moderating vs. 11% in 1Q22 and 13% in 4Q21.
- CEO Daniel Glaser commented on how real GDP growth softening and rising inflation may impact insurance premiums: “Even if GDP growth softens as predicted, higher inflation will increase insured values and likely cause higher loss costs.”
- While MMC remains positive about its outlook for the second half of 2022, the firm noted greater uncertainty in the macroeconomic outlook: “the highest inflation in two generations, geopolitical tumult, central bank hawkishness and bear markets in risk assets.” The firm sees full year 2022 organic growth coming in at the high end of its guidance of mid-single digits or better; and solid growth in adjusted EPS.
- CFO Mark McGivney commented on M&A and the balance sheet on the earnings call: “We continue to expect to deploy approximately $4 billion of capital in 2022 across dividends, acquisitions and share repurchases. The ultimate level of share repurchase will depend on how our M&A pipeline develops.” On July 13, MMC raised its quarterly dividend by 10%, which is the 13th consecutive year of dividend increases.
To learn more about the MMC earnings call, visit: News Release – MarshMcLennan Q2 2022 Results