Overview

• US insurance broker and consulting firm's Q2 revenue rose 6%, beating analyst expectations

• Adjusted EPS for Q2 increased 9% to $2.96, beating analyst expectations

• Company repurchased $750 mln in shares during the quarter

Outlook

• Company did not provide specific guidance or forecasts for future quarters or full year

Result Drivers

• CONSULTING GROWTH - Consulting revenue rose 10%, or 8% on an underlying basis, led by Marsh Management Consulting and Mercer Wealth

• RISK & INSURANCE SERVICES - Modest growth in Risk & Insurance Services, with Marsh Risk underlying revenue up 4% and all regions contributing

• STRONG DEMAND - CEO said results reflect strong demand for Marsh’s expertise across risk, people, strategy, and investments

Company press release: ID:nBw6r2HDPa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$7.40 bln	$7.28 bln (15 Analysts)
Q2 Adjusted EPS	Beat	$2.96	$2.90 (22 Analysts)
Q2 EPS		$2.63
Q2 Operating Expenses		$5.51 bln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 16 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance & brokers peer group is "hold"

• Wall Street's median 12-month price target for Marsh & McLennan Companies Inc is $200.00, about 9.8% above its July 20 closing price of $182.10

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

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