Marsh & Mclennan Stock Price, News & Analysis

Mercer announced that its global assets under management (AUM) reached $390 billion as of March 31, 2021. The firm has seen significant growth in its Outsourced Chief Investment Officer (OCIO) services, particularly among non-defined benefit pension assets, which drove nearly 50% of growth from Q1 2020 to Q1 2021. Between 2016 and 2021, non-pension assets increased by 245%. The recent market volatility has heightened the demand for improved governance and investment execution among institutional investors, leading to a noted rise in the OCIO market.

Marsh McLennan (NYSE: MMC) announced the appointment of Nick Studer as President and CEO of Oliver Wyman Group, effective July 1, 2021. Studer, who has been with Oliver Wyman for 23 years, will also serve as Vice Chair of Marsh McLennan and join its Executive Committee. He succeeds Scott McDonald, who has been appointed CEO of the British Council. Mr. Glaser, President and CEO of Marsh McLennan, praised Studer's leadership and his contributions to the company's Inclusion and Diversity agenda.

Marsh McLennan (NYSE: MMC) held its annual stockholders' meeting, where all 2021 director nominees were elected for a one-year term. The newly elected directors include notable figures like Daniel S. Glaser and Deborah C. Hopkins. Additionally, stockholders ratified Deloitte & Touche LLP as the independent public accounting firm for 2021 and approved the compensation for named executive officers through a nonbinding vote. The company reported an annual revenue of $17 billion, highlighting its leadership in risk and strategy services.

The inaugural Marsh Risk Resilience Report reveals a significant gap in organizations' responses to emerging risks. Based on a survey of nearly 1,000 firms, only 25% have a formal process to assess the impact of key risks, despite 75% believing their strategies align with long-term growth. The report highlights six critical risks including cybersecurity and climate change. Organizations prioritizing short-term threats risk vulnerability to severe disruptions, while those focused on resilience can gain a competitive advantage. Effective risk management strategies are crucial for long-term success.

Chubb and Marsh have partnered with the World Health Organization and Gavi to provide insurance coverage for the COVAX No-Fault Compensation Program, aimed at individuals in 92 lower-income countries. This program offers compensation for serious adverse vaccine-related events associated with COVAX through June 30, 2022. A total of $150 million in insurance will cover claims, with Marsh leading the insurance solution. The COVAX initiative aims to deliver up to 2 billion doses of COVID-19 vaccines by the end of 2021, ensuring equitable access.

Marsh McLennan (NYSE: MMC) reported a strong performance for Q1 2021, with total revenue rising 9% to $5.1 billion and adjusted EPS increasing 21% to $1.99. Risk & Insurance Services drove significant growth, achieving $3.2 billion in revenue (up 11%) and $1.1 billion in adjusted operating income (up 17%). Consulting revenue reached $1.9 billion, with adjusted operating income rising 28%. The company acquired PayneWest Insurance and repurchased 1 million shares for $112 million. Q1 results indicate robust momentum heading into the year.

Mercer has launched its Skills-Edge Suite, a comprehensive service aimed at facilitating the shift from traditional job-based to skills-based workforce management. The 2021 Mercer Global Talent Trends survey indicates that over half of organizations are focusing on upskilling and reskilling to enhance workforce transformation. Despite the growing focus on skill-based practices, many organizations still lack clarity on existing skill gaps within their teams. This strategic change is expected to improve talent mobility and agility in response to evolving business needs.