Marsh & Mclennan Stock Price, News & Analysis

Marsh McLennan (NYSE: MMC) has announced a quarterly dividend of $0.815 per share on its outstanding common stock. The dividend is set to be paid on November 15, 2024, to stockholders of record as of October 4, 2024. This declaration by the Board of Directors demonstrates the company's commitment to returning value to its shareholders and maintaining a consistent dividend policy.

Mercer's 2024 National Survey of Employer-Sponsored Health Plans reveals that US employers expect health benefit costs to rise 5.8% per employee in 2025, marking the third consecutive year of increases above 5%. Key findings include:

- Smaller employers (50-499 employees) face a potential 9% cost increase without mitigation measures
- Prescription drug costs continue to be the fastest-growing component, rising 7.2% in 2024
- 53% of employers plan to make cost-cutting changes to their plans in 2025, up from 44% in 2024
- Employees will contribute 21% of health insurance premiums through paycheck deductions in 2025

Factors driving higher costs include healthcare worker shortages, health system consolidation, and the introduction of high-cost gene and cellular therapies. Employers face the challenge of balancing healthcare affordability for employees with sustainable organizational spending.

Aon and Marsh McLennan (NYSE: MMC) have called on the (re)insurance industry to support Ukraine's resilience by removing blanket exclusions and differentiating Ukraine from Russia and Belarus in risk assessments. The firms emphasize that this action would catalyze economic growth and strengthen Ukraine's foundations for a post-conflict economy.

Key points:

• Many global reinsurers have grouped risks from Ukraine, Russia, and Belarus together, limiting (re)insurance capital.
• Both companies are working with governments and organizations to support Ukraine's economy.
• Marsh McLennan expanded its public-private partnership to cover shipping to and from Ukraine's ports.
• Aon created a first-of-its-kind insurance program for war risk policies in Ukraine.
• The firms argue that data-driven risk assessment can enable more impactful insights for Ukraine's reconstruction.

Aon and Marsh McLennan have called on the (re)insurance industry to support Ukraine's resilience by removing blanket exclusions and providing essential insurance capital. The firms emphasize that current exclusions, which group Ukraine with Russia and Belarus, impede economic growth and ignore the diversity of risk within the country. They argue that data-driven risk assessment should guide (re)insurance decisions, recognizing Ukraine's efforts to align with free and democratic economies.

Both companies are actively working with governments and international organizations to support Ukraine's economy. Marsh McLennan has expanded its public-private partnership to cover shipping to and from Ukrainian ports, while Aon has created a war risk insurance program with the U.S. International Development Finance These initiatives aim to stimulate economic expansion and strengthen Ukraine's foundation for post-conflict reconstruction.

Marsh McLennan (NYSE: MMC) and Zurich Insurance Group (SWX: ZURN) have released a whitepaper highlighting the urgent need for public-private collaboration to address the growing cyber protection gap. The report, titled 'Closing the cyber risk protection gap', emphasizes the importance of innovative solutions to mitigate rapidly-evolving cyber threats, particularly for small and medium-sized businesses that are often underinsured.

The whitepaper identifies mass malware and mass cloud outage as insurable up to certain financial limits, while events like critical infrastructure failure are generally considered uninsurable. To bridge this gap, the report calls for establishing a common framework for data sharing, enhanced collaboration between the insurance industry and public sector, and the development of strategies to manage unquantifiable cyber risks through public-private partnerships.

Mercer, a Marsh McLennan business (NYSE: MMC), projects a deficit of over 100,000 healthcare workers in the US by 2028, potentially worsening health disparities and impacting patient care. The report highlights factors contributing to the decline in labor supply, including burnout, resignations, an aging population, and lagging wages. Key findings include:

1. California expected to face a shortage of over 2,500 primary care physicians
2. Projected deficit of over 73,000 nursing assistants nationwide
3. Surplus of nearly 30,000 registered nurses (RNs) by 2028
4. Home health and personal care aides supply to exceed demand by 48,000
5. Nurse practitioners to have the fastest growth rate (3.5%) but still face shortages

The analysis emphasizes the need for healthcare systems to develop comprehensive workforce strategies to address these shortages and ensure continued patient care.

Mercer, a Marsh McLennan business (NYSE: MMC), has announced that its Mercer Wise 401(k) and Mercer Wise Pooled Employer Plan (PEP) have reached a combined $3.6 billion in US plan assets under management. These outsourced retirement plan solutions, launched in 2017 and 2021 respectively, aim to improve participant outcomes while reducing plan sponsors' administrative duties and fiduciary risk.

The Mercer Wise platform serves 80 US-based employers across various industries, providing 401(k) benefits to over 70,000 employees. Mercer's research indicates that long-term financial security remains a top concern for American employees, with retirement benefits being a key factor in employee retention.

The Employee Benefits Research Institute estimates a $3.27 trillion retirement savings shortfall for US households in 2022. Mercer Wise aims to address this gap by offering competitive financial wellness benefits and improving retirement plan coverage while potentially reducing costs and fees.

Marsh McLennan Agency (MMA), a subsidiary of Marsh, has completed its acquisition of The Horton Group, Inc., a major insurance broker based in Orland Park, Illinois. This strategic move expands MMA's presence in Indiana and strengthens its footprint in Illinois, Michigan, Minnesota, Wisconsin, and Florida. The Horton Group, founded in 1971, is renowned for its expertise in property/casualty insurance, employee benefits consultation, and personal lines coverage for both businesses and individuals. As part of the acquisition, Horton Group employees will join MMA while continuing to operate from their existing nine locations, ensuring continuity of service for clients.

Marsh McLennan (NYSE: MMC) reported strong Q2 2024 results with 6% underlying revenue growth and 10% adjusted EPS growth. Key highlights include:

- GAAP revenue increased 6% to $6.2 billion
- Operating income rose 13% to $1.6 billion
- Adjusted operating income up 11% to $1.7 billion
- Earnings per share increased 10% to $2.27
- Adjusted EPS up 10% to $2.41

For the first half of 2024, consolidated revenue was $12.7 billion, up 8% on both GAAP and underlying basis. The company repurchased 1.5 million shares for $300 million in Q2 and increased its quarterly dividend by 15% to $0.815 per share.