Business Analysis of Marsh & Mclennan Companies

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Marsh & Mclennan Companies

MARSH & MCLENNAN COMPANIES

Business Overview

Marsh & McLennan Companies, Inc., a professional services firm, provides advice and solutions in the areas of risk, strategy, and people worldwide. It operates through two segments, Risk and Insurance Services; and Consulting. The Risk and Insurance Services segment offers risk management services, such as risk advice, risk transfer, risk control, and mitigation solutions, as well as insurance, reinsurance broking, catastrophe and financial modeling services, and related advisory services. This segment serves businesses, public entities, insurance companies, associations, professional services organizations, and private clients. The Consulting segment provides health, retirement, talent, and investments consulting services and products; and specialized management, and economic and brand consulting services. This segment assists public and private sector employers in the design, management, and administration of employee health care programs; provides a range of strategic and compliance-related retirement services and solutions to corporate, governmental, and institutional clients; advises organizations on the engagement, management, and rewarding of employees; and offers investment consulting and other services to the sponsors of pension funds, foundations, endowments, other investors, and wealth management companies. Marsh & McLennan Companies, Inc. was founded in 1871 and is headquartered in New York, New York.

Marsh & Mclennan Companies

Marsh & Mclennan Companies


R&P Rank: 213
Sector: Insurance
Industry:Insurance Brokerage
H.Q Location:New York
Website: www.mmc.com
Company Address:
1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Ph:212-345-5000

Business Analysis of Marsh & Mclennan Companies

The Insurance Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Marsh & Mclennan Companies compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Marsh & Mclennan Companies to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Marsh & Mclennan Companies with an interactive chart.

  1. Revenue Growth: Marsh & Mclennan Companies reported a revenue growth of 2.5% year-on-year during 2016. Insurance Brokerage Industry grew at 2.3% in the same period
  2. COGS share of Revenues: Marsh & Mclennan Companies COGS share of Revenues details are not available because either company does not share the data or we do not have it
  3. R&D share of Revenues: Marsh & Mclennan Companies R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Marsh & Mclennan Companies spent 79.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Insurance Brokerage industry average SG&A spending in the same period was 69.0%
  5. Inventory share of Revenues: Marsh & Mclennan Companies Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Marsh & Mclennan Companies invested 14.9% of its total revenues on Accounts Payable (A/P) Insurance Brokerage industry average Accounts Payable investment in the same period was 22.3%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Marsh & Mclennan Companies invested 27.6% of its total revenues on Accounts Receivable (A/R). Insurance Brokerage industry average Accounts Receivable investment in the same period was 27.4%
  8. PP&E share of Revenues: As a percentage of revenue, Marsh & Mclennan Companies invested 5.5% of its total revenues on Property, Plants, and Equipments (PP&E). Insurance Brokerage industry average PPE investment in the same period was 6.6%
  9. Intangibles share of Revenues: As a percentage of revenue, Marsh & Mclennan Companies invested 71.9% of its total revenues on Intangibles. Insurance Brokerage industry average Intangibles investment in the same period was 83.2%
  10. Net Margins: Marsh & Mclennan Companies Net Margins in the year 2016 were 13.4%. Insurance Brokerage industry average Net Margins in the same period were 11.6%

Sector and Industry Association of Marsh & Mclennan Companies

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Marsh & Mclennan Companies is associated with Financials Sector Group, Insurance Sector, and Insurance Brokerage Industry.

Insurance sector is comprised of the following industries: Life Insurance; Property & Casualty Insurance; Surety & Title Insurance; Insurance Brokerage; Diversified Insurance. The definitions for each of the industries is as follows:

  • Life Insurance industry includes companies engaged principally in life insurance.
  • Property & Casualty Insurance industry includes companies engaged principally in accident, fire, automotive, marine, malpractice and other classes of non-life insurance.
  • Surety & Title Insurance industry includes companies providing title & surety insurance.
  • Insurance Brokerage industry includes insurance brokers and agencies.
  • Diversified Insurance industry includes companies with life, health, property & casualty, and reinsurance interests, none of which predominates.

Industry Ranking of Marsh & Mclennan Companies

With $13.2 billion revenues, Marsh & Mclennan Companies ranked number 1 of all the companies in the US Insurance Brokerage industry. There were a total of 8 public companies in the US Insurance Brokerage industry that had revenues greater than $50 million during 2016.

The top companies in the US Insurance Brokerage industry by revenues during 2016 were:

  1. Marsh & Mclennan Companies ($13.2 billion)
  2. Aon ($11.6 billion)
  3. Arthur J. Gallagher & Co ($5.6 billion)
  4. Brown & Brown ($1.8 billion)
  5. Erie Indemnity ($1.6 billion)
  6. Crawford ($1.2 billion)
  7. Tiptree ($567.2 million)
  8. Kinsale Capital Group ($141.6 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Marsh & Mclennan Companiesand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of marsh-mclennan-companies

Aon (AON) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Aon Plc with $12 billion revenues in the year 2016 was the number 2 Insurance Brokerage company. Read this report to know the top competitors of Aon and identify growth and cost optimization opportunities of Aon

Arthur J. Gallagher & Co (AJG) Business Analysis – Analyze Historical...

Arthur J. Gallagher & Co with $6 billion revenues in the year 2016 was the number 3 Insurance Brokerage company. Read this report to know the top competitors of Arthur J. Gallagher & Co and identify growth and cost optimization opportunities of Arthur J. Gallagher & Co

Brown & Brown (BRO) Business Analysis – Analyze Historical Performance, Strategic...

Brown & Brown Inc with $2 billion revenues in the year 2016 was the number 4 Insurance Brokerage company. Read this report to know the top competitors of Brown & Brown and identify growth and cost optimization opportunities of Brown & Brown

Erie Indemnity (ERIE) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Erie Indemnity Co with $2 billion revenues in the year 2016 was the number 5 Insurance Brokerage company. Read this report to know the top competitors of Erie Indemnity and identify growth and cost optimization opportunities of Erie Indemnity

Crawford (CRDA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Crawford & Co with $1 billion revenues in the year 2016 was the number 6 Insurance Brokerage company. Read this report to know the top competitors of Crawford and identify growth and cost optimization opportunities of Crawford

Tiptree (TIPT) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Tiptree Inc. with $567 million revenues in the year 2016 was the number 7 Insurance Brokerage company. Read this report to know the top competitors of Tiptree and identify growth and cost optimization opportunities of Tiptree

Revenues Analysis

Marsh & Mclennan Companies (MMC) Revenues And Revenue Growth From 2012...

This report provides the last five years revenues and revenue growth of Marsh & Mclennan Companies, Inc. (MMC) from 2012 to 2016. Marsh & Mclennan Companies generated a total of $13.2 billion revenues during 2016. Marsh & Mclennan Companies reported a revenue growth of 2.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Marsh & Mclennan Companies (MMC) Revenues And Revenue Growth From 2002...

This report provides the last fifteen years revenues and revenue growth of Marsh & Mclennan Companies, Inc. (MMC) from 2002 to 2016. Marsh & Mclennan Companies generated a total of $13.2 billion revenues during 2016. Marsh & Mclennan Companies reported a revenue growth of 2.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Marsh & Mclennan Companies (MMC) Revenue Growth Comparison With Industry Growth...

This report provides a comparison of Marsh & Mclennan Companies, Inc. (MMC) revenue growth with Insurance Brokerage industry growth during the last five years from 2012 to 2016. Marsh & Mclennan Companies reported a revenue growth of 2.5% year-over-year during 2016. The Insurance Brokerage industry growth was 2.3% year-over-year during 2016. Marsh & Mclennan Companies growth was faster than the industry during 2016.

Profit Analysis

Marsh & Mclennan Companies (MMC) Net Profit And Net Margin From...

This report provides the last five years net profit and net margin of Marsh & Mclennan Companies, Inc. (MMC) from 2012 to 2016. Marsh & Mclennan Companies reported a total net income of $1.8 billion during 2016. Marsh & Mclennan Companies generated a total of $13.2 billion revenues during 2016. Marsh & Mclennan Companies net profit margin was 13.4% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.