Marsh & McLennan Companies Inc (NYSE:MMC) stock rose 1.30% (As on July 19, 11:11:20 AM UTC-4, Source: Google Finance) after the company posted mixed result for the second quarter of FY 24,  aided by strength in Marsh and Guy Carpenter units within the Risk and Insurance Services segment. Additionally, the company’s strong Health business contributed to the positive results. MMC’s adjusted operating income was $1.72 billion in the second quarter, which grew 11% year over year and beat our estimate of $1.68 billion. Adjusted operating margin improved 130 basis points (bps) year over year to 29%. Marsh & McLennan exited the second quarter with cash and cash equivalents of $1.7 billion, which declined more than two-fold from the 2023-end figure. Total assets of $48.6 billion inched up 1.2% from the figure at 2023-end. Total equity of $13.6 billion rose 9.7% from the 2023-end level. MMC generated operating cash flows of $434 million in the first half of 2024, which dropped 34.7% from the prior-year comparable period.

Moreover, Risk and Insurance Services revenues in the segment were $4.02 billion, which advanced 8% year over year and 7% on an underlying basis. Revenues of Marsh, a unit within the segment, improved 8% year over year and 7% on an underlying basis to $3.27 billion. In the United States/Canada, underlying revenues grew 6% year over year. International operations also witnessed underlying revenue growth of 7%.  Among the international operations, Latin America saw the highest underlying revenue growth of 8%, followed by an increase of 7% each in EMEA and Asia Pacific. Revenues of Guy Carpenter, another unit within the segment, rose 10% year over year and 11% on an underlying basis to $632 million. Consulting unit recorded revenues of $2.2 billion, which increased 2% year over year and 4% on an underlying basis. Revenues of Mercer, a unit within this segment, remained flat year over year and grew 5% on an underlying basis to $1.38 billion.

MMC in the second quarter of FY 24 has reported the adjusted earnings per share of $2.41, beating the analysts’ estimates for the adjusted earnings per share by 0.8%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 6 percent to $6.2 billion in the second quarter of FY 24, missing the analysts’ estimates for revenue by 1%.