Marsh McLennan Earnings: Solid Third Quarter, but Growth Slows a Bit

Marsh McLennan has been on a strong run over the past couple of years, as multiple tailwinds pushed growth above historical levels. We’ve expected growth to normalize, and third-quarter results suggest that may be starting to happen. Overall year-over-year revenue growth in the quarter was 6%, or 5% on an organic basis. Growth has now returned to a level that is close to our long-term expectations. We will maintain our $179 fair value estimate and see the shares as overvalued. We think long-term growth prospects are modest and the market is overly focused on recent results.