Mark McGivney
Chief Financial Officer at Marsh & McLennan Companies
Thank you, John; and good morning. Our strong fourth quarter results capped an excellent year. Our consolidated revenue increased 11% in the fourth quarter to $5.6 billion, with underlying growth of 7%. Operating income was $1.1 billion and adjusted operating income was $1.2 billion, up 16% from a year ago. Our adjusted operating margin increased 130 basis points to 23.3%. GAAP EPS was $1.52. Adjusted EPS was $1.68, up 14%.
Our full year 2023 results were outstanding. Operating income for the year was $5.3 billion and adjusted operating income was $5.6 billion, an increase of 17% over 2022. Adjusted EPS grew 17% to $7.99, and our adjusted operating margin expanded 130 basis points, marking our 16th consecutive year of reported margin expansion. 2023 was also a strong year for capital management. We deployed $4 billion of capital, enhanced our short-term liquidity, raised our quarterly dividend 20%, and saw Moody's upgrade our senior unsecured debt rating to A3.
Looking at Risk and Insurance Services, fourth quarter revenue increased 11% to $3.3 billion, or 8% on an underlying basis. This result marks the 11th consecutive quarter of 8% or higher underlying growth in RIS and continues the best stretch of growth in two decades. RIS operating income was $753 million in the fourth quarter. Adjusted operating income increased 15% to $791 million, and our adjusted margin expanded 140 basis points to 27%. For the full year, revenue in RIS was $14.1 billion, representing an increase of 11% on an underlying basis. Adjusted operating income grew 17% for the year, and our adjusted operating margin in RIS increased 150 basis points to 31.3%.
At Marsh, revenue in the quarter increased 7% to $2.9 billion, or 6% on an underlying basis. For the full year, revenue at Marsh was $11.4 billion, reflecting underlying growth of 8%.
In US and Canada, underlying growth was 5% for the quarter, reflecting solid renewal and new business growth, despite continued headwinds in financial and professional lines. We also saw a headwind of nearly 1 point from lower flood claims in our MGA business. For the full year, underlying growth in US and Canada was strong at 7%.
In International, underlying growth was 7% in the quarter, with Latin America up 11%; Asia Pacific, up 10%; and EMEA, up 5%. For the full year, underlying growth in International was excellent at 9%.
Guy Carpenter's revenue was $252 million, up 9% on an underlying basis, driven by growth across global specialties in most regions. For the year, Guy Carpenter generated $2.3 billion of revenue and 10% underlying growth; our strongest year since 2003.
In the Consulting segment, fourth quarter revenue was $2.3 billion, up 10% from a year ago, or 7% on an underlying basis. Consulting operating income was $443 million, and adjusted operating income was $480 million, up 18%. Our adjusted operating margin expanded 130 basis points in the quarter to 21.3%. For the full year, Consulting revenue was $8.7 billion, an increase of 7% on an underlying basis. Adjusted operating income for the year increased 13% to $1.7 billion, and our adjusted operating margin increased 70 basis points to 20.4%.
Mercer's revenue was $1.4 billion in the quarter, reflecting underlying growth of 5%. This was Mercer's 11th straight quarter of 5% or higher underlying growth and continues the best run of growth in 15 years. Health grew 9% in the fourth quarter, reflecting strength in employer and government segments and momentum across all regions. Wealth was up 4%, driven by growth in investment management and DB Administration. Our assets under management were $420 billion at the end of the fourth quarter, up 11% sequentially and up 22% compared to the fourth quarter of last year. Year-over-year growth was driven by our transaction with Westpac, a rebound in capital markets, and positive net flows. Career revenue increased 1%, reflecting tough comparables, following a period of strong growth in the reward space. For the year, revenue at Mercer was $5.6 billion, an increase of 7% on an underlying basis, the best result since 2008.
Oliver Wyman's revenue in the fourth quarter was $856 million, an increase of 9% on an underlying basis, reflects strength in Europe and the Middle East. For the full year, Oliver Wyman's revenue was $3.1 billion, reflecting underlying growth of 8%.
Adjusted corporate expense was $78 million in the quarter. Foreign exchange had very little impact on earnings in the fourth quarter and was a $0.07 headwind for the full year. Assuming exchange rates remain at current levels, we expect FX will have a negligible impact on the first quarter and full year of 2024.
Total noteworthy items in the quarter were $90 million, the majority of which related to our restructuring actions, partly offset by a $58 million gain related to a legal settlement. We reported $131 million of total restructuring costs, approximately $113 million of which relates to the program we launched in the fourth quarter of 2022. These charges largely reflect costs related to severance, lease exits and streamlining our technology environment. We expect total charges under this program of approximately $475 million and expect total savings of roughly $400 million, of which approximately $230 million was realized in 2023. We expect to realize the bulk of the remaining savings in 2024. To-date, we've incurred approximately $440 million of charges under this program.
Our other net benefit credit was $59 million in the quarter and $239 million for the full year. For 2024, we currently expect our other net benefit credit will be up slightly. Cash contributions to our global defined benefit plans were $111 million in 2023. We expect a similar amount in 2024. Investment income was a loss of $1 million in the fourth quarter on both the GAAP and adjusted basis, and we aren't currently projecting any investment income in the first quarter of 2024.
Interest expense in the fourth quarter was $151 million, up from $127 million in the fourth quarter of 2022, reflecting higher levels of debt and higher interest rates. Based on our current forecast, we expect interest expense for the full year 2024 of approximately $625 million, with $159 million in the first quarter.
Our adjusted effective tax rate in the fourth quarter was 25.5%. This compares with 22.9% in the fourth quarter last year, which benefited from favorable discrete items. For the full year 2023, our adjusted effective tax rate was 24%, compared with 23.5% in 2022. Both periods benefited from favorable discrete items. When we give forward guidance around our tax rate, we do not project discrete items, which can be positive or negative. Based on the current environment, we expect an adjusted effective tax rate of between 25.5% and 26.5% for 2024.
Turning to capital management and our balance sheet. We ended the year with total debt of $13.5 billion. Our next scheduled debt maturities are in the first quarter of 2024, when $1 billion of senior notes mature; and in the second quarter, when another $600 million of notes come due. Recall that last September, we issued $1.6 billion of new debt to fund these maturities.
Our cash position at the end of the fourth quarter was $3.4 billion. Uses of cash in the quarter totaled $1.1 billion, and included $354 million for dividends, $486 million for acquisitions, and $250 million for share repurchases. For the year, uses of cash totaled $4 billion and included $1.3 billion for dividends, $1.6 billion for acquisitions and $1.15 billion for share repurchases.
I want to take a minute to reiterate our approach to capital management. We have consistently followed a balanced capital management strategy that helps us deliver solid performance in the near-term, while investing for sustained growth over the long-term. We prioritize investment in our business, both through organic investments and acquisitions. We favor attractive acquisitions over share repurchases and believe they are the better value creator for shareholders and the Company over the long-term. However, we also recognize that returning capital to shareholders generates meaningful returns for investors over time. And each year, we target raising our dividend and reducing our share count.
Looking ahead to 2024, based on our outlook today, we expect to deploy approximately $4.5 billion of capital across dividends, acquisitions and share repurchases. The ultimate level of share repurchase will depend on how the M&A pipeline develops. As John noted, there is significant uncertainty in the outlook for the global economy. However, we feel good about our momentum and position, and despite the uncertainty, there are factors that remain supportive of growth. For 2024, we currently expect mid-single digit or better underlying revenue growth, margin expansion, and strong growth in adjusted EPS.
With that, I'm happy to turn it back to John.
