Marsh & McLennan posts higher revenue, profitReprints
Marsh & McLennan Cos. Inc. posted $3.38 billion in revenue in the second quarter of this year, a 4.7% increase from that of the same period a year earlier, Marsh & McLennan announced Thursday.
The company's net income climbed 11.9% to $480 million.
Each of the company's four operating companies reported revenue growth.
The risk and insurance services segment — which consists of insurance brokerage unit Marsh L.L.C. and reinsurance brokerage Guy Carpenter & Co. L.L.C. — total revenues grew 5.7% to $1.85 billion including fiduciary interest income. Marsh's revenue grew 6.1% to $1.56 billion while Guy Carpenter grew 3.6% to $285 million. Revenue for the company's consulting segment, which consists of benefits employee benefits and human resources consultant Mercer L.L.C. and consultant Oliver Wyman, grew 3.5% to $1.54 billion.
For the first six months of this year, Marsh & McLennan's revenues grew 4.2% to $6.71 billion, while net income rose nearly 5.0% to $970 million. Revenues for the risk and insurance services segment grew 4.6% to $3.72 billion, with Marsh growing 5.1% to $3.0 billion and Guy Carpenter growing 2.5% to $659 million. Six-month revenue for the consulting segment increased 3.7% to $3.02 billion.
The company produced a “solid operating performance” leading to the largest quarterly revenue in the company's history, said Marsh & McLennan President and CEO Dan Glaser during a conference call Thursday. “We are pleased with our second quarter results.”
Peter Zaffino, CEO of Marsh and chairman of the risk and insurance services segment noted that client retention is at historic highs. In addition, Mr. Glaser said that he was “excited” about the “addition of top-flight leadership talent” with hiring of former American International Group Inc. executive John Doyle to serve as president of Marsh L.L.C. and former Willis Re Inc. executive Peter Hearn to head Guy Carpenter.
Mr. Glaser also used the call to comment on The United Kingdom's vote last month to leave the European Union. He noted that the so-called “Brexit” in “any circumstance lead to a multiyear period of uncertainty.” He added, though, that London will “likely remain” the global center of insurance.
Mr. Glaser said that the property/casualty insurance market as a whole remains favorable for clients.
“We don't expect industry pricing dynamics to change any time soon,” he said.