Global insurance broker Marsh McLennan has reported “one of the finest results” in its history with underlying revenue growth of 10% for both the fourth quarter and full year 2021, supported by 5% growth at Guy Carpenter, its reinsurance arm.
Year-on-year, consolidated revenue increased by 16%, or 10% on an underlying basis in Q4 2021 when compared with the prior year period, to $5.1 billion. For the full year, revenue hit $19.8 billion, representing year-on-year growth of 15%, or 10% on an underlying.
For the quarter, operating income improved by $415 million to $986 million, as net income increased to $803 million. The company’s operating income for the year reached $4.3 billion and net income totalled $3.1 billion, compared with $3.1 billion and $2 billion, respectively, in 2020.
“In our 150th year, we produced one of the finest results in our Company’s history,” said Dan Glaser, President and Chief Executive Officer. “We generated underlying revenue growth of 10% and adjusted EPS growth of 24%, both the highest in over two decades.
“We also grew our adjusted operating income by 18% and expanded adjusted margins for the 14th consecutive year. I am proud of our colleagues’ hard work, dedication and unwavering focus in achieving these results. With this outstanding year, we enter 2022 well positioned for continued growth.”
Marsh McLennan’s robust performance in both periods was supported by all of its operating segments.
In Risk & Insurance Services in Q4 2021, total revenue spiked by 20%, or 9% on an underlying basis to $3 billion, as operating income swelled from $463 million to $667 million. For the full year, revenue reached $12.1 billion and operating income increased from $2.3 billion in 2020 to $3.1 billion.
Higher revenue in this part of the business was supported by the firm’s reinsurance brokerage, Guy Carpenter, which recorded revenue growth of 4%, or 5% on an underlying basis to $170 million. The business also experienced growth of 10%, or 9% on an underlying basis for the full year, with revenue for this period totalling almost $1.9 billion.
Marsh’s revenue also increased in the quarter, by 22%, or 9% on an underlying basis to $2.9 billion. The segment experienced revenue growth in U.S./Canada, International operations, Latin America, Asia Pacific, and in EMEA.
In Marsh McLennan’s Consulting operation, revenue was $2.1 billion for the quarter and $7.8 billion for the full year 2021. This was driven by revenue growth to $1.4 billion at Mercer for the quarter and an increase in revenue to $722 million at Oliver Wyman.
