Guy Carpenter, the reinsurance broking arm of Marsh & McLennan Companies, Inc., has recorded revenue growth of 10% and 5%, on an underlying basis, for the fourth-quarter and full-year 2019, respectively.
The reinsurance broker’s revenue in the quarter increased to $152 million from the $102 million reported a year earlier. For the full-year, revenue reached $1.48 billion at Guy Carpenter, which is up on the $1.28 billion posted a year earlier.
Revenue growth was also experienced in the firm’s Risk & Insurance Services segment, which recorded revenue of $2.4 billion in Q4 2019, up 3% on an underlying basis. For the full-year, the segment recorded revenue of $9.6 billion, which is up 4% on an underlying basis.
Operating income within this unit totalled $1.8 billion in 2019, which is only slightly down on the $1.9 billion posted in 2018. For the quarter, operating income hit $365 million, versus $383 million a year earlier.
Overall, Marsh & McLennan Companies has reported consolidated revenue in Q4 2019 of $4.3 billion, up 15% or 3% on an underlying basis, when compared with the fourth-quarter of 2018.
The firm states that underlying revenue growth is calculated as if Marsh and JLT were a combined firm a year ago, but excludes the impact of currency, other acquisitions, dispositions, and transfers among businesses.
For the full-year 2019, the company’s revenue reached $16.7 billion, an increase of 11% or 4% or an underlying basis, when compared with the previous year.
Q4 2019 operating income totalled $592 million compared with $621 million in Q4 2018, while net income hit $391 million in the quarter. For the full-year, operating income hit $2.7 billion while net income reached $1.7 billion, says Marsh.
Commenting on the results, the firm’s President and Chief Executive Officer (CEO), Dan Glaser, said: “2019 was a historic year for Marsh & McLennan. We closed the largest transaction in our Company’s history, maintained our momentum through the integration and met our key milestones. We grew total revenue 11% and generated 4% underlying growth.
“We increased our adjusted operating income by 14%, adjusted margin by 110 basis points and adjusted EPS by 7%. With a solid fourth quarter, we enter 2020 well positioned for continued growth.”
