Guy Carpenter reported a 10% increase in its revenue during the second quarter of 2020, helping to offset an overall dip in revenue for its parent company, Marsh & McLennan Companies, Inc. (MMC).
The reinsurance broking arm of MMC posted revenue of $433 million for Q2 2020, compared with $392 million for the same period last year.
But MMC saw its overall revenue decline by 4% from $4.35 billion to $4.19 billion over the same period.
During the second quarter, the company recognized a $36 million reduction to previously recorded revenue, the vast majority in Marsh, to reflect the estimated impact of the economic crisis on exposure units.
Marsh’s revenue in Q2 was $2.16 billion, an increase of 1% on an underlying basis compared with last year.
In International, Marsh’s underlying revenue was flat compared to the prior year period, reflecting 4% underlying revenue growth in Asia Pacific, 4% growth in Latin America, and a decline of 3% in EMEA.
Looking at MMC’s Risk & Insurance Services segment overall, revenue was $2.60 billion in Q2, representing an increase of 1%, or 2% on an underlying basis.
Operating income for this segment rose 34% to $696 million, and adjusted operating income was $762 million, an increase of 19% from the prior year period.
For the first six months of the year, Risk & Insurance Services revenue was $5.51 billion, with Guy Carpenter’s revenue accounting for $1.26 billion of this figure (a 19% increase on H1 2019) Marsh accounting for $4.22 billion (an 8% increase.
Over the same period, the segment’s operating income rose 24% to $1.6 billion, and adjusted operating income was $1.7 billion, an increase of 20% from the prior year period.
“In the midst of the pandemic, we delivered another strong quarter reflecting outstanding execution and the resilience of our business,” said Dan Glaser, President and CEO.
“In the second quarter, despite a modest decline in underlying revenue due to the global impact of COVID-19, we generated 10% adjusted operating income growth and 12% growth in adjusted EPS. For the first six months of 2020, we achieved 2% underlying revenue growth and 10% adjusted EPS growth.”