Guy Carpenter, a global risk and reinsurance specialist and a business of Marsh McLennan, has reported total revenue in Q3 of 2023 of $359 million, marking an increase of 8% on an underlying basis.
Marsh McLennan’s wider Risk & Insurance Services revenue was $3.2 billion in Q3 of 2023, an increase of 12%, or 11% on an underlying basis.
Meanwhile, operating income rose 21% to $640 million, and adjusted operating income was $671 million, an increase of 19% versus a year ago.
For the nine months ended September 30, 2023, revenue was $10.8 billion, an increase of 12% both on a GAAP and underlying basis. Operating income rose 22% to $3.2 billion, and adjusted operating income was $3.3 billion, an increase of 18% versus a year ago.
Marsh’s revenue in Q3 was $2.7 billion, an increase of 8% on an underlying basis. In U.S./Canada, underlying revenue rose 6%. International operations produced underlying revenue growth of 10%, which Marsh McLennan said reflects 14% growth in Latin America, 9% growth in EMEA, and 10% growth in Asia Pacific.
For the nine months ended September 30, 2023, Marsh’s underlying revenue growth was 9%, while Guy Carpenter’s underlying revenue growth was 10%.
Overall, Marsh McLennan’s consolidated revenue in Q3 of 2023 was $5.4 billion, an increase of 13% compared with the third quarter of 2022. On an underlying basis, revenue increased 10%.
Operating income was $996 million, an increase of 26% from a year ago. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 24% to $1.1 billion.
Net income attributable to the company was $730 million, or $1.47 per diluted share, compared with $1.08 in the third quarter of 2022. Adjusted earnings per share rose 33% to $1.57 per diluted share compared with $1.18 a year ago and included a benefit of 10 cents per share from favourable discrete tax items.
For the nine months ended September 30, 2023, consolidated revenue was $17.2 billion, an increase of 9%, or 10% on an underlying basis compared to the prior period. Operating income was $4.2 billion, an increase of 16% from the prior year period.
Adjusted operating income rose 17% to $4.4 billion. Net income attributable to the Company was $3.0 billion, or $6.01 per diluted share, compared with $5.11 in the first nine months of 2022.
Adjusted earnings per share increased 17% to $6.31 per diluted share compared with $5.38 for the first nine months of 2022.
Finally, Marsh McLennan’s consulting business revenue was $2.2 billion in the third quarter of 2023, an increase of 13%, or 9% on an underlying basis. Operating income increased 21% to $424 million, while adjusted operating income increased 24% to $447 million.
For the first nine months ended September 30, 2023, revenue was $6.4 billion, an increase of 6%, or 7% on an underlying basis. Operating income of $1.2 billion rose 1% versus a year ago, while adjusted operating income increased 11% to $1.3 billion.
Commenting on the results, John Doyle, President and CEO of Marsh McLennan, said, “We had another quarter of double-digit underlying revenue growth, strong adjusted EPS growth and margin expansion. We achieved these results while also continuing to make significant investments for the future.”
“With our performance through the third quarter, we are on track for another terrific year.”
