The reinsurance broking arm of Marsh McLennan (MMC), Guy Carpenter, generated revenue of $632 million in the second quarter of 2024, an increase of 10%, or 11% on an underlying basis, contributing to another strong quarter for one of the world’s largest re/insurance brokers.
Guy Carpenter sits within MMC’s Risk & Insurance Services unit, which produced revenue of $4 billion in Q2 2024, an increase of 8%, or 7% on an underlying basis.
The division’s operating income increased 12% to $1.3 billion, while adjusted operating income also increased 12% to $1.3 billion.
Marsh, the global insurance broking arm of MMC, recorded revenue growth of 8%, or 7% on an underlying basis to $3.3 billion, with solid underlying revenue growth of 6% in US/Canada, and 7% in International business, reflecting growth of 8% in Latin America, 7% in EMEA, and 7% in the Asia Pacific region.
For the first six months of 2024, the Risk & Insurance Services division generated revenue of $8.3 billion, an increase of 9%, or 8% on an underlying basis, as operating income increased 12% to $2.9 billion.
Guy Carpenter’s underlying revenue growth for H1 2024 was 9%, and Marsh’s was 7%.
In its Consulting business, MMC has today reported Q2 2024 revenue of $2.2 billion, a rise of 2%, or 4% on an underlying basis. The segment’s operating income rose 5% to $410 million, and adjusted operating income increased 6% to $426 million.
The Consulting arm is comprised of Mercer and Oliver Wyman, which generated revenue of $1.4 billion and $837 million in the quarter, respectively, reflecting growth of 5% and 3% on an underlying basis, respectively.
For H1 2024, the Consulting business produced revenue of $4.4 billion, up 5%, or 6% on an underlying basis, as operating income rose 5% to $842 million, and adjusted operating income spiked 7% to $870 million. Mercer and Oliver Wyman generated H1 2024 underlying revenue growth of 6% and 8%, respectively.
Group-wide, MMC has reported that consolidated revenue in the second quarter of 2024 increased by 6%, and also by 6% on an underlying basis to reach $6.2 billion.
Operating income increased by 13% year-on-year to $1.6 billion, while adjusted operating income rose 11% to $1.7 billion. All in all, MMC has announced net income for Q2 2024 of $1.1 billion.
For H1 2024, MMC’s consolidated revenue was $12.7 billion, an increase of 8% on both a GAAP and underlying basis. Operating income rose 12% to $3.6 billion, and adjusted operating income increased by 11% to $3.7 billion. Net income for the first half of 2024 was $2.5 billion.
John Doyle, President and Chief Executive Officer, commented: “We generated strong results in the second quarter with 6% underlying revenue growth, 10% adjusted EPS growth, and 130 basis points of margin expansion.
“We continued to invest in our talent and capabilities to deliver for clients. We also deployed capital into high quality acquisitions and recently announced a 15% increase in our dividend. Our first half results leave us well positioned for another great year in 2024.”
