Consolidated revenue at Marsh McLennan increased by 7% in the second-quarter of 2022 when compared with the previous year, supported by strong growth across the business, including at Guy Carpenter, the reinsurance arm of the global brokerage.
Overall, insurance and reinsurance broker Marsh McLennan has reported revenue of $5.4 billion for Q2 2022, or an increase of 10% on an underlying basis. Operating income rose by 11%, year-on-year, to $1.4 billion, as adjusted operating income spiked 8% to $1.3 billion.
Across the business, net income for Q2 2022 reached $967 million, compared with $820 million for the same period in 2021.
The strong second-quarter performance was aided by growth across the firm’s operating segments, including revenue of 5%, or 9% on an underlying basis to $3.3 billion within Risk & Insurance Services.
This is where Guy Carpenter, the global reinsurance broking arm of Marsh McLennan, sits. And in Q2 2022, the business recorded revenue growth of 9% on an underlying basis to $522 million.
Marsh’s revenue also increased 9% on an underlying basis to $2.8 billion in the second-quarter of this year, with strong growth in all regions.
All in all, the Risk & Insurance Services unit saw its operating income rise by 2% to $967 million, as adjusted operating income reached $1 billion, representing year-on-year growth of 9%.
In its Consulting business, Marsh McLennan has announced revenue of $2.1 billion for the quarter, which is up 10% on both a reported and underlying basis. Operating income improved by a significant 39% year-on-year, to $475 million, and adjusted operating income grew by 4% to $369 million.
Within the Consulting segment, growth was supported by revenue of $1.4 billion at Mercer, and revenue of $695 million at Oliver Wyman, representing growth of 7% and 16% on an underlying basis, respectively.
Dan Glaser, President and Chief Executive Officer (CEO) of Marsh McLennan, commented: “Marsh McLennan delivered another strong quarter. We generated double-digit underlying growth, margin expansion and solid growth in adjusted EPS with momentum across all of our businesses. Our performance reflects continued demand for our advice and solutions and the value we deliver for clients.”
For the first six months of the year it remains a positive story for Marsh McLennan, with consolidated revenue growth of 8%, year-on-year, to $10.9 billion. Operating income increased to $2.8 billion, as net income ended the half-year at $2 billion, compared with $1.8 billion in H1 2021.
As in the second-quarter, the global broker’s H1 2022 growth was supported by all business segments.
Within Risk & Insurance Services, revenue for H1 2022 grew by 10% on an underlying basis to $6.9 billion, as operating income rose by 4% to $2.1 billion. Guy Carpenter’s underlying revenue growth for H1 2022 was 10%, as Marsh also recorded underlying revenue growth of 10% for the period.
In its Consulting segment, H1 2022 revenue totalled $4.1 billion and operating income hit $867 million, representing growth for both metrics. Here, Mercer’s revenue increased by 7% on an underlying basis to $2.7 billion, while Oliver Wyman’s H1 2022 revenue hit $1.4 billion, a rise of 16% on an underlying basis.