Global brokerage Marsh McLennan (MMC) has reported a solid set of results for the third quarter of 2022, supported by underlying revenue growth of 7% at its reinsurance arm, Guy Carpenter.
Across the business, MMC’s consolidated revenue in Q3 2022 increased by 4%, or 8% on an underlying basis to $4.8 billion, when compared with the prior year period.
Operating income also increased in the period, year-on-year, by 7% to $791 million, as adjusted operating income jumped by 12% to $851 million in the quarter.
All in all, net income attributable to the firm was $546 million in Q3 2022, compared with $537 million a year earlier, reports the re/insurance broker.
For the first nine months of the year, consolidated revenue totalled $15.7 billion, reflecting growth of 9% on an underlying basis; operating income spiked 8% to $3.6 billion; adjusted operating income rose 11% to $3.7 billion; and net income moved from $2.34 billion in 9M 2021 to $2.58 billion in 9M 2022.
“Marsh McLennan had another excellent quarter, demonstrating continued momentum across the business. We generated 8% underlying revenue growth and 110 basis points of adjusted operating margin expansion, which translated into solid 9% growth in adjusted EPS. Our advice and solutions remain in high demand as our clients navigate an uncertain and volatile macroeconomic and geopolitical landscape,” said Dan Glaser, President and Chief Executive Officer (CEO).
The re/insurance broker’s impressive performance in both Q3 and 9M 2022 has been supported by all business segments, including the reinsurance division.
Guy Carpenter’s revenue in Q3 2022 increased by 7% on an underlying basis to $328 million, and by 10% to $1.85 billion for 9M 2022.
The firm’s reinsurance unit sits within its Risk & Insurance Services segment, which also includes Marsh. In Q3 2022, Marsh’s revenue improved by 8% on an underlying basis to $2.5 billion, reflecting strong growth in all regions. For 9M 2022, Marsh has reported underlying revenue growth of 9%.
Overall, the Risk & Insurance Services segment’s revenue jumped by 9% on an underlying basis to $2.8 billion, as operating income increased 32% to $529 million. For 9M 2022, the segment’s revenue was $9.7 billion, an increase of 10% on an underlying basis, while operating income jumped by 8% to $2.6 billion.
Within its Consulting business, which includes Mercer and Oliver Wyman, revenue was $2 billion for the third quarter and $6 billion for the nine month period, representing growth of 8% and 9%, respectively, on an underlying basis.
Mercer’s revenue, on an underlying basis, jumped by 5% to $1.3 billion in Q3 and by 6% to $4 billion for 9M 2022. Oliver Wyman’s Q3 revenue hit $667 million, an increase of 13% on an underlying basis. For 9M 2022, this part of the business saw revenue growth of 15% on an underlying basis, to $2 billion.
Late last month, MMC revealed that John Doyle will take over from Daniel Glaser as President and CEO from January 1st, 2023. Commenting on this today, Glaser said: “It has been a privilege to work side by side with our talented colleagues, and I am proud of everything we have accomplished together. There is no one I trust more than John to lead our Company, and I am confident Marsh McLennan’s extraordinary success will continue under his leadership.”
