Marsh McLennan’s (MMC) reinsurance broking arm, Guy Carpenter, has reported an 11% rise in underlying revenue in the first-quarter of 2022 to $999 million, as its parent reports consolidated revenue of $5.5 billion for the period.
Revenue growth at Guy Carpenter supported total Q1 2022 revenue of $3.5 billion within MMC’s Risk & Insurance Services unit, representing year-on-year growth of 10%, or 11% on an underlying basis.
Operating income within the segment increased by 6% to $1.1 billion, while adjusted operating income increased by 12% on the prior year period to $1.2 billion.
Alongside reinsurance broker Guy Carpenter, the Risk & Insurance Services arm includes Marsh, which reported revenue of $2.5 billion in Q1 2022, up 11% on an underlying basis. At Marsh, MMC has reported underlying revenue growth of 10% in North America, as international business saw underlying revenue growth of 11%, reflecting 17% growth in Asia Pacific, 16% growth in Latin America, and 9% across the EMEA region.
In the company’s Consulting business, revenue amounted to $2 billion in Q1 2022, which is up 7%, or 10% on an underlying basis, when compared with Q1 2021. Operating income here increased by 8% to $392 million, as adjusted operating income spiked by 9% to $402 million.
At Mercer, revenue increased by 6% on an underlying basis to $1.3 billion. MMC’s Oliver Wyman division also recorded revenue growth in the quarter, of 17% on an underlying basis to $667 million.
A solid performance across the business in the opening quarter of 2022 has seen MMC post consolidated revenue growth of 9%, or 10% on an underlying basis, to $5.5 billion.
MMC’s operating income for the quarter amounted to $1.4 billion, which is up 6% on Q1 2021. While adjusted operating income increased by 12%, year-on-year, to $1.6 billion.
All in all, MMC has reported net income of $1.1 billion for the first-quarter of 2022, as adjusted earnings per share jumped by 16% to $2.30 per diluted share compared with $1.99 a year ago.
The firm’s President and Chief Executive Officer (CEO), Dan Glaser, commented: “Marsh McLennan started 2022 with an excellent first quarter. We generated underlying revenue growth of 10%, adjusted operating income growth of 12%, and adjusted EPS growth of 16%. We are well-positioned for another solid year.
“The current war in Ukraine has reminded us that risk and uncertainty are constants, and I am proud of the work our colleagues are doing to help one another and our clients navigate the widespread challenges created by this horrific situation.”
