International insurance brokerage, Marsh McLennan (MMC), saw its consolidated revenue rise to $5 billion in the second-quarter of 2021, supported by an increase in revenue at its reinsurance arm, Guy Carpenter.
For Q2 2021, MMC’s consolidated revenue spiked by 20% when compared with the prior year period and, on an underlying basis, increased by 13%.
At the same time, operating income increased by an impressive 39%, year-on-year, to $1.2 billion, while net income attributable to the firm amounted to $820 million, compared with $572 million a year earlier.
For the opening six months of the year, MMC’s consolidated revenue increased by 14%, or 9% on an underlying basis to $10.1 billion.
Operating income for H1 2021 hit $2.6 billion, which represents growth of 32% from the same period in 2020, as net income totalled $1.8 billion, against $1.35 billion in H1 2020.
“Our performance this quarter was outstanding. The company achieved the strongest underlying growth in two decades, and experienced an acceleration in growth across all of our businesses. We grew underlying revenue by 13%, adjusted operating income by 24%, and adjusted EPS by 33%,” said Dan Glaser, President and Chief Executive Officer (CEO) of MMC.
During the second quarter of this year, MMC has reported improved revenues across its operations, including growth of 21%, or 13% on an underlying basis within its Risk & Insurance Services division, to $3.1 billion.
Operating income increased by a huge 37% to $950 million, while adjusted operating income increased by 22%, year-on-year, to $927 million.
For H1 2021, the Risk & Insurance Services arm of MMC recorded revenue of $6.4 billion, operating income of $2 billion, and adjusted operating income of $2 billion.
Within Risk & Insurance Services sits Guy Carpenter, MMC’s reinsurance broking division, which increased its revenue in Q2 2021 by 12% on an underlying basis to $488 million. For H1 2021, Guy Carpenter has reported underlying revenue growth of 8%, to $1.4 billion.
At Marsh, revenue in Q2 2021 amounted to $2.7 billion, which is an increase of 14% on an underlying basis when compared with the prior year Q2. For H1 2021, the unit’s revenue increased by 11% on an underlying basis to $4.9 billion.
In its Consulting business, revenue increased by 12% on an underlying basis to $1.9 billion in Q2 2021. Operating income jumped by 35% to $344 million, while adjusted operating income spiked by 34% to $356 million.
For H1 2021, MMC’s Consulting operations produced revenue of $3.8 billion, which is growth of 8% on an underlying basis. Additionally, operating income increased by 31% to $705 million, and adjusted operating income by 31% to $726 million, for the first half of 2021.
“These results are a direct reflection of the hard work and dedication of our colleagues around the world. We look forward to carrying this momentum into the second half of the year,” said Glaser.