Reinsurance News

Guy Carpenter’s revenue up 7% as Marsh reports ‘outstanding’ first quarter

27th April 2021 - Author: Luke Gallin

Global insurance brokerage Marsh McLennan has reported consolidated revenue of $5.1 billion for the first quarter of 2021, supported by solid revenue growth at its reinsurance broking arm, Guy Carpenter.

guy-carpenter-logoConsolidated revenue increased 9%, or 6% on an underlying basis from the prior year quarter, as operating income jumped, year-on-year, from $1.1 billion to $1.4 billion.

All in all, net income attributable to the company during the first quarter of 2021 amounted to $983 million, which is up on the $754 million posted a year earlier.

At Guy Carpenter, revenue in the first quarter of the year increased by 7% on an underlying basis to $895 million, compared with $827 million in the first quarter of 2020.

Also within the company’s Risk & Insurance Services segment, Marsh’s revenue increased by 8% on an underlying basis, year-on-year, to $2.3 billion.

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The broker explains that within this part of the business, US/Canada underlying revenue spiked by 9%. Additionally, International operations recorded underlying revenue growth of 6%, which reflects 8% growth in Asia Pacific, 6% in EMEA, and 6% in Latin America.

Overall, the Risk & Insurance Services business has reported revenue of $3.2 billion in Q1 2021, representing growth of 11% from the same period last year, or 7% on an underlying basis. Operating income also increased here, by 24% year-on-year to $1.1 billion.

Dan Glaser, President and Chief Executive Officer (CEO) of Marsh McLennan, commented: “Marsh McLennan had an outstanding first quarter. We delivered strong growth in underlying revenue and adjusted earnings, and generated meaningful adjusted operating margin expansion in both Risk & Insurance Services and Consulting. Our total revenue grew 9%, with underlying revenue growth of 6%. Adjusted operating income rose 20%, adjusted EPS grew 21%, and our adjusted operating margin increased 260 basis points to 29.6%.

“Our excellent start to 2021 positions us well for the balance of the year.”

In the company’s Consulting operation, revenue in Q1 2021 reached $1.9 billion, which is growth of 6%, or 3% on an underlying basis. The Consulting unit also saw its operating income improve in Q1 2021, rising by 28% from the prior year period to $361 million.

At Mercer, revenue was flat on an underlying basis, at $1.3 billion for the first quarter of 2021. However, Wealth revenue of $623 million increased by 1% on an underlying basis, while Career revenue also spiked by 1% on an underlying basis, to $178 million. Health recorded revenue of $487 million in the period, which, on an underlying basis, is in line with the previous year.

Lastly, Oliver Wyman’s revenue hit $585 million in the first quarter of 2021, representing an increase of 11% on an underlying basis.

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