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.
Consolidated 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.
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.