Insurance and reinsurance brokerage, Marsh McLennan, has today reported consolidated revenue of $5 billion for Q4 and $20.7 billion for the full-year 2022, supported by solid revenue growth at its reinsurance arm, Guy Carpenter.
At $5 billion, consolidated revenue in the fourth quarter of 2022 actually declined by 2% when compared with the prior year period, but rose by 7% on an underlying basis.
For the year 2022, revenue increased by 5%, year-on-year, or by 9% on an underlying basis to $20.7 billion.
In terms of operating income, Marsh McLennan has reported a decline from $986 million in Q4 2021 to $680 million in Q4 2022, while adjusted operating income increased by 13% to $1 billion in the period.
For the year, operating income totalled $4.3 billion, while adjusted operating income increased by 11% to $4.8 billion.
Net income attributable to the firm was $466 million for the quarter and $3 billion for the full-year.
Starting with Guy Carpenter, which sits within the Risk & Insurance Services segment, fourth quarter revenue was $171 million, reflecting growth of 1%, or 5% on an underlying basis. For the year 2022, the reinsurance broker’s revenue grew 8%, or 9% on an underlying basis, when compared with 2021.
Also within Risk & Insurance Services sits Marsh, which has reported revenue of $2.7 billion for the quarter, which is down 6% on the prior year period, or up 6% on an underlying basis. For 2022, Marsh’s revenue growth was 3%, or 8% on an underlying basis.
Overall, the Risk & Insurance Services unit’s revenue was $2.9 billion in Q4 2022, a decrease of 3%, or an increase of 8% on an underlying basis. The segment’s operating income was $472 million for the quarter, down on the $667 million seen a year earlier.
For the full-year 2022, revenue was $12.6 billion, an increase of 5%, or 9% on an underlying basis. While operating income hit $3.1 billion.
In its Consulting business, Marsh McLennan has reported revenue of $2.1 billion, an increase of 6% on an underlying basis. Here, operating income fell by 15% to $336 million. For the year, revenue was $8.1 billion, an increase of 5%, or 8% on an underlying basis, as operating income hit $1.6 billion.
Within the Consulting business sits both Mercer and Oliver Wyman. The former’s revenue hit $1.3 billion for the quarter and increased by 2%, or 6% on an underlying basis for the full-year 2022.
Oliver Wyman’s revenue increased by 8% on an underlying basis to $765 million in Q4 2022, and grew by 13% on an underlying basis to $2.8 billion for the year.
The broker’s Q4 2022 results also include $344 million of noteworthy items, primarily related to severance and lease exit charges for activities focused on workforce actions, technology rationalization and reductions in real estate.
John Doyle, President and Chief Executive Officer (CEO) of Marsh McLennan, commented: “2022 was an outstanding year for Marsh McLennan. We generated underlying revenue growth of 9%, grew adjusted EPS by 11%, and expanded adjusted margins for the 15th consecutive year. We achieved these strong results while continuing to invest in our talent and capabilities, both organically and through acquisitions.
“It is a privilege to lead this exceptional firm. Our expertise across the important areas of risk, strategy and people is more relevant than ever as we help clients navigate an uncertain world. I am excited about the possibilities ahead.”
