Reinsurance News

Guy Carpenter’s underlying revenue up 15% as Marsh hails outstanding quarter

21st October 2021 - Author: Luke Gallin

Reinsurance broker Guy Carpenter has reported a 15% rise in underlying revenue to $314 million for the third quarter of 2021, as its parent Marsh McLennan delivered impressive year-on-year growth.

marsh-mclennanBuoyed by revenue growth across the business, global insurance and reinsurance brokerage Marsh McLennan has reported an increase in underlying revenue of 13%, as consolidated revenue jumped by 16% to $4.6 billion.

Operating income, which ended Q3 2021 at $740 million, increased from the prior year period by 37%, while adjusted operating income spiked by 19% to $759 million.

Net income attributable to the firm also rose year-on-year to $537 million, as adjusted earnings per share increased by 32% to $1.08 per diluted share versus $0.82 per diluted share for Q3 2020.

“We delivered another quarter of excellent results. For the second consecutive quarter, underlying growth was at the highest level in over two decades. We grew underlying revenue by 13%, adjusted operating income by 19%, and adjusted EPS by 32%.

“For the first nine months of 2021, we achieved 10% underlying revenue growth, 21% adjusted operating income growth, and 28% adjusted EPS growth,” said Dan Glaser, President and Chief Executive Officer (CEO).

Revenue growth occurred in all business segments during the period.

In Risk & Insurance Services, which includes reinsurance unit Guy Carpenter, revenue was up 17% to $2.7 billion, or 13% on an underlying basis. Operating income rose to $403 million, and adjusted operating income reached $469 million, representing growth of 21%.

Alongside 15% underlying revenue growth at Guy Carpenter, the Marsh division’s revenue increased by 13% on an underlying basis to $2.4 billion, with revenue growth witnessed in all geographies.

In its Consulting business, Marsh McLennan has reported revenue of $1.9 billion, which is up on the prior year period by 13%, or 12% on an underlying basis. Operating income rose to $404 million and adjusted operating income reached $350 million for the period.

At Mercer, underlying revenue growth of 7% resulted in revenue of $1.3 billion for the quarter, driven by growth in all segments.

Oliver Wyman’s revenue also increased in the period, by 25% on an underlying basis to $610 million.

“Given the outstanding quarter and year-to-date performance, we are on track for a terrific year,” said Glaser.

For the nine-month period, Marsh McLennan has delivered consolidated revenue growth of 15% to $14.7 billion, a higher operating income of $3.3 billion, and net income of $2.3 billion.

Revenue in Risk & Insurance Services increased by 16%, or 11% on an underlying basis in 9M 2021 to $9 billion, as operating income increased to $2.4 billion.

Guy Carpenter’s revenue growth, on an underlying basis, increased by 10% for the nine-month period. While Marsh’s underlying revenue growth was 12% for the period when compared with the prior year.

The Consulting business also recorded improved results for the nine-month period, with revenue of $5.7 billion, which is an increase of 12%, or 9% on an underlying basis.

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