Guy Carpenter, the reinsurance arm of Marsh & Mclennan Companies (MMC), has posted fourth quarter 2018 revenue of $102 million, up 5% on an underlying basis.
For the year 2018, Guy Carpenter’s revenue increased to $1.3 billion, up 7% on an underlying basis.
Meanwhile, MMC’s consolidated revenue in Q4 was $3.7 billion, an increase of 1% compared with the a year previous, or 4% excluding the impact of the new ASC 606 revenue standard.
On an underlying basis, revenue increased 5% while operating income declined 7% to $621 million.
Adjusted operating income increased 7% to $731 million. Excluding the impact of ASC 606, adjusted operating income rose 15% to $785 million.
Marsh’s revenue in the fourth quarter of 2018 was $1.8 billion, up 6% on an underlying basis.
In the U.S and Canada, underlying revenue rose 7%. International operations produced underlying revenue growth of 5%, reflecting underlying growth of 8% in Asia Pacific, 8% in Latin America and 3% in EMEA. For the year 2018, Marsh’s revenue increased to $6.9 billion, up 4% on an underlying basis.
“Marsh & McLennan had an outstanding finish to the year,” said Dan Glaser, President and Chief Executive Officer.
“In the fourth quarter, we produced strong underlying revenue growth of 5%, including 6% in Risk & Insurance Services and 3% in Consulting. Excluding the impact of the new revenue standard, we generated adjusted operating income growth of 15% in the quarter and delivered 180 basis points of overall adjusted margin expansion.”
“For the year, Marsh & McLennan generated strong underlying revenue growth of 4%, adjusted operating income growth of 8% and adjusted EPS growth of 11%. This marks another year of double-digit adjusted EPS growth following 15% growth in 2017.”
“In addition to our impressive underlying performance, we had another active year of acquisitions and delivered on our capital return commitments. The highlight of the year was our agreement to acquire Jardine Lloyd Thompson Group. This combination will enhance capabilities for our clients, increase opportunities for our colleagues and create value for our shareholders,” Glaser concluded.
