Marsh & McLennan Companies, Inc. (MMC), a global insurance and reinsurance brokerage, has announced consolidated revenue of $4 billion for the third-quarter of 2020, while underlying revenue fell by 1% when compared to the same period in 2019.
Operating income spiked to $540 million from $467 million in the prior year quarter for Marsh, while adjusted operating income increased by 9% to $638 million in Q3 2020.
Overall, net income attributable to the firm was $316 million in the third-quarter of 2020, which is up on the same period last year.
Marsh’s revenue for the quarter reached $2 billion, representing an increase of 3% on an underlying basis. Underlying revenue growth was evident in US/Canada, international operations, Asia Pacific and Latin America during the period, while EMEA revenue remained flat.
Guy Carpenter, the broker’s reinsurance arm, recorded revenue of $274 million for Q3 2020, which is flat on an underlying basis. However, for the first nine months of the year, Marsh’s reinsurance segment recorded underlying revenue growth of 6%.
Within the company’s Risk & Insurance Services department revenue was $2.3 billion in Q3 2020, which is up 4%, or 2% on an underlying basis on the same period in 2019. Operating income here reached $333 million against $218 million a year earlier, while adjusted operating income increased by 24% to $388 million. For the first nine months of the year, the segment’s revenue was $7.8 billion, which is an increase of 8%, or 3% on an underlying basis.
Overall, for the nine month period ended September 30th, 2020, Marsh’s underlying revenue growth was 6%. Consolidated revenue for 9M 2020 increased 3% to $12.8 billion, while operating income reached $2.5 billion and adjusted operating income increased by 12% to $2.8 billion.
Dan Glaser, President and Chief Executive Officer (CEO) of the company, commented: “Marsh & McLennan’s strong performance in this period of uncertainty demonstrates our continued excellent execution and the resilience of our business. In the third quarter, we generated 9% adjusted operating income growth and 6% growth in adjusted EPS, despite a modest decline in underlying revenue. For the first nine months of 2020, we achieved 1% underlying revenue growth, 12% adjusted operating income growth and 9% adjusted EPS growth.
“I am proud of the extraordinary dedication of our colleagues in serving our clients and supporting each other.”
Turning to Marsh’s consulting business, and revenue in Q3 2020 fell by 5% to $1.7 billion, operating income dipped by 12% to $278 million, and adjusted operating income fell by 5% to $306 million.
Mercer’s revenue reached $1.2 billion in the third-quarter of 2020, which represents a decline of 3% on an underlying basis. Additionally, Oliver Wyman’s revenue hit $480 million in the period, which is a decline of 6% on an underlying basis.