Marsh McLennan continues momentum with double-digit revenue increase in Q3 2023

Marsh McLennan continues momentum with double-digit revenue increase in Q3 2023 | Insurance Business Australia

Insurance News

Marsh McLennan continues momentum with double-digit revenue increase in Q3 2023

Top performing divisions revealed

Insurance News

By
Gia Snape

Marsh McLennan continues a momentum of growth this year, reporting a double-digit revenue increase in the third quarter ended September 30, 2023.

The global insurance and risk management firm reported a consolidated revenue for this period of $5.4 billion, an increase of 13% compared with the third quarter of 2022. On an underlying basis, revenue increased 10%.

Operating income stood at $996 million, a 26% rise from a year ago. Adjusted operating income rose 24% to $1.1 billion.

Net income attributable to the company was $730 million, or $1.47 per diluted share, compared with $1.08 in Q3 2022. Adjusted earnings per share rose 33% to $1.57 per diluted share.

For the nine months ended September 30, 2023, consolidated revenue was $17.2 billion, an increase of 9%, or 10% on an underlying basis compared to the prior period. Operating income was $4.2 billion, an increase of 16% from the prior year period. Adjusted operating income rose 17% to $4.4 billion.

Net income attributable to the company was $3.0 billion, or $6.01 per diluted share, compared with $5.11 in the first nine months of 2022. Adjusted earnings per share increased 17% to $6.31 per diluted share compared with $5.38 for the first nine months of 2022.

Risk and insurance services performance in Q3

Its risk and insurance services revenue stood at $3.2 billion in the third quarter of 2023, an increase of 12%, or 11% on an underlying basis. Operating income rose 21% to $640 million, and adjusted operating income was $671 million, an increase of 19% versus a year ago.

For the nine months ended September 30, 2023, revenue was $10.8 billion, an increase of 12% both on a GAAP and underlying basis. Operating income rose 22% to $3.2 billion, and adjusted operating income was $3.3 billion, an increase of 18% versus a year ago.

Marsh’s revenue in the third quarter was $2.7 billion, an increase of 8% on an underlying basis. In the US and Canada, underlying revenue rose 6%.

International operations produced underlying revenue growth of 10%, reflecting 14% growth in Latin America, 10% growth in Asia Pacific, and 9% growth in EMEA. For the nine months ended September 30, 2023, Marsh’s underlying revenue growth was 9%.

Guy Carpenter’s revenue in the third quarter was $359 million, an increase of 8% on an underlying basis. For the nine months ended September 30, 2023, Guy Carpenter’s underlying revenue growth was 10%.

CEO lauds ‘outstanding performance’

On the other hand, the group’s consulting revenue stood at $2.2 billion in Q3 2023, an increase of 13%, or 9% on an underlying basis.

Operating income increased 21% to $424 million, while adjusted operating income increased 24% to $447 million.

For the first nine months ended September 30, 2023, revenue was $6.4 billion, an increase of 6%, or 7% on an underlying basis. Operating income of $1.2 billion rose 1% versus a year ago, while adjusted operating income increased 11% to $1.3 billion.

“Marsh McLennan’s third quarter results were outstanding, reflecting strength across the business,” said president and CEO John Doyle.

“We had another quarter of double-digit underlying revenue growth, strong adjusted EPS growth and margin expansion. We achieved these results while also continuing to make significant investments for the future.