5 Brokers Report Strong Revenues During Q3 as Favorable Market Climate Continues

By | November 20, 2023

Five publicly traded insurance brokers reported strong third quarter revenues, with their executives using adjectives such as “outstanding,” “terrific,” “excellent,” and “strong” to describe their companies’ financial performances.

In a wrap-up of the brokers’ results, listed in descending order by revenue size, Marsh McLennan Cos. comes first, followed by Aon, Arthur J. Gallagher, WTW and Brown & Brown.

Marsh McLennan

Marsh McLennan reported Q3 consolidated revenue of $5.4 billion, an increase of 13% compared with the third quarter of 2022. On an underlying (non-GAAP) basis, revenue increased 10%.

Operating income was $996 million, an increase of 26% from a year ago. Net income attributable to the company was $730 million, or $1.47 per diluted share, compared with $546 million, or $1.08 per share in the third quarter of 2022.

“Marsh McLennan’s third quarter results were outstanding, reflecting strength across the business. 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,” commented John Doyle, president and CEO. “With our performance through the third quarter, we are on track for another terrific year.”

Marsh McLennan’s Risk and Insurance Services (RIS) segment (Marsh and Guy Carpenter) reported a Q3 revenue of $3.2 billion, an increase of 11% on an underlying basis. Operating income rose 21% to $640 million, and adjusted operating income was $671 million, an increase of 19% from a year ago.

Breaking down the results of the two RIS units, Marsh’s revenue in the third quarter was $2.7 billion, an increase of 8% on an underlying basis. In U.S./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.

Guy Carpenter’s revenue in the third quarter was $359 million, an increase of 8% on an underlying basis.

“Overall, we remain on track for a terrific 2023. Based on our outlook today and assuming current conditions persist, we expect to generate 9% to 10% full-year underlying revenue growth, strong growth in adjusted EPS and to report margin expansion for the 16th consecutive year,” said Mark McGivney, MMC’s chief financial officer

during the recent earnings call to discuss Q3 results.

Aon plc

Aon reported total revenue increased by $257 million, or 10%, to $3.0 billion from $2.7 billion in Q3 2022. The Q3 2023 total included organic revenue growth of 6%, which was attributed to ongoing strong retention, management of the renewal book, and net new business generation, a 2% favorable impact from fiduciary investment income, and a 2% favorable impact from foreign currency translation.

Q3 2023 operating income rose by 17% to $691 million from $590 million during the same period last year. Net income attributable to Aon shareholders increased 12% to $456 million, or $2.23 per share on a diluted basis, compared to $408 million, or $1.92 per share on a diluted basis, in the prior year period.

Aon’s Reinsurance Solutions unit delivered another very strong quarter of 11% organic revenue growth, driven by strong growth across treaty, facultative and the Strategy and Technology Group, according to Greg Case, Aon CEO, during the Q3 earnings’ call with financial analysts.

The Reinsurance Solutions unit reported Q3 revenue of $465 million, compared with $396 million during Q3 2022.

Aon’s Commercial Risk unit reported Q3 revenue of $1.6 billion, compared with $1.5 billion during Q3 2022. The Q3 2023 figure included organic revenue growth of 4%, which reflected strong renewals and net new business internationally in EMEA and the Pacific, the company said.

Arthur J. Gallagher & Co.

Arthur J. Gallagher’s total revenue before reimbursements for brokerage and risk management, rose 21.9% to $2.45 billion in the third quarter from $2.01 billion in Q3 2022.

“We had an excellent third quarter,” commented Patrick Gallagher Jr., chairman, president and CEO of Arthur J. Gallagher & Co., in the company’s earnings statement. “Our core brokerage and risk management segments combined posted 22% reported revenue growth, 10.5% organic revenue growth, a 15.5% reported net earnings margin, and we improved our adjusted EBITDAC margin by 78 basis points. Also, during the quarter, we completed 12 new mergers with approximately $57 million of estimated annualized revenue.” (Editor’s note: EBITDAC means Earnings Before Interest, Taxes, Depreciation, Amortization and Coronavirus.)

“Brokerage organic growth of 9.3% came in a touch above the 9% expectation due to Reinsurance (+20%) and Global Specialty (+18%) coming in better-than-expected,” according to Wells Fargo Equity Research.

“Risk Management organic was 17.9% also above the 15-16% guide. Further, Gallagher reaffirmed its outlook for both businesses for FY 2023 with Brokerage growth expected to be ~9% and Risk Management above 15%. For 2024 Brokerage organic should be 7-9% with Risk Management at 9-11%,” Wells Fargo continued.


Willis Towers Watson (WTW) reported Q3 revenue increased 11% to $2.2 billion ($2 billion in Q3 2022), with organic growth of 9%. Net income for the third quarter of 2023 was $139 million, a decrease of 28% compared to net income of $192 million in the prior-year third quarter.

“As I touched on last quarter, our focus on specialization and our risk and broking segment has been one of the key drivers of our strong organic growth. We’ve generated substantial momentum by developing innovative products and services, engaging in strategic partnerships, and building platforms like MGAs, MGUs, and affinity products,” said Carl Hess, CEO and director of WTW, during the company’s earnings call.

WTW’s Risk & Broking segment’s revenue was up 10% on both an organic and constant currency basis compared to the prior year of third quarter. R&B’s Q3 operating income was $134 million, compared with $105 million for the same period last year. R&B had revenue of $855 million in Q3 2023, an increase of 12% (10% increase constant currency and organic) from $765 million in the prior year.

Corporate Risk & Broking generated solid organic revenue growth of 10%, driven by strong new business, improved client retention and rate increases.

Q3 growth was driven by continued strong return on investment in our specialty lines, said Andrew Krasner, WTW’s CFO, during the earnings call. “Globally, the strongest growth came from our facultative, financial solutions, natural resources, surety and construction lines of business.”

Europe also had an “exceptional quarter with double digit growth in a number of countries led by our P&C retail and direct business, as well as construction, aerospace and financial solutions. International also contributed to strong organic growth led by Latin America,” Krasner said.

He said North America benefited from “strong new business and increased client retention across most lines of business, despite headwinds in our M&A business and from the impact of book of business [settlement] activity.”

Brown & Brown

Brown & Brown reported Q3 revenue of $1.07 billion, increasing by $140.1 million, or 15.1%, from $927.6 million in Q3 2022. Organic revenue increased by 9.6% during the quarter.

“We delivered an outstanding performance in the third quarter,” Powell Brown, Brown & Brown’s president and chief executive officer, said during the company’s Q3 earnings call.

Net income was $175.9 million, increasing $14.8 million, or 9.2%, from $161.1 million in Q3 2022. Diluted net income per share increased to $0.62, or 8.8%, from $0.57 in the same period last year.

“Our retail segment had another great quarter and delivered organic growth of 8%. This growth, both domestically and internationally, was driven by strong new business, good retention and continued rate increases. We’re winning a lot of new business by leveraging our collective capabilities and creating innovative solutions for our customers that are searching for ways to manage their cost of insurance,” Powell Brown said.

On the M&A front, Brown & Brown completed seven acquisitions with estimated annual revenues of $14 million.

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