Marsh & McLennan Cos. (MMC) reported today its 2013 third quarter net income of $253 million, a 4.98 percent increase from $241 million income reported during the same period a year ago. MMC’s consolidated revenue in the third quarter was $2.932 billion, a 3 percent increase on a reported basis, or 4 percent on an underlying basis, from $2.845 billion one year ago.
MMC’s Marsh insurance brokerage division also posted improved numbers. Marsh’s third quarter revenue — including domestic and international — was $1.235 billion, an increase of 4 percent on a reported basis, or 3 percent on an underlying basis, from $1.192 billion reported a year ago. The Marsh division’s U.S./Canada revenue for the latest quarter was $589 million, up 3.33 percent from last year. Marsh’s total international revenue rose 3.86 percent to $646 million for the quarter.
MMC’s Guy Carpenter reinsurance brokerage unit posted $262 million revenue for the latest quarter, up 5.22 percent from $249 million one year ago.
MMC’s Risk and Insurance Services business, which includes Marsh and Guy Carpenter, posted adjusted operating income of $228 million, up 14 percent from last year. The third quarter revenue for the Risk and Insurance Services business was $1.504 billion, up 3.65 percent from $1.451 billion last year.
In consulting business segments, which includes human resource consulting unit Mercer and management consulting unit Oliver Wyman Group, the third quarter revenue was $1.437 billion, an increase of 2 percent from $1.405 billion a year ago. The third quarter adjusted operating income for the consulting segments was $231 million, a 13 percent increase from $204 million last year.
“Marsh & McLennan Companies delivered another excellent quarter, continuing the strong earnings momentum that the company has achieved over the past several years,” MMC President and CEO Dan Glaser said. “Adjusted operating income increased 15 percent, reflecting excellent margin expansion in both of our operating segments.”
“In Risk and Insurance Services, Marsh produced underlying revenue growth across all major geographies, and Guy Carpenter continued its long-term trend of underlying revenue growth,” Glaser said. “In Consulting, both operating companies contributed to underlying revenue growth, as Mercer increased revenue across all lines of business, and Oliver Wyman returned to growth.”
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