Marsh & McLennan Companies Inc. (MMC) reported financial results for the first quarter ended March 31, including 5 percent revenue growth at Marsh and 4 percent at Guy Carpenter, its Risk and Insurance divisions.
“With a strong start to the year, we believe the company is well positioned to deliver underlying revenue growth, margin expansion in both operating segments and strong earnings per share growth in 2017,” said Dan Glaser, president and CEO.
Consolidated Results
Consolidated revenue in the first quarter of 2017 was $3.5 billion, an increase of 5 percent, or 4 percent on an underlying basis, compared with the first quarter of 2016. Operating income was $809 million, an increase of 10 percent from the prior year. Net income was $569 million.
Risk & Insurance Services
Risk & Insurance Services revenue was $2.0 billion in the first quarter of 2017, an increase of 6 percent, or 5 percent on an underlying basis. Operating income was $613 million, an increase of 15 percent. Adjusted operating income rose 10 percent to $600 million compared with $543 million in last year’s first quarter.
Marsh’s revenue in the first quarter was $1.6 billion, an increase of 5 percent on an underlying basis. International operations produced underlying revenue growth of 5 percent, reflecting growth of 3 percent in EMEA, 11 percent in Asia Pacific and 7 percent in Latin America. In US/Canada, underlying revenue also rose 5 percent.
Guy Carpenter’s revenue in the first quarter was $385 million, an increase of 4 percent on an underlying basis.
Consulting
Consulting revenue in the first quarter was $1.5 billion, an increase of 3 percent on both a reported and underlying basis. Operating income decreased 1 percent to $241 million. Adjusted operating income increased 3 percent to $245 million compared with $238 million in last year’s first quarter.
Beginning in the first quarter of 2017, Mercer established a Wealth business, unifying its former Retirement and Investments businesses.
Mercer’s revenue was $1.1 billion in the first quarter, an increase of 3 percent on an underlying basis.
Oliver Wyman Group’s revenue was $449 million in the first quarter, an increase of 4 percent on an underlying basis.
Topics Profit Loss
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