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Risk and insurance revenue up 3% at Marsh & McLennan


October 26, 2016   by Canadian Underwriter


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Marsh & McLennan Companies Inc. announced Tuesday its risk and insurance revenue rose 3%, year over year, for the third quarter.

New York City-based Marsh & McLennan owns brokerage Marsh Inc. and Guy Carpenter & Company LLC, among other subsidiaries.

Risk and insurance revenue was $1.632 billion in the three months ending Sept. 30, compared to $1.584 billion during the same period in 2015. All figures are in United States dollars.

“The U.S./Canada division produced underlying revenue growth of 3%, while International operations rose 2%: EMEA was flat, Asia Pacific rose 2% and Latin America increased 9%,” Marsh & McLennan said in a release.

Marsh did not report brokerage revenue specifically from Canada. Toronto-based Marsh Canada is lead by president and CEO Chris Lay.

Within risk and insurance services, during the latest quarter, Marsh & McLennan recorded revenue of $1.364 billion (up 4% from $1.317 billion in Q3 2015) from Marsh and $260 million (essentially unchanged from $261 million in Q3 2015) from Guy Carpenter, which acts as a broker and intermediary of treaty and facultative reinsurance.

The GC Securities unit “offers corporate finance solutions, including mergers & acquisitions and private debt and equity capital raising, and capital markets-based risk transfer solutions,” the company reported in an earlier filing with the U.S. Securities and Exchange Commission.

For the nine months ending Sept. 30, 2016, Marsh & McLennan reported revenue of $5.35 billion in risk and insurance services, up from $5.137 billion in the first nine months of 2015.

In addition to its brokerage, Marsh also provides captive services. Its practice ” operates in 42 captive domiciles” and performs captive feasibility studies and helps to structure and implement captive solutions,” Marsh & McLennan said in its SEC filing.

Marsh & McLennan also owns Schinnerer Group, which is “comprised of Victor O. Schinnerer & Co. in the U.S. and ENCON Group Inc. in Canada,” the firm said in its SEC filing. ENCON Group, a managing general agent, “offers professional liability and construction insurance, as well as group and retiree benefits programs and claims handling for individuals, professionals, organizations and businesses, through a national third-party distribution network of licensed insurance brokers and through benefit plan advisors.”

Torrent Technologies, recently acquired by Marsh & McLennan, is a service provider to Write Your Own (WYO) insurers participating in the United States National Flood Insurance Program (NFIP).

In addition to risk and insurance, Marsh & McLennan provides consulting through Mercer and Oliver Wyman Group.

Oliver Wyman provides management consulting while Mercer provides services in health, retirement, investments and talent.

In consulting, Marsh & McLennan reported revenue of $1.513 billion in the latest quarter, down 2% from $1.54 billion in Q3 2015. In the most recent quarter, the company reported $1.109 billion in revenue from Mercer and $404 million from Oliver Wyman.

Company-wide, Marsh & McLennan reported net income attributable to the company of $379 million on revenue of $3.135 billion in the latest quarter, compared to net income attributable to the company of $323 million on revenue of $3.115 billion in the three months ending Sept. 30, 2015.

For the nine months ending Sept. 30, 2016, Marsh & McLennan reported net income attributable to the company of $1.332 billion on revenue of $9.847 billion. During the first three quarters of 2015, the firm reported net income attributable to the company of $1.224 billion in on revenue of $9.555 billion.

“For the full year, we continue to expect to deliver underlying revenue growth, meaningful margin expansion and strong growth in earnings per share,” stated Dan Glaser, president and chief executive officer of Marsh & McLennan, in a release.