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Marsh & McLennan’s Q2 risk & insurance revenue drops 2.3% to US$1.75 billion


July 28, 2015   by Canadian Underwriter


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Marsh & McLennan Companies Inc. reported US$1.47 billion, in Q2 2015, in revenue from commercial insurance brokerage Marsh Inc.

Marsh & McLennan Companies Inc. released Tuesday its financial results for the three months ending June 30, reporting a 6.1% increase, year over year, in Q2 revenue from Marsh Inc. in the United States and Canada and a 2.3% drop in overall risk and insurance services revenue.

Marsh & McLennan Companies Inc. reported a drop in risk and insurance services revenue

New York City-based Marsh & McLennan reported its second-quarter revenue dropped 2.3%, from $3.3 billion in 2014 to $3.225 billion this year. Net income attributable to the company was down 2.8%, from $431 million in Q2 2014 to $419 million in the most recent quarter. All figures are in United States dollars.

Marsh & McLennan’s risk and insurance services subsidiaries include commercial brokerage Marsh Inc. and Guy Carpenter & Company LLC.

Revenue from risk and insurance services was down 2.3%, from $1.791 billion in Q2 2014 to $1.75 billion in Q2 2015. The “underlying” revenue increase, in risk and insurance services, was 2%, Marsh & McLennan suggested. The impact of currency fluctuations was -6% while the impact of acquisitions and dispositions was +2%.

Guy Carpenter’s operations include placement of reinsurance and provision of insurance-linked securities.

From Guy Carpenter, Marsh & McLennan reported $275 million in revenue in the most recent quarter, and $1.47 billion in revenue from Marsh.

Marsh & McLennan Companies Inc. reported US$1.47 billion, in Q2 2015, in revenue from commercial insurance brokerage Marsh Inc.

Within Marsh, the company reported revenue from the U.S. and Canada was $760 million in the most recent quarter, up 6.1% from $716 million in Q2 2014. In Canada, Marsh has offices in Toronto, Vancouver, Calgary, Edmonton, Regina, Saskatoon, Winnipeg, London, Kitchener, Ottawa, Montreal, Halifax and St. John’s, Nfld. Marsh places various lines of commercial insurance in Canada, including property, general liability, professional liability, employment practices liability, directors’ and officers’ liability and computer network security, among others.

In addition to providing commercial broking and risk consulting, Marsh also provides data and analytical tools and helps clients structure and manage captives. Marsh & McLennan owns Toronto-based Encon Group Inc., an underwriting agent that provides professional liability and specialty insurance, through subsidiary Victor O. Schinnerer & Co.

In consulting, Marsh & McLennan reported Q2 revenues this year of $1.487 billion, down 2.2% from $1.52 billion in the same three months of 2014.

In the latest quarter, Marsh & McLennan reported $1.046 billion in revenue from Mercer LLC and $441 million in revenue from management consultancy Oliver Wyman Group.

Mercer provides consulting in human resources, employers’ health and benefits, managing employee pensions and mergers & acquisitions.