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Revenue for Marsh’s U.S./Canada division increases to US$768 million in Q4 2015, from US$711 million in Q4 2014


February 5, 2016   by Canadian Underwriter


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Revenue for Marsh & McLennan Companies’ U.S./Canada division increased to US$768 million for the three months ending Dec. 31, 2015, up from US$711 million in Q4 2014, the company said in its full-year and Q4 2015 financial results, released on Thursday. For the 12 months ending Dec. 31, 2015, the U.S./Canada division produced revenue of US$2.863 billion in Q4 2015, compared to US$2.677 billion in 2014.

Marsh has reported US$3.3 billion in consolidated revenue in the fourth quarter of 2015, an increase of 3% from the same quarter in 2014. Operating income for the three months ending Dec. 31, 2015 rose 11% to US$594 million, compared with US$536 million in the prior year, the global professional services firm said in a statement. Adjusted operating income rose 5% to US$582 million and net income was US$375 million, compared with US$294 million in the prior year. [click image below to enlarge]

Marsh and McLennan Companies released their Q4 2015 and full-year 2015 results on Friday

“We capped off a successful year with an outstanding fourth quarter, posting our highest underlying revenue growth of 2015 at 5%,” said Marsh & McLennan Companies president and CEO Dan Glaser in the statement. “In 2015, we produced underlying revenue growth of 4% on a consolidated basis.”

For the year 2015, consolidated revenue was US$12.9 billion, a slight decrease from the prior year. Operating income was US$2.4 billion, up 5% from the prior year.

Risk and Insurance Services revenue was US$1.7 billion in the fourth quarter of 2015, an increase of 4% on an underlying basis. Operating income was US$354 million, an increase of 4% compared with US$339 million in Q4 2014. Adjusted operating income was up 3% to US$364 million, Marsh said in the statement. For the year 2015, revenue was US$6.9 billion, an increase of 3% on an underlying basis. Operating income rose to US$1.5 billion, and adjusted operating income increased to US$1.6 billion.

Marsh’s revenue in the fourth quarter of 2015 was US$1.5 billion, an increase of 4% on an underlying basis, with the U.S./Canada division showing underlying revenue growth of 3%, Marsh said in the statement. Guy Carpenter, which provides risk and reinsurance intermediary services, had a Q4 2015 revenue of US$217 million, an increase of 5% on an underlying basis. [click image below to enlarge]

For the 12 months ending Dec. 31, 2015, Marsh’s U.S./Canada division produced revenue of US$2.863 billion in Q4 2015, compared to US$2.677 billion in 2014

Consulting revenue of US$1.6 billion in the fourth quarter of 2015 increased 5% on an underlying basis from the fourth quarter of 2014. Operating income rose 18% to US$294 million from US$250 million in the prior period and adjusted operating income rose 5% to US$265 million. For the year 2015, revenue of US$6.1 billion was up 5% on an underlying basis, Marsh said in the statement. Operating income grew 8% to US$1.1 billion, and adjusted operating income increased 4% to US$1 billion.

Mercer, a provider of talent, health, retirement, and investment consulting, had revenue of US$1.1 billion in Q4 2015, an increase of 5% on an underlying basis. Health, with revenue of US$389 million, grew 8% on an underlying basis; Retirement, with revenue of US$372 million, rose 1% from the prior year quarter; Investments, with revenue of US$204 million, increased 2%; and Talent, with revenue of US$175 million, was up 7%. Management consulting firm Oliver Wyman Group’s revenue was US$476 million in the fourth quarter, an increase of 7% on an underlying basis.

“We believe we are well positioned to deliver underlying revenue growth, margin expansion and strong EPS growth in 2016,” concluded Glaser.