May 1, 2017 by Canadian Underwriter
Marsh has reported revenues of US$775 million for its U.S./Canada division for the first quarter of 2017 ending March 31, up from US$701 million in the first quarter of 2016.
Consolidated revenue for the quarter was US$3.5 billion, up 5% from US$3.33 billion in Q1 2016, global professional services firm Marsh & McLennan Companies, Inc. said in a statement last week. Marsh’s revenue was US$1.6 billion for the quarter, an increase of 5% from US$1.49 billion in Q1 2016. Marsh’s revenue in the first quarter was US$1.6 billion, an increase of 5% on an underlying basis. International operations produced underlying revenue growth of 5%, reflecting growth of 3% in Europe, Middle East and Africa, 11% in Asia Pacific and 7% in Latin America. In U.S./Canada, underlying revenue also rose 5%.
MMC operating income was US$809 million, an increase of 10% from US$733 million from the prior year, while net income attributable to the company was US$569 million, up from US$481 million in the comparable period last year.
For the Risk & Insurance Services segment, revenue was US$2 billion in Q1 2017, an increase of 6% from US$1.87 billion in Q1 2016. The segment’s operating income was US$613 million, an increase of 15% from US$535 million in the first quarter of 2016, the statement said.
Total Consulting revenue in the first quarter was US$1.53 billion, an increase of 3% from US$1.48 billion in Q1 2016. Operating income decreased 1% to US$241 million from US$245 million in the first quarter of 2016.
Mercer, a global consulting provider of talent, health, retirement and investment solutions, had revenue of US$1.1 billion in the first quarter of this year, an increase of 3% from US$1.04 billion in the first quarter of last year. Global management consulting firm Oliver Wyman Group’s revenue was US$449 million in the first quarter, an increase of 4% from US$439 million in Q1 2016.
Guy Carpenter’s revenue in the first quarter was US$385 million, an increase of 4% from US$374 million on an underlying basis.
Dan Glaser, MMC president and CEO, said that the company is pleased with its performance in the first quarter. “We delivered strong operating income growth with solid margin expansion,” Glaser said. “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.”
MMC include brokerage and risk management company Marsh; risk and reinsurance intermediary services firm Guy Carpenter; health, wealth and career consulting firm Mercer; and management consulting company Oliver Wyman. With annual revenue of more than US$13 billion and more than 60,000 colleagues worldwide, MMC provides analysis, advice and transactional capabilities to clients in more than 130 countries.