October 31, 2017 by Canadian Underwriter
Marsh & McLennan Companies Inc. recently announced a 9% increase in revenue at its commercial brokerage subsidiary while total risk and insurance services revenue increased from $1.632 billion in the third quarter of 2016 to $1.752 billion in the three months ending Sept. 30, 2017.
All figures are in United States dollars.
Marsh & McLennan reported Oct. 26 it had net income attributable to the company of $393 million on revenue of $3.341 billion in the latest quarter, compared to net income attributable to the company of $397 million on revenue of $3.135 billion in the same period of 2016.
In risk and insurance services (which includes Marsh and Guy Carpenter), Marsh & McLennan reported revenue rose from $1.632 billion in the third quarter of 2016 to $1.752 billion in the latest quarter.
Marsh’s revenue was $1.482 billion in Q3 2017, up 9% from $1.364 billion in the same period of 2016. There was a 6% impact from acquisitions and dispositions as well as a 3% increase in underlying revenue.
For the U.S. and Canada, Marsh had revenue of $797 million in the latest quarter, compared to $729 million in Q3 2016.
Guy Carpenter’s revenue increased 4%, from $260 million in Q3 2016 to $270 million in the latest quarter.
For the nine months ending Sept. 30, Marsh’s revenue increased 6%, from $4.411 billion in 2016 to $4.692 billion in 2017. There was a negative 1% impact from currency fluctuations, while the impact from acquisitions and dispositions was 4% and the underlying revenue increase was 3%.
Guy Carpenter’s revenue was up 3%, from $919 million in the first nine months of 2016 to $948 million in the first nine months of this year. The underlying revenue increase was 4% while the impact from currency fluctuations was negative 1%.
Worldwide, about 30,300 Marsh employees provide risk management, insurance broking, insurance program management services and risk consulting in more than 130 countries, Marsh said in February in its annual report for 2016.
Guy Carpenter is comprised of about 2,300 employees. Its offerings include reinsurance broking, industry loss warranties and capital markets alternatives. GC Securities provides service including mergers & acquisitions, and private debt and equity capital raising, among others.
Marsh & McLennan also owns Schinnerer Group, which includes Victor O. Schinnerer & Co. in the U.S. and ENCON Group Inc., a Canadian managing general agent whose offerings include professional liability and construction insurance.
Other Marsh & McLennan operations include Torrent Technologies, a service provider to write your own insurers participating in the U.S. National Flood Insurance Program.
Marsh & McLennan announced in July the appointment of John Doyle as chief executive officer of Marsh, succeeding Peter Zaffino, who is now chief executive officer, general insurance for American International Group Inc. Zaffino is a former president and CEO of Guy Carpenter and Doyle is a former CEO of AIG’s commercial insurance businesses worldwide.