Marsh McLennan ups top line 7.2% y/y in Q2, adds to margins

Global broker  Marsh McLennan saw second quarter revenue growth drop two notches to a 7.2% annual pace, in part on a surging US dollar, but held costs sufficient to ensure margin expansion. Per share earnings appeared to have beaten the market consensus.

“We generated double-digit underlying growth, margin expansion and solid growth in adjusted EPS with momentum across all of our businesses,” CEO Dan Glaser (pictured) said in comment to his company’s Q2 trading update, citing “continuing demand” for service across segments.

Revenues of $5.38 billion were up 7.2% on the year prior period, below the 9.2% annual growth rate noted in Q1. Management claimed underlying revenue growth of 10% on adjustments including FX accounting and the impact of M&A.

Risk and insurance services accounted for 61% of group revenues at $3.3 billion, up 5% from the prior year period. Management claimed underlying growth at 9% excluding FX and M&A.

Group operating expense grew at a lightly lower 6% pace to help the group put a mild expansion to margins.

Operating income rose 11% over Q2 2021 levels and the operating margin increased by 0.9 percentage points. An adjusted operating earnings measure was up by a milder 8% y/y.

Of the $1.36 billion in group EBIT, the company attributed $967 million to the risk and insurance services segment, a 2% annual increase. An adjusted sum of $1.0 billion was up a headier 9%.

Risk an insurance services now boasts an operating margin at 29.2%, down from 30.2% in the year prior period.

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