Revenues up by 4% at Guy Carpenter in Q1

Revenues at reinsurance broker Guy Carpenter increase by 4 percent in the first quarter of 2017 reaching $385 million, according to results released by its parent Marsh & McLennan Companies.

Its parent company also enjoyed steady growth and improved profits in the quarter driven by largely its Risk & Insurance Services business.

Marsh made a net profit of $569 million in the quarter, a big jump on the $481 million it made a year earlier. Its operating income was $809 million, an increase of 10 percent from the prior year. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 9 percent to $802 million.

Its overall revenues increased to $3.5 billion, an increase of 5 percent, or 4 percent on an underlying basis, compared with the first quarter of 2016.

Within this, its Risk & Insurance Services revenue was $2 billion in the first quarter of 2017, an increase of 6 percent; operating income in this unit was $613 million, an increase of 15 percent.

Marsh's revenue in the first quarter was $1.6 billion, an increase of 5 percent on an underlying basis. International operations produced underlying revenue growth of 5 percent, reflecting growth of 3 percent in EMEA, 11 percent in Asia Pacific and 7 percent in Latin America. In US/Canada, underlying revenue also rose 5 percent.

Its consulting revenue in the first quarter was $1.5 billion, an increase of 3 percent on both a reported and underlying basis. Operating income decreased 1 percent to $241 million.

Dan Glaser, president and CEO, said: "We are pleased with our performance in the first quarter. Marsh & McLennan Companies had underlying revenue growth across all of our operating companies, with growth of 5 percent in Risk & Insurance Services and 3 percent in Consulting. We delivered strong operating income growth with solid margin expansion.

"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."