Marsh McLennan sticks to double digit growth Q3, but key brokers trail
Marsh McLennan increased revenue from its re/insurance and brokerage businesses by 12% year on year in the third quarter, or 11% in adjusted terms, part and parcel with continued double digit growth for the group as a whole.
But revenue growth for the reinsurance brokerage Guy Carpenter trailed the group, up 8% year on year on an underlying basis to $359 million.
That 8% growth rate was down from the low double digit pace posted in Q1 and Q2, albeit in a quarter not known for heavy business loads in the unit, analysts at the Wells Fargo brokerage noted for investors.
Likewise at the primary insurance brokerage Marsh, revenue of $2.7 billion showed 8% underlying growth rate, including 6% in the US and Canada and 10% in international operations.
“We had another quarter of double-digit underlying revenue growth, strong adjusted EPS growth and margin expansion,” CEO John Doyle said for the larger group.
For the larger group, including Oliver Wyman and Mercer consulting units, group revenues of $5.4 billion were up 13% year on year or 10% in adjusted terms. Adjusted operating income rose 24% to $1.1 billion.
“We achieved these results while also continuing to make significant investments for the future,” Doyle noted.
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