Marsh McLennan Reports 8.7% Increase in Q2 Net Income

Insurance broker Marsh McLennan reported second quarter net income of $1.125 billion, an 8.7% increase from $1.035 billion reported during Q2 2023. Operating income rose 13% to $1.6 billion.

Q2 earnings per share increased 10% to $2.27, while adjusted earnings per share increased 10% to $2.41.

Total Q2 revenue was $6.221 billion, an increase of nearly 6% from the $5.876 billion reported during the second quarter of 2023. Underlying (organic) revenue grew 6% during the quarter.

For the six months ended June 30, 2024, MMC’s net income was $2.5 billion (or $5.08 per diluted share), compared with $2.3 billion (or $4.55 per diluted share) in the first six months of 2023. Adjusted operating income rose 11% to $3.7 billion.

Consolidated revenue for the first half was $12.7 billion, an increase of 8% on both a GAAP and underlying basis compared to the same period last year.

Marsh & McLennan’s Risk and Insurance Services (RIS) segment (which consists of Marsh and Guy Carpenter) reported Q2 operating income of $1.3 billion, an increase of 12% from the same period last year. Adjusted operating income also increased 12% to $1.3 billion during the quarter. The RIS segment reported Q2 revenue or $4.0 billion, an increase of 8%, or 7% on an underlying basis.

For the six months ended June 30, 2024, RIS’ revenue was $8.3 billion, an increase of 9%, or 8% on an underlying basis. Operating income rose 12% to $2.9 billion, and adjusted operating income increased 12% to $2.9 billion.

Breaking down the results of the two RIS units, Marsh reported Q2 revenue of $3.3 billion, an increase of 8%, or 7% on an underlying basis. In U.S./Canada, underlying revenue rose 6%. International operations produced underlying revenue growth of 7%, reflecting 8% growth in Latin America, 7% growth in EMEA, and 7% growth in Asia Pacific. For the six months ended June 30, Marsh’s underlying (organic) revenue growth was 7%.

MMC’s reinsurance brokerage business, Guy Carpenter, reported Q2 revenue of $632 million, an increase of 10%, or 11% on an underlying basis. For the six months ended June 30, 2024, Guy Carpenter’s underlying revenue growth was 9%.

“We generated strong results in the second quarter with 6% underlying revenue growth, 10% adjusted EPS growth, and 130 basis points of margin expansion,” according to John Doyle, president and CEO, in a statement. “We continued to invest in our talent and capabilities to deliver for clients. We also deployed capital into high quality acquisitions and recently announced a 15% increase in our dividend. Our first half results leave us well positioned for another great year in 2024.”

Source: Marsh McLennan