Marsh McLennan Reports 6% Increase in Q3 Revenue
Insurance broker Marsh McLennan reported a 6% increase in third quarter consolidated revenue to $5.7 billion, while revenue increased 5% on an underlying (organic) basis.
Q3 operating income was $1.1 billion, an 11% increase from $996 million reported in Q3 2023. Net income attributable to the company was $747 million, compared with $730 million last year. Earnings per share for Q3 rose 3% to $1.51, while adjusted EPS increased 4% to $1.63.
“This was a milestone quarter for Marsh McLennan as we delivered strong results and announced the acquisition of McGriff Insurance Services,” commented John Doyle, president and CEO, in a statement. “Our performance demonstrated continued momentum, with 5% underlying revenue growth, 110 basis points of margin expansion and adjusted EPS growth of 4%, or 11% excluding a one-time tax benefit a year ago. We remain on track for another great year in 2024.”
Risk and Insurance Services Segment
Marsh & McLennan’s Risk and Insurance Services (RIS) segment (which consists of Marsh and Guy Carpenter) reported revenue of $3.5 billion in the third quarter of 2024, an increase of 8%, from $3.2 billion during Q3 2023. On an underlying (organic) basis, RIS saw a 6% increase in Q3 2024 revenue. Operating income increased 15% to $733 million, while adjusted operating income increased 16% to $775 million.
Marsh’s revenue in the third quarter of 2024 was $2.9 billion, an increase of 9% (from $2.7 billion in Q3 2023), or 7% on an underlying basis. In U.S./Canada, underlying revenue rose 6%, while international operations produced underlying revenue growth of 7%, comprising 8% growth in Latin America, 7% growth in EMEA, and 5% growth in Asia Pacific.
Guy Carpenter’s revenue in the third quarter of 2024 was $381 million, an increase of 6% (from $359 million in Q3 2023), or 7% on an underlying basis.
McGriff Acquisition
On Sept. 29, 2024, the company entered into an agreement to acquire McGriff Insurance Services $7.75 billion, funded by a combination of cash and proceeds from debt financing. According to the agreement, Marsh McLennan, through its Marsh McLennan Agency business, also will assume a deferred tax asset valued at about $500 million. The transaction is expected to close by year-end, subject to regulatory clearance and other standard closing conditions.