Marsh posts 13% Q3 organic growth in another bumper earnings
Marsh McLennan posted Q3 organic growth of 13% in another set of stellar earnings for the global broker.
Adjusted operating income for the period was $759mn, up 19% from the prior-year quarter, and adjusted earnings per share was $1.08, up 32%.
The result was the latest in a series of bumper returns for the broker since bouncing back from a challenging spell during the pandemic, with organic growth in Q2 also coming in at 13%, the strongest result for two decades.
Organic growth: Marsh McLennan’s group-wide organic growth was 13%, up 14 points from Q3 2020, when earnings were impacted by Covid-19.
Guy Carpenter grew by 15% after reporting flat growth at the same point last year, and Marsh expanded by 13%, a 10-point improvement.
Consulting business Oliver Wyman rose by 25%, up 31 points on Q3 2020, and Mercer grew by 7%.
Revenue: Total revenues increased by 15% to $4.58bn, while consolidated revenue for the risk and consulting segment increased by 15% YTD to $14.7bn.
Marsh’s revenue for the quarter was $2.4bn, an increase of 13% on an underlying basis, with growth of 16% in the US and Canada and 9% for international operations.
Guy Carpenter’s revenue was $314mn, an increase of 15% on an underlying basis.
Margins: The adjusted operating margin for Marsh McLennan expanded by 0.1 points to 18.5%. In risk and insurance, the margin increased by 0.2 points to 20.4%, while for consulting the margin was flat at 18.9%.
Commentary: President and CEO Dan Glaser hailed another “excellent” set of results.
"Given the outstanding quarter and year-to-date performance, we are on track for a terrific year," he said.