Global professional services firm, Marsh McLennan (MMC), has today reported its financial results for Q1 2021, ended March 31, 2021. MMC saw its consolidated revenue for the period increase 9% (or 6% on an underlying basis) to US$5.1 billion (approx. CA$6.32 billion), compared to the same quarter last year. Operating income was also up, standing at US$1.4 billion, up from US$1.1 billion in Q1 2020, while adjusted operating income rose 20% to US$1.4 billion.
Net income attributable to the company was at US$983 million, or US$1.91 per diluted share for Q1 2021, compared with US$754 million, or US$1.48 per diluted share, in the prior year.
The risk & insurance services arm of MMC saw revenue of US$3.2 billion in Q1 2021, up 11% from Q1 2020 (7% on an underlying basis). Its operating income of US$1.1 billion also showed a significant jump, increasing 24% year on year. Adjusted operating income, meanwhile, rose 17% to US$1.1 billion compared with US$932 million in the prior year.
Marsh’s revenue grew US$2.3 billion during the quarter, an increase of 8% on an underlying basis. Growth in underlying revenue increased across every market, up 9% in US/Canada, while international operations grew 6%, including 8% growth in Asia-Pacific, 6% growth in EMEA and 6% growth in Latin America.
Guy Carpenter’s revenue in the first quarter was US$895 million, up 7% on an underlying basis.
MMC’s consulting revenue in the first quarter was up 6% (or 3% on an underlying basis) year on year to US$1.9 billion, while its operating income of US$361 million was up 28% from the prior year. Adjusted operating income rose 28% to US$370 million compared with US$289 million in Q1 2020.
Mercer, with revenue of US$1.3 billion in the first quarter and health, with revenue of US$487 million, were both flat on an underlying basis. Wealth revenue of US$623 million and career revenue of US$178 million both increased 1% on an underlying basis.
Oliver Wyman’s revenue was US$585 million in the first quarter, an increase of 11% on an underlying basis.
Commenting on the results, Dan Glaser, president and CEO, stated that MMC had an “outstanding” first quarter, delivering strong growth in underlying revenue and adjusted earnings, and generating meaningful adjusted operating margin expansion in both risk & insurance services and consulting.
“Our total revenue grew 9%, with underlying revenue growth of 6%. Adjusted operating income rose 20%, adjusted EPS grew 21%, and our adjusted operating margin increased 260 basis points to 29.6%,” he said. “Our excellent start to 2021 positions us well for the balance of the year."