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Marsh McLennan posts Q2 2022 results

Marsh McLennan posts Q2 2022 results | Insurance Business UK

Marsh McLennan posts Q2 2022 results

Marsh McLennan has kept strong momentum as it heads into the mid-point of 2022, as the insurance and consulting giant revealed its Q2 financial results.

Consolidated revenue for the group saw a 7% rise year-on-year at $5.4 billion, slightly lower than Q1’s result of $5.5 billion. The group’s revenue increased by 10% on an underlying basis, while its operating income stood at $1.4 billion, an 11% spike from the prior year. Adjusted operating income rose 8% to $1.3 billion.

Risk & insurance services

Marsh McLennan’s risk and insurance services arm saw revenue increase by 5% on-year to $3.3 billion in the second quarter. Operating income stood at $967 million, rising 2%, while its adjusted operating income was $1 billion, a 9% increase compared to a year ago.

Marsh’s revenue was $2.8 billion, an increase of 9% on an underlying basis. In the US/Canada, underlying revenue rose 10%. On an international basis, underlying revenue growth was at 9%, including 14% growth in Latin America, 11% growth in Asia-Pacific, and 7% growth in EMEA.

Guy Carpenter’s revenue in Q2 2022 was $522 million, 9% higher versus last year on an underlying basis.

Consulting

The group’s consulting side posted revenue of $2.1 billion, which increased by a healthy 10% on both a reported and underlying basis. Operating income was boosted 39% to $475 million, while adjusted operating income rose 4% to $369 million.

Mercer saw a revenue increase of 7% on an underlying basis, at $1.4 billion. On an underlying basis, career revenue of $205 million saw a 17% spike, while health revenue of $587 million increased 10%, and wealth revenue of $597 million rose 1%.

Oliver Wyman’s revenue stood at $695 million, rising by 16% on an underlying basis.

Other items

Additionally, Marsh McLennan said it purchased 3.8 million stock shares for $600 million in the first half of 2022. The insurance and risk management group also repurchased seven million stock shares for $1.1 billion.

Marsh McLennan Agency also reported two new acquisitions: Clark Insurance, a leading independent insurance agency in Maine, in June; and CS Insurance Strategies, a full-service insurance agency in Chicago, in July.

Dan Glaser, Marsh McLennan president and CEO, lauded the results in a statement, announcing the company delivered “another strong quarter.”

“We generated double-digit underlying growth, margin expansion and solid growth in adjusted EPS with momentum across all our businesses. Our performance reflects continued demand for our advice and solutions and the value we deliver for clients,” Glaser said.