Marsh & McLennan Companies (MMC), the name behind Marsh, has reported its financial results for the first quarter of 2019, noting an improvement in its performance for the period.
According to MMC president and CEO Dan Glaser, the company “delivered strong growth in underlying revenue and profitability” in Q1 2019, with double-digit adjusted earnings growth and adjusted margin extension in MMC’s risk & insurance and consulting businesses.
MMC’s underlying revenue growth was 4%, while adjusted operating income increased 11% during the quarter. The adjusted margin rose 210 basis points to 26.2%, a release revealed.
Consolidated revenue for MMC in the first quarter of the year was $4.1 billion – an increase of 2% (or 4% on an underlying basis) – compared to the same quarter last year. Operating income was $938 million, up from $908 million in the prior year. Adjusted income climbed 11% to $1.0 billion.
The company’s net income was $716 million, or $1.40 per diluted share, for the first quarter of 2019. In 2018, net income attributable to MMC was $690 million ($1.34 per diluted share).
A release said that MMC’s risk & insurance services revenue hit $2.4 billion in Q1 2019 – an increase of 3% (or 5% on an underlying basis) from the results of Q1 2018. Operating income of the business rose 2% to $733 million from the prior year. Adjusted operating income rose 7% to $775 million, compared to $723 million last year.
For the first quarter of this year, Marsh’s revenue was $1.7 billion, reflecting a 5% increase on an underlying basis. In the US and in Canada, underlying revenue similarly increased 5%. International operations generated underlying revenue growth of 5%. Specific regions also experienced growth, such as Latin America with 11%, Asia-Pacific with 8%, and EMEA with 3%.
Meanwhile, Guy Carpenter’s revenue for Q1 2019 was $661 million, representing a 6% increase on an underlying basis.
Glaser said in a statement that he believes MMC is “well-positioned” to deliver solid results this year, not just because of the company’s strong performance for the first quarter of the year, but also because of its recent acquisition of British multinational financial corporation Jardine Lloyd Thompson Group.