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 US$4.1 billion (around CA$5.51 billion) – an increase of 2% (or 4% on an underlying basis) – compared to the same quarter last year. Operating income was US$938 million (around CA$1.26 billion), up from US$908 million (around CA$1.22 billion) in the prior year. Adjusted income climbed 11% to US$1.0 billion.
The company’s net income was US$716 million, or US$1.40 per diluted share, for the first quarter of 2019. In 2018, net income attributable to MMC was US$690 million (US$1.34 per diluted share).
A release said that MMC’s risk & insurance services revenue hit US$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 US$733 million from the prior year. Adjusted operating income rose 7% to US$775 million, compared to US$723 million last year.
For the first quarter of this year, Marsh’s revenue was US$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 US$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.
