Marsh McLennan (MMC), the global professional services firm which is home to some of the biggest names in insurance and risk, including Marsh and Guy Carpenter, has today reported its financial results for Q2, ending June 30, 2021. Commenting on the results, Dan Glaser, president and CEO of the group stated that MMC’s performance during the quarter had been “outstanding.”
“The company achieved the strongest underlying growth in two decades, and experienced an acceleration in growth across all of our businesses,” he said. “We grew underlying revenue by 13%, adjusted operating income by 24%, and adjusted EPS by 33%.”
Consolidated revenue for the group in Q2 2021 was $5.0 billion (around £3.63 billion), a 20% rise compared with Q2 2020. On an underlying basis, revenue increased 13%. Meanwhile, operating income was $1.2 billion, an increase of 39% from the prior year. Adjusted operating income rose 24% to $1.2 billion.
Net income attributable to the company was $820 million, or $1.60 per diluted share, compared with $1.12 in Q2 2020, while adjusted earnings per share rose 33% to $1.75 per diluted share compared with $1.32 for the prior year period.
For the six months ended June 30, 2021, consolidated revenue was $10.1 billion, an increase of 14%, or 9% on an underlying basis compared to the prior period. Operating income rose 32% to $2.6 billion, from the prior year period. Adjusted operating income rose 22% to $2.6 billion. Meanwhile, net income attributable to the company stood at $1.8 billion.
During Q2 2021, MMC’s risk and insurance revenue rose 21% (or 13% on an underlying business) from Q2 2020 to $3.1 billion, while operating income rose 37% to $950 million, and adjusted operating income to $927 million, an increase of 22% from the prior year period.
For H1 2021, revenue was $6.4 billion, an increase of 15%, or 10% on an underlying basis, while operating income rose 30% to $2.0 billion, and adjusted operating income was $2.0 billion, an increase of 19% from H1 2020.
Marsh’s revenue in the second quarter was $2.7 billion, an increase of 14% on an underlying basis. In US/Canada, underlying revenue rose 15%, while international operations produced underlying revenue growth of 13%, reflecting 16% growth in EMEA, 10% growth in Asia-Pacific, and 2% in Latin America.
Guy Carpenter’s revenue in Q2 2021 increased 12% on an underlying basis to $488 million, and its H1 2021 revenue has grown 8% from the prior-year period.
The group reported that its consulting revenue in the Q2 2021 quarter was $1.9 billion, an increase of 17%, or 12% on an underlying basis, compared to the same period a year ago. Its operating income increased 35% to $344 million, while adjusted operating income increased 34% to $356 million.
For the first six months of 2021, revenue totalled $3.8 billion, an increase of 11%, or 8% on an underlying basis. Operating income of $705 million increased 31%, and adjusted operating income increased 31% to $726 million.
Oliver Wyman’s revenue was $618 million in Q2 2021, an increase of 28% on an underlying basis. For the first six months ended June 30, 2021, Oliver Wyman’s revenue was $1.2 billion, an increase of 19% on an underlying basis.
Adding to his comments above, Glaser noted that: “These results are a direct reflection of the hard work and dedication of our colleagues around the world. We look forward to carrying this momentum into the second half of the year.”
