Marsh & McLennan Companies (MMC) attained an “excellent” 2016 with group revenue rising to US$13.21 billion (about £10 billion) from US$12.89 billion in the previous year.
The company’s risk and insurance services division, which comprises insurance broker Marsh and reinsurance broker
Guy Carpenter, posted a total operating income of US$1.75 billion in 2016, up from US$1.54 billion in 2015.
Marsh’s revenue rose by 4% to US$5.98 billion while Guy Carpenter’s revenue increased by 2% to US$1.14 billion.
By region, Marsh’s operations in Europe, Middle East and Africa went up by 4% to US$1.92 billion. Revenues grew to US$3 billion in North America, US$635 million in Asia Pacific and US$374 million in Latin America.
Group president and CEO Dan Glaser said MMC had a “strong finish” to 2016.
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“For the year, our results were excellent. We generated underlying revenue growth of 3% and significant margin improvement,” Glaser said.
“In addition to our strong operating performance, we had another active year of acquisitions while delivering on our commitments to shareholders to grow dividends by double digits and reduce our share count through meaningful share repurchase,” he added.
In the fourth quarter of 2016, MMC completed the £295-million acquisition of UK broker Bluefin Insurance. The company also purchased London-based global firm Thomsons Online Benefits.
Bluefin was acquired by MMC from AXA Group. It has 1,500 employees in 45 locations across the UK, serving over 150,000 businesses and individuals.
“We are investing in new policies, products and analytic tools to help businesses make informed choices on how best to manage the risks they face,” Mark Weil, Marsh CEO for UK and Ireland, said in November when the acquisition was announced.
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