Marsh McLennan adj EPS beats consensus, underlying growth steady at 4%
(The Insurer) - Marsh McLennan reported quarterly adjusted earnings per share of $2.72 on Thursday, up 11% year on year and ahead of analysts’ consensus estimate of $2.67.
The New York-based company posted revenue of $7.0 billion for the second quarter, up 12% from $6.2 billion in the prior-year period.
Underlying revenue rose 4%, in line with the mid-single-digit guidance provided during its first-quarter earnings call.
GAAP operating income rose 11% to $1.8 billion, with adjusted operating income increasing by 14% to $2.1 billion. Net income attributable to the company totalled $1.2 billion for the quarter.
The company’s Risk & Insurance Services segment reported a 15% year-on-year increase in total revenue to $4.6 billion, with underlying growth of 4%
Marsh, the firm’s insurance broking unit, posted an 18% revenue increase to $3.8 billion, which reflected underlying growth of 5%.
Marsh reported underlying revenue growth of 4% in the U.S. and Canada, while its international operations recorded underlying growth of 7%, led by 8% underlying growth in EMEA.
Reinsurance broking unit Guy Carpenter also reported 5% underlying growth, with overall revenue growth of 7% to $677 million.
Consulting revenue rose 7% to $2.4 billion, or 3% on an underlying basis. Mercer, the firm’s HR consulting arm, reported 3% underlying growth, while Oliver Wyman, its management consulting unit, also grew by 3% on an underlying basis.
At group level, Marsh McLennan reported an adjusted operating margin of 29.5% for the quarter, compared with 29% during the second quarter of 2024.
The Risk & Insurance Services segment improved its adjusted operating margin to 35.6% from 35.3% in the prior-year period.
“We had another solid quarter with 12% revenue growth reflecting continued momentum across our business and the contribution from acquisitions,” CEO John Doyle said in a statement.
“Our performance demonstrates the enduring value we provide to clients, as well as our consistent execution in a complex and dynamic environment.”
