Marsh McLennan slows to 8% organic growth Q4 in risk & insurance
Marsh McLennan increased organic revenues in its risk and insurance businesses by 8% year on year in the fourth quarter of 2023, or 6% excluding fiduciary investment income, in a slowdown from a double-digit increases still seen for the broader segment in Q3.
Risk and insurance segment revenue of $3.15 billion, ex-fiduciary investment gains, included $2.9 billion at the primary insurance brokerage Marsh, up 7% year on year or 6% excluding the impact from brokerage M&A. At the reinsurance broker Guy Carpenter, the revenue tally was up 48% to $252 million following M&A, but measured like-for-like also came to a 6% annual gain.
For the combined insurance brokering segment, underlying revenue growth was said to have been strongest in Asia Pacific at 11% and Latin America at 10%, well ahead of the 5% growth in North America and EMEA.
In the prior quarter, total organic revenue growth for risk and insurance services had still stretched to the 11% mark, including 8% organic growth in both Marsh and Guy Carpenter ahead of fiduciary investment income.
Adjusted operating margin for the broader risk and insurance segment was up 1.4 percentage points in Q4 to 27% on a 15% increase in adjusted operating income to $791 million.
For the group as a whole, including also a swathe of consulting lines, consolidated fourth quarter revenue of $5.6 billion was up 11% year on year, a 7% gain on an underlying basis. Adjusted operating income rose 16% to $1.2 billion.
Q4 earnings pushed the fuller Marsh McLennan group to its 16th consecutive year of margin expansion in reported earnings, CEO John Doyle said in a statement.
“Our fourth quarter results highlight a strong finish to another outstanding year for Marsh McLennan,” Doyle said. “Our results and investments have us well positioned for 2024 as we remain focused on supporting our clients and helping them thrive.”
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