Guy Carpenter grew by 2% in 2016; parent MMC posts solid results

Marsh & McLennan Companies enjoyed solid growth and improved profits in 2016 despite its investment income plummeting.

Its 2016 revenues reached $13.2 billion, an increase of 2 percent compared with 2015, or 3 percent on an underlying basis. Its Risk & Insurance Services contributed revenues of $7.1 billion, an increase of 4 percent, or 3 percent on an underlying basis.

Within this, Guy Carpenter contributed $1.14 billion, a small 2 percent increase on the $1.12 billion it contributed in 2015. Guy Carpenter's fourth quarter revenue was $222 million, up 3 percent on an underlying basis.

The company’s consulting revenues, which include Mercer and Oliver Wyman, contributed $6.1 billion, up 1 percent, or 3 percent on an underlying basis.

The company made a net profit in 2016 of $1.8 billion, an increase of 11 percent compared with the year before. This was despite its investment income contributing less than $1 million compared with $38 million in 2015.

Dan Glaser, president and CEO, said: "Marsh & McLennan Companies had a strong finish to the year. In the fourth quarter, we produced underlying revenue growth of 3 percent on a consolidated basis, including 5 percent growth in Risk & Insurance Services and 2 percent in Consulting. We also delivered double-digit growth in both GAAP and adjusted EPS with margin expansion in both segments.

"For the year, our results were excellent. We generated underlying revenue growth of 3% and significant margin improvement. GAAP and adjusted EPS each rose by double digits.

"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."

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