Marsh & McLennan revenue rises but Q4 profit falls 4.3% in 'a year like no other'
Broker Marsh & McLennan (MMC) achieved positive revenue growth across all its business segments - risk & insurance services, Guy Carpenter and Marsh - in what its chief executive Dan Glaser described as "a year like no other".
The company saw a strong fourth quarter with positive underlying revenue growth. The consolidated revenue in Q4 2020 rose 4 percent to $4.4 billion.
However, its profit for the quarter fell to $374 million, down approximately 4.3 percent on the $391 million profit it made in Q4 2019.
MMC’s risk & insurance services’ revenue rose by 6 percent to $2.5 billion, while both Marsh and Guy Carpenter's revenue increased by 7 percent to $2.4 billion and $162 million, respectively.
For the full-year 2020, MMC's overall revenue came in at $17.2 billion, an increase of 3 percent compared with 2019. Net income attributable to the company was $2.0 billion, an increase from $1.74 billion in 2019.
Revenue increased 8 percent in its risk & insurance services business, reaching $10.3 billion in the financial year ended December 31, 2020. Marsh’s revenue grew by 7 percent and Guy Carpenter’s by a good 15 percent compared to a year ago.
MMC noted that 2020 was a "record year of acquisitions", wherein it completed eight transactions with approximately $235 million of combined revenue, marking the largest year of acquired revenue since it was started in 2009.
Glaser, president and CEO of Marsh & McLennan, said "2020 was a year like no other".
"We ended the year with a strong fourth quarter with positive underlying revenue growth. In 2020, we achieved revenue growth of 3 percent with underlying revenue growth of percent and grew adjusted EPS percent.
"We demonstrated our resilience as a company in 2020 and are well positioned for growth in 2021," he said.
Glaser added: "I am proud of how our colleagues rose to the challenge, helping clients and one another and achieving impressive financial performance."
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