Marsh & McLennan sees 'modest' revenue decline, Guy Carpenter grows 9% in Q2
Broker Marsh & McLennan Companies (MMC) reported first-half year growth in all its business segments - risk & insurance services, Guy Carpenter and Marsh, but the company's overall revenue declined 4 percent in the second quarter of 2020.
In Q2 2020, the net income attributable to the company was $572 million, compared with $332 million in the second quarter of 2019. For the first half of 2020, net income was $1.3 billion, compared with $1.05 billion in the first six months of 2019.
Consolidated revenue in the second quarter of 2020 was $4.2 billion, a decrease of 4 percent, or a 2 percent decline on an underlying basis, compared with the second quarter of 2019. For the six months, consolidated revenue was $8.8 billion, an increase of 5 percent, or 2 percent on an underlying basis compared to the prior period a year ago.
Guy Carpenter's revenue in the second quarter was $433 million, an increase of 9 percent on an underlying basis. For the six months, the reinsurance broker's underlying revenue growth was 8 percent.
Marsh's revenue in the second quarter was $2.2 billion, an increase of 1 percent on an underlying basis. For the six months, Marsh’s underlying revenue growth was 3 percent compared to the prior period a year ago.
Risk & insurance services revenue was $2.6 billion in Q2 2020, an increase of 1 percent, or 2 percent on an underlying basis. For the six months, revenue was $5.5 billion, an increase of 10 percent, or 4 percent on an underlying basis.
Dan Glaser, president and CEO, said: “In the midst of the pandemic, we delivered another strong quarter reflecting outstanding execution and the resilience of our business.
"In the second quarter, despite a modest decline in underlying revenue due to the global impact of COVID-19, we generated 10% adjusted operating income growth and 12% growth in adjusted EPS. For the first six months of 2020, we achieved 2% underlying revenue growth and 10% adjusted EPS growth. I am humbled by our colleagues’ exceptional support of our clients and one another during these tumultuous times.”
