Marsh & McLennan sees revenue decline as Guy Carpenter's growth falls flat in Q3
Broker Marsh & McLennan (MMC) saw a third quarter growth in its risk & insurance services and Marsh business divisions, but reported a flat result from Guy Carpenter and a decline in its consulting arm, which led to an overall revenue decline of 1 percent.
In Q3 2020, the net income attributable to the company was $316 million, or $0.62 per diluted share, up from $0.59 in the same period last year.
Consolidated revenue was $4.0 billion in Q3, flat compared with the third quarter of 2019. Underlying revenue declined 1 percent compared to the prior-year period.
Guy Carpenter's revenue in the third quarter was $274 million, flat on an underlying basis, compared with the third quarter 2019.
Marsh's revenue was $2 billion, an increase of 3 percent on an underlying basis.
Risk & insurance services revenue was $2.3 billion in Q3 2020, an increase of 4 percent, or 2 percent on an underlying basis.
Consulting revenue in the third quarter was $1.7 billion, a decrease of 5 percent, or 4 percent decline on an underlying basis.
Dan Glaser, president and chief executive officer of MMC, said: “Marsh & McLennan’s strong performance in this period of uncertainty demonstrates our continued excellent execution and the resilience of our business.
"In the third quarter, we generated 9% adjusted operating income growth and 6% growth in adjusted EPS, despite a modest decline in underlying revenue. For the first nine months of 2020, we achieved 1% underlying revenue growth, 12% adjusted operating income growth and 9% adjusted EPS growth. I am proud of the extraordinary dedication of our colleagues in serving our clients and supporting each other.”
