Profits soar at Marsh & McLennan
Marsh & McLennan Companies posted strong growth in the third quarter of 2014, driven by solid growth in its broking business and international operations.
Its profits hit $297 million in the quarter, compared with $253 million in the same period of the prior year. For the nine months ended September 30, 2014, net income rose 11 percent to $1.2 billion, compared with $1.1 billion in the third quarter of 2013.
The company’s consolidated revenue hit $3.1 billion in the third quarter of 2014, an increase of 7 percent, or 5 percent on an underlying basis, compared with $2.9 billion in the third quarter of 2013.
Its operating income rose 10 percent to $445 million, compared with $404 million in the prior year.
The revenue generated by its risk and insurance services revenue was $1.6 billion in the third quarter of 2014, an increase of 7 percent, or 4 percent on an underlying basis.
Broker Marsh's revenue in the third quarter of 2014 was $1.3 billion, an increase of 8 percent, or 5 percent on an underlying basis. International operations produced underlying revenue growth of 5 percent, reflecting growth of 11 percent in Latin America; 5 percent in Asia Pacific; and 4 percent in EMEA. In the US/Canada division, underlying revenue rose 4 percent.
Guy Carpenter's revenue in the third quarter was $266 million, an increase of 2 percent from the prior year, or 3 percent on an underlying basis.
Dan Glaser, Marsh & McLennan Companies president and chief executive officer, said: "The company delivered its thirteenth consecutive quarter of double-digit growth in adjusted earnings per share.
“This strong performance reflects revenue growth of 7 percent and underlying revenue growth of 5 percent, with all operating companies contributing. Adjusted operating income grew 11 percent, and the adjusted margin expanded 50 basis points.
“For the nine months of 2014, results were excellent: revenue growth of 6 percent and underlying revenue growth of 5 percent; an 11 percent increase in adjusted operating income; margin improvement of 80 basis points; and 13 percent growth in adjusted EPS.”
