Division reports 3% organic growth in first nine months of 2014
The broking division of Marsh & McLennan Companies (MMC) made an operating profit of $1.17bn (£808m) in the first nine months of 2014, up 5.2% on the $1.11bn it made in the same period last year.
The division, which comprises insurance broker Marsh and reinsurance broker Guy Carpenter, grew revenues by 6% to $5.24bn (first nine months of 2013: $4.96bn). Organic growth for the nine-month period was 3%.
Within this, Marsh grew revenues by 6% to $4.28bn (first nine months of 2013: $4.02bn) and produced organic growth of 4%.
Guy Carpenter’s revenues increased 2% to $942m (first nine months of 2013: $922m).
MMC’s total group profit after tax for the first nine months of 2014 was $1.17bn, up 11.1% on the $1.05bn it made last year.
MMC chief executive Dan Glaser said: “For the nine months of 2014, results were excellent: revenue growth of 6% and underlying revenue growth of 5%; an 11% increase in adjusted operating income; margin improvement of 80 basis points; and 13% growth in adjusted earnings per share.”
Third quarter performance
In the third quarter of 2014 alone, MMC’s broking division made an operating profit of $229m, up 3% on the $22m it made in the third quarter of 2013.
The division’s revenue grew by 7% to $1.61bn (Q3 2013: $1.5bn) and organic growth was 4%.
Marsh’s third quarter revenue grew by 8% to $1.34bn (Q3 2013: $1.24bn), with organic growth of 5%.
Guy Carpenter’s third quarter revenue grew by 2% to $266m (Q3 2013: $262m), with organic growth of 1%.
MMC’s third quarter group profit after tax grew 17% to $297m (Q3 2013: $253m).
Glaser 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% and underlying revenue growth of 5%, with all operating companies contributing.