Chief executive Dan Glaser hails ‘solid’ growth
The broking division of Marsh & McLennan Companies (MMC) made an operating profit of $1.34bn (£1.1bn) in the first nine months of 2016, up 13% on the $1.19bn it made in the same period last year.
MMC’s Risk & Insurance Services unit, which comprises insurance broker Marsh and reinsurance broker Guy Carpenter, reported revenue growth of 4% to $5.35bn (first nine months of 2015: $5.14bn) and organic growth of 2%.
Risk & Insurance Services key figures for first nine months
|Nine months 2016||Nine months 2015||change (%/points)|
|operating profit (£m)||1,340||1,185||13.1|
|profit margin (%)||25||23.1||1.9|
The unit’s operating profit margin increased by 2.9 percentage points to 25%.
Marsh alone grew revenues 5% to $4.41bn from $4.22bn, and reported organic growth of 2%. Marsh is believed to be mounting a takeover bid for UK broker Bluefin.
Guy Carpenter’s revenues grew 2% to $919m from $904m and organic growth at the reinsurance broker was also 2%.
As a group, MMC made a profit before tax of $1.89bn (first nine months of 2015: $1.76bn) on revenues of $9.85bn (first nine months of 2015: $9.56bn).
MMC president and chief executive Dan Glaser (pictured) hailed the performance in both the third quarter and the first nine months of 2016.
He said: “Through nine months, we have generated underlying revenue growth of 3%, solid earnings growth and margin expansion in each segment. For the full year, we continue to expect to deliver underlying revenue growth, meaningful margin expansion and strong growth in earnings per share.”
In the third quarter of 2016 alone, MMC’s Risk & Insurance Services division made an operating profit of $315m, up 40% on the £225m it made in the same period last year.
Revenues grew 3% to $1.63bn (first nine months of 2015: $1.58bn), and organic growth was 2%.
Risk & Insurance Services key figures for third quarter
|Q3 2016||Q3 2015||Change (%/points)|
|operating profit (£m)||315||225||40.0|
|profit margin (%)||19.2||14.2||5.0|