Division reports organic growth of 3%, which is offset by foreign currency movements
Marsh & McLennan Companies’ broking division made an operating profit of $533m (£347m) in the first quarter of 2015, up 8% on the $493m it made in the same quarter last year.
But the division, which comprises insurance broker Marsh and reinsurance broker Guy Carpenter, suffered a 2% drop in revenue to $1.80bn (Q1 2014: $1.84bn).
This was mainly because of negative foreign currency movements, which wiped out 3% of organic growth and 2% growth from acquisitions and disposals.
Within the division, Marsh’s first quarter 2015 revenue fell 2% to $1.43bn (Q1 2014: $1.45bn), as currency movements offset 3% organic growth and 3% growth from acquisitions and disposals.
Guy Carpenter’s revenue fell 4% to $368m (Q1 2014: $381m), as the broker’s 2% organic growth was cancelled out by a 4% currency impact and a 2% reduction in revenue from acquisitions and disposals.
As a group, Marsh & McLennan Companies (MMC) made a net profit of $482m in the first quarter of 2015, up 8.8% on the $443m it made in the first quarter of 2014.
Total revenue was down 1.5% despite group-wide organic growth of 4%.
MMC chief executive Dan Glaser said: “In the first quarter, Marsh & McLennan Companies produced underlying revenue growth across all operating companies with increased profitability in both our risk and Insurance services and consulting segments.
“We are off to a good start and are on track to deliver underlying revenue growth, margin expansion, and solid growth in earnings per share this year.”
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