With growth at its reinsurance broking arm, Guy Carpenter, global re/insurance broker Marsh McLennan (MMC) today reported consolidated revenue across all of its activities of $5.9 billion for the first quarter of 2023, an increase of 9% on an underlying basis.
With operating income reaching $1.7 billion and investment income falling to $2 million, the group’s revenue grew from the $5.6 billion recorded a year earlier. As a result, Q1 2023 saw a net income of about $1.2 billion, up from Q1 2022’s $1.1 billion.
In Q1 of the year, the international brokerage reported strong performance across all of its businesses, particularly in Risk & Insurance Services, where revenue hit $3.9 billion, showing growth of 10 or 11% on an underlying basis. Operating income for the division increased 24% YoY to $1.4 billion.
Guy Carpenter, a reinsurance broker, is a part of the Risk & Insurance Services sector. For Q1 of 2023, it reported an underlying revenue increase of 10% to $1.1 billion.
The business is also composed of Marsh, whose underlying sales increased by 9% to $2.7 billion, with 7% growth in the United States and Canada, 10% growth in foreign operations, 11% growth in Asia Pacific, and 10% growth in both the EMEA and Latin America.
MMC reported consolidated sales of $2 billion in its consulting division, which includes Mercer and Oliver Wyman, showing an increase of 1%, or 5% on an underlying basis. Operating income reached $411 million, up 5% from the previous year.
Revenue at Mercer climbed by 7% on an underpinning basis to $1.3 billion, while MMC reported increases in revenue in the areas of health, wealth, and careers over the same period.
Oliver Wyman’s Q1 2023 revenue of $687 million remained steady on an underlying basis.
In 2023, Marsh McLennan is off to a good start. According to John Doyle, President and Chief Executive Officer (CEO), “we delivered 9% underlying revenue growth, 10% adjusted EPS growth, and improved our margin for the first quarter.
“We have momentum across our business and are well positioned for another good year, reflecting the importance of the work we do for our clients and excellent execution on the part of our colleagues,” he continued.