Marsh McLennan reveals strong growth in Q2 2024

Marsh McLennan reveals strong growth in Q2 2024 | Insurance Business Canada

Insurance News

The firm expects a sustained momentum until yearend

Insurance News

By
Noel Sales Barcelona

Marsh McLennan has released its quarter two report, showing strong growth in almost all aspects of the business over the three-month period.

“We generated strong results in the second quarter with 6% underlying revenue growth, 10% adjusted EPS growth, and 130 basis points of margin expansion,” said Marsh McLennan president and CEO John Doyle.

Doyle attributed the company’s growth to the capitalization of human and technological resources to improve the overall delivery of services to its clients.

“We continued to invest in our talent and capabilities to deliver for clients. We also deployed capital into high-quality acquisitions and recently announced a 15% increase in our dividend. Our first half results leave us well positioned for another great year in 2024,” Doyle said.

In terms of numbers, Marsh McLennan’s consolidated revenue for the second quarter of 2024 has reached US$6.2 billion, up by 6% compared to the same period last year. Its underlying revenue also recorded a 6% increase while the company’s operating income rose by 13%, equivalent to US$1.6 billion.

The company also reported an 11% increase in its adjusted operating income, which reached US$1.7 billion. This number excludes noteworthy items as presented in the attached supplemental schedules. Meanwhile, Marsh McLennan’s net income attributable to the was US$1.1 billion.

Its earnings per share increased by 10% to US$2.27, while adjusted earnings per share also increased by 10% to US$2.41.

See also Beazley CFO to step down

“For the six months ended June 30, 2024, consolidated revenue was US$12.7 billion, an increase of 8% on both a GAAP and underlying basis compared to the prior period. Operating income was US$3.6 billion, an increase of 12% from the prior year period. Adjusted operating income rose 11% to US$3.7 billion. Net income attributable to the Company was US$2.5 billion, or US$5.08 per diluted share, compared with US$4.55 in the first six months of 2023. Adjusted earnings per share increased 12% to US$5.30,” the report noted.

An 8% increase was also recorded in its risk and insurance services revenue or 7% on the underlying basis. Operating income increased 12% to US$1.3 billion, while adjusted operating income increased 12% to US$1.3 billion, the report stated.