Risk & insurance services
The risk & insurance services arm of MMC saw revenue of $3.2 billion in Q1 2021, up 11% from Q1 2020 (7% on an underlying basis). Its operating income of $1.1 billion also showed a significant jump, increasing 24% year on year. Adjusted operating income, meanwhile, rose 17% to $1.1 billion compared with $932 million in the prior year.
Marsh’s revenue grew $2.3 billion during the quarter, an increase of 8% on an underlying basis. Growth in underlying revenue increased across every market, up 9% in US/Canada, while international operations grew 6%, including 8% growth in Asia-Pacific, 6% growth in EMEA and 6% growth in Latin America.
Guy Carpenter’s revenue in the first quarter was $895 million, up 7% on an underlying basis.
MMC’s consulting revenue in the first quarter was up 6% (or 3% on an underlying basis) year on year to $1.9 billion, while its operating income of $361 million was up 28% from the prior year. Adjusted operating income rose 28% to $370 million compared with $289 million in Q1 2020.
Mercer, with revenue of $1.3 billion in the first quarter and health, with revenue of $487 million, were both flat on an underlying basis. Wealth revenue of $623 million and career revenue of $178 million both increased 1% on an underlying basis.
Oliver Wyman’s revenue was $585 million in the first quarter, an increase of 11% on an underlying basis.
Commenting on the results, Dan Glaser, president and CEO, stated that MMC had an “outstanding” first quarter, delivering strong growth in underlying revenue and adjusted earnings, and generating meaningful adjusted operating margin expansion in both risk & insurance services and consulting.
“Our total revenue grew 9%, with underlying revenue growth of 6%. Adjusted operating income rose 20%, adjusted EPS grew 21%, and our adjusted operating margin increased 260 basis points to 29.6%,” he said. “Our excellent start to 2021 positions us well for the balance of the year.”