Marsh’s revenue up 8% in 2023 as MMC’s profits jump 23%

Marsh & McLennan’s revenue increased 10%, or 9% on an underlying basis, last year to $22.74bn and net income rose 23% to $3.76bn, with the later heavily boosted by strong fourth-quarter numbers. The broker saw its revenue rise by 11%, or 7% on underlying basis, in Q4 with net income jumping by 62% to $756m. Fourth-quarter revenue for the broker’s Risk & Insurance Services segment totalled $3.27bn, up 11% overall from the year-earlier period and 8% on an underlying basis. For the year, revenue was $14.09 bn, up 11% on an accounting and underlying basis from 2022. The company’s main brokerage unit Marsh reported fourth-quarter revenue of $2.9bn, an increase of 7% overall from the year-earlier period and 6% on an underlying basis. International underlying revenue rose 7% to $1.27bn in Q4, including a 5% increases in EMEA to $780m. Marsh’s revenue was up 7%, or 5% on and underlying basis, in the US and Canada to $1.63bn during the last quarter. Marsh’s revenue rose 8% on an underlying and reported basis for the whole of 2023 to $11.38bn. This included a 9% rise in international revenue to $5.12bn, with EMEA revenue also up 9% to $3.26bn. Revenue in US and Canada was up 8%, or 7% on underlying basis, to $6.26bn last year. John Doyle, Marsh McLennan president and CEO, said on an earning call with analysts that primary insurance rates increased for the 25th consecutive quarter and the Marsh Global Insurance Market Index was up 2% overall, compared with a 3% increase in the third quarter. Property rates increased 6%, against 7% in the third quarter, and casualty pricing continued to be up in the low single digits, Doyle said. Reinsurance broker Guy Carpenter reported fourth-quarter revenue of $252m, up 48% overall from the year-earlier period and 9% on an underlying basis. For all of 2023, revenue rose 12% overall to $2.26bn and 10% on an underlying basis. The 1 Jan 2024 reinsurance renewals saw “a market with more balanced trading conditions than a year ago”, Doyle said. Underwriting discipline continued, he said, but capacity was “generally adequate”. Marsh McLennan’s consulting revenue totalled $2.3bn in the fourth quarter, up 10% overall from the year-earlier period and 7% on an underlying basis. For the year, consulting revenue was $8.71 bn, up 7% from 2022 on an accounting and underlying basis. Mercer reported fourth-quarter revenue of $1.44bn, up 9% overall and 5% on an underlying basis. For the year, Mercer’s revenue increased 5% overall to $5.59bn and 7% on an underlying basis. Doyle said on the call that the broker spent $1.6bn on acquisitions in 2023, including the August purchase of US-based brokerage Graham Co. by Marsh McLennan Agency, the small and midsized brokerage unit of Marsh. Graham was the 63rd-largest brokerage of US business, with $73.5m in 2022 brokerage revenue, according to our sister publication Business Insurance’s most recent ranking. Some of this article first appeared on our sister website Business Insurance. For further news from Business Insurance, please click here.

Marsh’s revenue up 8% in 2023 as MMC’s profits jump 23%

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