- Revenue: USD 4,189 million (-3.7%)
- Marsh: USD 2,161 million (+0.2%)
- Guy Carpenter: USD 433 million (+10.5%)
- Mercer: USD 1,149 million (-8.8%)
- Oliver Wyman: USD 467 million (-13.5%)
- Expense: USD 3,304 million (-9.9%)
- Compensations and benefits: USD 2,429 million (-4.3%)
- Other expenses: USD 875 million (-22.7%)
- Operating income: USD 885 million (+30.1%)
- Net income: USD 572 million (+72.3%)
Consolidated revenue in the second quarter of 2020 was USD 4.2 billion, a decrease of 4%, or a 2% decline on an underlying basis compared with the second quarter of 2019. In the second quarter, the company recognized a USD 36 million reduction to previously recorded revenue, the vast majority in Marsh, to reflect the estimated impact of the economic crisis on exposure units. This reduction is included in underlying revenue growth and adjusted earnings for the second quarter.
Operating income was USD 885 million, an increase of 30% from the prior year. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 10% to USD 984 million. Net income attributable to the company was USD 572 million, or USD 1.12 per diluted share, compared with USD 0.65 in the second quarter of 2019. Adjusted earnings per share rose 12% to USD 1.32 per diluted share compared with USD 1.18 for the prior year period.
Risk & Insurance Services revenue was USD 2.6 billion in the second quarter of 2020, an increase of 1%, or 2% on an underlying basis. Operating income rose 34% to USD 696 million, and adjusted operating income was USD 762 million, an increase of 19% from the prior year period.
Marsh's revenue in the second quarter was USD 2.2 billion, an increase of 1% on an underlying basis. In US/Canada, underlying revenue rose 3%. In International, underlying revenue was flat compared to the prior year period, reflecting 4% underlying revenue growth in Asia Pacific, 4% growth in Latin America, and a decline of 3% in EMEA.
Guy Carpenter's revenue in the second quarter was USD 433 million, an increase of 9% on an underlying basis.
Consulting revenue in the second quarter was USD 1.6 billion, a decrease of 10%, or a decline of 6% on an underlying basis compared to the same period a year ago. Operating income decreased 8% to USD 255 million, and adjusted operating income decreased 13% to USD 265 million.
Mercer's revenue was USD 1.1 billion in the second quarter, a decrease of 3% on an underlying basis. Health, with revenue of USD 432 million, was up 1% on an underlying basis. Wealth revenue of USD 561 million declined 2% on an underlying basis, and Career revenue of USD 156 million decreased 16% on an underlying basis.
Oliver Wyman's revenue was USD 467 million in the second quarter, a decrease of 13% on an underlying basis.
"In the midst of the pandemic, we delivered another strong quarter reflecting outstanding execution and the resilience of our business. In the second quarter, despite a modest decline in underlying revenue due to the global impact of COVID-19, we generated 10% adjusted operating income growth and 12% growth in adjusted EPS. For the first six months of 2020, we achieved 2% underlying revenue growth and 10% adjusted EPS growth. (...) I am humbled by our colleagues' exceptional support of our clients and one another during these tumultuous times."