MMC Q3 operating income up by 24% y-o-y

27 October 2016 — Vlad BOLDIJAR
The MARSH & McLENNAN Companies (MMC) reported Q3 2016 consolidated revenues of USD 3.1 billion, up by 1% y-o-y. The operating income increased by 24%, to USD 572 million, while the net income attributable to the Company was up 17% to USD 379 million. Earnings per share increased 20% to USD 0.73 while adjusted earnings per share rose 10% to USD 0.69 compared with USD 0.63 in last year's third quarter, as MMC announced in a statement published on its web site.

For the nine months ended September 30, 2016, revenue was USD 9.8 billion (3% more y-o-y), operating income - USD 2.0 billion (vs. USD 1.8 billion), net income attributable to the Company was up by 9% to USD 1.3 billion, and earnings per share rose 12% to USD 2.54.

In Q3 2016, revenue for the Risk and Insurance Services totalled USD 1.6 billion - 3% more y-o-y, of which USD 1.4 billion reported by the insurance broker MARSH, and USD 260 million by the reinsurance broker GUY CARPENTER. Overall, the operating income was USD 315 million, an increase of 39% y-o-y.

For the nine months ended September 30, revenue for the Risk and Insurance Services was USD 5.4 billion, an increase of 4%, while the operating income rose 13% to USD 1.3 billion.

Q3 2016 Consulting revenue, which includes MERCER and OLIVER WYMAN Group, was USD 1.5 billion (2% less y-o-y), while the operating income rose 8% to USD 308 million. MERCER's revenue was USD 1.1 billion, while OLIVER WYMAN Group's revenue was USD 404 million.

For the nine months of 2016, Consulting revenue was USD 4.5 billion, up 2% y-o-y, while operating income rose 7% to USD 838 million.

"We produced another quarter of strong earnings growth, delivering double-digit growth in both GAAP and adjusted EPS, with margin expansion in both segments. Through nine months, we have generated underlying revenue growth of 3%, solid earnings growth and margin expansion in each segment. For the full year, we continue to expect to deliver underlying revenue growth, meaningful margin expansion and strong growth in earnings per share", said Dan GLASER, President and CEO.

Read the announcement here.

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