Revenue for U.S./Canada Marsh division of Marsh & McLennan Companies up to US$701 million in Q1 2016 from US$638 million in Q1 2015

Revenue for the United States/Canada Marsh division of Marsh & McLennan Companies, Inc. (MMC), was up to US$701 million for the first quarter of 2016 ending March 31, from US$638 million in the first quarter of 2015, the global professional services firm reported on Thursday.

Overall, consolidated revenue in the first quarter of 2016 was US$3.3 billion, an increase of 4% on both a reported and underlying basis compared with the first quarter of 2015, MMC – whose companies include Guy Carpenter, Marsh, Mercer and Oliver Wyman – said in a statement. Operating income was US$733 million, essentially flat compared with US$735 million in the prior year. Adjusted operating income was US$736 million, and net income attributable to the company was US$481 million.

Risk & Insurance Services revenue was US$1.9 billion in Q1 2016, an increase of 2% on an underlying basis. Risk & Insurance Services generated operating income of US$535 million and adjusted operating income of US$543 million, the statement said. [click image below to enlarge]

Marsh produced revenue in the first quarter of US$1.5 billion, an increase of 2% on an underlying basis. International operations produced underlying revenue growth of 2%, reflecting growth of 1% in Europe, the Middle East and Africa, 3% in Asia Pacific and 6% in Latin America. In U.S./Canada, underlying revenue rose 2%. Guy Carpenter’s revenue in the first quarter was US$374 million, an increase of 3% on an underlying basis. [click image below to enlarge]

Consulting generated revenue of US$1.5 billion in the first quarter of 2016, an increase of 6% on an underlying basis, the statement said. Operating income was US$245 million, with adjusted operating income of US$238 million. Mercer produced revenue of US$1 billion in Q1 2016, an increase of 3% on an underlying basis. Health, with revenue of US$400 million, grew 6% on an underlying basis; Investments, with revenue of US$196 million, rose 1%; Talent, with revenue of US$131 million, was up 1%; and Retirement, with revenue of US$312 million, was flat. Oliver Wyman Group’s revenue was US$439 million in the first quarter, an increase of 15% on an underlying basis.

MMC president and CEO Dan Glaser said in the statement that the company is pleased with its performance in the first quarter. “We are off to a strong start to the year, and believe the company is well positioned to deliver underlying revenue growth, meaningful margin expansion in both operating segments and strong earnings per share growth in 2016,” Glaser said.