Revenue up in Q3 for U.S./Canada division of Marsh & McLennan Companies

Marsh & McLennan Companies, Inc. (MMC), a global professional services firm offering clients advice and solutions in risk, strategy and people, announced on Tuesday that net income attributable to the company in the third quarter of 2015 was US$323 million, compared to US$297 million in the prior year quarter.

Revenue for the United States/Canada division was US$697 million for Q3 2015, compared to US$650 million in the same quarter of 2014. For the nine months ending Sept. 30, revenue for the U.S./Canada division was about US$2.1 billion, compared to about US$1.97 billion in the same period of 2014.

Total revenue was US$3.11 billion for Q3 2015, compared to US$3.14 billion in Q3 2014. For the first nine months of 2015, revenue was US$9.55 billion, compared to about US$9.71 billion for the same period in 2014, a decline of about 2%. [click image below to enlarge]

MMC, whose companies include Guy Carpenter, Mercer and Oliver Wyman, said in a press release that consolidated revenue in the third quarter of 2015, ending Sept. 30, was US$3.1 billion, a decline of 1% from the third quarter of 2014, reflecting the continuing impact of the strong United States dollar.

Operating income for Q3 rose 4% to US$461 million, compared with US$445 million in the prior year. Operating income for 9M 2015 was U$1.8 billion and net income attributable to the company was US$2.27 per share, an increase of 8% from US$2.11 per share last year.

Looking at Risk and Insurance Services, revenue was US$1.6 billion in Q3 2015, an increase of 2% on an underlying basis. Operating income was US$225 million, compared with US$229 million in the prior year. Adjusted operating income rose 3% to US$248 million, compared with US$242 million last year.

For the nine months of 2015, revenue was US$5.1 billion, reflecting growth of 2% on an underlying basis. Operating income rose to US$1.2 billion and adjusted operating income increased 4%, MMC reported in the statement.

Marsh’s revenue in the third quarter of 2015 was US$1.3 billion, an increase of 2% on an underlying basis, with the U.S./Canada division showing an underlying revenue growth of 2%. International operations produced underlying revenue growth of 2%, with EMEA and Asia Pacific each rising 1% and Latin America growing 6%. Guy Carpenter’s third quarter revenue was US$261 million, an increase of 2% on an underlying basis. [click image below to enlarge]

Consulting revenue of US$1.5 billion in the third quarter increased 6% on an underlying basis from the third quarter of 2014, the statement said. Both operating income and adjusted operating income rose 4% to US$285 million. For the nine months of 2015, revenue was US$4.4 billion, up 5% on an underlying basis. Operating income grew 5% to US$781 million, and adjusted operating income increased 4%.

Mercer’s revenue was US$1.1 billion in the third quarter, an increase of 5% on an underlying basis. Health, with revenue of US$394 million, grew 6% on an underlying basis; Retirement, with revenue of US$317 million, rose 2%; Investments, with revenue of US$202 million, increased 6%; and Talent, with revenue of US$177 million, was up 6%. Oliver Wyman Group’s revenue was US$450 million in the third quarter, an increase of 9% on an underlying basis.

“We are pleased with our results and continue to perform well in a challenging macro environment,” MMC president and CEO Dan Glaser said in the statement. “We produced underlying revenue growth in the third quarter and year-to-date across all operating companies, along with higher adjusted operating income and margin expansion. We remain on track to deliver underlying revenue growth, margin expansion and high single-digit growth in earnings per share this year.”