U.S./Canada division of Marsh sees revenues increase to US$850 million in Q2 2017 from US$804 million in Q2 2016

Revenue for the United States and Canada division of Marsh increased to US$850 million in the second quarter of 2017 from US$804 million in the same quarter last year, Marsh & McLennan Companies (MMC) reported on Thursday.

MMC, whose companies includes Marsh, Guy Carpenter, Mercer and Oliver Wyman, reported in its financial results that consolidated revenue in the second quarter of 2017 ending June 30 totalled US$3.50 billion, an increase of 4% compared with the second quarter of 2016 (US$3.38 billion). Consolidated revenue for the first six months of the year was US$7 billion, up from US$6.71 billion from H1 2016, MMC noted in a statement. For the U.S./Canada division specifically, revenue was US$1.63 billion in the first half of the year, up from US$1.51 billion in H1 2016.

Operating income for Q2 2017 was US$764 million, an increase of 5% from the prior year (US$726 million). Net income attributable to the company was US$501 million, up from US$472 million in Q2 2016. H1 2017 operating income was US$1.57 billion compared to US$1.46 billion in H1 2016, while first-half 2017 net income was US$1.07 billion (US$953 million in H1 2016).

“With a strong first half of 2017, we believe the company is well positioned to deliver underlying revenue growth, margin expansion in both segments, and strong earnings per share growth this year,” Dan Glaser, MMC president and CEO, said in the statement.

MMC’s Risk & Insurance Services revenue was US$1.9 billion in the second quarter of 2017, an increase of 4% from US$1.85 billion in Q2 2016. For the six months of the year, revenue was US$3.9 billion, an increase of 5% from the same period last year.

Marsh’s revenue in the second quarter of this year was US$1.6 billion, an increase of 2% on an underlying basis. International operations produced underlying revenue growth of 1%, reflecting flat underlying revenue in Europe, the Middle East and Africa, 3% growth in Asia Pacific, and 4% in Latin America. In U.S./Canada, underlying revenue rose 2%, MMC noted in the statement, adding that for H1 2017, Marsh’s underlying revenue growth was 3%.

Guy Carpenter’s revenue in the second quarter of 2016 was US$293 million, an increase of 4% on an underlying basis for both the second quarter and first six months (US$285 million).

Consulting revenue in the second quarter was US$1.6 billion, an increase of 3% from US$1.54 billion in the second quarter of last year. Operating income decreased 1% to US$283 million. For the first six months of 2017, revenue was US$3.1 billion, an increase of 3%. Operating income of US$524 million declined 1% in the first half of the year, the statement noted.

Mercer’s revenue was US$1.1 billion in the second quarter of 2017, an increase of 3% on an underlying basis. Within Wealth, Investment Management & Related Services increased 11%, while Defined Benefit Consulting & Administration decreased 3%. Total Wealth revenue of US$532 million increased 1% on an underlying basis. Health revenue of US$423 million was up 3% on an underlying basis and Career revenue of US$154 million increased 5% on an underlying basis. For the six months of the year, Mercer’s revenue was US$2.2 billion, an increase of 3% on an underlying basis, according to the statement.

Oliver Wyman Group’s revenue was US$483 million in the second quarter, an increase of 7% on an underlying basis. For the first six months of this year, Oliver Wyman Group’s revenue increased to US$932 million, up 6% on an underlying basis.