Q2 revenues up at Marsh & McLennan

Marsh & McLennan Companies Inc. of New York City released Wednesday its financial results for the three months ending June 30, recording net income of $388 million on revenues of $3.088 billion. All figures are in U.S. currency.

In the second quarter of 2012, Marsh & McLennan had reported net income of $329 million on revenues of $3.026 billion.

“Adjusted operating income grew 13%, reflecting excellent margin expansion in both the Risk and Insurance Services and Consulting segments,” president and CEO Dan Glaser stated in a press release, comparing the results of the most recent quarter with those from the second quarter of 2012.

Marsh & McLennan calculated “adjusted operating income” by adding, among other things, restructuring charges such as severance, rent under leases that cannot be cancelled and integration costs of acquisitions.

Second-quarter operating income increased 11% year to year, from $518 million in 2012 to $525 million in 2013. Adjusted operating income for the most recent quarter was $591 million, compared to $525 million in Q2 2012.

Q2 revenue for risk and insurance services was $1.688 billion this year, up from $1.641 billion in 2012. Those revenues are mainly from brokerage and risk management subsidiary Marsh Inc., and from Guy Carpenter & Company LLC, which provides risk and reinsurance intermediary services.

Marsh Inc.’s revenue was $1.397 billion in Q2 2013, up from $1.356 billion in Q2 2012.

In the U.S. and Canada, Marsh & McLennan’s risk and insurance services revenue grew 2% from Q2 of 2012 to the same period this year.

Q2 revenue from consulting for Marsh & McLennan’s companies was $1.41 billion this year, compared to $1.398 billion in 2012. Consulting revenue is mainly from human resources consulting subsidiary Mercer LLC and from management consulting firm Oliver Wyman.

For the first six months, Marsh & McLennan recorded net income of $801 million on revenues of $6.214 billion, compared to net income of $676 million on revenues of $6.077 billion during the first half of 2012.

Revenues in risk and insurance services across Marsh & McLennan’s companies were $3.459 billion during the first six months, of which $2.785 billion came from Marsh. In 2012, risk and insurance revenues were $3.33 billion, of which Marsh Inc. contributed $2.677 billion.