Third quarter revenues up 7% for Marsh

Marsh & McLennan Companies Inc. reported Tuesday its financial results for the quarter ending Sept. 30, recording a 10% increase in brokerage and risk management subsidiary Marsh Inc.’s third quarter revenues from the United States and Canada.

Net income attributable to New York City-based Marsh & McLennan was $297 million on revenues of $3.141 billion in the most recent quarter, compared to net income attributable to the company of $253 million on revenues of $2.932 billion in Q3 2013. All figures are in United States dollars. Marsh & McLennan’s results include those of Marsh as well as Oliver Wyman, Mercer and Guy Carpenter & Company LLC.

For the first nine months of the year, Marsh & McLennan reported revenue of $9.705 billion, up 6% from $9.146 billion during the first nine months of 2013. The “underlying” revenue increase (which excludes effects such as acquisitions, dispositions and transfers among businesses) was 5% year-over-year. Net income for the first nine months was $1.171 billion in 2014, up 11.1% from $1.054 billion in 2013.

The revenue increase, from Q3 2013 to Q3 2014, was 7% but 5% on an underlying basis.

Marsh & McLennan subsidiary Oliver Wyman is a management consulting firm, while Mercer provides consulting services in human resources, benefits, pensions and investments. Guy Carpenter provides risk and reinsurance intermediary services for several p&c coverages, as well as life and health. It also operates GC Securities, the Guy Carpenter division of MMC Securities Corp. GC Securities products include catastrophe bonds and other insurance-linked securities.

During the latest quarter, Guy Carpenter’s revenue was $266 million, up 3% from $262 million in Q3 2013. Mercer’s revenue was $1.112 billion, up 3% from $1.072 billion in Q3 2013.

Marsh & McLennan did not break out its results for Canada but did break out Marsh’s results for Canada and the U.S.

Marsh’s revenue from the U.S. and Canada was $650 million, up 10% (or 4% on an underlying basis) from $589 million in Q3 2013. For the first nine months, Marsh’s revenue from the U.S. and Canada was $1.966 billion in 2014, up 8% (or 3% on an underlying basis) from $1.828 billion in 2013.

Toronto-based brokerage and risk management firm Marsh Canada Ltd. has 1,100 employees. Its operations include, among others, a consumer and commercial wholesale underwriting group. That group provides auto, marine, property, crime, commercial general liability and professional liability.