Financial services giant Marsh McLennan reported its fiscal results for the fourth quarter and year end of 31 December 2022. The business, which has several component parts – Mercer, Oliver Wyman, Guy Carpenter, and Marsh – saw mixed results last year compared to 2021.
Revenue for the New-York-headquartered company for Q4 2022 was $5 billion, compared to $5.1 billion last year, a decrease of 2%; and for 2022 year as a whole was $20.72 billion, which was up from 2021’s $19.82 billion.
Operating income was $680 million compared with $986 million in the prior year period, said Marsh McLennan’s statement on the results. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 13% to $1 billion, compared with $905 million in the prior year period.
For the Risk & Insurance Services part of the business, revenue was $2.9 billion in the fourth quarter of 2022 – a decrease of 3%, or an increase of 8% on an underlying basis.
“2022 was an outstanding year for Marsh McLennan,” said the company’s President and CEO, John Doyle. “We generated underlying revenue growth of 9%, grew adjusted EPS by 11%, and expanded adjusted margins for the 15th consecutive year."
Comparatively, reinsurer Guy Carpenter's fourth-quarter revenue was $171 million, an increase of 1%, or 5% on an underlying basis. For the year 2022, Guy Carpenter’s revenue grew 8% compared to a year ago, or 9% on an underlying basis.
Mercer’s revenue was $1.3 billion in the fourth quarter of 2022, a decrease of 3%, or an increase of 5% on an underlying basis.
Oliver Wyman’s revenue was $765 million in the fourth quarter of 2022, an increase of 8% on an underlying basis. Investment section
For Marsh McLennan, investment income – which was $18 million in Q4 2021 – made a $6m loss in 2022.
However, trends were very different for the year as a whole. For 2022, the company made $21 million in investment income, which was less than half of 2021’s $61 million – and a drop of almost two-thirds.
The company reported full-year revenue growth of 5% and underlying revenue growth of 9%.
Full-Year Generally Accepted Accounting Principles (GAAP) operating income decreased by 1%, and adjusted operating income increased by 11%.
The results follow other major players also seeing a better Q4 than Q3 in 2022.
