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Marsh & McLennan report continued strong revenue growth



Marsh & McLennan Cos. Inc. said on Thursday that it is well on its way to its best annual revenue growth in a decade, as it reported a 16% increase in revenue in the third quarter, built on strong momentum in all its companies. [19659002] The broker said it has added nearly 5,000 employees to date, an increase of about 7%, mostly in client-oriented roles, said Marsh McLennan's chief executive.

While there is still uncertainty and volatility in the macroeconomic environment, Marsh McLennan sees "solid demand" for its differentiated advice, said Dan Glaser, President and CEO of Marsh McLennan, in a conference call with analysts on Thursday. the employee base has increased by 22%, he said.

"We expect this influx of talent will drive growth, increase our ability and increase our ability to serve customers," Glaser said.

The highest percentage of employment growth is by far in Marsh LLC, its commercial brokerage unit and Guy Carpenter & Co. LLC, its reinsurance broker, he said.

Marsh McLennan reported third-quarter revenue of $ 4.58 billion, an increase of 1

6% over the same period in 2020, and up 13% on an underlying basis, according to the broker's earnings statement released Thursday before the markets opened.

Net income for the third quarter was $ 537 million, an increase of 70%.

Risk and insurance services, which include its insurance and reinsurance brokers, reported third-quarter revenue of $ 2.67 billion, an increase of 17% overall and an increase of 13% on an underlying basis.

Many of the factors that have driven the market's hardening in recent years continue, and a "Bending" to a soft market is "unlikely in the short term," Glaser said.

Property / non-life insurance prices continue to rise, with the third quarter marking the 16th consecutive quarter of interest rate hikes, according to Marsh & # 39 ;s Global Insurance Market Index.

Marsh reported $ 2.35 billion in revenue, an increase of 17% over the third quarter of 2020 and an increase of 13% on an underlying basis, as it benefited from strong new business and growth of renewal. In the United States and Canada, Marsh reported $ 1.37 billion in revenue, a 16% increase on an underlying basis.

Guy Carpenter reported $ 314 million in revenue in the third quarter, an increase of 15% both in total and underlying.

Global insurance rates increased by 15% in the third quarter, the same as in the second quarter, according to Marsh's analysis.

Global real estate increased by 9%, while financial and professional lines increased by 32%, driven by an almost doubling in cyber prices, Glaser said. The global accident rate increased with the high single figures, he said.

Small and medium-term insurance rates also continue to rise, but less than for large, complex accounts, he said.

In reinsurance, "measured and moderate" interest rate hikes witnessed during the first half of the year may persist for the rest of the year, reflecting "sufficient capacity offset by increased global disasters, real and social inflation concerns and the continuation of large individual losses", says Glaser. 19659002] One of the biggest pandemic consequences for Marsh McLennan, as well as for organizations of similar size, has been the transition to a hybrid working model and a reduction in travel and costs. Travel and expenses will not return quickly and may not reach the 2019 level for a while, he said. The cost implications for Marsh McLennan will be positive in the long run, he said.

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