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Home / Insurance / Top Insurance Broker, No. 1: Marsh & McLennan Cos. Inc.

Top Insurance Broker, No. 1: Marsh & McLennan Cos. Inc.



Brokerage Revenue 2021: $ 19.86 billion

Percentage increase: 15%

Marsh & McLennan Cos. Inc. delivered double-digit organic revenue growth last year due to continued strong insurance pricing, while also taking advantage of disruptions in the brokerage sector to increase recruitment.

Changes in management were announced in November when John Doyle, former head of Marsh LLC, was named CEO and chief operating officer of Marsh McLennan. Martin South and Dean Kilsura were appointed heads of their nuclear insurance and reinsurance brokerage units, respectively.

The addition of 6,000 employees in 2021 represented the highest level of employment in Marsh McLennan̵

7;s 150-year history, said Dan Glaser, President and CEO, during his fourth quarter results interview with analysts.

During a year when two of the brokerage house’s biggest competitors were in the final stages of a planned merger that ultimately failed, Marsh McLennan was well positioned to hire staff, says Mr. South, President and CEO of Marsh.

In the run-up to Aon PLC’s proposed acquisition of Willis Towers’ Watson PLC, rival brokerages made several announcements about hiring staff from the two companies.

“Inevitably we would do what we could to hire the best talent,” said Mr. South. “We could make some investments and talk to people who I do not think would have returned our phone calls, or who would have been less anxious to move, but too much market disruption.”

Marsh focused on areas of high growth, such as health care and senior housing, and from a geographic point of view, they wanted to ensure that it was in the best position to capture opportunities that arise from the huge movement of talent and business to Florida, said Mr. South.

The brokerage firm also continued to “double down” its strategy of hiring early in its career and its commitment to developing talent from within, he said.

Marsh McLennan also continued to grow through acquisitions in 2021 when its average market unit, Marsh & McLennan Agency LLC, completed eight deals and its consulting business Oliver Wyman completed an acquisition for a total purchase price of approximately $ 1.4 billion, according to SEC reports.

MMA’s acquisitions included Missoula, Montana-based PayneWest Insurance Inc., which, with $ 135 million in annual brokerage revenue, was previously the 33rd largest brokerage firm of U.S. companies.

MMA, launched in 2009, has grown to $ 2 billion in revenue and 150 offices in the United States, said Mr. South.

Marsh McLennan reported $ 19.86 billion in brokerage revenue in 2021, a 15% increase over 2020, and maintained its No. 1 position in Business insurances ranking of the world’s largest brokerage house.

The revenue rate continued during the first quarter of 2022. Marsh McLennan’s risk and insurance business, which includes Marsh and Guy Carpenter & Co. LLC, reported a 10.1% increase in revenue over the previous year, an increase of 11% on an organic basis.

In a results conversation with analysts for the first quarter, Glaser said that there were greater risks and uncertainties than when the company entered the year. The Russia / Ukraine conflict contributed to the volatile economic outlook and, like other brokerages, Marsh McLennan decided to leave Russia in March.

Marsh McLennan had a strong first quarter, says Mark Dwelle, Director, Insurance Equity Analysis, at RBC Capital Markets LLC in Richmond, Virginia. “Our expectation is that we will see the organic growth rate fall from the low double-digit numbers we saw for much of 2021 to an average of medium to high single-digit numbers this year,” said Mr. Dwelle.

A certain effect of last year’s job rise was seen in Marsh McLennan’s reinsurance business Guy Carpenter during the first quarter, but the greater effect should come in future quarters and increase revenues, says Elyse Greenspan, CEO, stock analysis, insurance, at Wells Fargo Securities LLC in New York.

As for a possible future CEO follow-up, the last time anyone occupied the COO position at Marsh McLennan was Mr Glaser before replacing Brian Duperreault as CEO, Ms. stated. Greenspan.

“For us, it looks like it will be a seamless transition. Our expectation is that it will happen by the end of this year,” she says.

Marsh McLennan had no comment on the matter.


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