Marsh McLennan (NYSE:MMC) reported stronger-than-expected second-quarter results on Thursday, with revenue up 12% year-over-year and earnings coming in ahead of Wall Street projections.
Adjusted earnings per share reached $2.72, beating the analyst consensus of $2.67. Total revenue for the quarter climbed to $7.0 billion, above expectations of $6.94 billion.
Following the release, shares in the global professional services firm edged higher by 0.48% in early trading.
The company saw underlying revenue growth of 4%, while adjusted operating income rose 14% to $2.1 billion, reflecting broad-based momentum across its business units.
“We had another solid quarter with 12% revenue growth reflecting continued momentum across our business and the contribution from acquisitions,” said John Doyle, President and CEO. “Our performance demonstrates the enduring value we provide to clients, as well as our consistent execution in a complex and dynamic environment.”
The Risk & Insurance Services segment, which includes Marsh and Guy Carpenter, delivered $4.6 billion in revenue—a 15% year-over-year increase, or 4% growth on an underlying basis. Marsh led the way with $3.8 billion in revenue, rising 18%, fueled by 4% growth in U.S. and Canadian markets and a 7% increase from international operations. Reinsurance specialist Guy Carpenter saw revenue rise 7% to $677 million.
In the Consulting division, revenue rose 7% to $2.4 billion. Mercer generated $1.5 billion, up 9%, while Oliver Wyman’s revenue increased 5% to $873 million. Within Mercer, Wealth revenue posted modest 2% underlying growth, while Health revenue climbed 7%.
Marsh McLennan also returned capital to shareholders, repurchasing 1.4 million shares worth $300 million during the quarter. Additionally, the firm recently declared a 10% hike in its quarterly dividend to $0.90 per share, payable on August 15.
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