Marsh & McLennan has reported a net income of $276m for the third quarter of 2018, compared to $393m for the same period last year.
Marsh & McLennan’s consolidated revenue for the third quarter was $3.5bn, which was a 5% increase, compared to last year’s third quarter.
Operating income for the period was $541m and adjusted operating income, excluding noteworthy items, decreased 5% to $535m.
The company also claimed that excluding the impact of the new revenue recognition standard, ASC 606, adjusted operating income increased by 3%.
Per share basis, the net attributable income was $0.54, which is less than $0.76 compared to last year. Adjusted earnings per share of $0.78 was down by 1%, compared to last year. The 1% decrease in adjusted earnings per share (EPS) includes a $0.07 per share reduction from the application of ASC 606. Excluding ASC 606, adjusted EPS increased 8%.
Revenue from risk & insurance services was $1.9bn for this quarter, which was a 6% increase. The operating income for the period was $293m, which was a 9% increase and adjusted operating income decreased 3% to $283m. Excluding ASC 606, adjusted operating income increased by 13%.
International operations generated underlying revenue growth of 2% and has reflected a flat underlying growth in EMEA, 3% in Asia Pacific, and 7% in Latin America.
Guy Carpenter’s revenue for the period was $215m, which was a 11% increase.
Consulting revenue for the third quarter $1.7bn. It was a 4% increase compared to last year for the same period. The operating income decreased by 6% to $291m and adjusted operating income decreased 6% to $293m.
Marsh & McLennan president and CEO Dan Glaser said: “We are pleased with our performance for the third quarter and first nine months of the year. In the quarter, we produced excellent underlying revenue growth of 5% in both Risk & Insurance Services and Consulting, and adjusted EPS growth of 8% excluding the impact of the new revenue standard.”
In September this year, the company agreed to acquire Jardine Lloyd Thompson Group (JLT), an insurance, reinsurance and employee benefits related advice, brokerage and associated services provider. It is based on London and operates in over 40 countries.
The transaction is expected to close in next spring, subject to the receipt of required antitrust and regulatory approvals and the approval of JLT shareholders.