Marsh McLennan Records Robust Revenue and Income Growth in Q1 2025

Marsh McLennan, a leading global professional services firm, has demonstrated a strong financial performance in the first quarter of 2025. With a focus on organic growth and strategic acquisitions, the firm reported consolidated revenue of $7.1 billion for the quarter ending March 31, 2025. This marks a 9% increase compared to the previous year, with underlying growth contributing an impressive 4%. Adjusted operating income increased by 8% to $2.2 billion, while GAAP operating income saw a 4% rise, totaling $2.0 billion. The company also reported a 5% increase in adjusted earnings per share, despite encountering challenges from foreign exchange fluctuations and a more stringent tax environment.

John Doyle, President and CEO of Marsh McLennan, expressed satisfaction with the performance, noting, 'We had a solid start to the year with 9% revenue growth reflecting momentum across our business and the contribution from acquisitions.' He stressed the firm's capacity to deliver value across varying market conditions, asserting that clients continue to seek their advice and solutions during uncertain times. This sentiment underscores the firm's strategic approach, aligning market-driven services with client needs to sustain and enhance growth.

In terms of segment performance, Marsh McLennan's risk and insurance services remained the largest revenue contributor, generating $4.8 billion, up 11% from the previous year (4% underlying). The insurance broking unit, Marsh, excelled with revenues reaching $3.5 billion, marking a 15% increase overall and a 5% rise on an underlying basis. Remarkable regional growth figures further highlighted success, led by Latin America at 8% underlying growth, followed by EMEA at 6%, and both Asia Pacific and the US/Canada at 4%. The reinsurance division, Guy Carpenter, contributed $1.2 billion in revenue, manifesting a 5% growth across both GAAP and underlying bases.

The consulting segment played a vital role in Marsh McLennan's Q1 success, with revenue climbing 5% to $2.3 billion (4% underlying). Adjusted operating income for this segment grew by 8%, reaching $491 million. Mercer, focusing on health, wealth, and career consulting, generated $1.5 billion in revenue. Here, the health business led with 7% growth, whereas the wealth sector grew by 3%, and the career segment saw a slight decrease of 1%. Additionally, Oliver Wyman, the firm's management consulting division, recorded an $818 million revenue, marking a 4% increase on both reported and underlying bases. Meanwhile, Marsh McLennan maintained active capital allocation strategies, including the repurchase of 1.3 million shares for $300 million and repaying $500 million in matured senior notes during the quarter. These strategic financial maneuvers further highlight the firm's proactive approach to risk management and growth sustainability.