Marsh & McLennan Companies, Inc. (MMC) reported third quarter 2022 results this morning, with adjusted earnings per share (EPS) of $1.18 and consolidated revenue of $4.8 billion, up 4% compared to the third quarter of 2021.
Here are five things you should know about this call:
- The company reported organic growth of 8% during 3Q22 (vs. 10% during 2Q22) reflecting new business and strong renewal growth. This is the sixth consecutive quarter of 8% or higher top-line growth.
- This quarter saw the 20th consecutive quarter of insurance rate increases across the board. MMC’s global proprietary pricing index will be released in a few weeks, with the company noting that the composite rate is 6%, a little bit down from last quarter.
- President and CEO of Marsh Martin South said about pricing: ”There’s going to be strain on the property market, particularly for clients that have high cat exposures. We would have thought by now at this point in the cycle, after such consistent growth in property, that we have started to see some easing. The reverse is going to be true, sadly, for our clients, going through for the back end of the year.”
- President and CEO of Marsh McLennan, Daniel Glaser, commented again on how real GDP growth softening and rising inflation will impact the company’s growth: “Higher inflation offsets lower real GDP growth, rising interest rates, and the challenging insurance market drives a flight to quality.” He noted that while the macro backdrop is becoming even more uncertain, MMC has a record of being resilient through cycles and that the company is well positioned to perform. The firm sees full year 2022 organic growth coming in as high-single digits and solid growth in adjusted EPS. After 10 years as President and CEO, Glaser also announced he is retiring at the end of the year.
- On Hurricane Ian: “It has the potential to be the costliest insured event in Florida’s history and the second most damaging insured loss of all time….At mid-year renewals, the property market is already exhibiting strains. Following Ian, the property market is likely to tighten even further and perhaps see a significant supply-demand imbalance.”
To learn more visit: News Release – Marsh McLennan Q3 2022 Results
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