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<\/p>\nFive publicly traded insurance brokers reported strong third quarter revenues, with their executives using adjectives such as \u201coutstanding,\u201d \u201cterrific,\u201d \u201cexcellent,\u201d and \u201cstrong\u201d to describe their companies\u2019 financial performances.<\/p>\n
In a wrap-up of the brokers\u2019 results, listed in descending order by revenue size, Marsh McLennan Cos. comes first, followed by Aon, Arthur J. Gallagher, WTW, and Brown & Brown.<\/p>\n
Marsh McLennan<\/strong><\/p>\n Marsh McLennan reported Q3 consolidated revenue of $5.4 billion, an increase of 13% compared with the third quarter of 2022. On an underlying (non-GAAP) basis, revenue increased 10%.<\/p>\n Operating income was $996 million, an increase of 26% from a year ago. Net income attributable to the company was $730 million, or $1.47 per diluted share, compared with $546 million, or $1.08 per share in the third quarter of 2022.<\/p>\n \u201cMarsh McLennan\u2019s third quarter results were outstanding, reflecting strength across the business. We had another quarter of double-digit underlying revenue growth, strong adjusted EPS growth and margin expansion. We achieved these results while also continuing to make significant investments for the future,\u201d commented John Doyle, President and CEO. \u201cWith our performance through the third quarter, we are on track for another terrific year.\u201d<\/p>\n Marsh McLennan\u2019s Risk and Insurance Services (RIS) segment (Marsh and Guy Carpenter) reported a Q3 revenue of $3.2 billion, an increase of 11% on an underlying basis. Operating income rose 21% to $640 million, and adjusted operating income was $671 million, an increase of 19% from a year ago.<\/p>\n Breaking down the results of the two RIS units, Marsh\u2019s revenue in the third quarter was $2.7 billion, an increase of 8% on an underlying basis. In U.S.\/Canada, underlying revenue rose 6%. International operations produced underlying revenue growth of 10%, reflecting 14% growth in Latin America, 10% growth in Asia Pacific, and 9% growth in EMEA.<\/p>\n Guy Carpenter\u2019s revenue in the third quarter was $359 million, an increase of 8% on an underlying basis.<\/p>\n \u201cOverall, we remain on track for a terrific 2023. Based on our outlook today and assuming current conditions persist, we expect to generate 9% to 10% full-year underlying revenue growth, strong growth in adjusted EPS and to report margin expansion for the 16th consecutive year,\u201d said Mark McGivney, MMC\u2019s chief financial officer during the recent earnings call to discuss Q3 results.<\/p>\n Aon plc<\/strong><\/p>\n Aon reported total revenue increased by $257 million, or 10%, to $3.0 billion from $2.7 billion in Q3 2022. The Q3 2023 total included organic revenue growth of 6% which attributed to ongoing strong retention, management of the renewal book, and net new business generation, a 2% favorable impact from fiduciary investment income and a 2% favorable impact from foreign currency translation.<\/p>\n Q3 2023 operating income rose by 17% to $691 million from $590 million during the same period last year. Net income attributable to Aon shareholders increased 12% to $456 million, or $2.23 per share on a diluted basis, compared to $408 million, or $1.92 per share on a diluted basis, in the prior year period.<\/p>\n Aon\u2019s Reinsurance Solutions unit delivered another very strong quarter of 11% organic revenue growth driven by strong growth across treaty, facultative and the Strategy and Technology Group, according to Greg Case, Aon CEO, during the recent Q3 earnings\u2019 call with financial analysts.<\/p>\n The Reinsurance Solutions unit reported Q3 revenue of $465 million, compared with $396 million during Q3 2022.<\/p>\n Aon\u2019s Commercial Risk unit reported Q3 revenue of $1.6 billion, compared with $1.5 billion during Q3 2022. The Q3 2023 figure included organic revenue growth of 4% which reflected strong renewals and net new business internationally in EMEA and the Pacific.<\/p>\n Arthur J. Gallagher & Co.<\/strong><\/p>\n Arthur J. Gallagher\u2019s total revenue before reimbursements for brokerage and risk management, rose 21.9% to $2.45 billion in the third quarter from $2.01 billion in Q3 2022.<\/p>\n \u201cWe had an excellent third quarter,\u201d commented Patrick Gallagher Jr., chairman, president and CEO of Arthur J. Gallagher & Co., in the company\u2019s earnings statement. \u201cOur core brokerage and risk management segments combined posted 22% reported revenue growth, 10.5% organic revenue growth, a 15.5% reported net earnings margin, and we improved our adjusted EBITDAC margin by 78 basis points. Also, during the quarter, we completed 12 new mergers with approximately $57 million of estimated annualized revenue.\u201d (Editor\u2019s note: As a new twist on an old financial term, EBITDAC means Earnings Before Interest, Taxes, Depreciation, Amortisation and Coronavirus.)<\/p>\n WTW<\/strong><\/p>\n Willis Towers Watson (WTW) reported Q3 revenue increased 11% to $2.2 billion ($2 billion in Q3 2022), with organic growth of 9%. Net income for the third quarter of 2023 was $139 million, a decrease of 28% compared to net income of $192 million in the prior-year third quarter.<\/p>\n \u201cAs I touched on last quarter, our focus on specialization and our risk and broking segment has been one of the key drivers of our strong organic growth. We\u2019ve generated substantial momentum by developing innovative products and services, engaging in strategic partnerships, and building platforms like MGAs, MGUs, and affinity products,\u201d according to Carl Hess, CEO and Director of WTW, during the company\u2019s recent earnings call.<\/p>\n WTW\u2019s Risk & Broking segment\u2019s revenue was up 10% on both an organic and constant currency basis compared to the prior year of third quarter. R&B\u2019s Q3 operating income was $134 million, compared with $105 million for the same period last year. R&B had revenue of $855 million in Q3 2023, an increase of 12% (10% increase constant currency and organic) from $765 million in the prior year.<\/p>\n Corporate Risk & Broking generated solid organic revenue growth of 10%, driven by strong new business, improved client retention and rate increases.<\/p>\n Q3 growth was driven by continued strong return on investment in our specialty lines, said Andrew Krasner, WTW\u2019s CFO, during the earnings call. \u201cGlobally, the strongest growth came from our facultative, financial solutions, natural resources, surety and construction lines of business.\u201d<\/p>\n Europe also had an \u201cexceptional quarter with double digit growth in a number of countries led by our P&C retail and direct business, as well as construction, aerospace and financial solutions. International also contributed to strong organic growth led by Latin America,\u201d Krasner said.<\/p>\n He said North America benefited from \u201cstrong new business and increased client retention across most lines of business, despite headwinds in our M&A business and from the impact of book of business [settlement] activity.\u201d<\/p>\n Brown & Brown<\/strong><\/p>\n Brown & Brown reported Q3 revenue of $1.07 billion, increasing by $140.1 million, or 15.1%, from $927.6 million in Q3 2022. Organic revenue increased by 9.6% during the quarter.<\/p>\n \u201cWe delivered an outstanding performance in the third quarter,\u201d according to Powell Brown, Brown & Brown\u2019s president and chief executive officer, during the company\u2019s Q3 earnings call.<\/p>\n Net income was $175.9 million, increasing $14.8 million, or 9.2%, from 161.1 million in Q3 2022. Diluted net income per share increased to $0.62, or 8.8%, from $0.57 in the same period last year.<\/p>\n \u201cOur retail segment had another great quarter and delivered organic growth of 8%. This growth, both domestically and internationally, was driven by strong new business, good retention and continued rate increases. We\u2019re winning a lot of new business by leveraging our collective capabilities and creating innovative solutions for our customers that are searching for ways to manage their cost of insurance,\u201d Powell Brown said.<\/p>\n On the M&A front, Brown & Brown completed seven acquisitions with estimated annual revenues of $14 million.<\/p>\n Topics<\/span> Profit Loss<\/a> Agencies<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n