July 21 (Reuters) – Insurance brokerage Marsh reported a jump in second-quarter profit on Tuesday, as it benefited from robust demand for its risk management and consulting businesses.
Insurance spending has remained resilient as individuals and businesses prioritize risk management to safeguard against threats such as climate-related disasters and cyber attacks.
Here are some details:
• Revenue in Marsh’s risk and insurance services arm rose 4% to $4.82 billion in the quarter from a year earlier. The consulting arm posted 10% revenue growth.
• Insurance brokerages serve as a bridge between insurers and customers, helping clients find a policy that best suits their needs. They generally pocket a percentage of the premiums paid to insurers as commissions.
• “Our performance in the first half underscores strong demand for Marsh’s expertise and capabilities across risk, people, strategy, and investments,” CEO John Doyle said.
• Underlying revenue growth — a closely watched metric on Wall Street — stood at 5% in the quarter.
• Profit was $1.27 billion, or $2.63 per share, in the three months ended June 30, compared with $1.21 billion, or $2.45 per share, a year earlier.
• Marsh’s stock, which has fallen 1.8% this year as of last close, has rallied over the past month as the broader market rotated into financials.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Sahal Muhammed)
