Marsh & McLennan CEO Dan Glaser says clients in Australia are “reacting positively” following the acquisition this year of rival broker JLT and the global integration is tracking in line with expectations.

“We are acting swiftly to integrate our teams and shared facilities around the world. We have already moved and co-located 5000 of our colleagues in several cities, including London, Hong Kong, Sydney and Johannesburg,” he told an earnings call.

“In Australia, where we have an $US800 million ($1.2 billion) business with nearly 4000 colleagues, clients and prospects are reacting positively to the expanded capabilities of the combined organisation.”

The $US5.6 billion ($8.1 billion) acquisition, which took effect at the start of April, contributed to a 16% increase in second quarter revenue to $US4.3 billion ($6.3 billion).

But net profit for the group declined to $US332 million ($484 million) from $US531 million ($779 million).

The results included acquisition-related costs of $US150 million ($218 million), while restructuring and integration expenses were $US98 million ($142 million).

Marsh revenue rose 23% to $2.16 billion ($3.14 billion), or 3% if the year-ago results were adjusted as if JLT were part of the company.

Guy Carpenter revenue rose 18% to $US392 million ($570 million) but fell 4% compared to the previous year if adjusted for JLT.

Risk and Services division overall operating profit increased 10% to $US517 million ($752 million).

Marsh CEO John Doyle says most regions and products have seen rate increases compared to the first quarter, with larger accounts with complex risks moving the most.

“US and Australia and the UK wholesale market are the geographies with the highest level of increases,” he says.

“But I would say that the SME market, upper middle market, pricing is much more muted on average.”

Classes such as directors’ and officers’, employment practices liability, cyber and commercial have seen increases in loss frequency and severity.

“The industry remains very well capitalised, but some are reducing their risk appetite and moving attachment points and moving pricing,” he says.