Marsh McLennan says it is seeing momentum across its business after revenue increased 9% to $US6.5 billion ($9.9 billion) in the first quarter. 

Operating income rose 12% to $US1.9 billion ($2.9 billion) and net income grew to $US1.4 billion ($2.1 billion) from $US1.2 billion ($1.8 billion) a year earlier. 

“With this strong start, we are well positioned for another good year,” President and CEO John Doyle said. 

The risk and insurance services division, which includes Marsh and reinsurance arm Guy Carpenter, delivered a 9% revenue increase, with Marsh Asia-Pacific up 6%. 

Mr Doyle told analysts that reinsurance market conditions remain stable, with increased client demand and adequate capacity. 

“Early signs for June 1 Florida cat risk renewals point to improved market conditions for cedents,” he said. “Increased reinsurance appetite for growth should be adequate to meet higher demand.” 

The consulting division, which includes Mercer and Oliver Wyman, also reported a 9% revenue increase. 

Mr Doyle has previously said Marsh, Oliver Wyman and Guy Carpenter have developed a public-private insurance solution that enables grain shipments from Ukrainian ports. 

“In the first quarter, we worked with the Ukrainian Government, DZ Bank, Lloyd’s and others to expand the facility to all ships carrying non-military cargo,” he told the analyst briefing. 

The geopolitical backdrop remains unsettled, he says. Marsh sees continued economic growth in most of its major markets, but inflation and interest rates remain elevated, labour markets are tight, the cost of risk is up, and healthcare costs continue to rise. 

“We see significant opportunity to help clients navigate the range of outcomes driven by a more complex environment. We have a strong record of performance across economic cycles due to the resilience of our business and demand for our advice and solutions.”

From Insurance News magazine: The big insurers are pulling in profits again, while the top brokers look set for a strong year. We round up the results