Mercer’s strong health benefits growth boosts Marsh McLennan Q2 earnings

Marsh McLennan’s Mercer health benefits business had a great second quarter.

The revenue officially recorded in U.S. earnings increased 6% year-over-year, to $547 million, and underlying revenue, which leaves out factors such as currency fluctuations, climbed 9%

“The strong performance was broad-based,” Pat Tomlinson, the chief executive officer of Mercer, told securities analysts Thursday during a conference call Marsh McLennan hosted to go over second-quarter earnings. “We continue to see strong demand for digital solutions and innovative benefits.”

Mercer health business revenue grew more than 10% in most regions of the world.

“We benefited from renewals and some new-business growth,” Tomlinson.

Related: 2024: What benefits advisors can expect

Mercer added to the growth by hiring new talent, investing in thought leadership, and focusing on developing solutions tailored to fit specific client segments, Tomlinson said.

Healthy results at Mercer’s health business could be a sign that many health benefits brokers, including the many privately held brokers that don’t post their numbers, are doing well.

Marsh McLennan, a giant insurance broker, reported a total of $1.1 billion in net income for the second quarter on $6.2 billion in revenue, up from $1 billion in net income on $5.9 billion in revenue for the second-quarter of 2023.

John Doyle, Marsh McLennan’s CEO, said one helpful force is a belief that the odds of a recession hitting the United States appear to be receding.