New York: Marsh & McLennan Companies' consulting operations, the global management consulting firm Oliver Wyman and HR consulting specialist Mercer, both turned in solid financial performances in 2011, though growth fell off in the fourth quarter.
Brian Duperreault, President and CEO, said, "We are very pleased with our Company's performance, both for the fourth quarter, and for the entire year. For the second consecutive year, we achieved double-digit growth in adjusted operating income. This growth was broad-based, with both our Risk and Insurance Services and Consulting segments generating double-digit growth in adjusted operating income.
"Marsh produced another year of excellent performance. In the fourth quarter, new business development and high retention rates drove underlying revenue growth across all geographies.
"At Mercer, Consulting and Investments continued to drive underlying revenue growth in the quarter, as they did for the entire year. Despite challenging economic conditions in Europe, Oliver Wyman generated underlying revenue growth of 2% in the fourth quarter.
"We are proud of our accomplishments in 2011 and are pleased to have the talented colleagues, management strength and capabilities to provide superior service and solutions for our clients. Importantly, we continue to deliver on our strategy for long-term profitable growth for shareholders," concluded Mr. Duperreault.
Consolidated revenue in the fourth quarter to December 31 2011 was $2.9 billion, an increase of 4% from the fourth quarter of 2010. Operating income rose 20% to $391 million.
For the full year of 2011, revenue increased 9% to $11.5 billion. Operating income was $1.6 billion, compared with $939 million in 2010.
Marsh's consulting revenue — encompassing Mercer and Oliver Wyman- increased 3% to $1.34 billion in the fourth quarter of 2011. Operating income was $147 million in the fourth quarter, compared with $150 million in 2010. For the year, Consulting segment revenue increased 9% to $5.3 billion. Adjusted operating income rose 12% to $619 million.
Mercer's revenue increased 3% to $940 million in the fourth quarter of 2011. Mercer's consulting operations produced revenue of $640 million, an increase of 3%; outsourcing, with revenue of $183 million, was down 4%; and investments with revenue of $117 million, grew 9%. In the full year Mercer revenue was up 9% to $3.78 billion.
Oliver Wyman's revenue increased 2% to $406 million in the fourth quarter of 2011. In the full year its revenue was up 9% to $1.48 billion.