No recession ‘crimson flag’ for Marsh but, says CEO


Read extra: Marsh McLennan declares Q2 2022 outcomes

“I don’t suppose there’s a extra resilient organisation that you can truly put money into,” was the CEO’s bullish message.

“I do suppose it’s essential to notice that in in all previous recessions since 1952, we grew adjusted EPS and we all know easy methods to run a enterprise in good occasions and in unhealthy occasions,” Glaser mentioned.

The broking boss described recessions as a “pure type of the financial cycle in a capitalist society.”

“We don’t fret over that, and we don’t plan all that a lot round it,” Glaser mentioned.

The insurance coverage market “is agency and stays agency”, Glaser mentioned, with reinsurance on the property facet “even tightening”.

Economic downturn impacts are sometimes first seen in its non-insurance companies, Oliver Wyman and Mercer, Glaser instructed analysts.

“The crimson flag shouldn’t be going up fairly but, however we watch it rigorously,” the CEO mentioned.

Marsh McLennan made 6,000 web hires final yr and the Glaser described this as “fairly excellent [in retrospect]”. The enterprise has slowed hiring into 2022, Glaser confirmed, having returned to a “extra regular” sample according to 2017 to 2019.

The slowdown “shouldn’t be cautious”, Glaser mentioned, however as a substitute recognises the size of recent hires in 2021.

As for the place the worldwide dealer would possibly put measures in place if financial situations warrant this, Glaser mentioned the enterprise stays within the “early to mid levels” of with the ability to drive operational enhancements and minimize inner prices.

“Most of our prices are fairly identifiable – you’ve gotten compensation and advantages, you’ve bought know-how, you’ve gotten premises or actual property, and you’ve got T&E [travel and expenses],” Glaser mentioned.

“So the levers that you could then utilise are priceless and I’ve to say we’ve got a really giant […] compensation pool pushed by profitability.

“It is dramatically bigger than it was a decade in the past or 5 years in the past as a result of our profitability is dramatically bigger, and that offers us great flexibility of defending shareholders within the occasion that we hit some headwinds on development or macro-economic elements.”


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