UPDATE 2-Marsh McLennan's flat operating margins in risk and insurance unit drags on shares

(Recasts first paragraph, adds shares and details on operating margin) Oct 16 (Reuters) – Insurance broker Marsh McLennan reported a rise in third-quarter adjusted profit on Thursday, but flat operating margins and slowing growth in its risk and insurance business weighed on its shares, which fell about 8% in afternoon trading. Before the session, the company's stock had lost about 4% in 2025. The slowdown was linked to further rate softening, an uneven economy and macro uncertainty weighing on demand from large clients – headwinds that could also weigh on the company's growth going into 2026, William Blair analysts said. Adjusted operating margin in Marsh McLennan's risk and insurance unit came in at 24.7% in the third quarter of 2025, flat to the year earlier and missing estimates, according to a note by Jefferies. Revenue in the risk and insurance services business was $3.9 billion, up 13% from a year earlier. However, underlying growth in the segment slowed to 3%, from 4% in the second quarter of 2025. Brokers generate revenue through commissions based on premiums, tying their performance closely with insurance industry numbers. New York-based Marsh McLennan caters to clients in more than 100 countries across four businesses — Marsh, Guy Carpenter, Mercer and Oliver Wyman. However, the company said earlier in the week that it would change its brand to Marsh, effective January, and the four businesses will move to the new brand from 2027 following a transition period. Revenue in its consultancy arm increased 9% to $2.5 billion, helping the company record an 11% rise in total revenue to $6.4 billion for the three months ended September 30. Adjusted net income attributable to Marsh McLennan came in at $911 million, or $1.85 per share, for the third quarter, compared with $825 million, or $1.66 per share, in the year-ago period. Net income, however, remained flat on a year-on-year basis. (Reporting by Pritam Biswas in Bengaluru; Editing by Leroy Leo and Pooja Desai)

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