John Q. Doyle
Group President, Chief Operating Officer & Vice Chair at Marsh & McLennan Companies
Thanks, Dan, and good morning, everyone. Our first quarter results were strong. We had double-digit underlying revenue growth, with all businesses positively contributing. And our adjusted operating income hit a record level in the first quarter. Our strong start positions us well for 2022 despite greater uncertainty about the macroeconomic outlook.
Before I discuss market trends and our performance, I want to comment on our response to the crisis in Ukraine. As Dan noted, we condemn the Russian aggression, and we are saddened by the human suffering the war in Ukraine has caused. Our primary concern is the well-being of colleagues affected by this crisis. We took a number of steps to assist them, including providing evacuation support for Ukrainian colleagues and creating assistance programs in Poland and Ukraine. In addition, we've established a humanitarian relief fund to help the Ukrainian people. We're also bringing our capabilities and risk strategy and people to support clients as they grapple with the challenges of this conflict and its wider economic effects.
Oliver Wyman is helping clients, in the public and private sectors, manage a wide scope of issues. We are working on government security and defense matters, helping a number of banks manage their exposure to the region, supporting energy clients with their supply chain considerations and assisting large manufacturers as they manage the risk and production shutdowns.
Marsh is advising clients on risks around aircraft nationalization, cybersecurity, physical assets, supply chain and transitioning away from Russian energy. Mercer is helping clients deal with capital market volatility, asset allocation and Russian exposures. We are also working to provide continued health coverage for Ukrainians leaving the country.
Guy Carpenter is helping clients understand their exposures, portfolio concentrations and reinsurance recoveries. We're also advising clients on the complexities around sanctions and cause of loss, number of occurrences and claims aggregation.
I'm extremely proud of how our firm has responded to this crisis. Overall, we are harnessing the power of Marsh McLennan to help our colleagues and our clients in this moment that matters.
Now let me provide an update on current P&C insurance market conditions. Rate increases in the marketplace continue to persist, reflecting losses and concerns about the impact of inflation on claims and the firm reinsurance market. The Marsh Global Insurance Market Index showed price increases of 11% year-over-year. This marks the 18th consecutive quarter of rate increases in the commercial P&C insurance marketplace.
Looking at pricing by line, the Marsh Market Index showed global property insurance was up 7% and global casualty rates were up mid-single digits on average. Global financial and professional Lines, excluding cyber, increased high single digits while cyber rates more than doubled in some geographies. As a reminder, our index skews to large account business. However, small and middle market insurance rates continue to rise as well, although less than for large complex accounts.
Turning to reinsurance. April 1 renewals largely reflected a continuation of the January 1 pricing environment. The industry remains well capitalized, but finding capacity is challenging in specific segments. This reflects ongoing and emerging issues such as the frequency of severe events, cyber, climate change and core and social inflation. Overall, at April 1, U.S. property catastrophe rates were up in the high single digits for non-loss impacted accounts, while loss-impacted accounts generally increased in a range of 10% to 30%. U.S. cyber rates were up mid-teens or higher, depending on loss activity. Japanese property catastrophe rates increased low single digits. We remain focused on helping clients navigate challenging insurance and reinsurance markets and the evolving risk environment.
Turning to our performance in the quarter. As I noted earlier, Marsh McLennan had strong results. In the first quarter, we had double-digit underlying revenue growth in both RIS and Consulting. Adjusted operating income grew 12% on top of 20% in the first quarter of 2021, a terrific result. The first quarter marks the fourth consecutive quarter of double-digit underlying revenue growth, the longest stretch in over two decades.
Looking at Risk & Insurance Services. First quarter revenue was $3.5 billion, up 10% compared with a year ago or 11% on an underlying basis. This is the third quarter in the last 12 months, risk and insurance grew 10% or better, the best trend since 2003.
Adjusted operating income increased 12% to $1.2 billion, while our adjusted operating margin declined 10 basis points to 36.5%, reflecting investments in the business. At March, revenue in the quarter was $2.5 billion, up 10% compared with a year ago. Revenue growth was 11% on an underlying basis. We had excellent renewal growth, and we continue to see strong new business. U.S. and Canada had 10% underlying revenue growth. And this marks the U.S. and Canada's fourth consecutive quarter of double-digit underlying revenue growth. International was also strong with underlying revenue growth of 11%. Asia Pacific was up 17%. Latin America grew 16% and EMEA was up 9%.
Guy Carpenter's first quarter revenue was $1 billion, up 11% on an underlying basis, driven by a strong growth in new business and exceptional retention. Guy Carpenter has now achieved underlying revenue growth of over 10% in three of the last four quarters.
In the Consulting segment, revenue of $2 billion was a first quarter record, up 7% from a year ago or 10% on an underlying basis. This is the fourth consecutive quarter of 10% or higher growth. Adjusted operating increased 9%, to a first quarter record of $402 million. The adjusted operating margin was 20.6%, up 10 basis points versus a year ago.
Mercer's revenue was $1.3 billion in the quarter, up 6% on an underlying basis. The fourth consecutive quarter of 6% or higher growth. Career grew 16% on an underlying basis. We continue to see robust demand for solutions linked to new ways of working, skills gaps, workforce transformation and D&I issues like pay equity.
Health underlying revenue growth was strong at 9% in the quarter, reflecting growth across all geographies. This quarter's results benefited from strong demand for our services, higher retention, rising employment and medical inflation.
Wealth increased 2% on an underline, reflecting modest growth in both investment management and defined benefits. Our assets under management were $388 billion at the end of the first quarter, down 7% sequentially, as net inflows were more than offset by capital market declines. However, compared to the first quarter of last year, AUM was up 2%.
Oliver Wyman's momentum continued despite starting to lap tougher comparables to an outstanding 2021. Revenue in the first quarter was $667 million, an increase of 17% on an underlying basis. This represents the fifth consecutive quarter of double-digit growth and reflects continued strong demand across all geographies.
Overall, I'm pleased with our excellent first quarter performance and it sets us up for a good year.
Now I'll turn the call over to Mark for further detail on our financial results and a discussion of our outlook for the rest of 2022.