By Billy Crosby
Marsh & McLennan Cos.' (MMC) second-quarter profit surged
18% as the insurance brokerage reported stronger margins and
revenue in all segments.
The company's insurance and consulting businesses have been a
continued source of strength for Marsh & McLennan, as have a
series of acquisitions that have given a boost to the firm's
revenue.
Recently, both Standard & Poor's Ratings Service and Moody's
Investors Service lifted their ratings outlook on Marsh &
McLennan to positive from stable citing favorable trends in the
company's profit margins and improving operating performance.
The company posted a profit of $388 million, or 69 cents a
share, up from $329 million, or 59 cents a share, a year earlier.
Adjusted earnings grew to 72 cents a share from 61 cents a year
earlier.
Revenue edged up 2% to $3.08 billion, matching Wall Street's
prediction.
Revenue at the risk and insurance division, the company's
largest segment, climbed 2.9% while revenue in the smaller
consulting segment was up 0.9%.
Marsh's operating margin widened to 18.7% from 17.1%.
Investment income more than quadrupled to $23 million, including
$21 million of carried interest no longer subject to claw-back from
a private equity fund from 2003 that the company still holds a
general partnership interest.
Shares closed at $42.01 Tuesday and were inactive premarket. The
stock is up 23% in the past 12 months.
Write to Billy Crosby at William.Crosby@wsj.com
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