NU Online News Service, Aug. 3, 12:04 p.m.EDT

Marsh & McLennan reports net income increased 19 percent inthe second quarter, driven by new business and strong retention inits insurance brokerage arm, according to one executive.

The parent company of insurance broker Marsh and reinsurancebroker Guy Carpenter, says second quarter net income increased $46million to $282 million. Revenues increased 12 percent, or $322million, to $2.9 billion.

For the first six months of the year, net income grew 25percent, or $123 million, to $607 million and revenues rose 11percent, or $571 million, over last year to $5.8 billion.

Brian Duperreault, president and chief executive officer ofMarsh & McLennan, speaking during a conference call withfinancial analysts, says the results were “outstanding andillustrate the excellent progress we have made.”

He says it is the fourth consecutive quarter of positiveearnings growth across all segments of the firm.

Peter Zaffino, president and CEO of Marsh, notes this is thesecond-best quarter the firm has had in the past five years thanksto stable retentions and “strong new business.”

“We are executing much better than we have in the past,” saysZaffino. “This is something that has been an evolutionprocess.”

Daniel S. Glaser, group president and chief operating officer,says client retention levels have “recovered from our dark period,”referring to the years 2005 to 2010. This is the period when thefirm was accused of steering contracts to certain companies inexchange for lucrative contingent commissions by New York’sattorney general.

As a settlement, the company paid more than $800 million and wasbanned from taking contingent commissions until last year.

“Our retention level is as good as it has ever been,” saysGlaser.

Marsh & McLennan recorded organic growth of 5 percentfor both the second quarter and first six months of the year.

During the second quarter Marsh reports revenues were, $1.35billion, an increase of 12 percent compared to last year.

Revenues for reinsurer Guy Carpenter rose 6 percent, or $14million, to $257 million in the second quarter, compared to lastyear.

Looking ahead, Duperreault says, “Our plan is to take what wehave now and grow this company.”