Marsh Quarterly Net Up 117 Percent

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NU Online News Service, Jan. 29, 11:28 a.m.EST?Marsh & McLennan Companies Inc. today reportedfourth-quarter net income in 2000 had jumped by 117 percent as riskand insurance services revenues hit a record level.

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Net income for the quarter was $312 million, or 57 cents pershare, compared with $144 million, or 26 cents per share, for theperiod in 2001.

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The New York-based company's consolidated revenues in the fourthquarter 2002 were $2.6 billion, an improvement of 15 percentcompared to the comparable period in 2001.

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For the year, consolidated revenues rose 6 percent to $10.4billion, while the net income for 2002 grew 40 percent to $1.4billion, or $2.45 per share.

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The company said risk insurance services revenues rose 18percent to a quarterly record of $1.6 billion.

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Not all business segments improved, however. The company'sinvestment management segment, including Putnam Investments, amutual fund giant based in Boston, fared poorly in the downmarket.

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"U.S. equity markets in 2002 declined for the third consecutiveyear?the first such occurrence in 60 years," the company noted."Putnam's average assets under management in the fourth quarterdecreased 18 percent to $249 billion from $304 billion last year.Although Putnam's fourth-quarter revenues increased 15 percent to$469 million from $407 million, underlying revenues declined 22percent."

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But rising insurance fees have helped offset lower earnings fromMarsh's investment management operations. "In the fourth quarter,risk and insurance services revenues rose 18 percent to a quarterlyrecord of $1.6 billion, and operating income increased 38 percentto $365 million," the company stated.

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Revenues from Marsh's Mercer Consulting also improved; in thefourth quarter, its revenues increased 9 percent to $604 million,while the operating income rose 7 percent to $76 million.

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The year 2002 presented challenging conditions for each ofMarsh's businesses, said Marsh chairman Jeffrey W. Greenberg in astatement.

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"Marsh's professionals served the needs of clients in anenvironment where risks increased, capacity decreased, insurancerates rose, and terms and conditions were restricted. Putnammanaged through a protracted downturn in equity markets, makingadjustments to strengthen its operations," Mr. Greenberg said."Looking to 2003 and beyond, Marsh is positioned for futuregrowth," he said.

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