Marsh Spurs MMC Quarterly Income
NU Online News Service, Oct. 21, 2:16 p.m. EDT?Marsh & McLennan Companies Inc. said it saw the largest increase in net income since 2000 for the third quarter of this year, with its insurance arm, Marsh, leading the upwards earnings drive.
"MMC performed well in the third quarter, with improvement in each of our businesses," said Jeffrey W. Greenberg, chairman of New York City-based MMC, in a statement.
Mr. Greenberg said, "Secular changes are having a lasting effect on the business of advice and risk transfer. Clients face risks that have grown in number, complexity and severity. Heightened awareness of these risks creates a great need for expertise, and Marsh is uniquely qualified to address these needs around the world."
Marsh's revenues for the third quarter, ending Sept. 30, increased 15 percent, or $209 million, going from $1.43 billion in 2002 to $1.64 billion this quarter. For the nine months, revenues rose 17 percent, or $750 million, from $4.34 billion to $5.09 billion.
Operating income for Marsh rose $54 million, or 16 percent, going from $334 million to $338 million in the third quarter. For the nine months, operating income increased 20 percent, or $226 million, going from $1.13 billion to $1.35 billion.
MMC reported total net income for the third quarter rose $58 million, or 19 percent, going from $299 million to $357 million. Revenue increased 11 percent, or $284 million, during the period, going from $2.55 billion to $2.84 billion. Net income per share rose 10 cents from 55 cents per share to 65 cents per share.
For the nine months, net income rose 11 percent, or $112 million, from $1.05 billion to $1.17 billion. Earnings per share during the period rose 24 cents to $2.12 a share. Revenues rose $754 million, or 10 percent, from $7.8 billion to $8.55 billion.
The services company's other two units, investing firm Putnam and consulting division Mercer, also showed improvements, MMC said.
Putnam showed a loss in revenue for the third quarter of $15 million, going from $522 million to $507 million. However, MMC said it showed a $20 million increase in operating income, going from $116 million to $136 million. Its total assets under management grew 14 percent to $272 billion as of Sept. 30.
The consulting group, Mercer, reported a 15 percent increase in revenues for the quarter, or $90 million, going from $600 million to $690 million. For the nine months, revenues rose $254 million, or 14 percent, going from $1.76 billion to $2 billion.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.