Marsh Spurs MMC Quarterly Income

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NU Online News Service, Oct. 21, 2:16 p.m.EDT?Marsh & McLennan Companies Inc. said it saw thelargest increase in net income since 2000 for the third quarter ofthis year, with its insurance arm, Marsh, leading the upwardsearnings drive.

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"MMC performed well in the third quarter, with improvement ineach of our businesses," said Jeffrey W. Greenberg, chairman of NewYork City-based MMC, in a statement.

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Mr. Greenberg said, "Secular changes are having a lasting effecton the business of advice and risk transfer. Clients face risksthat have grown in number, complexity and severity. Heightenedawareness of these risks creates a great need for expertise, andMarsh is uniquely qualified to address these needs around theworld."

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Marsh's revenues for the third quarter, ending Sept. 30,increased 15 percent, or $209 million, going from $1.43 billion in2002 to $1.64 billion this quarter. For the nine months, revenuesrose 17 percent, or $750 million, from $4.34 billion to $5.09billion.

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Operating income for Marsh rose $54 million, or 16 percent,going from $334 million to $338 million in the third quarter. Forthe nine months, operating income increased 20 percent, or $226million, going from $1.13 billion to $1.35 billion.

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MMC reported total net income for the third quarter rose $58million, 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 sharerose 10 cents from 55 cents per share to 65 cents per share.

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For the nine months, net income rose 11 percent, or $112million, from $1.05 billion to $1.17 billion. Earnings per shareduring the period rose 24 cents to $2.12 a share. Revenues rose$754 million, or 10 percent, from $7.8 billion to $8.55billion.

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The services company's other two units, investing firm Putnamand consulting division Mercer, also showed improvements, MMCsaid.

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Putnam showed a loss in revenue for the third quarter of $15million, going from $522 million to $507 million. However, MMC saidit showed a $20 million increase in operating income, going from$116 million to $136 million. Its total assets under managementgrew 14 percent to $272 billion as of Sept. 30.

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The consulting group, Mercer, reported a 15 percent increase inrevenues for the quarter, or $90 million, going from $600 millionto $690 million. For the nine months, revenues rose $254 million,or 14 percent, going from $1.76 billion to $2 billion.

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