MMC Net Drops As Marsh Gains
By Mark E. Ruquet
NU Online News Service, Jan. 30, 12:22 p.m. EST?Marsh & McLennan Companies Inc. fourth-quarter net income for 2001 dropped nearly 50 percent to $144 million, but its insurance broker subsidiary, Marsh, had improved results over last year.
New York-based MMC's investment and consulting units did not perform as well, resulting in the company decline in income.
The $144 million net income for the period ending Dec. 31, 2001, compared with $286 million in 2000, or a reduction from $1.03 to 52 cents a share.
MMC said it had taken a one-time, noncash, pretax charge to income of $222 million reflecting a decline in value of the shares from an alliance with Gruppo Bipop-Carire S.p.A. Excluding one-time items, MMC said net income was $286 million.
MMC revenues were down $3 million for the quarter at $2.47 billion.
Insurance broker Marsh reported that for the quarter revenues grew 11 percent to $1.3 billion and operating income increased 22 percent to $265 million.
MMC's investment subsidiary, Putnam, reported a fourth-quarter revenue decline of 15 percent to $629 million.
The company's consulting division, Mercer, reported fourth-quarter revenue declines of 4 percent to $516 million from $537 million in 2000.
MMC said some of the company's reductions could be traced back to one time charges including a third-quarter charge of $173 million related to the events of Sept. 11. The company reported total charges of $187 million for the year.
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