Marsh Brokerage Boosts MMC Income 15%

Earnings per share increased 9 cents, or 18 percent, rising from 51 cents for the second quarter of 2001 to 60 cents in 2002.

MMC reported total revenues increased 3 percent, rising from $2.5 billion for the second quarter of 2001 to $2.6 billion.

"Strong revenue growth and increased profitability in risk and insurance services drove our second-quarter growth," Jeffrey W. Greenberg, chairman of MMC, said in a statement.

Insurance broker Marsh saw revenues increase 15 percent to $1.4 billion in the second quarter, compared to $1.25 billion during the same period in 2001. Operating income increased 30 percent to $329 million, compared to $253 million for the second quarter of 2001.

MMC's investment firm, Putnam, saw a decline in revenues of 17 percent, or $115 million, going from $696 million in 2001 to $581 million for the period this year. Operating income declined 18 percent, or $38 million, from $207 million to $169 million.

The consulting arm, Mercer, saw a slight increase in revenue, but gave up a little ground in operating income. Revenues rose $1 million, going from a reported $594 million in the second quarter of 2001 to $595 million in 2002. Operating income was off $1 million at $90 million for the second quarter this year, compared to $91 million in 2001.

MMC said that retirement consulting revenues increased 6 percent, but "revenues from management, compensation and communication consulting declined as a result of the continuing slowdown in corporate discretionary spending."