MMC Reports Strong Performance
By Mark E. Ruquet
NU Online News Service, Jan. 28, 11:16 a.m. EST?Marsh & McLennan Companies Inc. reported a 13 percent increase in net income for 2003, helped by strong performance by Marsh, its insurance brokerage service. The broker saw a 16 percent increase in revenues for the year.[@@]
The New York City-based services company said net income for 2003 rose $178 million from $1.37 billion, or $2.45 a share, in 2002 to $1.54 billion, or $2.82 a share. Revenues rose $1.15 billion, or 11 percent, from $10.44 billion to $11.6 billion for the year.
The fourth quarter saw net income jump 21 percent, or $66 million, from $312 million, or 57 cents a share, to $378 million, or 70 cents a share. Revenues rose 15 percent, or $394 million, going from $2.6 billion to $3 billion.
For the year, revenues at Marsh rose $958 million, or 16 percent, going from $5.9 billion to $6.9 billion. For the fourth quarter, the brokerage firm's revenues rose 13 percent, or $208 million, from $1.6 billion to $1.8 billion.
In a statement, Jeffrey W. Greenberg, chairman, said the company's results were driven by Marsh with broad growth throughout the firm. He said the broker continues to extend its geographic reach through internal growth and acquisitions.
Discussing Putnam, MMC's Boston-based investment firm, which has been caught up in a scandal over market timing activity in its mutual fund, Mr. Greenberg said after taking decisive action to remove those responsible for the violations, Putnam is working to renew investor confidence.
For the year, Putnam saw revenues drop 8 percent for a loss of $165 million, going from $2.17 billion to $2 billion. For the quarter, revenues rose 18 percent, or $85 million, going from $469 million to $554 million.
MMC's consulting arm, Mercer, saw a 15 percent increase in revenues, or $355 million for the year, going from $2.4 billion to $2.72 billion. For the quarter, revenues rose 17 percent, or $101 million, going from $604 million to $705 million.
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