NU Online News Service, Feb. 15, 12:27 p.m. EST
Marsh & McLennan Companies saw significant growth across the board, reporting fourth-quarter and year-end results that dramatically eclipsed the previous year's earnings results.
For the fourth quarter, New York-based MMC, parent company of insurance broker Marsh and reinsurance broker Guy Carpenter, said net income rose $180 million over the same period for 2009 to $203 million. Earnings per share rose 33 cents to 37 cents a share. Revenues grew by 9 percent, or $221 million, to $2.8 billion.
For the year, net income rose $628 million to $855 million. Earnings per share increased $1.13 to $1.55 a share. Revenues were up 7 percent, or $719 million, to $11 billion.
"I'm very pleased with our performance, not only for the fourth quarter, but for the full year as well," said Brian Duperreault, president and chief executive officer of MMC, during a conference call with financial analysts. "When we reported our results a year ago, we indicated that our primary goal for the year ahead was to drive top- and bottom-line growth across the enterprise. Our plan was to grow revenue organically and through strategic acquisitions. A year later, I'm delighted to be able to say that we have met both of our objectives."
Marsh said fourth-quarter revenue grew 12 percent from the prior year, or $139 million, to $1.3 billion. Organic growth grew by 6 percent. For the year, revenue grew by 10 percent, or $425 million, to $4.7 billion with 2 percent organic growth.
Reinsurance broker Guy Carpenter reported a 2 percent growth in revenue, up $4 million to $184 million, with 3 percent organic growth in the fourth quarter. On the year, revenues grew by 7 percent, or $64 million, to $975 million, with organic growth of 2 percent.
In its consulting business, the company reported fourth-quarter revenues increased 6 percent, or $70 million, to $1.3 billion, with organic growth of 6 percent. For the year, revenues rose 5 percent, or $226 million, to $4.8 billion, with organic growth of 3 percent.
Mr. Duperreault attributed a significant part of the company's performance to new business and investment in the company while at the same time managing expenses.
The company's insurance agency subsidiary, Marsh & McLennan Agency (MMA), made some significant acquisitions, acquiring Trion with $74 million in annual revenue and Strategic Benefit Solutions. The firm also acquired RJF Agencies in January.
During the conference call, Daniel S. Glaser, chairman and CEO of Marsh, said that MMA is continuing to expand its hub and spoke operations, seeking to acquire more geographically strategic operations while its hub operations acquire fold-in agencies.
Mr. Duperreault noted that while the firm is committed to an acquisition strategy, it does not plan to expand exclusively through that strategy and will continue to seek new business.
"We have established a structure and positions in the marketplace for room to grow," he said. "I certainly feel better than a year ago about our prospects."
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