By Saabira Chaudhuri
Marsh & McLennan Cos.' (MMC) third-quarter profit jumped 85%
as revenue edged up and the insurance brokerage benefited from a
comparison with a year-earlier period that included a loss related
to the early extinguishment of debt.
The company's insurance and consulting businesses have been a
continued source of strength for Marsh & McLennan, as have a
series of acquisitions that have given a boost to the firm's
revenue.
Chief Executive Brian Duperreault said Tuesday that the
company's "underlying revenue grew across all geographies,
reflecting solid client revenue retention rates and continued new
business development."
Marsh posted a profit of $241 million, or 44 cents a share,
compared with a profit of $130 million, or 24 cents a share, a year
earlier. The most recent quarter included an investment loss of $4
million. The prior year's period included $72 million of expense,
or about nine cents a share, related to the early extinguishment of
debt. Excluding one-time items, earnings were 39 cents a share in
the most recent period.
Revenue rose 1.4% to $2.85 billion. On an underlying basis,
which excludes currency fluctuations and items such as
acquisitions, dispositions and transfers among businesses, revenue
rose 3%.
Analysts polled by Thomson Reuters expected a per-share earnings
of 38 cents on $2.92 billion in total revenue.
Revenue at the risk and insurance division, the company's
largest segment, climbed 2% to $1.5 billion, while operating income
popped 26% to $234 million. Revenue in the smaller consulting
segment edged up 1% to $1.3 billion, while operating income climbed
20% to $193 million.
Income tax expense rose 38% to $90 million.
In September, Marsh & McLennan said Brian Duperreault would
retire as chief executive and president at the end of the year,
with Chief Operating Officer Daniel S. Glaser succeeding him.
Earlier that some month, the insurance brokerage said it had named
J. Michael Bischoff as its chief financial officer, making
permanent a role he had held on an interim basis since March.
Shares closed Monday at $34.25 and were inactive in recent
premarket trading. The stock is up 12% in the past 12 months.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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