Alexa
  • Directory of Taiwan

Marsh & McLennan 2nd-quarter profit edges up 3 percent on growth in insurance and consulting

Marsh & McLennan 2nd-quarter profit edges up 3 percent on growth in insurance and consulting

Marsh & McLennan Cos., the largest U.S. insurance brokerage, on Tuesday posted a 3 percent increase in second-quarter profit, driven by growth in its risk and insurance business and consulting operations.
The company also approved a new $1.5 billion (euro1.09 billion) share buyback, following the completion in July of a $500 million repurchase program.
Net income rose to $177 million (euro128 million) from $172 million (euro124 million) a year ago. The number of shares outstanding shrunk to 542 million from 550 million and per-share profit was flat at 31 cents per share.
Restructuring and other charges cut profits by 4 cents per share in the recent quarter, compared with charges of 5 cents per share a year ago.
Excluding results from the recently sold Putnam Investments and other now-discontinued businesses, earnings totaled $140 million (euro101 million), or 25 cents per share, compared with $131 million, or 24 cents per share, in the second quarter last year.
Analysts polled by Thomson Financial were looking for per share profits of 36 cents. Those forecasts typically exclude one-time charges.
Quarterly revenue rose 7 percent to $2.82 billion (euro2.04 billion) from $2.63 billion in the prior-year period.
Analysts polled by Thomson Financial forecast earnings of 36 cents per share and sales of $2.75 billion (euro1.99 billion). Those forecasts typically exclude one-time charges.
By segment, revenue from risk and insurance services rose 2 percent to $1.4 billion (euro1.01 billion), while its consulting business saw a 16 percent jump to $1.2 billion (euro0.87 billion). Partially offsetting that growth, revenue from risk consulting and technology declined 6 percent to $251 million (euro181.65 million).