Marsh & McLennan has reported a consolidated net income for the third quarter of $176m, more than double that of the same quarter in 2005 ($69m).
For the first nine months, consolidated revenues were $8.9bn, compared with $8.8bn for the same period of 2005. Consolidated net income was $764m compared with $369m in 2005.
Results from discontinued operations, net of tax, were $173m, resulting primarily from MMC's sale of its investment in Sedgwick Claims Management in January 2006.
Marsh revenues were $1bn for the quarter, a decline of 2%, and flat on an underlying basis.
Growth in new business continued, increasing 11% globally. Guy Carpenter also experienced double-digit growth in new business, resulting in revenues increasing 3% in the third quarter to $214m.
“MMC had a good third quarter,” said Michael Cherkasky, MMC president and chief executive. “Consolidated revenue growth was the highest we have achieved in two years. Our efforts to become more efficient across MMC produced substantially improved year-over-year profitability and margin, a continuation of the positive trends begun earlier this year."
“Marsh continued its recovery. Improvement in new business was even stronger this quarter, following growth in the second quarter. Client retention rates in the quarter increased over the prior year. European operating performance improved, with increased new business and higher client retention levels and profitability. These revenue trends allowed Marsh to report flat quarterly underlying revenues for the first time in two years, as well as substantially improved profitability. Guy Carpenter, despite a challenging market environment, exhibited revenue growth as a result of continued new business development,” Cherkasky concluded.
