Marsh & McLennan Companies (MMC) has reported net income of $416m in the first quarter of 2006, compared with $134m in the first quarter of 2005.
Results from discontinued operations, net of tax, were $178m, primarily from MMC's sale of its investment in Sedgwick Claims Management Services in January 2006.
Income from continuing operations was $238m, compared with $129m in the first quarter of 2005.
Marsh said revenues declined 7% to $1.5bn in the first quarter largely due to resigning from unprofitable accounts. However, it added that client retention improved substantially, as was also seen in the fourth quarter of 2005.
In the US, new business increased to its highest level since the beginning of last year.
Michael Cherkasky, president and chief executive of MMC, said: "For the last 18 months, questions in the marketplace have been whether and when Marsh would recover.
"We began to see positive signs of recovery in Marsh in the fourth quarter of 2005. In the first quarter, with increasing momentum, we saw revenue improvement with a significant increase in operating income.
"We are also seeing an increase in our new business opportunities, a high win rate in competitive situations, a return of previously lost business, and an increase in retained business. All of this points to better performance for Marsh in the future.”
“Guy Carpenter, our reinsurance broking business, reported an increase in underlying revenues.
"Overall, MMC's bottom-line performance continues to improve."
