Company's first half results hit by $540m goodwill charge but Marsh reports growth.
Marsh & McLennan, the parent company of broker Marsh and reinsurance broker Guy Carpenter, reported a net loss of $145m due to a goodwill impairment charge of $540 million in the first six months of the year, compared with net income of $445 million last year.
In its second quarter results to June 30, 2008, consolidated revenue was $3bn, up 9% from the second quarter of 2007. Revenue growth was 4% on an underlying basis.
For the six months ended June 30, consolidated revenue was $6.1bn, an increase of 10%, or 4% on an underlying basis, from the comparable period in 2007.
Marsh saw its six month revenues up 8% to $2.4bn from $2.3bn at the same time in the previous year. Revenues at Guy Carpenter for the same period were down to $477m from $509m.
Brian Duperreault, president and chief executive officer of MMC, said: “MMC’s second quarter results were driven by marked improvement in Marsh’s operating performance and strong revenue growth at Mercer and Kroll.
"The ongoing recovery at Marsh is reflected in its revenue growth, expense reduction, and significant increase in profitability. Guy Carpenter’s previously announced restructuring program is aligning expenses with revenue levels.
"Mercer’s continued strong revenue growth was evident across all of its businesses, while Oliver Wyman’s growth slowed due to economic business conditions. Kroll reported impressive revenue growth in the quarter, led by litigation support and data recovery.
"Overall, I am pleased with our solid performance in the first half of the year and believe that MMC’s performance will continue to improve as additional organizational and business improvements are implemented.”
