MMC's revenue drops 13% from 2008

Marsh & McLennan (MMC) has reported a 13% drop in revenue from 2008 to $2.6bn in the second quarter of 2009. The group also announced a net loss of $17 million, or $.03 per share, compared with a net loss of $145 million, or $.28 per share, last year. Adjusted earnings per share for the six months was $.72, compared with $.84 last year.

Its Risk and Insurance Services segment saw its revenue decline by 5 percent in the second quarter of 2009 to $1.3 billion. Operating income, however, jumped 63% to $245m from $150m reported last year last year.

Meanwhile, Guy Carpenter’s revenue rose 16 percent to $227 million in the second quarter of 2009, compared with the prior year’s quarter. MMC said the increase in Guy Carpenter’s profitability was attributable to an increase in new business along with continuing cost discipline

“MMC performed well in the second quarter despite the continued difficult economic environment affecting our businesses. Results for our Risk and Insurance Services segment were excellent. Underlying revenue rose 2 percent, excluding fiduciary interest income. Strong growth in operating income drove a substantial improvement in margins,” said MMC president and CEO Brian Duperreault.

“Marsh continued its excellent performance, achieving increased profitability through expense discipline. Guy Carpenter produced double-digit underlying revenue growth, reflecting strong new business, with increased profitability resulting from its continuing focus on expenses. The operating margin for Risk and Insurance Services increased to 18.2 percent from 10.6 percent, and adjusted operating margin increased to 20.2 percent from 14.6 percent a year ago.

“Overall, we have made excellent progress strengthening our operating companies while at the same time managing through the worst effects of the economic recession,” Duperreault added.