Marsh & McLennan profits climb 19%
Marsh & McLennan Companies Inc (MMC) boosted its profits by 19 percent during the second quarter as revenue streams increased across the board.
The New York-based insurance broker’s net income rose to $282 million from $236 million last year, including income from discontinued operations, net of tax, of $3 million, compared with $271 million in the prior year period.
It was also up more than $100 million for the first six months of 2011, at $607 million, or $1.09 per share, versus $484 million, or 88 cents per share, in 2010.
Earnings per share increased 16 percent to 50 cents from 43 cents, while income from continuing operations climbed to $286 million or 50 cents per share from a loss in the prior year period.
Bermudian Brian Duperreault, president and chief executive officer of MMC, said: “We are very pleased with our performance in the first half of 2011. Our excellent second-quarter performance successfully built on our strong first quarter results.
“Each of our four operating companies produced strong growth in revenue and profitability in the second quarter. In risk and insurance services, Marsh’s underlying revenue grew across all geographies, reflecting increases in new business development and client revenue retention rates. Guy Carpenter continued to produce impressive results, reporting its tenth consecutive quarter of underlying revenue growth.
“Consulting produced strong underlying revenue growth as it has over the last year. Mercer continued to generate positive results, led by good underlying revenue growth in its consulting and investments businesses. Oliver Wyman achieved strong underlying revenue growth for the sixth consecutive quarter.
“We continue to progress toward our goal to establish Marsh & McLennan Companies as an elite, global growth enterprise. Our operating results in the first half of the year demonstrate the type of performance the senior leadership team is striving for. Sustaining this performance over the long term should translate into outstanding results for our shareholders.”
Consolidated revenue in the second quarter of 2011 was $2.9 billion, an increase of 12 percent from the second quarter of 2010, or five percent on an underlying basis.
Operating income rose to $465 million versus a loss in the prior year period. Adjusted operating income in the second quarter was up 17 percent to $462 million.
For the six months ended June 30, 2011, income from continuing operations was $605 million or $1.06 per share, compared with $245 million or 43 cents per share in 2010.