Posted on 08 Aug 2013 by Neilson
Marsh & McLennan Cos.' (MMC) second-quarter profit surged 18% as the insurance brokerage reported stronger margins and revenue in all segments.
The company's insurance and consulting businesses have been a continued source of strength for Marsh & McLennan, as have a series of acquisitions that have given a boost to the firm's revenue.
Recently, both Standard & Poor's Ratings Service and Moody's Investors Service lifted their ratings outlook on Marsh & McLennan to positive from stable citing favorable trends in the company's profit margins and improving operating performance.
The company posted a profit of $388 million, or 69 cents a share, up from $329 million, or 59 cents a share, a year earlier. Adjusted earnings grew to 72 cents a share from 61 cents a year earlier.
Revenue edged up 2% to $3.08 billion, matching Wall Street's prediction.
Revenue at the risk and insurance division, the company's largest segment, climbed 2.9% while revenue in the smaller consulting segment was up 0.9%.
Marsh's operating margin widened to 18.7% from 17.1%.
Investment income more than quadrupled to $23 million, including $21 million of carried interest no longer subject to claw-back from a private equity fund from 2003 that the company still holds a general partnership interest.