Posted on 09 Nov 2010
Marsh & McLennan Companies' risk and insurance services segment revenue in the third quarter of 2010 was $1.3 bn, an increase of 8 percent from the third quarter of 2009.
Excluding fiduciary interest income, underlying revenue in risk and insurance services increased 3 percent.
MMC added operating the division's income in the third quarter of 2010 rose 12 percent to $142 m, compared with $127 m in last year's third quarter. Adjusted operating income increased 4 percent in the third quarter of 2010 to $165 m.
For the nine months ended September 30, 2010, the segment's revenue was $4.3 bn, an increase of 9 percent from the prior year period, or 1 percent on an underlying basis.
Operating income rose 12 percent in the first nine months of 2010 to $747 m, compared with $669m in the same period in 2009, MMC added. Adjusted operating income rose 7 percent in the first nine months of 2010 to $825 m.
Marsh's revenue in the third quarter of 2010 rose 9 percent to $1.1 bn, or 3 percent on an underlying basis.
Underlying revenue growth in the United States/Canada was 3 percent in the third quarter of 2010; international operations rose 2 percent, reflecting growth of 4 percent in Latin America, 3 percent in Asia Pacific, and 1 percent in EMEA.
MMC added positive momentum from new business generation continued in the third quarter. Guy Carpenter's third quarter 2010 revenue rose 4 percent to $233 m, or 3 percent on an underlying basis, reflecting strong new business generation.
Brian Duperreault, MMC president and CEO, said: "The risk and insurance services segment grew revenue in an environment of continued soft market conditions in the property and casualty marketplace.
"Marsh produced strong new business globally, with revenue growth across all geographic regions. Guy Carpenter generated excellent revenue growth, reflecting new business production and high retention rates.
"Looking ahead, our plan is to produce long-term growth in revenue and earnings, maintain low capital requirements, generate high levels of cash, and reduce the company's risk profile."
Overall MMC's consolidated revenue in the third quarter of 2010 rose 7 percent to $2.5 bn from the third quarter of 2009, or 4 percent on an underlying basis.
MMC reported income from continuing operations of $128 m, compared with income of $207 m, in the third quarter of 2009.