Brian Duperreault, MMC President and CEO said: "We are pleased with the progress MMC made in the second quarter. Our 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 especially good revenue growth in Asia Pacific and Latin America. Guy Carpenter generated underlying revenue growth, reflecting new business production. In our Consulting segment, Mercer continued to control expenses in a weak economic environment. We were also pleased with the growth in revenue and operating income generated by Oliver Wyman.
"The sale of Kroll will allow us to concentrate on our Risk and Insurance Services and Consulting businesses. We look forward to pursuing our objectives for future growth and to unlocking the potential of MMC as a strategic enterprise," Mr. Duperreault concluded.
MMC Consolidated Results
MMC's consolidated revenue in the second quarter of 2010 rose 6 percent to $2.6 billion from the second quarter of 2009, or 1 percent on an underlying basis. Underlying revenue measures the change in revenue before the impact of acquisitions and dispositions, using consistent currency exchange rates. For the six months ended June 30, 2010, MMC's consolidated revenue was $5.2 billion, an increase of 7 percent, or 1 percent on an underlying basis.
For the second quarter of 2010, net income was $236 million, or $.43 per share, compared with a loss in the prior period. MMC reported a loss from continuing operations in the second quarter of 2010 of $29 million, or $.06 per share, compared with income of $157 million, or $.28 per share, in the same period of 2009. Kroll has been classified as a discontinued operation following the agreement reached by MMC in June to sell Kroll to Altegrity for $1.13 billion. The transaction is expected to close this week. Discontinued operations, net of tax, was $271 million, or $.49 per share, compared with a loss in the prior period.
In the second quarter, earnings per share on an adjusted basis increased 28 percent to $.46, compared with $.36 in 2009. Adjusted earnings per share in both periods excludes noteworthy items and includes the operating results of Kroll as presented in the attached supplemental schedules on pages 10 and 12.
For the six months ended June 30, 2010, net income was $484 million, or $.88 per share, compared with a loss in the prior period. MMC's income from continuing operations was $245 million, or $.43 per share, compared with $329 million, or $.60 per share, in 2009. Discontinued operations, net of tax was $249 million, or $.45 per share. Adjusted earnings per share for the first six months of 2010 increased 29 percent to $.97, compared with $.75 in the same period last year.
Risk and Insurance Services
Risk and Insurance Services segment revenue in the second quarter of 2010 was $1.5 billion, an increase of 9 percent from the second quarter of 2009, or 1 percent on an underlying basis. Operating income in the second quarter of 2010 rose 5 percent to $258 million, compared with $245 million in last year's second quarter. Adjusted operating income rose 11 percent to $302 million from $271 million, reflecting improved performance at Marsh and Guy Carpenter, as well as acquisitions. For the first six months of 2010, segment revenue was $3 billion, an increase of 9 percent from the prior year period, and flat on an underlying basis.
Marsh's revenue in the second quarter of 2010 rose 9 percent to $1.2 billion from the same period in 2009, or 1 percent on an underlying basis. Underlying revenue growth in international operations was 6 percent, reflecting 3 percent growth in EMEA, 12 percent in Asia Pacific and 13 percent in Latin America. Marsh had strong growth in new business in the quarter. Insurance premiums in the property and casualty marketplace continued to decline.
In the quarter, Marsh completed the acquisition of HSBC Insurance Brokers, whose integration is progressing well. Additionally, Marsh & McLennan Agency acquired The Bostonian Group Insurance Agency.
Guy Carpenter's second quarter 2010 revenue rose 7 percent to $243 million, or 2 percent on an underlying basis, reflecting strong new business generation.
Consulting
Consulting segment revenue increased 2 percent to $1.2 billion in the second quarter of 2010, or 2 percent on an underlying basis. For the first six months of 2010, segment revenue increased 4 percent to $2.3 billion, or 1 percent on an underlying basis. Due to the settlement of the Alaska litigation, an operating loss of $275 million was incurred in the second quarter of 2010, compared with operating income of $96 million in the second quarter of 2009. Adjusted operating income was $127 million, compared with $131 million in 2009. For the first six months of 2010, adjusted operating income rose 19 percent to $243 million, compared with $205 million in 2009.
Mercer's revenue increased 1 percent to $838 million in the second quarter of 2010 and declined 1 percent on an underlying basis. Mercer's consulting operations produced revenue of $588 million, a decline of 3 percent on an underlying basis from the second quarter of 2009. Outsourcing, with revenue of $161 million, was flat, and investment consulting and management, with revenue of $89 million, grew 17 percent.
Oliver Wyman's revenue increased 6 percent to $330 million in the second quarter of 2010, or 8 percent on an underlying basis. Oliver Wyman's largest practice, financial services, produced a double-digit revenue increase, similar to the first quarter of 2010.