Marsh & McLennan Cos. has reported strong revenue and earnings growth for both the quarter and year ended Dec. 31, 2000. For the year, revenues rose 11 percent to $10.2 billion from $9.2 billion in 1999.
Net income increased 23 percent to $1.2 billion, and earnings per share grew 18 percent to $4.10, compared with $959 million and $3.48, respectively, excluding the special charges in 1999 related to MMC’s acquisition of Sedgwick. For the fourth quarter, revenues grew 6 percent to $2.5 billion from $2.3 billion in 1999.
Excluding the special charges, net income increased 25 percent to $286 million from $229 million, and earnings per share rose 20 percent to $0.98 from $0.82 in 1999. The integration of Sedgwick has proceeded smoothly and ahead of schedule. Net consolidation savings totaled $30 million in 1999, $90 million in 2000, with a remaining $40 million anticipated in 2001.
Risk and insurance services results were excellent, fueled by new business. For the year, a revenue increase of 6 percent to $4.8 billion, combined with margin improvement, led to operating income growth of 17 percent to $944 million. In 2000, for the first time in more than a decade, there was a pricing turn in most U.S. commercial insurance lines.
Premium rates began to rise in the spring, and increases averaged approximately 10 percent at midyear, with the trend continuing in early 2001. In this changing environment for the transfer of risk, clients derive even greater value from Marsh’s advice and knowledge, its ability to analyze, structure and negotiate insurance programs, and its relationships with insurance markets throughout the world.
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