MMC Reports 18 Percent Increase in Earnings Per Share

Marsh & McLennan Companies, Inc. (MMC) reported consolidated revenues for the second quarter increased 3 percent to $2.6 billion from the second quarter of 2001. Net income grew 15 percent to $336 million, and earnings per share rose 18 percent to $.60 from $.51. For the six months, consolidated revenues rose 1 percent to $5.2 billion. Net income grew 14 percent to $754 million, and earnings per share increased 17 percent to $1.33 from $1.14.

“Strong revenue growth and increased profitability in risk and insurance services drove our second quarter growth,” MMC chairman Jeffrey Greenberg said. “Clients are continuing to face a challenging environment for commercial insurance. Marsh’s global risk transfer capabilities, depth of broking expertise and wide range of specialized resources are invaluable to clients dealing with increasingly complex risks and marketplace conditions.”

MMC’s risk and insurance services’ revenues rose 15 percent to $1.4 billion in the second quarter. Marsh’s underlying revenues, which exclude such items as foreign exchange, acquisitions and dispositions, increased 16 percent. Operating income rose 30 percent to $329 million. Marsh’s insurance and reinsurance broking results were strong across all geographies—North America, Europe, Latin America and Asia Pacific.