Marsh & McLennan Posts $256M Q4 Profit, Up 26% From Prior Year

By | February 14, 2012

Marsh & McLennan Companies reported $256 million for its 2011 fourth-quarter net profit, up 26.1 percent from one year ago when it posted $203 million profit.

For the 2011 full year, Marsh & McLennan posted net income of $993 million, up 16 percent from 2010 when it reported $855 million net income.

Consolidated revenue for the fourth quarter was $2.9 billion, a 4 percent jump from the year-ago period. Operating income for the quarter rose 20 percent to $391 million. The 2011 full-year revenue rose 9 percent to $11.5 billion. Operating income for the full year was $1.6 billion, up from $939 million in the prior year.

Risk and insurance services revenue was up 6 percent to $1.6 billion in the fourth quarter. Operating income was $304 million for the quarter, up 35 percent compared to a year ago. Adjusted operating income in the quarter rose 11 percent to $288 million. For the year, risk and insurance services revenue was $6.3 billion, an increase of 9 percent from the prior year.

Marsh’s revenue in the fourth quarter was $1.4 billion, up 6 percent from a year ago. International operations reported underlying revenue growth of 6 percent in the fourth quarter — reflecting growth of 9 percent in Asia Pacific, 8 percent in Latin America and 4 percent in EMEA. In the U.S./Canada division, underlying revenue grew 2 percent. In January 2012, Marsh completed its previously announced acquisition of the brokerage operations of Alexander Forbes in South Africa, Botswana and Namibia. Guy Carpenter’s fourth quarter revenue was $193 million, a 5 percent jump from one year ago.

Consulting segment revenue rose 3 percent to $1.3 billion in the fourth quarter. Operating income was $147 million in the quarter, compared with $150 million in the prior year. For the 2011 full year, consulting segment revenue rose 9 percent from the prior year to $5.3 billion. Adjusted operating income rose 12 percent to $619 million.

Mercer’s revenue was up 3 percent to $940 million in the fourth quarter. Oliver Wyman’s revenue rose 2 percent to $406 million in the fourth quarter.

Marsh & McLennan had an investment loss of $4 million in the fourth quarter, compared with investment income of $19 million one year ago. For the 2011 full year, investment income was $9 million, down from $43 million in 2010.

“We are very pleased with our company’s performance, both for the fourth quarter, and for the entire year,” CEO Brian Duperreault said. “For the second consecutive year, we achieved double-digit growth in adjusted operating income. This growth was broad-based, with both our risk and insurance services and consulting segments generating double-digit growth in adjusted operating income.”

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