Marsh 2006 Q3 profits skyrocket

Marsh & McLennan Companies, Inc. (MMC) has reported its 2006 Q3 consolidated net income more than doubled, from US$69 million last year to US$176 million in 2006.
In addition, consolidated revenues for 2006 Q3 stood at US$2.9 billion, an increase of 4% from 2005 Q3.
For the first nine months of 2006, MMC’s consolidated revenues were US$8.9 billion, compared with US$8.8 billion for the same period of 2005.
In a press release, the company noted a number of noteworthy items that affected financial results. These included restructuring and related costs; legal and regulatory costs primarily related to market service agreements; and other items indicated in the attached supplemental schedules.
Operating income increased markedly in the quarter to US$143 million, compared with US$20 million last year, reflecting restructuring efforts, improved efficiencies, and cost discipline.
“MMC had a good third quarter,” said Michael G. Cherkasky, president and CEO of MMC. “Consolidated revenue growth was the highest we have achieved in two years. Our efforts to become more efficient across MMC produced substantially improved year-over-year profitability and margin, a continuation of the positive trends begun earlier this year.
“Marsh continued its recovery. Improvement in new business was even stronger this quarter, following growth in the second quarter. Client retention rates in the quarter increased over the prior year.”
Guy Carpenter, despite a challenging market environment, exhibited revenue growth as a result of continued new business development, MMC reported.
The company said its 2006 Q3 revenues of US$1.3 billion “were similar to last year’s third quarter, and flat on an underlying basis.”