Marsh 2007 Q4 profits fall

Marsh & McLennan Companies, Inc. (MMC) has reported a 2007 Q4 profit of US$85 million, compared to US$226 million over the same period last year.
Consolidated revenue in 2007 Q4 was US$2.9 billion, up 8% from 2006 Q4. Income from continuing operations was US$90 million, compared with US$168 million in 2006 Q4.
The company noted its 2007 Q4 net income included results from its discontinued operations, amounting to US$1.9 billion. These operations reflected “gains on the Putnam transaction in the third quarter of 2007 and the sale of Sedgwick Claims Management Services in the first quarter of 2006.”
For the entire year of 2007, Marsh’s consolidated revenue was US$11.4 billion, an increase of 8% from US$10.5 billion in 2006.
Brian Duperreault, who joined MMC as president and CEO in January 2008, said: “I am extremely pleased to join MMC, a company with outstanding franchises that have unrivaled talent, resources, and capabilities.
“I look forward to capitalizing on the many exciting opportunities before us. Our immediate focus is to improve profitability at Marsh and Kroll.”
In its risk and insurance services segment, Marsh reported its 2007 Q4 revenue amounted to US $1.4 billion, unchanged from the fourth quarter of 2006.
Guy Carpenter’s 2007 Q4 revenue was US$167 million, a decline of 2% from the prior year’s quarter. “Reinsurance premium rates continued to decline across most coverages globally, and clients continued to increase risk retentions,” MMC noted in a press release.
MMC’s consulting segment revenue grew 19%, to US$1.3 billion, in 2007 Q4.