Marsh & McLennan report 500% increase in profit

Marsh & McLennan Companies Inc. (MMC) reported a hefty 2006 Q4 profit of US$226 million, an increase of more than 500% over 2005’s final quarter.
Full-year consolidated net income was US$990 million, compared with US$404 million in 2005.
Risk and insurance services revenues in the fourth quarter increased 4% to US$1.4 billion, or 5% on an underlying basis, according to a MMC release.
Guy Carpenter, a MMC subsidiary, experienced a 9% increase in revenues in the Q4, driven by 13% growth in new business.
“These results were achieved despite a reinsurance marketplace where increases in U.S. property catastrophe rates were mitigated by reduced reinsurance capacity and higher client risk retentions, and where rates in most other lines of business were stable to down globally,” says an MMC statement.
The financial results came as a result of a number of items, including restructuring costs and credits, legal and regulatory costs primarily related to market service agreements, among others.
“MMC had another good quarter, reporting its strongest revenue growth in three years,” Michael G. Cherkasky, president and CEO of MMC, said in a statement.
“Revenues from new business at Marsh were the highest they have been since the first half of 2004.”