Marsh reports 2008 Q3 loss of US$8 million

Marsh & McLennan Companies, Inc. (MMC) reported a 2008 Q3 net loss of US$8 million, noting its revenue growth was 2% on an underlying basis before the impact of acquisitions and dispositions.
Marsh’s 2007 Q3 result was substantially higher, a profit of US$1.9 billion, but a year-over-year comparison of quarterly results is affected by MMC’s 2007 Q3 gain of US$1.9 billion related to the divestiture of Putnam Investments in August 2007.
MMC’s results for the nine months ended Sept. 30, 2008 include the previously reported non-cash goodwill impairment charge of US$540 million in the Risk Consulting and Technology segment. This resulted in a net loss of US$153 million.
On an adjusted basis, MMC’s 2008 Q3 earnings per share amounted to $.21 per share, flat with last year.
Brian Duperreault, president and CEO of MMC, said: “I am pleased with MMC’s solid performance, not only in the third quarter but also throughout the year.”
Reinsurance premium rates continued to decline globally in the third quarter across most coverages, with clients’ risk retention levels remaining high, MMC noted in a statement. “Guy Carpenter’s third quarter revenue declined 9% to US$205 million, compared with the prior year’s quarter. Restructuring efforts and continuing cost discipline have better aligned revenue and expense levels, allowing Guy Carpenter’s profitability on an adjusted basis to remain unchanged compared with the third quarter of 2007.”