MMC’s 2008 Q2 profit falls US$112 million

Marsh & McLennan Companies Inc. (MMC) reported a profit of US$65 million for 2008 Q2, a decrease from 2007 Q2’s US$177 million.
For the first six months of the year, MMC’s net loss was US$145 million, reflecting a goodwill impairment charge of US$540 million, compared with last year’s profit of US$445 million, an MMC statement says.
Investment losses in 2008 Q2 were US$16 million, due to market-to-market decline on Risk Capital Holdings’ private equity investments, compared with investment gains of US$34 million last year, the statement says
Marsh’s Canadian and U.S. operations reported revenue of US$584 million for the quarter, a 2% increase over the same period of last year.
“The ongoing recovery at Marsh is reflected in its revenue growth, expense reduction, and significant increase in profitability,” said Brian Duperreault, MMC’s president and CEO.
“Guy Carpenter’s previously announced restructuring program is aligning expenses with revenue levels,” he added. “Overall I am pleased with our solid performance in the first half of the year and believe that MMC’s performance will continue to improve as additional organizational and business improvements are implemented.”