Marsh & McLennan Cos. said Tuesday it returned to profitability in the second quarter as revenue grew across all its major businesses.
The insurance broker and consulting company also avoided major impairment charges that led to a loss during the second quarter last year.
Marsh & McLennan saw modest increases in revenue across all its major risk and insurance services subsidiaries, as well as its consulting divisions.
Results also got a lift from its subsidiary Kroll for a final time. Marsh & McLennan agreed to sell Kroll, a risk consulting business, to Altegrity Inc. for $1.13 billion in cash. The deal is expected to close later this week.
Marsh & McLennan earned $236 million, or 43 cents per share, during the April-June quarter. That contrasts with a loss of $193 million, or 37 cents per share, a year earlier.
Including results from Kroll, which were listed as discontinued operations in the earnings statement, and other one-time items, Marsh & McLennan earned 46 cents per share. That's better than the 44 cents per share earnings analysts polled by Thomson Reuters had forecast.
Analysts predicted revenue would total $2.71 billion during the quarter. Marsh & McLennan fell short of those expectations, generating revenue of $2.61 billion. Still that was an improvement from the $2.47 billion generated during the same quarter in 2009.
Revenue climbed 9 percent in the risk and insurance services division. Within the division, its Marsh subsidiary saw revenue rise 9 percent to $1.21 billion, while Guy Carpenter's revenue rose 7 percent to $243 million.
The consulting division saw a more modest increase. Within the consulting division, Marsh & McLennan's Mercer subsidiary saw revenue rise just 1 percent to $838 million, or Oliver Wyman Group revenue rose 6 percent to $330 million.
Stronger revenue as well as improved performance, particularly at Marsh and Guy Carpenter, helped drive net income higher. Revenue was helped by favorable currency exchange and recent acquisitions.
Shares of Marsh & McLennan rose 2 cents to $23.90 in pre-opening trading.
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