Risk Moment RES

Marsh & McLennan Posts Net Loss

By REUTERS
Published: November 5, 2008
Filed at 8:43 a.m. ET

NEW YORK (Reuters) - Marsh & McLennan Cos Inc , the second-largest global insurance brokerage by assets, posted a third-quarter loss, compared with a large profit a year earlier, when it got a boost from the sale of Putnam Investments.

Marsh & McLennan, which competes with Aon Corp , said on Wednesday that its net loss came to $8 million, or 2 cents a share, compared with a year-earlier profit of $1.9 billion, or $3.60 a share, reflecting a one-time

Included in the quarter was an increase in the company’s professional-liability reserves by $33 million, or 4 cents a share.

On an adjusted basis, the company earned 21 cents per share, missing the analysts’ average forecast of 32 cents, according to Reuters Estimates.

New York-based Marsh & McLennan, which helps companies find commercial insurance coverage, said consolidated revenue rose 5 percent to $2.8 billion, compared with the average analysts’ estimate of $2.87 billion.

Revenue, before the impact of acquisitions and dispositions and other items, rose 2 percent.

MMC said revenue at its risk and insurance services unit was 1 percent higher at $1.3 billion, and consulting revenue rose 9 percent to $1.3 billion.

The company recorded $23 million in investment losses, equal to 3 cents a share, largely from market declines on private equity investments.

(Reporting by Lilla Zuill; Editing by Lisa Von Ahn)

http://www.nytimes.com/reuters/business/business-us-marshandmclennan.html