Marsh turns the corner

Marsh & McLennan Companies, Inc. (MMC) reported its 2006 Q1 consolidated revenues were US$3 billion – a 1% decline from 2005 Q1.

Marsh’s overall net income in 2006 Q1 was US$416 million, compared with US$134 million in 2005 Q1.

“A number of noteworthy items affected first quarter results in both 2006 and 2005,” Marsh noted in a release posted on its Web site. “First quarter 2006 noteworthy items include restructuring, legal and regulatory costs related to market service agreements, and other expenses totaling US$63 million.”

Michael G. Cherkasky, MMC president and CEO, said: “For the last 18 months, questions in the marketplace have been whether and when Marsh would recover. We began to see positive signs of recovery in Marsh in the fourth quarter of 2005.”

Guy Carpenter’s first quarter revenues were US$281 million, an increase of 2% on an underlying basis. “Carpenter achieved double-digit growth in new business compared with last year,” MMC announced. “Higher risk retention by clients offset the effect of the meaningful increase in U.S. property catastrophe premium rates in the first quarter.”