Marsh & McLennan Co. has reported that its income had a significant increase in the 2011 second quarter as a result of a sudden boost in the company’s insurance and consulting business, which led to greater revenues.
This New York-based business services organization reported that its primary insurance business brought in a greater number of new clients and held onto more existing customers, which allowed sales for that branch of the company to increase by 11 percent.
The net income for Marsh & McLennan rose by 19 percent by the end of the second quarter, which occurred on June 30. This was the equivalent of 50 cents per share, or $282 million – a notable increase from the same time in 2010 when there had been an increase of 43 cents per share at $236 million.
Discontinued operations led to a significant lowering in income, which lessened the overall increase in earnings. In the second quarter, Marsh & McLennan brought in $3 million from discontinued operations, which is no comparison to 2010’s discontinued operations earnings of $271 million.
The company’s revenue did rise 12 percent from last year’s $2.61 billion to $2.93 billion. Each element of the organization that announced its sales results experienced an increase in the double digits except for the reinsurance provider, Guy Carpenter.
Other than the single-time items – for example, discontinued operations and tax charges – there were earnings of 50 cents per share, which is up from last year’s 6 cent loss per share.
These outcomes were significantly greater than what Wall Street had predicted; which was a revenue of $2.81 billion, or 46 cents per share.