Marsh & McLennan Q1 Results Top Estimates

(RTTNews) - Insurance brokerage Marsh & McLennan Cos., Inc. (MMC) reported Friday a profit for the first quarter that grew from last year, reflecting higher revenues and improved operating margins at its risk and insurance as well as consulting segments. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

"We produced double-digit earnings growth and meaningful margin expansion in the first quarter, with adjusted earnings per share rising 11% to $.81. This represents a strong start to 2014 and continues the excellent momentum we have achieved over the past several years," CEO Dan Glaser said.

New York-based Marsh & McLennan reported net income of $443 million or $0.80 per share for the first quarter, higher than $413 million or $0.74 per share in the prior-year period.

Excluding items, adjusted earnings for the quarter was $0.81 per share, compared to $0.73 per share in the year-ago quarter.

On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $0.80 per share for the quarter. Analysts' estimates typically exclude special items.

Consolidated revenue for the quarter grew 4 percent to $3.36 billion from $3.13 billion in the same quarter last year, and topped fourteen Wall Street analysts' consensus estimate of $3.27 billion.

Total risk and insurance services revenues increased 4 percent to $1.84 billion from last year, with Marsh revenues growing 5 percent. Total consulting revenues grew 5 percent to $1.43 billion from the year-ago quarter, with Mercer revenues improving 2 percent.

Operating margin for the quarter expanded 120 basis points to 20.6 percent from last year's 19.4 percent, reflecting continued margin expansion in both the risk and insurance services as well as consulting segments.

"On a consolidated basis, underlying revenue growth was 4%, adjusted operating income rose 11%, and the adjusted margin increased 120 basis points to 20.9%, reflecting continued margin expansion in both the Risk and Insurance Services and Consulting segments," Glaser added.

MMC closed Thursday's regular trading session at $49.17, down $0.16 on a volume of 2.46 million shares. In the past 52-week period, the stock has been trading in a range of $37.47 to $50.48.