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Duperreault delight as Marsh profits soar

MMC CEO Brian Duperreault

Global insurance broker Marsh & McLennan Cos (MMC) said profits rose 26 percent on broad-based revenue growth.The company’s Bermudian CEO Brian Duperreault said he was “very pleased” with the company’s performance both for the fourth quarter and for the year.“For the second consecutive year, we achieved double-digit growth in adjusted operating income,” Mr Duperreault said.“This growth was broad-based, with both our Risk and Insurance Services and Consulting segments generating double-digit growth in adjusted operating income.”A series of acquisitions also helped MMC to build up revenue last year.The fourth-quarter profit was $256 million, or 46 cents a share, up from $203 million, or 37 cents a share, in the same period in 2010. Earnings from continuing operations rose to 44 cents a share from 34 cents a year ago.Revenue increased 4.4 percent to $2.91 billion, or about three percent on an underlying basis, which excludes acquisitions, divestitures foreign exchange and other items. Analysts polled by Thomson Reuters expected a per-share profit of 45 cents on $3 billion in revenue.Operating margin widened to 13.4 percent from 11.7 percent.The company’s risk and insurance division, its largest, reported a 35 percent jump in operating profit as revenue rose six percent to roughly $1.6 billion. Underlying revenue was up four percent in the segment, which includes the core Marsh insurance brokerage business and Guy Carpenter, a reinsurance intermediary.MMC shares fell 66 cents, or 2.1 percent in New York trading yesterday, to close on $31.23.