Marsh & McLennan Revenue Growth Tops Expectations

By Chelsey Dulaney 

Professional-services firm Marsh & McLennan Companies Inc. on Thursday reported stronger-than-expected revenue growth for its fourth quarter, even as foreign currency swings ate into its growth abroad.

Marsh & McLennan is the parent of a number of companies, including the insurance-brokerage Marsh and consulting firm Mercer.

The company generates much of its revenue overseas, which has made it vulnerable to fluctuations in foreign currencies. Currency swings shaved 6% off its revenue growth in the quarter.

In all, for the period ended Dec. 31, profit rose to $375 million, or 71 cents a share, from $294 million, or 54 cents a share a year earlier.

Analysts polled by Thomson Reuters had forecast revenue of 71 cents a share.

The prior-year period included a $137 million debt-extinguishment cost, which affected the year-over-year comparison.

Revenue rose 2.8% to $3.34 billion, while analysts had expected revenue of $3.26 billion.

Core revenue, which excludes the impact of currency and acquisitions, grew 5%.

By that same measure, revenue in its risk and reinsurance business, grew 4%, with strong growth in Latin America and the Asia Pacific region.

Consulting revenue grew 5% on a core basis, driven by 8% growth in its health business and 7% growth in its talent business.

Shares of Marsh & McLennan, inactive premarket, are down 4.7% in 2016.

Write to Chelsey Dulaney at [e-mail]

(END) Dow Jones Newswires

February 04, 2016 08:17 ET (13:17 GMT)

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