NU Online News Service, May 1, 1:35 p.m. EDT

Crediting high-retention rates and strong new-business growth, Marsh & McLennan Companies says first-quarter net income grew by 7 percent from the same period last year.

The New York-based services company, parent of insurance-broker Marsh and reinsurance-broker Guy Carpenter, reports net income rose $22 million to $347 million. Revenues rose 6 percent, or $167 million, to $3.05 billion.

In a conference call with financial analysts today, Brian Duperreault, president and chief executive officer, says all segments of the company saw increases and the results are in line with the company's “long-term plans to produce double-digit-earnings growth.”

Revenues at brokerage Marsh rose 8 percent, or $97 million, to $1.4 billion with organic growth of 7 percent. Guy Carpenter revenues were up 5 percent, or $17 million, to $357 million. Organic growth also rose 7 percent.

In its consulting business, revenues rose 4 percent, or $52 million, to $1.3 billion with organic growth or 4 percent.

Daniel S. Glaser, group president and chief operating officer, says that the organic-growth numbers at Marsh were the strongest the firm has seen in a decade.

The strong results were attributed to high retention rates, new business, pricing trends and mild improvement in the economic picture among clients, says Glaser.

On the subject of pricing, he says, that property is being impacted more than casualty rates. In the United States, property, workers' compensation and excess casualty are all up moderately. General liability and directors and officers insurance are still down. In other places in the world, rates are mixed.

“From a pricing standpoint, it's not a headwind, but I wouldn't call it a tailwind either,” says Glaser. “You have to look at what geography you're talking about and what line of business you're talking about. It's very segmented, and since we participate across all of those segments, its muted from our perspective.”