For the year, consolidated revenues rose 6 percent to $10.4 billion, while the net income for 2002 grew 40 percent to $1.4 billion, or $2.45 per share.

The company said risk insurance services revenues rose 18 percent to a quarterly record of $1.6 billion.

Not all business segments improved, however. The company's investment management segment, including Putnam Investments, a mutual fund giant based in Boston, fared poorly in the down market.

"U.S. equity markets in 2002 declined for the third consecutive year?the first such occurrence in 60 years," the company noted. "Putnam's average assets under management in the fourth quarter decreased 18 percent to $249 billion from $304 billion last year. Although Putnam's fourth-quarter revenues increased 15 percent to $469 million from $407 million, underlying revenues declined 22 percent."

But rising insurance fees have helped offset lower earnings from Marsh's investment management operations. "In the fourth quarter, risk and insurance services revenues rose 18 percent to a quarterly record of $1.6 billion, and operating income increased 38 percent to $365 million," the company stated.

Revenues from Marsh's Mercer Consulting also improved; in the fourth quarter, its revenues increased 9 percent to $604 million, while the operating income rose 7 percent to $76 million.

The year 2002 presented challenging conditions for each of Marsh's businesses, said Marsh chairman Jeffrey W. Greenberg in a statement.

"Marsh's professionals served the needs of clients in an environment where risks increased, capacity decreased, insurance rates rose, and terms and conditions were restricted. Putnam managed through a protracted downturn in equity markets, making adjustments to strengthen its operations," Mr. Greenberg said. "Looking to 2003 and beyond, Marsh is positioned for future growth," he said.