Revenues rose 8 percent, or $217 million, going from $2.64 billion to $2.9 billion for 2003.

The report beat out consensus earning estimates of 79 cents per share.

For the quarter, insurance broker Marsh saw its revenue rise 20 percent, or $297 million, going from $1.5 billion to $1.8 billion. Operating income rose 21 percent, or $98 million, going from $462 million to $560 million in 2003.

MMC also reported its consulting firm, Mercer, saw revenues increase $69 million, or 12 percent, from $565 million to $634 million.

The firm's investment management arm, Putnam, was the loser of the three, with revenues dropping 33 percent, or $149 million, going from $594 million in 2001 to $445 million for this quarter.

In a statement, Jeffrey W. Greenberg, chairman of MMC, said the firm's results were driven by the strong performance by Marsh, and Mercer performed well "at the strongest pace in two years." He said Putnam continued to take steps "to improve its operations and strengthen its prospects for growth."

Alice Schroeder, an analyst at Morgan Stanley, said in a report that MMC exceeded her estimate of 78 cents per share. The "higher than expected" revenue growth at Marsh and lower tax rate provided the upswing, she said. She noted that Marsh's margins did not expand as much as expected and the results at Putnam continued to be a drag on results.

She added that MMC's results bode well for both Aon and Willis. However, she said, Morgan Stanley expects the pace of results to slow in the latter part of 2003.