Marsh Profits Flat
NU Online News Service, April 22, 11:55 a.m. EDT?Insurance broker Marsh said first-quarter net income increased 1 percent, or $3 million, going from $443 million, or 81 cents a share, to $446 million, or 83 cents a share.[@@]
Marsh, a subsidiary of New York-based Marsh & McLennan Companies Inc., reported first-quarter revenues increased 12.5 percent to $2 billion, a $221 million increase from the $1.8 billion recorded in the first quarter of 2003.
According to a research report from Morgan Stanley brokerage, organic growth at Marsh is at the lowest since the second quarter of 2000. Organic growth slowed to 7 percent, Morgan Stanley said. The analyst said it had expected an organic growth rate of 9 percent.
MMC said Marsh had a good quarter. It noted that insurance premium rates were continuing their trend from the last quarter, with declines in property lines and increases in casualty lines.
Overall, MMC reported first-quarter revenues rose 13 percent to $3.2 billion, a gain of $358 million over the $2.9 billion in the comparable period.
MMC said the results included a securities violations settlement at Putnam, the corporation's investment arm, of $110 million. There was also a World Trade Center insurance settlement of $278 million included in the results.
Morgan Stanley said that without the securities violation settlement MMC had earnings of 90 cents a share. The analyst expected earnings would come in at 92 cents a share, and Thomas First Call put the earnings at 91 cents a share.
Despite the earnings results, Morgan Stanley said earnings should continue to fall within analysts' expectations.
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