In the third quarter, MMC reported net income increased $107 million, from $69 million (12 cents a share) in 2005 to $176 million (31 cents a share). Revenues grew by 4 percent to $2.88 billion.

For the first nine months, net income more than doubled, from $369 million (68 cents a share) to $764 million ($1.36 a share). Revenues over the period grew just 1 percent to $8.89 billion.

Analysts shrugged off flat results in MMC's risk and insurance segment–which includes Marsh and reinsurance broker Guy Carpenter–where revenues were down 1 percent in the quarter to $1.27 billion. A further breakdown shows that MMC's insurance services revenue (Marsh), down 2 percent to $1.01 billion, more than offset the 3 percent gain in reinsurance services (Guy Carpenter) revenue to $214 million.

“We see this as the first report with more meat for the bulls than the bears,” Morgan Stanley's Marc Serafin said in an analyst's note. “Investors should be happy with flat organic growth at the brokerage and in-line to slightly better than expected results at the other operating segments.”

“The majority of the better-than-expected result came from higher revenue for the consulting division, better-than-expected profitability at Putnam and a lower tax rate,” noted David Small of Bear Stearns in his analyst note. He added that investors will focus on the possible sale of Putnam, which Mr. Cherkasky declined to discuss during the conference call.

Mr. Cherkasky did say that there is more capital flowing into Putnam than in the last few years and that all signs are pointing to improvements in that end of the business. Revenues at MMC's investment management operation (Putnam) were down 8 percent to $342 million.

MMC said that globally, new business has increased 11 percent at Marsh, while new business at Guy Carpenter “increased by double digits.”

Mr. Cherkasky declined to give specifics during the analysts call on where the firm's retention rate stands, but said it was up from where it had been, citing that as “one of the critical indicators of our rebound.” He added that generally speaking, retention is always “historically lower than in the hard market.”

However, Matthew B. Bartley, MMC's chief financial officer, said “we are still a few percentage points shy of retention rates where we would like to be in a soft market,” adding that the retention rate is expected to grow and, in turn, boost revenues.

Mike Bischoff, head of investor relations, said the soft market has affected earnings negatively by 3-to-4 percent. He added that the European market is much softer than in the United States.

After laying off hundreds of employees, MMC is now looking to aggressively hire people at Marsh, according to Mr. Cherkasky. He added that employee departures have slowed over 2005, with “less people going to our competitors.”

In its other business segments, revenue from benefits and human resource consulting (Mercer) rose 13 percent to $1.07 billion, while risk consulting and technology (Kroll) was up 4 percent to $251 million.

MMC's stock, which opened at $29.44 a share on Nov. 1, the day of its report, closed the day at $30.40 a share, up 96 cents or more than 3 percent.

MMC's stock traded at more than $45 a share back in 2003 before the contingency fee scandal struck the company, prompted by probes uncovering evidence of bid-rigging and account-steering to trigger volume-based bonuses.

To settle the investigations, MMC agreed to stop accepting such fees, at an annual cost of some $800 million–income the firm has been working to replace since the end of 2004.