Marsh & McLennan posts loss on Kroll write-down
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Wed, 07 May 2008 11:46:03 GMT |
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Reuters |
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US (Business) |
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NEW YORK (Reuters) - Marsh & McLennan Cos , which runs one of the world's largest insurance brokerages, on Wednesday posted a first-quarter loss, hurt by a $425 million write-down of goodwill for its Kroll risk consulting and technology unit.The net loss totaled $210 million, or 40 cents per share, and compared with a profit of $268 million, or 47 cents, a year earlier.Excluding the charge, New York-based Marsh said profit declined 20 percent to $215 million, or 41 cents per share. Revenue increased 8 percent to $3.05 billion.Analysts on average expected profit of 44 cents per share on revenue of $2.94 billion, according to Reuters Estimates.Marsh "generated strong new business results and showed marked improvement in client revenue retention," Chief Executive Brian Duperreault said in a statement. "We continue to evaluate Kroll to identify those businesses that have the greatest growth potential."Duperreault was named chief executive in January, replacing the ousted Michael Cherkasky. Duperreault previously ran Ace Ltd , which Marsh helped found in 1985, for a decade.In March, Marsh moved to split Kroll's corporate advisory unit into a separate business. It subsequently turned away a private equity firm, BC Partners, that expressed interest in buying Kroll, a person familiar with the matter said.Quarterly revenue in risk and insurance operations rose 2 percent to $1.51 billion, as a 10 percent increase in new business production helped offset the impact of price competition in commercial property and casualty insurance.Consulting revenue rose 15 percent to $1.3 billion, while risk consulting and technology revenue increased 10 percent to $259 million.Marsh shares closed Tuesday at $27.58.(Reporting by Jonathan Stempel; Editing by Derek Caney)
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