Marsh & McLennan swings to 3Q loss

The New York-based firm reported a net loss of $8 million, or 2 cents per share, in the period ended Sept. 30. That's a reversal from a profit of $1.95 billion, or $3.60 per share, a year ago.

The year-ago results included a $1.9 billion gain on the Putnam Investments sale in August 2007.

But Marsh's earnings from continuing operations slid 78 percent to $18 million, or 3 cents per share, from $80 million, or 15 cents per share. Excluding one-time items, adjusted profit was 21 cents per share in the latest quarter.

The latest results included an investment loss of $23 million, or 3 cents per share, primarily due to declines in private equity investments, the company said.

Total revenue edged up 4.5 percent to $2.84 billion from $2.72 billion a year ago.

Thomson Reuters said analysts it surveyed, on average, had been expecting a profit of 32 cents per share on revenue of $2.88 billion.

"Throughout the entire economic and business environment, there continues to be significant pressure," said Brian Duperreault, president and chief executive of Marsh & McLennan, on a conference call with analysts. "At Marsh & McLennan we have been moving swiftly to bring our risk and human capital expertise to bear for clients as well as to capitalize on opportunities the current environment affords a company like ours."

Marsh & McLennan, which competes with Aon Corp., helps companies find commercial insurance coverage.

In recent weeks, analysts have said insurance brokers like Marsh & McLennan should see insurance pricing stabilize as customers move away from battered insurer American International Group Inc. while underwriters face mounting catastrophic losses from Hurricanes Gustav and Ike and face weaker investment results. Those changes and losses will likely lead to a firming of pricing and more growth opportunities.