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Marsh & McLennan revenue up 3.3% in second quarter

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Marsh & McLennan Cos. Inc. on Thursday reported second-quarter 2017 revenue of $3.49 billion, up 3.3% over a year ago.

Net income for the quarter was $501 million, up about 6% from the same period last year, the brokerage said in its earnings report.

Risk and insurance services revenue was $1.9 billion in the second quarter of 2017, up of 4% over the year-ago period. Consulting revenue in the second quarter was $1.6 billion, up 3% over the prior-year period.

Marsh L.L.C. reported second-quarter revenue of $1.6 billion, up 4% from a year ago; Mercer L.L.C. posted revenue of $1.1 billion, up 3% from a year ago; Guy Carpenter & Co. L.L.C. reported revenue of $293 million, up 3% from a year ago; and Oliver Wyman Group posted revenue of $483 million, up 5% from a year ago.

“In the second quarter, on a consolidated basis, we generated solid underlying revenue growth of 3% with continued earnings growth and margin expansion,” Marsh & McLennan President and CEO Dan Glaser said in the statement. “Underlying revenue increased across all four operating companies, with 2% growth in Risk & Insurance Services and 4% in Consulting.” 

In April, U.K.’s Financial Conduct Authority launched a number of coordinated dawn raids on several top insurance brokers, including Marsh Ltd., where they seized computers and information as part of investigation into aviation insurance broking. 

Marsh Ltd., Jardine Lloyd Thompson Group P.L.C., UIB Group, Aon P.L.C. and Willis Ltd., the U.K. brokerage subsidiary of Willis Towers Watson P.L.C., all issued statements acknowledging the probe.

In response to a question during Thursday’s conference call with analysts, Mr. Glaser said there was no update on the investigation.

“We’re cooperating fully,” he said. “We imagine it will take quite a while for them to work through their analysis and come to some sort of determination.”

For the six months ended June 30, consolidated revenue was $7 billion, up 4% from a year ago. Net income increased 12% to $1.1 billion. For the six months ended June 30, risk and insurance services revenue was $3.9 billion, up 5%. For the first six months of 2017, consulting revenue was $3.1 billion, up 3%.