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Member, Beacon International Group, Ltd.
NEW YORK (Reuters)-Marsh & McLennan Cos. Inc. reported a second-quarter net loss on Wednesday, hurt by a writedown of the value of its security consulting business.
Excluding one-time items, New York-based MMC posted a profit that matched the average Wall Street forecast.
The net loss was $193 million, or 37 cents a share, compared with a year-earlier profit of $65 million, or 12 cents a share, which also included a charge.
Excluding special items, it earned 33 cents a share, in line with analysts' expectations, according to Reuters Estimates.
The broker said it wrote down the value of its Kroll security consulting business, resulting in a noncash charge of $315 million, or about 60 cents a share.
It also recorded a loss of $31 million stemming from the declining value of its private equity investments.
MMC said consolidated revenue fell 13% to $2.6 billion, below the average estimate of $2.76 billion.
Revenue within its main business unit, insurance brokerage Marsh Inc., fell 7% to $1.1 billion on lower insurance premiums.
Insurance rates have been falling in recent years, costing brokers who are largely compensated by commissions. In response, most brokers have curbed spending.
MMC's expenses in the quarter were down 7% from a year earlier to $2.65 billion, boosting the underlying profitability of some businesses.