Marsh & McLennan's first-quarter profit beats on higher fiduciary interest income

Marsh & McLennan Companies

18/04/2024 12:55

April 18 (Reuters) - Marsh & McLennan  MMC.N  reported a
better-than-expected quarterly profit on Thursday, helped by an
increase in interest income the insurance brokerage earned from
funds held on behalf of clients.
    The company's shares rose about 2% to $201 before the bell.
    The U.S. Federal Reserve's higher-for-longer interest rate
environment has helped such companies rake in higher income on
funds they hold in a fiduciary capacity, that is, on behalf of
clients.
    Marsh & McLennan's fiduciary interest income rose 34% to
$122 million in the first quarter.
    The New York-based company's revenue streams are diversified
across insurance brokerage, consulting, reinsurance brokerage,
talent management and investment management services.
    Revenue from the company's risk and insurance services
business rose 9% to $4.27 billion in the first quarter. The unit
accounts for most of Marsh & McLennan's revenue.
    On an adjusted basis, the company earned $2.89 per share,
beating estimates of $2.80 per share, according to LSEG data.
    Marsh & McLennan reported total revenue of $6.47 billion,
ahead of estimates of $6.39 billion.
    Insurance bellwether Travelers Companies  TRV.N  missed
first-quarter profit estimates on Wednesday as severe storms in
the United States drove up its catastrophe losses.

 (Reporting by Mehnaz Yasmin in Bengaluru; Editing by Shounak
Dasgupta)
 ((Mehnaz.Yasmin@thomsonreuters.com))