New York: Marsh & McLennan Cos Inc, the No. 2 global insurance broker, reported a second-quarter net loss on Wednesday, hurt by a writedown of the value of its security consulting business.
Excluding one-time items, it 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 non-cash 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.
The New York-based company, which competes with Aon Corp. in helping businesses find commercial insurance coverage, 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.
Marsh & McLennan’s expenses in the quarter were down 7% from a year earlier to $2.65 billion, boosting the underlying profitability of some businesses.