Marsh & McLennan beats profit estimates on higher fiduciary interest income
Jan 25 (Reuters) - Marsh & McLennan reported a better-than-expected quarterly profit on Thursday, helped by an increase in interest income that the insurance brokerage earned from funds held on behalf of clients.
The U.S. Federal Reserve's higher-for-longer interest rate environment has helped companies rake in higher income on funds they hold in a fiduciary capacity - that is, on behalf of clients.
Fiduciary interest income almost doubled to $123 million in the fourth quarter from a year earlier.
Higher income from fiduciary interest helped the company register an 11% jump in revenue from its risk and insurance services arm to $3.3 billion from a year-ago period, accounting for a majority of its overall revenue.
On an adjusted basis, the company earned $1.68 per share for the three months ended Dec. 31. Analysts on average had expected a profit of $$1.63, according to LSEG IBES data.
Consolidated revenue in its consulting business was also up 10% at $2.3 billion. (Reporting by Pritam Biswas in Bengaluru; Editing by Maju Samuel)
