(Reuters) – Marsh McLennan reported second-quarter profit above expectations on Thursday, bolstered by the higher interest the company earned from client funds.
The company reported a profit of $2.20 per share, excluding one-time costs, for the three months ended June 30. Analysts had expected a profit of $2.12 per share, according to Refinitiv data.
Marsh McLennan said its risk and insurance services business, which accounts for the majority of the company’s revenue, was helped by a strong performance across U.S., Canada and other international markets.
But the biggest boost to the segment came from an eight-fold jump in fiduciary interest income to $108 million.
Ten successive rate hikes by the U.S. Federal Reserve have helped companies net higher interest income on funds they hold on behalf of clients.
A rebound in markets this year, coupled with expectations the Fed is done with the bulk of its rate hikes, have also boosted sentiment even as fears of a downturn later in the year, persist.
That has prompted companies to restart spending on insurance premiums and advisory solutions after cutting down on such costs last year.
Revenue for Marsh McLennan jumped 9% to $5.88 billion in the quarter.
(Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri)
