Corrects acquisition figure in paragraph 10 to $9.4 billion, not $10 billion

Jan 30 (Reuters) - Insurance brokerage and consulting company Marsh McLennan's MMC.N fourth-quarter profit beat Wall Street estimates on Thursday, as its risk and insurance business recorded strong growth.

WHY IT'S IMPORTANT

Insurers have consistently raised policy prices in recent years in response to losses from wars and natural catastrophes, along with inflationary pressures.

The sector usually sees steady or even heightened demand during economic uncertainty. Strong demand trends in the broader industry have also boosted income for brokerages like Marsh & McLennan, which earn commissions based on insurance premiums.

BY THE NUMBERS

On an adjusted basis, the New York-based firm earned $927 million for the quarter ended Dec. 31, or $1.87 per share.

Analysts on average were expecting $1.76 per share, according to data compiled by LSEG.

It reported a total revenue of $6.07 billion in the quarter, up 9.2% from last year.

Marsh McLennan's risk and insurance services business posted revenue growth of 11.5%, while its consulting arm's revenue climbed 6.1%.

Its fiduciary interest income - earnings on funds held on behalf of clients - fell 9% to $112 million.

CONTEXT

Marsh McLennan, through its four subsidiaries - Marsh, Mercer, Oliver Wyman, and Guy Carpenter - provides risk, insurance, and consulting services in over 130 countries.

The company went on a $9.4 billion acquisition spree in 2024, including the $7.75 billion purchase of McGriff, completed in November.

Earlier this week, insurance brokerage Brown & Brown BRO.N also beat fourth-quarter profit estimates, driven by robust growth in investment returns and increased commissions and fees.

(Reporting by Ateev Bhandari in Bengaluru; Editing by Tasim Zahid)

((Ateev.Bhandari@thomsonreuters.com))