(Reuters) – Marsh McLennan reported a better-than-expected third-quarter profit on Thursday, helped by higher interest income that the insurance brokerage earned from funds held on behalf of clients.
On an adjusted basis, the company earned $1.57 per share for the three months ended Sept. 30. Analysts had expected a profit of $1.39, according to LSEG IBES data.
Multiple interest rate hikes by the U.S. Federal Reserve have helped companies get higher interest income on funds they hold in a fiduciary capacity, that is, on behalf of clients.
Fiduciary interest income jumped more than three-fold to $131 million, Marsh McLennan said.
That helped the company post a 12% jump in revenue from its risk and insurance services arm, which accounts for a majority of its overall revenue.
(Reporting by Niket Nishant in Bengaluru; Editing by Shounak Dasgupta and Saumyadeb Chakrabarty)