Marsh & McLennan (MMC) has reported a $US176 million ($234 million) first-quarter profit as operating income from its risk and insurance division climbed 27%.

MMC President and CEO Brian Duperrault has restructured the company’s under-performing divisions and says he is pleased with the latest result.

He says Marsh “continued to achieve a substantial increase in profitability through expense discipline,” while reinsurance broker Guy Carpenter showed significantly improved profitability.

Marsh earned $US1.1 billion ($1.5 billion) in revenue including 9% growth in Asia/Pacific while Guy Carpenter earned $US281 million ($373 million).

Overall, the risk and insurance division earned $US1.4 billion ($1.9 billion) during the quarter, down 8% from the previous corresponding period. Operating income increased to $US297 million ($395 million) from $US234 million ($311 million).

Last week MMC reached a $US 2.4 million ($3.2 million) settlement with Connecticut authorities over allegations Marsh engaged in price-fixing and bid-rigging and sought kickbacks from insurers. Marsh admitted no wrongdoing.

In 2005, Marsh agreed to pay $US850 million ($1.1 billion) to end similar charges brought by New York authorities.