Ambac, MBIA, Marsh & McLennan

Bond insurers Ambac Financial Group Inc. and MBIA Inc. were battered by heavy losses in the third quarter, while Marsh & McLennan Cos. Inc. posted a slight loss. Ambac posted a third-quarter loss of $2.43 billion, or $8.45 per share, as it set aside $3 billion to cover anticipated claims. That compared to the net loss of $360 million, or $3.53 per share, that the New York-based bond insurer incurred during the year-ago period. The results included $2.71 billion in derivatives losses, up from $723.3 million in the year-ago period. The bulk of the losses, $1.87 billion, came from its portfolio of collateralized debt obligations. MBIA reported a net loss of $806.5 million, or $3.48 per share, as battered credit markets have forced it to increase it reserves to handle claims. The Armonk, N.Y.-based company posted a net loss of $36.6 million, or 30 cents per share, in the year-ago period. The company recorded an operating loss, which excludes unrealized net losses on investments, of $514.8 million, or $2.22 per share, compared to after-tax operating income of $192.6 million, or $1.56 per share, in the year-ago period. Marsh & McLennan Cos. Inc., the large insurance brokerage, posted a third-quarter loss of $8 million, or 2 cents per share, on lower revenue in its risk consulting business. The Chicago-based company had recorded a profit of $1.95 billion, or $3.60 per share, in the year-ago period. The previous results included a $1.87 billion gain from its sale of Putnam Investments of Boston. Revenue in the company's risk and insurance business, which includes Guy Carpenter & Co. LLC, increased 1%. Sales at Guy Carpenter, the risk and reinsurance specialist, declined 9% as reinsurance premium rates declined globally.