Marsh & McLennan reported that its third-quarter profit jumped due to the sale of Putnam Investments, but continuing operations slid 40 percent, mainly from a decline in its core insurance broking division, the Associated Press reported.

Net income was $1.95 billion, or $3.60 per share, compared with $176 million, or 31 cents per share, in the third quarter of 2006. However, earnings from continuing operations fell to $80 million, or 15 cents per share, from $133 million, or 24 cents per share, a year ago. Quarterly revenues rose 10 percent to $2.79 billion from $2.53 billion.

Marsh & McLennan CEO Michael Cherkasky announced today that he plans to stop several initiatives that have failed to boost profits in the company’s insurance brokerage unit, hoping to save $125 million in 2008 without hurting revenues, Reuters reported.

“The problems are the performance in the United States risk management and middle-market business, and to a lesser extent the U.K.,” Cherkasky said.

The interim leader added, “I got it wrong. I didn’t help in the critical areas in Marsh in the U.S. and the U.K. to get it right.” Marsh still is dealing with the aftermath of regulatory issues that have plagued the company in recent years.