* Q3 adjusted EPS $0.48; Street view $0.26

* Revenue down more than 10 pct to $2.5 billion

* Expenses cut by more than 16 pct (Adds CEO comment, financial details, background)

NEW YORK, Nov 4 (Reuters) - Marsh & McLennan Cos Inc (MMC.N: Quote, Profile, Research), the second-largest global insurance broker by assets, posted a better-than-expected quarterly profit as significantly lower expenses offset a decline in revenue.

Third-quarter net income was $221 million, or 41 cents a share. That compares with a net loss of $8 million, or 2 cents a share, a year earlier, when results were hurt by increases to liability reserves.

On an adjusted basis, the company reported earnings of 48 cents a share, well ahead of analysts' average forecast of 26 cents, according to Thomson Reuters I/B/E/S.

MMC, which competes with Aon Corp (AOC.N: Quote, Profile, Research) in helping businesses find insurance, has been drastically cutting costs to try to stay ahead of rising unemployment and contraction in spending, which have shrunk demand for insurance coverage.

Quarterly revenue fell more than 10 percent to $2.5 billion, while expenses were cut by more than 16 percent to $2.3 billion.

MMC's largest division, risk and insurance services, doubled its operating income, while its consulting businesses were able to cut spending in line with declining revenue.

"While the economic environment continues to be challenging, MMC's results reflect the effective management actions taken by our (divisions) over the past year, including significant expense reduction," Chief Executive Brian Duperreault said in a statement. (Reporting by Lilla Zuill; editing by John Wallace)