Marsh & McLennan Companies
|Traded as||NYSE: MMC
S&P 500 Component
|Founded||Chicago, Illinois, U.S. (1905)|
|Headquarters||1166 Avenue of the Americas,
New York City, New York, U.S., United States
|Key people||Dan Glaser (President & CEO)|
|Revenue||$11.5 billion (2011)|
|Operating income||$1.6 billion (2011)|
|Net income||$982 million (2011)|
|Total assets||$15.4 billion (2011)|
|Total equity||$5.4 billion (2011)|
|Subsidiaries||Mercer, Oliver Wyman Group|
In 2012, it had approximately 54,000 employees and recorded an annual revenue of $11.9 billion. In 2013, Marsh & McLennan Companies was ranked the 228th largest corporation in the United States by the 2013 Fortune 500 list, and the 5th largest U.S. company in the diversified financial industry. Marsh & McLennan Companies was also ranked 29th on the 2012 Bloomberg Businessweek 50, the magazine's annual ranking of the S&P 500's top 50 performing companies.
The company expanded over the years becoming one of the world's largest insurance agencies through growth and acquisition.
The reinsurance firm Guy Carpenter & Company is acquired in 1923 a year after its founding by Guy Carpenter.
In 2003, it purchased the consultancy business Oliver, Wyman & Company and merged these with some of the consultancy businesses it already had from previous acquisitions, particularly the Mercer business under the brand name of Oliver Wyman.
In August 2007, Marsh completed the sale of its Putnam Investments division to Great-West Lifeco Inc., a financial services holding company controlled by Canada-based Power Financial Corp. after it settled charges of market timing.
September 11 attacks
At the time of the September 11 attacks in the United States in 2001, the corporation held offices on eight floors of the North Tower of the World Trade Center, from 93 to 100. When American Airlines Flight 11 crashed into the building, their offices spanned the entire impact zone, from floors 93 to 99. Everybody present in the offices at the time of the attack died, and the firm lost 295 employees and 63 contractors.
Marsh & McLennan is a diversified risk, insurance and professional services firm composed of:
- Marsh LLC. and Marsh Brokers, insurance broking and risk management consulting through Marsh Risk Consulting;
- Mercer, a collection of consulting and services firms (including Mercer Human Resource Consulting, Mercer HR Services, and Mercer Investment Consulting);
- Guy Carpenter & Company, a reinsurance intermediary;
- Oliver Wyman Group, a collection of management consulting firms (including Oliver Wyman, formerly Mercer Management Consulting, Mercer Oliver Wyman, and Oliver Wyman Delta, as well as Lippincott and NERA Economic Consulting)
Marsh LLC is a global risk management and insurance brokerage firm. It is a subsidiary of MMC.
Marsh operates by collecting commissions from insurers and advisory fees from its clients—mainly large corporations but also small and mid-size businesses, municipal governments, school districts and some individuals—in exchange for locating property and casualty insurance coverage for them. At all relevant times, the Company stated that its "guiding principle is to consider (its) clients' best interests in all placements", and that it "(does not.) represent the (companies)" and held itself out as a "trusted adviser and advocate, in effect representing their best interests in the market place".
Marsh in the news
- On October 11, 2001, Marsh established a crisis consulting practice specializing in terrorism, with Ambassador L. Paul Bremer as Chairman and Andrew R. Daniels as President and COO. Marsh also announced a partnership with Control Risks Group to provide political risk assessment.
- On July 8, 2004, Marsh completed the acquisition of Kroll Inc. Jeffrey W. Greenberg called it an important strategic step. The company had employed terrorism expert John O'Neill, formerly of the Federal Bureau of Investigation.
- On October 14, 2004, New York State Attorney General Eliot Spitzer announced the initiation of a civil action against Marsh, alleging impropriety in the steering of clients to insurers with whom the company maintained payoff agreements, and for soliciting rigged bids for insurance contracts from the insurers. The Attorney General announced that two AIG executives pleaded guilty to criminal charges in connection with this illegal course of conduct and stated, "There is simply no responsible argument for a system that rigs bids, stifles competition and cheats customers." Former CEO Jeffrey W. Greenberg resigned several weeks later. The suit was ultimately settled out of court.
- On January 31, 2005, Marsh & Mclennan agreed on an $850-million settlement for its bid-rigging practices.
- In July 2007, Marsh & McLennan Cos. Inc. was ranked first in Business Insurance's world's largest brokers list.
- On September 14, 2007, Brian M. Storms, the CEO of Marsh's insurance brokerage unit, resigned. As Michael G. Cherkasky explained his departure, "we now need a different set of leadership and operational skills".
Marsh & McLennan Companies management
- President, CEO: Dan Glaser (since Jan 1, 2013)
- Chairman: Lord Lang of Monkton (non-executive Chairman, 2010–present)
Former Chairmen of the Board
- Chairman Henry W. Marsh (1923–1935)
- Chairman Donald R. McLennan (1935–1944)
- Chairman Charles Ward Seabury (1944–1955)
- Chairman Laurence S. Kennedy (1955-1955)
- Chairman William D. Maus (1955–1963)
- Chairman Hermon D. Smith (1963–1966)
- Chairman Albert A. Morey (1966–1970)
- Chairman Henry W. Otis (1970–1971)
- Chairman William F. Souder, Jr. (1971–1975)
- Chairman John M. Regan Jr. (1975–1986)
- Chairman Frank J. Tasco (1986–1992)
- Chairman A.J.C. Smith (1992–2000)
- Chairman Jeffrey W. Greenberg (2000–2004)
- Chairman Michael Cherkasky (2004–2005)
- Chairman Robert F. Erburu (non-executive Chairman 2005-2006)
- Chairman Stephen R. Hardis (non-executive Chairman of the Board 2006–2010)
- "Milestones of Marsh & McLennan Companies". Retrieved 2011-08-27.
- "Marsh & McLennan 2011 Annual Report, Form 10-K, Filing Date Feb 28, 2012". secdatabase.com. Retrieved July 8, 2012.
- "Bloomberg Businessweek's Ranking of Top-Performing Companies". Bloomberg Businessweek. January 23, 2012..
- "Milestones of Marsh & McLennan Companies". MMC. Retrieved 20 December 2009.
- insurancejournal.com 6 August 2007
- Dwyer, Jim and Flynn, Kevin, 102 Minutes: The Untold Story of the Fight to Survive Inside the Twin Towers, Times Books, 2006, p. 19.
- "Chronological list of events for Marsh and Mclennan".
- "Scott + Scott, LLC's Clients Seek Leadership Roles in Benefits Lawsuit against Marsh & McLennan; Plan Participants, Including Current and Former Employees, Seek Remedies at Law under ERISA.". February 5, 2005. Retrieved Jul 1, 2013.
- "Business Insurance, Leading Brokers 2007: Marsh & McLennan Cos. Inc.". Business Insurance. Retrieved 27 Aug 2011.
- Roberts, Sally (September 14, 2007). "Storms out as Marsh chief". Business Insurance.
- MMC website
- Guy Carpenter website
- Guy Carpenter Intellectual Capital website
- Marsh website
- Marsh & McLennan Companies - MMC's History
- Marsh Affinity Group Services Insurance
- Memorial Page for the Marsh employees who were killed on 9/11