Marsh & McLennan Companies
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| Type | Public (NYSE: MMC) |
|---|---|
| Founded | Chicago, Illinois, USA (1905) [1] |
| Headquarters | New York, NY, United States |
| Key people | Brian Duperreault, President, CEO |
| Industry | Diversified Financials |
| Revenue | US $12.07 billion (2007) [2] |
| Operating income | US $1.22 billion (2006) [2] |
| Net income | US $0.99 billion (2006) [2] |
| Employees | 57,000 (2006) |
| Website | http://mmc.com |
Marsh & McLennan Companies, Inc. (MMC) is a US-based global professional services and insurance brokerage firm. In 2007, it had over 57,000 employees and annual revenues of $12.069 billion. Marsh & McLennan Companies was ranked the 207th largest corporation in the United States by the 2007 Fortune 500 list, and the 5th largest U.S. company in the diversified financial industry.[2] It has its headquarters in Midtown Manhattan, New York City.[3]
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[edit] Subsidiaries
Marsh & McLennan Companies, Inc. (MMC) is a diversified risk, insurance and professional services firm composed of:
- Marsh Inc., 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); and,
- Kroll Inc., a risk and specialized technology services firm.
- The Medisure Group Ltd, a medical administration company.
[edit] History
Burrows, Marsh & McLennan was formed by Henry W. Marsh and Donald R. McLennan in Chicago in 1905, becoming the world's largest insurance agency with annual premiums of $3 million ($59 million consumer price index adjusted). It was renamed Marsh & McLennan in 1906. In 1997, the company merged with Johnson & Higgins.[4]
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.[2].
[edit] September 11 Attacks
Prior to the September 11 Attacks, the corporation held offices on 8 floors of the North Tower of the World Trade Center, between floors 93 and 100.[5] When American Airlines Flight 11 crashed into the building as part of the attacks, their offices composed the entire impact zone, which was between floors 93 and 99. No one present in the offices at the time survived the attack and the firm lost 295 employees and 60 consultants.[6]
[edit] Marsh Inc.
Marsh Inc. is a global risk and insurance services firm. It is a subsidiary of MMC. In 2003, Marsh employed about 40,000 people, with annual revenues of $6.9 billion, up from $4.8 billion in 2001.
Marsh operates by collecting 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."
[edit] Marsh in the news
- 295 employees & 60 contractors were killed in the 9/11 terrorist attacks; they were working in Marsh's One World Trade Center offices located in the heart of the impact zone.[6]
- 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 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 FBI.
- 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.
- In July 2007 Marsh & McLennan Cos. Inc. was ranked first in Business Insurance's world's largest brokers list.[7]
- 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."[8]
[edit] MMC Management
- President, CEO: Brian Duperreault
- Chairman: Stephen R. Hardis (non-executive Chairman of the Board 2006-Present)
- CFO: Vanessa Wittman
- SVP, Executive Resources and Development: Francis N. Bonsignore
[edit] Company Founders
- Henry W. Marsh
- Donald R. McLennan
[edit] 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)
[edit] Former CEO
- CEO: Jeffrey W. Greenberg (- Oct 25, 2004)
[edit] References
- ^ "Milestones of Marsh & McLennan Companies". http://mmc.com/about/history.php. Retrieved 2007-05-31.
- ^ a b c d Fortune Magazine
- ^ "Contact Us." Marsh & McLennan Companies. Retrieved on October 4, 2009.
- ^ "Milestones of Marsh & McLennan Companies". MMC. http://www.mmc.com/about/history.php. Retrieved 20 December 2009.
- ^ http://www.tenantwise.com/reports/wtc_relocate.asp
- ^ a b Siegel, Aaron (September 11, 2007). "Industry honors fallen on 9/11 anniversary". InvestmentNews. http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20070911/REG/70911011.
- ^ [1]
- ^ Roberts, Sally (September 14, 2007). "Storms out as Marsh chief". BusinessInsurance. http://www.businessinsurance.com/cgi-bin/news.pl?newsId=11117.
[edit] External links
[edit] History
- Marsh & McLennan Companies - MMC's History
- Marsh Affinity Group Services Insurance
- Memorial Page for the Marsh employees who were killed on 9/11
