Marsh & McLennan Companies
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 $10.49 billion. Marsh & McLennan Companies was ranked the 221st largest corporation in the United States by the 2009 Fortune 500 list, and the 5th largest U.S. company in the diversified financial industry. It has its headquarters in Midtown Manhattan, New York City.[3]
Subsidiaries
Marsh & McLennan Companies, Inc. is a diversified risk, insurance and professional services firm composed of:
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 bought Johnson & Higgins.[4] and Sedgwick shortly after.
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.[5].
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.[6] When American Airlines Flight 11 crashed into the building, their offices spanned the entire impact zone, from floors 93 to 99[7]. No one present in the offices at the time survived the attack, and the firm lost 295 employees and 63 contractors.[1]
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 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." even though it was caught in a bid rigging scandal where it pre-arranged winning quotes from insurers.
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, they completed the acquisition of Kroll Inc.[8] 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.
- In July 2007, Marsh & McLennan Cos. Inc. was ranked first in Business Insurance's world's largest brokers list.[9]
- 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."[10]
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
Company founders
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)
Former CEO
References
- ^ a b "Milestones of Marsh & McLennan Companies". http://mmc.com/about/history.php. Retrieved 2011-08-27.
- ^ a b Marsh & McLennan website
- ^ "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.
- ^ insurancejournal.com 6 August 2007
- ^ http://www.tenantwise.com/reports/wtc_relocate.asp
- ^ 102 Minutes: The Untold Story of the Fight to Survive Inside the Twin Towers, Dwyer, Jim and Flynn, Kevin, Times Books, 2006 edition, p.19.
- ^ "Chronological list of events for Marsh and Mclennan". http://www.mmc.com/about/history.php.
- ^ "Business Insurance, Leading Brokers 2007: Marsh & McLennan Cos. Inc.". Business Insurance. http://www.businessinsurance.com/cgi-bin/page.pl?pageId=626. Retrieved 27-Aug-2011.
- ^ Roberts, Sally (September 14, 2007). "Storms out as Marsh chief". Business Insurance. http://www.businessinsurance.com/cgi-bin/news.pl?newsId=11117.
External links
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New York City portal |
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Companies portal |
History
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