About Marsh & McLennan Companies
The best middleman
MMC risk and insurance services lists two leading brands. Marsh, a leading risk and insurance services and solutions provider, manages MMCâ€™s alternative risk financing, global risk management, insurance broking, insurance program management and risk consulting services. Guy Carpenter, a leader in risk and reinsurance, offers actuarial services, highly specialized product knowledge, risk assessment analytics and trading relationships with reinsurance markets around the globe. The companyâ€™s consulting services have Mercer and the Oliver Wyman Group that operates under three business segments: Oliver Wyman, Lippincott and NERA Economic Consulting. Mercer, a leading provider of global provider of consulting, outsourcing and investment services, mainly designs and manages health, retirement and other benefits, and optimize human capital. Oliver Wyman is a global management consulting firm that uses its various disciplines and expertise in the field of strategy, operations, risk management, organizational transformation and leadership development. Lippincott is responsible for the creation, development and management of their clientsâ€™ branding, identity and image. NERA Economic Consulting is MMCâ€™s expert when it comes to the economics of competition, regulation, public policy, finance and litigation. And lastly, Krollâ€”the lone risk consulting and technology unit of MMCâ€”is a problem-solver and an opportunity grabber in the field of financial, intelligence, investigative, security and technology.
The old days
MMCâ€™s direct ancestorâ€”Dan H. Bomar Companyâ€”began its operations in 1871. Henry Marsh and Donald R. McLennan were both busy with their own workâ€”Marsh with the development of risk management and McLennan with researching about risk assessmentâ€”until the two formed the firm Burrows, Marsh & McLennan in 1905. The firm was renamed into Marsh & McLennan a year later it was founded. The companyâ€™s first acquisition, Guy Carpenter & Company, happened in 1923. It was also the same year when Henry Marsh was appointed chairman of Marsh & McLennan's incorporation. Exactly 12 years after, Donald McLennan succeeded Marsh as chairman. MMC thought that the companyâ€™s presence in human resource consulting would be great for the company, so it decided to purchase William M. Mercer Limitedâ€”a Canada-based benefits consultant company. MMC did not stop in investing in different businesses; the company made its presence felt in the investment management sector when it acquired Putnam Investments.
One business to the other
MMC became vigilant in expanding in different businessesâ€”and has been succeeding every single time. In the 1980s, the specialty consulting business was next in line for MMC. Oliver Wyman Group was the first company it acquired. It became MMCâ€™s go-to company in providing management consulting services. The acquisition of Lippincott followedâ€”a company that offers clients corporate branding and identity consulting services. MMCâ€™s third specialty consulting firm, the NERA Economic Consulting, handles economic analysis and advice services. MMC was taking the right steps at the right time with its acquisitions, but did not forget to strengthen its core businesses. In 2004, its acquisition of Kroll greatly improved its risk consulting unitâ€”broadening the unitâ€™s area of coverage with Krollâ€™s investigative, intelligence, financial, security and technology services. MMC had to let go of its Putnam Investments subsidiary to Great-West LifeCo Inc. in 2007. The sale benefited MMC with $3.9 billion in cash.
A good strategy
In its 2009 annual report, MMC President and CEO Brian Duperreault said the company will be gaining appropriate acquisitions and focusing on high-growth areas, hence, its objective of growth through economic and insurance market cycles while retaining low capital usage as one of its key operating principles. Also, MMC is looking into improving the quality of its earnings by strengthening its free cash for its planned acquisitions. MMCâ€™s strategy, overall, as Duperreault stated, will focus on four key goals: grow the firm, make significant progress in weaving the company together, ensure effective enterprise-wide risk management and engage in its people.
1166 Avenue of the Americas
New York, NY 10036
Phone: (212) 345-5000
Employer Type: Public
Stock Symbol: MMC
Stock Exchange: NYSE
President & CEO: Brian Duperreault
2009 Employees (All Locations): 52,000