Marsh & McLennan Headquarters at 1166 6th Avenue in New York City
|Traded as|| NYSE: MMC |
S&P 500 Component
|Industry|| Insurance brokers |
|Founded||1905Chicago, Illinois, U.S., in|
|Headquarters|| 1166 Avenue of the Americas,|
New York City, New York, U.S.
|Dan S. Glaser|
(President & CEO)
Mark C. McGivney
Stacy M. Mills
(VP & Controller)
Number of employees
|Subsidiaries|| Marsh |
Oliver Wyman Group
Marsh & McLennan Companies, Inc. is a global professional services firm, headquartered in New York City with businesses in insurance brokerage, risk management, reinsurance services, talent management, investment advisory, and management consulting.
Professional services are occupations in the tertiary sector of the economy requiring special training in the arts or sciences. Some professional services require holding professional licenses such as architects, accountants, engineers, doctors and lawyers. Other professional services involve providing specialist business support to businesses of all sizes and in all sectors; this can include tax advice, supporting a company with accounting, IT services or providing management advice.
The City of New York, usually called either New York City (NYC) or simply New York (NY), is the most populous city in the United States. With an estimated 2017 population of 8,622,698 distributed over a land area of about 302.6 square miles (784 km2), New York is also the most densely populated major city in the United States. Located at the southern tip of the state of New York, the city is the center of the New York metropolitan area, the largest metropolitan area in the world by urban landmass and one of the world's most populous megacities, with an estimated 20,320,876 people in its 2017 Metropolitan Statistical Area and 23,876,155 residents in its Combined Statistical Area. A global power city, New York City has been described as the cultural, financial, and media capital of the world, and exerts a significant impact upon commerce, entertainment, research, technology, education, politics, tourism, art, fashion, and sports. The city's fast pace has inspired the term New York minute. Home to the headquarters of the United Nations, New York is an important center for international diplomacy.
An insurance broker sells, solicits, or negotiates insurance for compensation.
Its four main operating companies are Marsh, Mercer, Oliver Wyman Group, and Guy Carpenter.
An operating subsidiary is a subsidiary of a corporation through which the parent company indirectly conducts some portion of its business. Usually, an operating subsidiary can be distinguished in that even if its board of directors and officers overlap with those of other entities in the same corporate group, it has at least some officers and employees who conduct business operations primarily on behalf of the subsidiary alone. The term carries slightly different meanings depending upon the specific context and industry.
Marsh is a global professional services firm, headquartered in New York City with operations in insurance broking and risk management. Marsh is a subsidiary of Marsh & McLennan Companies and a member of its Risk & Insurance Services business unit. Marsh's $5.98 billion in 2016 revenue accounted for 45% of the parent company's total fiscal year revenue.
Mercer is the world's largest human resources consulting firm. It is also the world's largest institutional investment advisor with over $10trn in assets under advice and more than $200bn in open architecture assets under delegated management. Mercer has also been ranked as the largest outsourced chief investment officer (OCIO) provider. Headquartered in New York City, Mercer has more than 23,000 employees, is based in more than 43 countries, and operates internationally in more than 130 countries. Mercer is a subsidiary of global professional services firm Marsh & McLennan, and Mercer's $4.3 billion in 2016 revenue represented 33% of the parent company's consolidated revenue.
Marsh & McLennan Companies ranked #212 on the 2018 Fortune 500 ranking, the company's 24th year on the annual Fortune list,and #458 on the 2017 Forbes Global 2000 List.
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years. The list includes publicly held companies, along with privately held companies for which revenues are publicly available. The concept of the Fortune 500 was created by Edgar P. Smith, a Fortune editor, and the first list was published in 1955. The Fortune 500 is more commonly used than its subset Fortune 100 or superset Fortune 1000.
Fortune is an American multinational business magazine headquartered in New York City, United States. It is published by Fortune Media Group Holdings, owned by Thai businessman Chatchaval Jiaravanon. The publication was founded by Henry Luce in 1929. The magazine competes with Forbes and Bloomberg Businessweek in the national business magazine category and distinguishes itself with long, in-depth feature articles. The magazine regularly publishes ranked lists, including the Fortune 500, a ranking of companies by revenue that it has published annually since 1955.
Forbes is an American business magazine. Published bi-weekly, it features original articles on finance, industry, investing, and marketing topics. Forbes also reports on related subjects such as technology, communications, science, politics, and law. Its headquarters is located in Jersey City, New Jersey. Primary competitors in the national business magazine category include Fortune and Bloomberg Businessweek. The magazine is well known for its lists and rankings, including of the richest Americans, of the world's top companies, and The World's Billionaires. The motto of Forbes magazine is "The Capitalist Tool". Its chair and editor-in-chief is Steve Forbes, and its CEO is Mike Federle. It was sold to a Hong Kong-based investment group, Integrated Whale Media Investments.
Marsh & McLennan's 2016 revenue of $13.2 billion ranked it #1 on Business Insurance's ranking of the world's largest insurance brokers.
Burroughs, Marsh & McLennan was formed by Henry W. Marsh and Donald R. McLennan in Chicago in 1905. It was renamed as Marsh & McLennan in 1906.
Donald Roderick McLennan was born in Duluth, Minnesota, son of William Lillingston McLennan and Julia MacLeod. He was the co-founder of the insurance brokerage firm Burroughs, Marsh & McLennan in 1905, which was renamed Marsh & McLennan in 1906 after the retirement of Mr. D. W. Burroughs. McLennan served as the Chairman of the Board from 1935 until his death in 1944 in Lake Forest, Illinois. At the time of his death, the firm had offices in Chicago, San Francisco, New York City, and twenty other cities. In 2016, Marsh & McLennan Companies had over 60,000 employees and annual revenues of $13.23 billion.
Chicago, officially the City of Chicago, is the most populous city in Illinois, as well as the third most populous city in the United States. With an estimated population of 2,716,450 (2017), it is the most populous city in the Midwest. Chicago is the principal city of the Chicago metropolitan area, often referred to as Chicagoland, and the county seat of Cook County, the second most populous county in the United States. The metropolitan area, at nearly 10 million people, is the third-largest in the United States, and the fourth largest in North America and the third largest metropolitan area in the world by land area.
The reinsurance firm Guy Carpenter & Company was acquired in 1923, a year after it was founded by Guy Carpenter.In 1959, it acquired the human resources consulting firm Mercer.
Human resources are the people who make up the workforce of an organization, business sector, or economy. "Human capital" is sometimes used synonymously with "human resources", although human capital typically refers to a narrower effect. Likewise, other terms sometimes used include manpower, talent, labor, personnel, or simply people.
The 1960s were particularly notable for the company's development, including an initial public offering in 1962 and a 1969 reorganization that introduced a holding company configuration, with the company offering clients its services under the banners of separately managed companies.
In 1970, the company purchased Putnam Investments, adding a mutual fund business to its portfolio (and sold it in 2007).
In 1997, the company significantly boosted its insurance brokerage business with a $1.8 billion acquisition of Johnson & Higgins, which, at the time, was one of MMC’s biggest competitors in its brokerage business. The purchase occurred during a time of consolidation in the industry, and pushed Marsh & McLennan back above Aon as the world’s largest insurance broker.
Throughout the 2000s, the company further transformed and focused its operating strategy through various acquisitions and divestment at its subsidiaries, including:
In July 2017, Marsh & McLennan Cos. Inc. was ranked first in Business Insurance's world's largest brokers list.
In 2004, Marsh, the company's insurance brokerage unit, was embroiled in a bid rigging scandal that plagued much of the insurance industry, including brokerage rivals Aon and Willis Group, and insurer AIG.In a lawsuit, Eliot Spitzer, then New York State’s attorney general, accused Marsh of not serving as an unbiased broker, leading to increased costs for clients and higher revenues for Marsh. In early 2005, Marsh agreed to pay $850 million to settle the lawsuit and compensate clients whose commercial insurance it arranged from 2001 to 2004.
Much of Marsh & McLennan's corporate strategy since 2005 stemmed from an effort to recover from this tumultuous period, eventually leading to the firm's current organization and simplified focus on insurance services and consulting.
At the time of the 2001 September 11 attacks in the United States, the corporation held offices on eight floors, 93 to 100, of the North Tower of the World Trade Center.When American Airlines Flight 11 crashed into the building, its offices spanned the entire impact zone, floors 93 to 99. Everybody present in the company's offices on the day of the attack died as all stairwells at impact zone were destroyed or blocked by the crash; the firm lost 295 employees and 66 contractors.
Marsh & McLennan Companies is composed of two primary business segments: Risk and Insurance Services, and Consulting.
Aon plc is a British global professional services company headquartered in London that provides risk, retirement and health consulting. Aon has approximately 500 offices worldwide, serving 120 countries with 50,000 employees.
Chubb Limited, incorporated in Zurich, Switzerland, is the parent company of Chubb, a global provider of insurance products covering property and casualty, accident and health, reinsurance, and life insurance. Chubb operates in 54 countries and territories and in the Lloyd's insurance market in London and is the world’s largest publicly traded property and casualty insurer. Clients of Chubb consist of multinational corporations and local businesses, individuals, and insurers seeking reinsurance coverage. Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance. The current company arose when ACE Limited acquired Chubb in 2016, then adopted the Chubb name.
Benfield Group was a leading independent reinsurance and risk intermediary. Customers included most of the world's major insurance and reinsurance companies as well as government entities and global corporations. A former constituent of the FTSE 250 Index, the company has been a division of Aon Corporation since November 2008.
Arthur J. Gallagher & Co. (AJG) is a US-based global insurance brokerage and risk management services firm headquartered at in Rolling Meadows, Illinois. The firm was established in 1927 and is the third largest insurance broker in the world.
Oliver Wyman is an international management consulting firm with a large focus on banking and financial services. Founded in 1984, the firm adopted its current form in May 2007, when Mercer Oliver Wyman joined with Mercer Management Consulting and Mercer Delta to become one firm named Oliver Wyman. It is part of the Oliver Wyman Group, a business unit of Marsh & McLennan.
Patrick G. Ryan is an American billionaire insurance businessman. He is the founder and retired chairman and CEO of Aon Corporation. In 2010, he founded Ryan Specialty Group (RSG) as a holding company aimed at providing specialty services to insurance brokers, agents and carriers. RSG's first subsidiary, ThinkRisk, began business in December 2009 to provide underwriting and claims management services for media, technology, advertising and network security.
Jardine Lloyd Thompson Group plc, also known as JLT Group or simply JLT, is a British multinational corporation that has its headquarters in London, England. It provides insurance, reinsurance, employment benefits advice and brokerage services. It was a constituent of the FTSE 250 Index until it was acquired by Marsh & McLennan Companies in April 2019.
David A. Olsen was chairman of brokerage firm Johnson & Higgins from 1991 until its business combination with Marsh & McLennan in 1997.
Johnson & Higgins was one of the largest insurance brokerage firms in the world until it was acquired by Marsh & McLennan in 1997. At that point based in New York the company had 8,400 employees.
Guy Carpenter & Company, LLC is a 1922-founded company described as "a leading global risk and reinsurance specialist" subsidiary of Marsh & McLennan Companies acquired by MMC in 1923.
Willis Group Holdings plc is a multinational risk advisor, insurance brokerage and reinsurance brokerage company with its headquarters in the Willis Building in London. It is the world's fourth-largest insurance broker when measured by revenues. Willis has around 400 offices in 120 countries and approximately 18,000 employees.
Neil C. Krauter is an American commercial insurance industry executive. He owns the privately held Krauter & Company, which has ten offices in the United States as of 2016.
Aon Hewitt is a provider of human capital and management consulting services headquartered in the United States in Lincolnshire, Illinois. From 500 offices in 120 countries, it provided consulting, outsourcing, and reinsurance brokerage services.
Scott McDonald is president and chief executive officer of Oliver Wyman – the management consulting business of Oliver Wyman Group. McDonald graduated from the McGill University Desautels Faculty of Management, where he received degrees in Finance & Economics, and from Cambridge University, where he received a Master of Philosophy degree in International Relations.
Peter Zaffino is an American insurance industry executive. He was appointed executive vice president and global chief operating officer of AIG in July 2017, and then CEO of the company's General Insurance business in September 2017. Prior to joining AIG, Zaffino served as CEO of Marsh, chairman of Marsh & McLennan Companies' Risk & Insurance Services segment and president and CEO of Guy Carpenter. He is on the board of directors of the Michael J. Fox Foundation and the New York Police and Fire Widows' and Children's Benefit Fund.
ENCON Group Inc. is a Canadian managing general agent headquartered in Ottawa, Ontario, Canada with additional offices in Toronto and Edmonton.