Company type | Public |
---|---|
Industry | |
Founded | 1905Chicago, Illinois, U.S. | , in
Headquarters | 1166 Avenue of the Americas, New York City, New York, U.S. |
Key people | H. Edward Hanway (Chairman) Dominick Burke (Vice Chairman) John Q. Doyle (President and CEO) |
Revenue | US$22.74 billion (2023) |
US$5.282 billion (2023) | |
US$3.756 billion (2023) | |
Total assets | US$48.03 billion (2023) |
Total equity | US$12.37 billion (2023) |
Number of employees | c. 85,000 (2023) |
Subsidiaries | |
Website | marshmclennan |
Footnotes /references [1] [2] |
Marsh & McLennan Companies, Inc., doing business as Marsh McLennan, 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. [3] Its four main operating companies are Marsh, Guy Carpenter, Mercer, and Oliver Wyman. [4]
Marsh McLennan ranked No. 212 on the 2018 Fortune 500 ranking, the company's 24th year on the annual Fortune list, [5] and No. 458 on the 2017 Forbes Global 2000 List. [6]
In 2017, Business Insurance ranked Marsh McLennan No. 1 of the world's largest insurance brokers. [7]
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. [8]
The reinsurance firm Guy Carpenter & Company was acquired in 1923, a year after it was founded by Guy Carpenter. [9] In 1959, it acquired the human resources consulting firm Mercer. [10]
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. [9]
In 1970, the company purchased Putnam Investments, adding a mutual fund business to its portfolio (and sold it in 2007). [11]
In 1987, Marsh & McLennan acquired the consultancy Temple, Barker & Sloane. [12] Founded in Lexington, Massachusetts in 1969, Temple, Barker & Sloane found quick success in the management consulting industry. [13] In a candid interview with The Christian Science Monitor , Carl Sloane said "In the 1960s, if you had a Harvard MBA, a blue serge suit, and an air travel card, you were a consultant." But as the recession of the 1980s began, he noted that "Now the clients have their own bright MBAs, and you have to offer a range of specialized services.'' [14]
Temple, Barker & Sloane found themselves specializing in supply chain management, transportation, and financial services. They conducted studies for the United States Coast Guard to determine if the nation should sign onto international oil protocols in the 70s; [15] restructured American Presidential Lines, [16] which became the largest American shipping company in the Pacific in the 80s; [17] and found alternate uses for state-owned railcars when freight trains declined in popularity in the 90s. [18] The firm also employed Burunda Prince, who would go on to become the first female consultant of color at Bain & Company. [19] [20]
In 1971, the chairman of the firm's board gave an expert testimony analyzing the impacts of the Energy Policy and Conservation Act based on Temple, Barker & Sloane's experience in the marine transportation industry. U.S. Congressman Edward Garmatz proclaimed it the best presentation he had "ever seen or heard in [his] many years here in the Congress." [21]
In 1983, the firm was commissioned by the U.S. Department of Agriculture to investigate allegations of poor meat and poultry regulations by environmental activist Ralph Nader. When Nader discovered that the USDA's response had been contracted out, he called the project a "deplorable waste of taxpayers' money". A spokesperson from the Agricultural Department confirmed that Temple, Barker & Sloane had a blanket contract for $100,000 and stated "We did ask them to look into the Nader charges and some other miscellaneous assignments... It's not unusual to have an outside firm take a look at it when serious charges are made against the department." [22] After reading the firm's report, U.S. Representative Tom Harkin decided not to conduct hearings into Nader's charges, declaring that he was "satisfied the Reagan administration is not imperiling the nation's meat and poultry inspection program". [23]
At the time of acquisition, the firm was worth an estimated $45 million in 1987 US dollars, or over $100 million today. [24] [25]
In 1989, Washington, DC–based international management consulting firm Strategic Planning Associates merged with Marsh & McLennan. Founded by former Boston Consulting Group associate Walker Lewis in 1981, Strategic Planning Associates applied concepts of computing to strategy consulting. [26] By 1986, the consultancy was worth $25 million in 1990 US dollars, but just two clients accounted for more than 40% of their revenue. When one of these clients dropped the firm in 1987, Lewis became increasingly convinced that the firm was too small to succeed, admitting to The Washington Post that "a meaningful-sized consulting company has to be 2,000 professionals or larger... it's simple math." [27]
In 1990, Temple Barker & Sloan was merged with Strategic Planning Associates to form Mercer Management Consulting. [28] [29]
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. [30] [31]
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. [7]
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. [39] When American Airlines Flight 11 crashed into the building, its offices spanned the entire impact zone, floors 93 to 99. [40] Everyone present in the company's offices on the day of the attack died as all stairwells and elevators passing through the impact zone were destroyed or blocked by the crash or the direct impact of the plane crashing into the tower where the company was; the firm lost 295 employees and 63 contractors. [1] A memorial to those lost on 9/11 is located in the plaza adjacent to Marsh McLennan's New York Headquarters at 1166 Avenue of the Americas. [41]
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. [42] 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. [43]
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. [44]
In September 2018 Marsh & McLennan made an offer to British financial company JLT, valuing that company at £4.3 billion. [45] The transaction was completed on 1 April 2019. [46]
In April 2021, Marsh & McLennan Companies rebranded to Marsh McLennan coinciding with the 150th anniversary of subsidiary Marsh.
Marsh & McLennan Companies is composed of two primary business segments: Risk and Insurance Services, and Consulting. [47]
Aon plc is a global professional services firm that offers a range of risk-mitigation products. Aon has approximately 50,000 employees across 120 countries.
Chubb Limited is a Swiss company incorporated in Zürich, and listed on the New York Stock Exchange (NYSE) where it is a component of the S&P 500. Chubb is a global provider of insurance products covering property and casualty, accident and health, reinsurance, and life insurance and is the largest publicly traded property and casualty insurance company in the world. Chubb operates in 55 countries and territories and in the Lloyd's insurance market in London. 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.
Oliver Wyman, LLC is an American management consulting firm. Founded in New York City in 1984 by former Booz Allen Hamilton partners Alex Oliver and Bill Wyman, the firm has more than 60 offices in Europe, North America, the Middle East, and Asia-Pacific employing over 5,000 professionals. The firm is part of the Oliver Wyman Group, a business unit of Marsh McLennan.
HUB International Limited is an insurance brokerage providing an array of property, casualty, risk management, life and health, employee benefits, investment, and wealth management products and services across North America. HUB has more than 375 offices across the United States and Canada and more than 10,000 employees. It is based in Chicago, Illinois.
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 2020, Marsh & McLennan Companies had over 76,000 employees and annual revenues of $17 billion.
Mercer is an American consulting firm founded in 1945. It is one of the four operating subsidiaries of global professional services firm Marsh McLennan. Mercer is headquartered in New York City with offices in 43 countries and operations in 130 countries. The company primarily provides human resources and financial services consulting services to its clients.
Lippincott is an American brand strategy and design company. Based in New York, it is part of the Oliver Wyman Group, a business unit of Marsh & McLennan Companies.
Jardine Lloyd Thompson Group plc, also known as JLT Group or simply JLT, was a British multinational corporation that had its headquarters in London, England. It provided insurance, reinsurance, employment benefits advice and brokerage services. It was a constituent of the FTSE 250 Index until it was acquired by Marsh McLennan in April 2019.
David A. Olsen was an American business executive who was chairman of insurance brokerage firm Johnson & Higgins from 1991 until it was acquired by Marsh & McLennan in 1997.
Guy Carpenter & Company, LLC, is a global risk and reinsurance specialist based in New York with more than 60 offices worldwide. Placing more than $51 billion in gross premium volume in 2021, Guy Carpenter has grown to become one of the world’s leading reinsurance brokers.
Willis Group Holdings plc was a multinational risk advisor, insurance brokerage and reinsurance brokerage company headquartered in the Willis Building in London. It was the third-largest insurance broker worldwide by revenues. In 2016, the company acquired Towers Watson and was renamed Willis Towers Watson.
Towers Watson & Co. was a global professional services firm that provided risk management services, human resource consulting, actuarial services, and investment management. The company operated in 37 countries. Customers included 92% of Fortune Global 500 companies and 84% of Fortune 1000 companies.
Segal is a benefits and human resources consulting firm headquartered in New York City, with 1,100 employees throughout the U.S. and Canada. It is the parent of Segal Marco Advisors, Segal Select Insurance Services, Inc., andSegal Benz.
Brian Charles Duperreault is a Bermuda-born American executive in the insurance industry. He stepped down as executive chairman of American International Group in December 2021.
Scott McDonald is Chief Executive of the British Council. Prior to joining the British Council, he was President and Chief Executive Officer of Oliver Wyman – the management consulting business of Oliver Wyman Group. McDonald graduated from the Canadian McGill University Desautels Faculty of Management, where he received degrees in Finance & Economics, and from Cambridge University in England, where he received a Master of Philosophy degree in International Relations.
Peter Zaffino is an American insurance industry executive. He is the chairman and CEO of the American International Group (AIG).
Victor Canada is a Canadian managing general agent headquartered in Ottawa, Ontario, Canada with additional offices in Mississauga and Edmonton.
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 and a member of its Risk & Insurance Services business unit. Currently, approximately 45,400 Marsh employees provide risk management, insurance broking, insurance program management, risk consulting, analytical modeling and alternative risk financing services to a wide range of businesses, government entities, professional service organizations and individuals in more than 130 countries. Marsh's $10.208 billion in revenue in 2021 accounted for 52% of the parent company's fiscal year revenue.
Henry Wheelwright Marsh was an American insurance executive who co-founded the insurance brokerage firm Burroughs, Marsh & McLennan, which later became Marsh & McLennan.
Risk Strategies is a private insurance brokerage and risk management advisor. The firm was founded 1997 in Boston, Massachusetts, by its current chairman, Mike Christian, as a specialty risk management consultancy. In 2015, private equity insurance sector investor Kelso & Company acquired Kohlberg & Company's majority stake in Risk Strategies. In 2022 it was ranked the 25th fastest-growing private company in Massachusetts.
{{cite book}}
: |website=
ignored (help)