Marsh (company)
| Company type | Subsidiary |
|---|---|
| Industry | Insurance broking and risk management |
| Founded | Early 1900s |
| Founder | Henry Marsh, Donald McLennan |
| Headquarters | New York City , United States |
Area served | Worldwide (over 130 countries) |
Key people | John Doyle (President and CEO) |
| Products | Insurance brokerage, risk management solutions |
Number of employees | 45,400 |
| Parent | Marsh McLennan |
Marsh LLC is an international professional services organization with its headquarters located in New York City. The firm specializes in insurance broking and risk management solutions. As a subsidiary under the umbrella of Marsh McLennan within its Risk & Insurance Services division, Marsh employs around 45,400 experts operating in over 130 countries worldwide. In 2021, the company reported revenues of $10.208 billion, accounting for 52% of its parent company’s total fiscal revenue.
History
The foundation of Marsh dates back to the early 1900s when Henry Marsh and Donald McLennan established the company, initially conducting business from New York City and Chicago. Initially named Marsh & McLennan (M&M), the organization transitioned into a holding company structure overseeing independently managed entities, including the Marsh brokerage segment.
The 1960s were pivotal for Marsh’s expansion, highlighted by its 1962 initial public offering and a restructuring in 1969 that formalized the holding company framework. The firm was instrumental in creating new insurance carriers to meet client demands unmet by existing providers, such as ACE Limited (currently Chubb Limited) founded in 1985 and EXEL Limited (now Axa XL) launched in 1986.
In 2001, Marsh broadened its footprint in Africa by purchasing Alexander Forbes’ risk management and brokerage operations spanning 11 countries for $115.5 million. Following the events of September 11, Marsh’s risk management division established a crisis consulting unit and collaborated with Control Risks Group to strengthen security offerings.
Marsh became embroiled in a brokerage bid rigging controversy within the insurance sector in 2004. The lawsuit, initiated by then-New York State Attorney General Eliot Spitzer, accused the firm of engaging in biased brokering practices that drove up client expenses. In 2005, Marsh agreed to an $850 million settlement to reimburse affected customers.
After this scandal, Marsh faced financial difficulties but managed to return to profitability by late 2006 through strategic cost reductions. By 2011, under CEO Dan Glaser’s leadership, the company had regained stability and entered a phase of operational optimization, which contributed to a 20% rise in its parent company’s stock value.
Leadership transitions included Peter Zaffino assuming the CEO role in April 2011 and John Doyle joining as president in 2016 before succeeding Zaffino as President and CEO in July 2017. Doyle is responsible for overseeing Marsh’s worldwide brokerage activities along with its Global Risk & Specialties division.
In April 2020, Marsh enhanced its portfolio by acquiring Assurance Holdings, Inc., an independent insurance agency headquartered in Schaumburg, Illinois.
Business activities
Marsh’s primary brokerage operations cater to commercial clients ranging from major multinational corporations and rapidly expanding middle-market companies to small businesses and affluent individuals by facilitating insurance placements through affiliated carriers.
The firm’s risk management offerings include comprehensive business risk evaluations covering geopolitical risks, cybersecurity advisory services, business interruption analyses, and regulatory compliance assistance. Utilizing tools such as risk modeling, big data analytics, and sophisticated data analysis methods strengthens the impact of Marsh’s risk management solutions.