Marsh McLennan
| File:Marsh & McLennan logo.svg Logo of Marsh & McLennan Companies | |
| Company type | Public |
|---|---|
| Industry | Professional services, Insurance brokerage, Consulting |
| Founded | 1 January 1905 in Chicago, Illinois, United States |
| Founder | Henry W. Marsh, Donald R. McLennan |
| Headquarters | New York City , United States |
Area served | Worldwide |
Key people | John Doyle (CEO of Marsh until 2022; CEO of Marsh McLennan since 2023) |
| Products | Insurance brokerage, risk advisory, reinsurance brokerage, talent management, investment consulting, management consulting |
| Website | www |
Marsh & McLennan Companies, Inc., commonly referred to as Marsh McLennan, is an international professional services corporation based in New York City. Its operations encompass insurance brokerage, risk advisory, reinsurance, talent management, investment consulting, and management advisory services. The company’s primary subsidiaries include Marsh, Guy Carpenter, Mercer, and Oliver Wyman.
In 2018, Marsh McLennan secured the 212th position on the Fortune 500 list, marking its 24th year in a row on this ranking. Additionally, it was placed 458th on the 2017 Forbes Global 2000 list. In the same year, Business Insurance recognized it as the world’s largest insurance brokerage firm.
The organization’s strategic approach centers on utilizing its broad range of professional service offerings to sustain a competitive edge and stimulate growth across international markets.
Establishment and initial development
Originally founded in 1905 in Chicago by Henry W. Marsh and Donald R. McLennan under the name Burroughs, Marsh & McLennan, the company was renamed Marsh & McLennan in 1906.
Growth was achieved through acquisitions, notably including the purchase of reinsurance specialist Guy Carpenter & Company in 1923 and human resources consultancy Mercer in 1959.
Important developments during the 1960s involved an initial public offering in 1962 and a corporate restructuring in 1969 that created a holding company framework, allowing autonomous management of its various service units.
In 1970, Marsh & McLennan expanded into the mutual fund sector by acquiring Putnam Investments, which it later sold off in 2007.
Temple, Barker & Sloane
Marsh & McLennan acquired Temple, Barker & Sloane in 1987. Founded in 1969, this management consulting firm specialized in supply chain logistics, transportation systems, and financial services.
Among its notable engagements were advising the United States Coast Guard on international oil handling protocols, transforming American Presidential Lines into a prominent Pacific shipping enterprise, and pioneering innovative uses of state-owned railcars during periods of freight decline.
The firm also provided authoritative testimony before Congress on the Energy Policy and Conservation Act in 1971, earning commendations from U.S. Congressman Edward Garmatz.
In 1983, after being commissioned by the U.S. Department of Agriculture to examine allegations concerning meat and poultry regulation, Temple, Barker & Sloane produced a report that influenced legislative decisions on regulatory oversight.
At the time of acquisition in 1987, Temple, Barker & Sloane had an estimated valuation near $45 million (in 1987 dollars), underscoring its significant standing within the consulting sector.
Merger with Strategic Planning Associates
In 1989, Marsh & McLennan merged with Strategic Planning Associates, a Washington, DC–based management consulting firm founded in 1981 by Walker Lewis, formerly associated with Boston Consulting Group. This firm integrated computing principles into strategic consulting practices. By 1986, Strategic Planning Associates was valued at approximately $25 million but depended heavily on just two clients for over 40% of its revenue. Following the loss of one major client in 1987, Lewis acknowledged that achieving scale was essential for success, noting that a substantial consulting firm requires at least 2,000 professionals.
Mercer Management Consulting
In 1990, the merger of Temple Barker & Sloan with Strategic Planning Associates gave rise to Mercer Management Consulting.
Developments leading to current structure
Marsh & McLennan reinforced its insurance brokerage segment in 1997 by acquiring Johnson & Higgins for $1.8 billion, regaining its status as the largest global insurance broker ahead of Aon amid industry consolidation trends.
During the 2000s, the company refined its strategic direction through a series of acquisitions and divestitures:
- In 2000, Mercer expanded its organizational development expertise by purchasing Delta Consulting Group.
- The 2003 acquisition of Oliver Wyman broadened MMC’s management consulting portfolio, positioning it as a direct competitor to firms such as McKinsey and Boston Consulting Group.
- Marsh & McLennan sold Putnam Investments in 2007 for $3.9 billion to concentrate on risk management and human capital services.
- That same year, Marsh secured China’s first license for a fully foreign-owned insurance brokerage.
- Also in 2007, Mercer merged three consulting divisions into Oliver Wyman to streamline operations.
- In 2010, MMC divested Kroll Inc., its corporate intelligence arm, for $1.13 billion to sharpen focus on core risk and consulting businesses.
- In September 2018, the company announced the acquisition of Jardine Lloyd Thompson for £4.3 billion, completing the transaction by April 2019.
By mid-2017, Marsh & McLennan held the top position on Business Insurance’s ranking of the world’s largest brokers.
This pattern of strategic acquisitions and divestments has played a pivotal role in Marsh & McLennan’s expansion, enhancing its global footprint and strengthening its leadership in insurance brokerage and consulting services.
September 11 attacks
At the time of the 2001 September 11 attacks, Marsh & McLennan occupied floors 93 through 100 of the North Tower within the World Trade Center complex. When American Airlines Flight 11 impacted the building, it struck directly across Marsh & McLennan’s office space spanning floors 93 to 99. Tragically, all employees present were lost as both stairwells and elevators within the impact zone were destroyed; the firm suffered the loss of 295 employees and 63 contractors. A memorial commemorating those who perished stands near Marsh McLennan’s New York headquarters at 1166 Avenue of the Americas.
2004 bid-rigging investigation
In 2004, Marsh, the company’s insurance brokerage division, was implicated in a bid-rigging controversy involving other major industry participants such as Aon, Willis Group, and AIG. New York State Attorney General Eliot Spitzer accused Marsh of engaging in brokerage practices that favored their own interests, increasing costs for clients while inflating Marsh’s revenues. Early in 2005, Marsh resolved these allegations by agreeing to an $850 million settlement to reimburse clients for commercial insurance arrangements made between 2001 and 2004.
This scandal triggered a comprehensive strategic restructuring beginning in 2005, prompting Marsh & McLennan to simplify its organizational framework and concentrate on its core strengths in insurance services and consulting—defining its contemporary business model and market strategy.
Jardine Lloyd Thompson (JLT)
In September 2018, Marsh & McLennan proposed a £4.3 billion acquisition of the British financial firm JLT. This transaction was completed on 1 April 2019, significantly strengthening Marsh & McLennan's position within the insurance brokerage and risk management sectors.
Marsh McLennan
April 2021 marked the rebranding of Marsh & McLennan Companies to Marsh McLennan, coinciding with the 150th anniversary of its subsidiary Marsh and solidifying its brand presence in the international professional services market.
Operating segments and subsidiaries
Marsh McLennan's business is divided into two primary segments: Risk and Insurance Services, and Consulting.
Risk and insurance services
- Marsh focuses on insurance brokerage and risk advisory services, including areas such as strategic risk, cyber risk, property, casualty, enterprise risk management, and crisis response. John Doyle was president and CEO of Marsh from 2017 until 2022 before assuming the role of CEO at Marsh McLennan in 2023.
- Guy Carpenter, a prominent reinsurance broker and risk intermediary, supports Marsh McLennan’s worldwide operations through its specialized reinsurance brokerage expertise.
Consulting
- Mercer, which provides consulting in health, retirement, talent management, and investment strategies
- Oliver Wyman, a collective of management consulting entities including Oliver Wyman itself, Lippincott, and NERA Economic Consulting
See also
External links
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