What are Marsh & McLennan Companies' main business segments?

Marsh & McLennan Companies operates through three primary segments: Risk and Insurance Services, Investment Management, and Consulting. These segments are served by major subsidiaries such as Marsh Inc., Guy Carpenter, Putnam Investments, and Mercer Inc.

How does Marsh & McLennan generate revenue?

Revenue is generated primarily through fees paid by clients for advisory and transactional services, commissions and fees paid by insurance and reinsurance companies, and investment management fees earned by Putnam Investments based on assets under management. Revenue is influenced by market conditions, premium levels, and investment performance.

What is the company's exposure to market risk, particularly concerning its investment management business?

The investment management segment, Putnam Investments, is significantly exposed to market risk. Assets under management declined from $315 billion in 2001 to $251 billion in 2002, reflecting a downturn in equity markets and net redemptions in mutual funds. A continued decline in market levels could further reduce revenue.

Are there any significant legal proceedings that could impact the company?

Marsh & McLennan Companies is involved in various claims and lawsuits, primarily related to errors and omissions in insurance placement and investment/consulting services. The company is also undertaking reviews of personal pension plan business. While some matters seek significant damages, management currently believes the ultimate disposition will not have a material adverse effect on the consolidated financial position or results of operations.

MRSH/MMC 10-K FY2002 Annual Report — Revenue, Net Income, EPS

Summary

Marsh & McLennan Companies, Inc. (MMC) operates as a global professional services firm, providing a broad spectrum of services across risk and insurance, investment management, and consulting. The company is structured into three main segments: Risk and Insurance Services (primarily Marsh Inc. and Guy Carpenter), Investment Management (Putnam Investments), and Consulting (Mercer Inc.). MMC is a significant player in its respective industries, offering sophisticated solutions to a diverse clientele ranging from large corporations to individuals. For investors, it's important to note that MMC's revenue streams are influenced by global economic conditions, market volatility (particularly in investment management), and regulatory environments. The company is subject to extensive regulation across its operations, and potential legal proceedings are a factor to monitor, although management currently believes they will not have a material adverse effect on financial position. The filing also details various employee equity compensation plans and recent stock activity, including a two-for-one stock distribution in June 2002.

Key Highlights

1MMC is a diversified global professional services firm with three core segments: Risk & Insurance Services, Investment Management, and Consulting.
2The company's primary subsidiaries include Marsh Inc. (risk and insurance broking), Guy Carpenter (reinsurance broking), Putnam Investments (investment management), and Mercer Inc. (consulting).
3Revenue generation is tied to client fees, commissions from insurers, and management fees, all of which are sensitive to market conditions, premium rates, and investment performance.
4Putnam Investments manages significant assets, with approximately $251 billion as of December 31, 2002, although this represented a decrease from $315 billion in the prior year, partly due to market declines.
5The company is subject to extensive licensing requirements and regulations across all its operating jurisdictions.
6MMC faces strong competition across all its business segments from both global and regional players, as well as from in-house client solutions.
7The company experienced a two-for-one stock split (stock dividend) on June 28, 2002.

MARSH & MCLENNAN COMPANIES, INC. Annual Report, Year Ended Dec 31, 2002

Summary

Key Highlights

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