Marsh McLennan

File:Marsh & McLennan Companies logo.svg

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.{{Cite book|last=Seabury|first=C. W.|title=History of the Organization of Marsh & McLennan, Inc|date=1967|language=en}}

The reinsurance firm Guy Carpenter & Company was acquired in 1923, a year after it was founded by Guy Carpenter.{{cite journal|title=History of Marsh & McLennan Companies, Inc.|journal=International Directory of Company Histories|date=2002|volume= 45|url=http://www.fundinguniverse.com/company-histories/marsh-mclennan-companies-inc-history/|access-date=28 December 2017}} In 1959, it acquired the human resources consulting firm Mercer.{{cite web|url=https://www.thehrdigest.com/americas-top-management-consulting-companies/ |title=America's Top Management Consulting Companies |website=The HR Digest|date=2020-05-05|access-date=2020-08-21}}

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).{{cite news|author=Ian McDonald

|url=https://www.wsj.com/articles/SB116734794854561980|access-date=28 December 2017|date=29 December 2006

|title=Marsh Is Hoping Sale of Putnam Buries Its Woes}}

In 1987, Marsh & McLennan acquired the consultancy Temple, Barker & Sloane.{{Cite news|last=Deutsch|first=Claudia H.|url=https://www.nytimes.com/1988/07/10/business/what-s-new-in-management-consulting-the-corporate-clamor-for-help-gets-louder.html|title=WHAT'S NEW IN MANAGEMENT CONSULTING; The Corporate Clamor for Help Gets Louder|date=1988-07-10|work=The New York Times|language=en-US|issn=0362-4331}} Founded in Lexington, Massachusetts in 1969, Temple, Barker & Sloane found quick success in the management consulting industry.{{Cite web|url=https://www.dignitymemorial.com/obituaries/salem-ma/carl-sloane-6533995|title=Carl Sloane Obituary - Salem, MA|date=2015-07-28|website=Dignity Memorial|language=en}} 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.''{{Cite news|last=Bradley|first=Barbara|url=https://www.csmonitor.com/1983/0104/010439.html|title=Recession changes focus of management consulting|date=1983-01-04|work=Christian Science Monitor|issn=0882-7729}}

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;Goldberg, Victor P. "Recovery for Economic Loss Following the Exxon ‘Valdez’ Oil Spill". The Journal of Legal Studies, vol. 23, no. 1, 1994, pp. 1. {{JSTOR|724301}}. restructured American Presidential Lines,{{Cite web|url=https://www.forbes.com/forbes/1983/1010/136.html|title=Are All These Consultants Really Necessary?|date=1983-10-09|website=Forbes|language=en}} which became the largest American shipping company in the Pacific in the 80s;{{Cite web|url=https://oac.cdlib.org/findaid/ark:/13030/tf4j49n761/admin/#bioghist-1.7.3|title=Guide to the American President Lines Records, 1871-1995|website=Online Archive of California}} and found alternate uses for state-owned railcars when freight trains declined in popularity in the 90s.{{Cite web|url=https://www.govinfo.gov/content/pkg/CZIC-tf320-a48-1986/html/CZIC-tf320-a48-1986.htm|title=Alternative uses of the railcar ferry S.S. Chief Wawatam State of Michigan Dept. of Transportation, State of Michigan Dept. of Natural Resources|website=U.S. Government Printing Office}} The firm also employed Burunda Prince, who would go on to become the first female consultant of color at Bain & Company.{{Cite web|url=https://www.digsouthtechsummit.com/agenda/speakers/425260|title=Burunda Prince|website=DIG South Tech Summit|language=en|access-date=2020-08-24|archive-date=2020-03-28|archive-url=https://web.archive.org/web/20200328214531/https://www.digsouthtechsummit.com/agenda/speakers/425260|url-status=dead}}{{Cite web|url=https://atlantatribune.com/2018/06/20/why-burunda-prince-jones-came-home-to-the-farm/|title=Why Burunda Prince-Jones Came Home to The Farm|date=2018-06-20|website=Atlanta Tribune|language=en-US}}

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."{{Cite book|url=https://books.google.com/books?id=9k9V7WOnOjoC&q=temple+barker+&pg=PA37|title=Cargo for American Ships: Hearings, Ninety-second Congress, First Session|publisher=U.S. Government Printing Office|year=1972|language=en}}

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."{{Cite web|date=1983-06-26|title=Consumer activist Ralph Nader Sunday called the Agriculture Department|url=https://www.upi.com/Archives/1983/06/26/Consumer-activist-Ralph-Nader-Sunday-called-the-Agriculture-Departments/7522425448000/|access-date=2020-03-26|website=United Press International|language=en}} 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".{{Cite web|date=1983-03-08|title=The Des Moines Register from Des Moines, Iowa on March 8, 1983 · Page 4|url=http://www.newspapers.com/newspage/131727783/|website=Newspapers.com|language=en}}

At the time of acquisition, the firm was worth an estimated $45 million in 1987 US dollars, or over $100 million today.{{Cite web|url=https://www.latimes.com/archives/la-xpm-1987-11-25-fi-16363-story.html|title=Archive|date=1987-11-25|website=Los Angeles Times|language=en-US}}{{Cite web|url=https://www.joc.com/insurance-briefs_19871124.html|title=INSURANCE BRIEFS|date=1984-11-24|website=JOC.com}}

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.{{Cite journal|last=Horwitch|first=Mel|date=1978-06-01|title=The Emergence of Post-Modern Strategic Management|journal=Working Paper (Sloan School of Management)|hdl=1721.1/47781}} 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."{{cite news|date=1989-11-22|title=STRATEGIC PLANNING ASSOCIATES TO COMBINE WITH N.Y. FIRM|url=https://www.washingtonpost.com/archive/business/1989/11/22/strategic-planning-associates-to-combine-with-ny-firm/a331bc06-735a-4cd3-af1c-9277f86b6884/|access-date=2020-08-21|newspaper=The Washington Post}}

In 1990, Temple Barker & Sloan was merged with Strategic Planning Associates to form Mercer Management Consulting.{{cite book|url=https://books.google.com/books?id=81C1AAAAIAAJ&q=Temple%2C+Barker+%26+Sloane+Strategic+Planning+Associates+1992&pg=PA7 |title=Management Consulting: A Survey of the Industry and Its Largest Firms |website=United Nations Conference on Trade and Development. Programme on Transnational Corporations |year=1993 |isbn=9789211044195 |access-date=2020-08-24}}{{cite web|url=https://law.justia.com/cases/federal/district-courts/FSupp/920/219/1461548/ |title=Mercer Management Consulting, Inc. v. Wilde, 920 F. Supp. 219 (D.D.C. 1996) |website=Justia |date=1996-03-29 |access-date=2020-08-24}}

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.{{cite news

|author1=Steven Lipin |author2=Leslie Scism |title=Marsh to Buy Rival Johnson & Higgins

|url=https://www.wsj.com/articles/SB858125596403171500 |access-date=28 December 2017

|work=Wall Street Journal |date=12 March 1997}}{{cite news

|author=Leslie Scism |title=Marsh & McLennan Shares Rise On Agreement to Acquire Rival

|url=https://www.wsj.com/articles/SB858212565504465000

|access-date=28 December 2017|website=wsj.com |date=13 March 1997}}

Throughout the 2000s, the company further transformed and focused its operating strategy through various acquisitions and divestment at its subsidiaries, including:

• In 2000, Marsh & McLennan’s HR consulting unit, Mercer, acquired Delta Consulting Group for its organizational development and change management expertise.{{cite news|last1=Woolsey|first1=Christine|title=Mercer Consulting Group Plans Acquisition of Delta Consulting|url=https://www.hrhub.com/doc/mercer-consulting-group-plans-acquisition-of-0001|access-date=28 December 2017|work=HR Hub|date=25 March 2000}}
• In 2003, the company acquired Oliver Wyman, a management consultancy with a large financial services industry clientele.{{cite news|last1=Avery|first1=Helen

|title=Mercer confirms Oliver Wyman buy

|url=https://www.ipe.com/mercer-confirms-oliver-wyman-buy/6674.fullarticle

|access-date=28 December 2017 |work=Investments & Pensions Europe |date=26 February 2003}} The acquisition served to transform MMC from a company known mostly for its insurance brokerage services into one with a full-fledged management consulting practice that competes with McKinsey, Boston Consulting Group, and others.

• In 2007, Marsh & McLennan sold its Putnam Investments mutual fund business to Power Financial Corp. for $3.9 billion in a divestment meant to focus the parent company on its risk and human capital businesses.
• Also in 2007, the company announced that its insurance brokerage unit, Marsh, had received the first license for a wholly owned foreign company to operate an insurance brokerage business in China.{{cite news |author=James Areddy

|title=Marsh Gets License in China to Work as Insurance Broker

|url=https://www.wsj.com/articles/SB116954780451384877 |access-date=28 December 2017

|work=Wall Street Journal|date=23 January 2007}}

• In May 2007, the company combined three Mercer consulting units - Mercer Delta Consulting, Mercer Oliver Wyman and Mercer Management Consulting - into Oliver Wyman.{{cite web|url=https://www.businessinsurance.com/article/20070509/NEWS/200010177/mercer-units-combine-to-form-new-consultancy |title=Mercer units combine to form new consultancy |website=Business Insurance |date=2007-05-09 |access-date=2020-08-24}}{{subscription required|date=August 2020}}
• In 2010, the company sold Kroll, its corporate intelligence and investigative unit, to Altegrity Inc. for $1.13 billion. Prior to this final deal and divestiture, Marsh & McLennan had been selling off smaller divisions within Kroll to further focus on its core risk and consulting businesses.{{cite news |author1=Peter Lattman |author2=Anupreeta Das|author-link2=Anupreeta Das

|title=Marsh & McLennan Sells Kroll for $1.13 Billion

|url=https://www.wsj.com/articles/SB10001424052748703303904575292322037231554

|access-date=28 December 2017 |work=Wall Street Journal|date=8 June 2010}}

• In September 2018 the company agreed to acquire London-based Jardine Lloyd Thompson for £4.3 billion.{{cite news|url=https://www.telegraph.co.uk/business/2018/09/18/jardinelloyd-thompson-bought-bymarsh-mclennanfor-43bn/|title=Jardine Lloyd Thompson to be bought by Marsh & McLennan for £4.3bn|newspaper=The Telegraph|date=18 September 2018|access-date=8 October 2019|last1=Burton|first1=Lucy}} The transaction was completed on 1 April 2019.{{cite web|url=https://www.insurancejournal.com/news/international/2019/04/01/522406.htm|title=Marsh & McLennan Completes $5.6 Billion Acquisition of Jardine Lloyd Thompson|publisher=Insurance Journal|date=1 April 2019|access-date=8 October 2019}}

In July 2017, Marsh & McLennan Cos. Inc. was ranked first in Business Insurance's world's largest brokers list.

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.{{cite news |url=http://www.tenantwise.com/reports/wtc_relocate.asp |title=Special Report: WTC Tenant Relocation Summary |publisher=TenantWise |date=September 2003 |access-date=2009-04-01 |archive-date=2006-03-20 |archive-url=https://web.archive.org/web/20060320154629/http://www.tenantwise.com/reports/wtc_relocate.asp |url-status=dead }} When American Airlines Flight 11 crashed into the building, its offices spanned the entire impact zone, floors 93 to 99.Dwyer, Jim and Flynn, Kevin, 102 Minutes: The Untold Story of the Fight to Survive Inside the Twin Towers, Times Books, 2006, p. 19. 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 plane crashing into the tower where the company was; the firm lost 295 employees and 63 contractors. 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.{{Cite web |url=https://memorial.marshmclennan.com |title=Marsh McLennan Companies Memorial: Tributes |website=Marsh McLennan}}

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.{{cite news|last1=Treaster|first1=Joseph|title=Insurance Investigations Under Way Over Fees|url=https://www.nytimes.com/2004/04/24/business/insurance-investigations-under-way-over-fees.html|access-date=28 December 2017|work=New York Times|issue=24 April 2004|date=24 April 2004}} 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.{{cite news|last1=Treaster|first1=Joseph|title=Insurance Broker Settles Spitzer Suit for $850 Million|url=https://www.nytimes.com/2005/02/01/business/insurance-broker-settles-spitzer-suit-for-850-million.html|access-date=1 July 2016|work=New York Times|issue=1 Feb 2005|date=1 Feb 2005}}

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.{{cite news|last1=Pleven|first1=Liam|title=Marsh on Cusp of Outcomes Crucial to Broker's Future|url=https://www.wsj.com/articles/SB121547001134433929|access-date=28 December 2017|work=Wall Street Journal|date=8 July 2008}}

In September 2018 Marsh & McLennan made an offer to British financial company JLT, valuing that company at £4.3 billion.{{cite news|url=https://www.telegraph.co.uk/business/2018/09/18/jardinelloyd-thompson-bought-bymarsh-mclennanfor-43bn/|title=Jardine Lloyd Thompson to be bought by Marsh & McLennan for £4.3bn|newspaper=The Telegraph|date=18 September 2018|accessdate=18 September 2018|last1=Burton|first1=Lucy}} The transaction was completed on 1 April 2019.{{cite web|url=https://www.insurancejournal.com/news/international/2019/04/01/522406.htm|title=Marsh & McLennan Completes $5.6 Billion Acquisition of Jardine Lloyd Thompson|publisher=Insurance Journal|date=1 April 2019|accessdate=1 April 2019}}

In April 2021, Marsh & McLennan Companies rebranded to Marsh McLennan coinciding with the 150th anniversary of subsidiary Marsh.{{Cite web |date=2021-03-15 |title=MMC becomes Marsh McLennan, 117 years after original merger |url=https://www.insuranceinsider.com/article/289razfz2nx6jbim98y68/mmc-becomes-marsh-mclennan-117-years-after-original-merger |access-date=2024-11-29 |website=Insurance Insider |language=en}}

Marsh & McLennan Companies is composed of two primary business segments: Risk and Insurance Services, and Consulting.{{cite web|title=Marsh & McLennan Companies 2015 Annual Report|url=https://www.sec.gov/Archives/edgar/data/62709/000006270916000040/mmc1231201510k.htm|website=SEC.gov|publisher=SEC|access-date=6 May 2016}}

• Marsh, which provides insurance brokering and risk management consulting, including strategic, cyber,{{Cite news|date=July 19, 2021|title=Decrypting the Misconceptions Around Ransomware|url=https://www.gccapitalideas.com/2021/07/19/decrypting-the-misconceptions-around-ransomware/}}{{Cite web|date=March 18, 2021|title=Magda Chelly - Head of Cyber Risk Advisory, Marsh Asia, speaks about how enterprises can attempt to make their security strategy comprehensive.|url=https://cio.economictimes.indiatimes.com/news/digital-security/cybersecurity-in-the-borderless-digital-enterprise/81570535}} property, casualty, enterprise risk management, crisis management, and more.{{Cite news|date=October 14, 2021|title=Marsh McLennan Launches Global Cyber Risk Analytics Center|url=https://www.businesswire.com/news/home/20211014005626/en/Marsh-McLennan-Launches-Global-Cyber-Risk-Analytics-Center}}{{Cite news|date=|title=Marsh: "Historic growth" in the captive industry|url=https://www.captiveinsurancetimes.com/captiveinsurancenews/industryarticle.php?article_id=7726&navigationaction=industrynews&newssection=industry}} John Doyle was president and CEO of Marsh from 2017–2022, before succeeding Dan Glaser as president and CEO of the parent company, MMC, as of January 1, 2023.{{Cite web|title=Marsh & McLennan Companies Appoints John Doyle Chief Executive Officer of Marsh|url=https://www.marsh.com/us/media/mmc-appoints-john-doyle-chief-executive-officer-of-marsh.html|access-date=2020-07-07|website=www.marsh.com}}{{Cite news|title=Marsh McLennan Announces John Q. Doyle to Succeed Daniel S. Glaser as President and Chief Executive Officer|url=https://www.businesswire.com/news/home/20220926005439/en/Marsh-McLennan-Announces-John-Q.-Doyle-to-Succeed-Daniel-S.-Glaser-as-%C2%A0President-and-Chief-Executive-Officer|access-date=2023-01-07|website=www.businesswire.com}}
• Guy Carpenter, a risk and reinsurance intermediary{{Cite web|title=History of Marsh & McLennan Companies, Inc. – FundingUniverse|url=http://www.fundinguniverse.com/company-histories/marsh-mclennan-companies-inc-history/|access-date=2021-10-25|website=www.fundinguniverse.com}}

• Mercer, offering health, retirement, talent, and investment consulting services
• Oliver Wyman, a collection of management consulting firms (including Oliver Wyman, Lippincott, and NERA Economic Consulting){{Cite web|title=Mercer Consulting Group Plans Acquisition of Delta Consulting|url=https://www.hrhub.com/doc/mercer-consulting-group-plans-acquisition-of-0001|access-date=2021-10-25|website=www.hrhub.com}}

• Aon
• Brian Duperreault
• Willis Towers Watson

{{Reflist|30em}}

{{Finance links

| name = Marsh & McLennan

| symbol = MMC

| sec_cik = 62709

| yahoo = MMC

| google = MMC

}}

{{-}}

{{Consulting}}

{{Authority control}}

{{DEFAULTSORT:Marsh and Mclennan Companies}}

Category:1905 establishments in Illinois

Category:American companies established in 1905

Category:Companies based in New York City

Category:Companies listed on the New York Stock Exchange

Category:Financial services companies based in New York City

Category:Financial services companies established in 1905

Category:Financial services companies of the United States

Category:Insurance companies based in New York City

Category:Publicly traded companies based in New York City