NU Online News Service, May 3, 4:30 p.m. EST–Marsh & McLennan Companies' quarterly profit tumbled 70 percent as the firm felt the impact of regulatory and restructuring expenses and the loss of its contingent-fee revenues, as well as the effect of softening prices.
MMC Chief Executive Officer Michael Cherkasky, however, remained upbeat about the firm's prospects. He also announced during an analyst conference call today that MMC's Marsh brokerage unit will adopt higher client commissions beginning in the 2005 third quarter to offset up to a quarter of revenues lost from eliminating contingent fees in the United States.
According to Mr. Cherkasky, Marsh has gotten a "very good response from the marketplace" about its expected commission hike. "Even in discussions with our clients, our clients are overwhelmingly understanding about what it means for them," he said during the conference call.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
