Mercer parent Q3 earnings delayed amid probe
GLOBAL – Marsh & McLennan Companies, the parent of pension consulting firm Mercer, has delayed its third-quarter earnings report amid a regulatory probe that has already cost its chief executive his job.
“The company now plans to announce its third quarter results on Tuesday November 9 2004,” MMC said. Its earnings were due to be released today.
The New York-based group, which also includes asset management group Putnam Investments, is facing a lawsuit from New York Attorney General Eliot Spitzer about practices in its insurance unit. Mercer has not been implicated in the allegations.
Chief executive Jeffrey Greenberg was replaced by Michael Cherkasky earlier this week.
Yesterday MMC said its Marsh risk and insurance services arm was reforming its business model in a bid to make sure that “the best interests of its clients are served and that every transaction is executed in accordance with the highest professional and ethical standards”.
It will eliminate the practice of receiving any form of contingent compensation from insurers. And it says that all revenue streams will be “100% transparent to clients”.
“Each client will receive a full accounting of all revenue earned by Marsh, including fees, retail commission, wholesale commission and premium finance compensation, if any.”
Cherkasky said: "These reforms are the next critical step to ensure the integrity and quality of our relationships with clients and to resolve our legal and regulatory issues.”