Marsh Positions Organization for Additional Growth

Marsh Inc. today announced a series of forward-looking moves designed to accelerate its continuing improvements in new business growth and retention levels, as reported Wednesday by parent Marsh & McLennan Companies in its third quarter earnings. The changes reflect the first of several steps being taken by the world’s leading risk and insurance services firm to obtain the best talent in the industry in support of client initiatives and strategy execution. "Our momentum is real and we’re beginning to see it reflected in our results,” said Brian Storms, Chairman and Chief Executive Officer of Marsh. "There is a growing sense of excitement and energy in this firm that’s been flowing out of an expanded client advisory focus, better technology platforms, and more efficient processes. These improvements – along with our widening footprints in geographic regions like Asia and specialty practices like risk consulting – are key drivers of our long-term growth strategy.” Storms, who took the helm of Marsh in September 2005, said the next phase of the firm’s execution plan includes investments in a variety of client-focused areas, including high-priority markets and segments, new product innovation, talent acquisition and development, and marketing. The plan is also focused on deepening Marsh’s industry specialization – an area where the firm continues to see strong growth based on client demand. In recent months, Marsh has actively recruited high-level leadership in support of strategic decisions to aggressively move into attractive new markets and drive deeper penetration in existing segments with high growth potential. Marsh has determined that one segment in particular – the middle market, comprised of companies with revenues of $50 million to $750 million – is an area where the firm is ready to significantly expand its focus. To do that, Marsh searched across the financial services industry for a person whose experience and leadership qualities could make an immediate impact in growing the firm’s presence in the segment. It resulted in the following hire: Mark Feuer, who spent the last 10 years leading successful growth initiatives at Merrill Lynch, has joined Marsh as leader of the firm’s Middle Market practice in the U.S. During his career at Merrill Lynch, Feuer held several key leadership positions, including responsibility for the firm’s Retirement business. Most recently, he headed up the Merrill Lynch Trust Company and Private Banking & Investment Group Platform, and prior to that, he served as Chief Operating Officer for the company’s Global Private Client Americas group. "The middle market in the U.S. is ready for everything we can offer, and we’re thrilled to have attracted someone the caliber of Mark Feuer to help us build this segment,” said Storms. "In some respects, Marsh’s strength and advisory offerings are equally important to mid-sized companies, many of whom lack formal risk management functions. Given the changes the world has experienced in recent years, C-level executives at large and small companies are wrestling with how to smartly factor risk into their overall business strategies.” Marsh is also strengthening its industry specialization in existing segments by hiring new leaders for two of its practice groups: Technology, Media & Telecommunications and Construction. Michael Whealon has joined the firm from ING Barings, Ltd., where he was Managing Director, Investment Banking and Global Head of Telecoms, Media & Technology. He will lead the Global Technology, Media & Telecommunications industry practice at Marsh. Earlier in his career, Whealon held significant roles at Bear Stearns, including the position of Managing Director, Investment Banking and Head of the European Telecoms Group. Michael Feigin has joined Marsh to run the Construction industry practice. Feigin, an attorney by training, worked as a real estate and construction litigator at two New York law firms, and as a Development Director at AvalonBay Communities, the national residential REIT. Feigin comes to Marsh from Bovis Land Lease Holdings, Inc., one of the largest construction companies in the world, where he held various legal, risk and operational positions in the Americas, including General Counsel, and was most recently Executive Vice President and Chief Administrative Officer. In addition to recruiting new leadership to the firm, Marsh announced the promotions of two senior leaders who have delivered exceptional results in helping the firm accelerate the early phases of its business plan. Joe Varnas, who has led a rapid transformation of Marsh’s information technology since arriving late last year, has been elevated to the new role of Chief Operating Officer. Varnas will continue to have direct responsibility for Global IT and Operations, and adds oversight for Strategic Planning, Human Resources and one of Marsh’s specialty practice groups, Global Consumer, which serves affinity markets. Tim Mahoney has been appointed the new leader for the Americas, which includes the U.S., Canada, and Latin America. Mahoney will also have responsibility for overseeing Marsh’s "G5” initiative, which was created to bring the highest levels of service to the firm’s top global clients. Mahoney joins Alex Moczarski (Europe / Middle East / Africa) and David Batchelor (Asia Pacific) as one of the three geographical region leaders. Finally, to provide the Marsh CEO with a direct line of sight into the performance of the firm’s three geographic regions, the role of President has been eliminated. Bill Malloy, who held the position of President since 2004, is remaining with the firm through the end of this year before leaving Marsh to explore new leadership opportunities. In the interim, he is transitioning his focus to work directly with Storms on important, short-term elements of the business transformation plan. "Bill has made valuable contributions to this firm over the course of his career here, and he’s been a significant part of Marsh’s success, both in the U.S. and internationally,” said Storms. "We thank him and wish him all the best.” Dating back to the fourth quarter of 2005, Marsh has experienced significant improvements in its client retention levels, with an increase of five full points over the past 12 months. Revenue trends and margins have also improved, with the resurgence in new business that began in the second quarter of this year continuing to get stronger during the third quarter. "This is not the time to pause and take a bow for the great work our people have done the past few years – rather, it’s time for the next phase to begin,” said Storms. "Increasingly, clients are looking for more than just brokerage from us. The changes we’re making are designed to serve them in a seamless way, while improving our global competitive position and long-term growth prospects at the same time.” Marsh, the world's leading risk and insurance services firm, has 26,000 employees and annual revenues approaching $5 billion. The firm provides advice and transactional capabilities to clients in over 100 countries. Marsh is a unit of Marsh & McLennan Companies (MMC), a global professional services firm with approximately 55,000 employees and approximately $12 billion of annual revenues. MMC also is the parent company of Guy Carpenter, Kroll, Putnam Investments, and Mercer. MMC’s stock (ticker symbol: MMC) is listed on the New York, Chicago, Pacific, and London stock exchanges. MMC’s Web Site address is www.mmc.com. Marsh’s Web site address is www.marsh.com.