Marsh & McLennan to sustain insurance broker subsidiary

As a result of recent broker compensation investigations, Marsh & McLennan Cos. implemented a strategic review of its insurance broker subsidiary Putnam and Marsh Inc. Putnam, which was charged in the Spitzer trials with improper fund trading. Results from the “strategic review” have led Marsh & McLennan not to sell or spin off Putnam investments regardless of recent scandals. Marsh & McLennan determined that Putnam is more valuable to keep than it is to ‘unload.’ Analysts indicate spinning the Company off may have delivered up to $5 billion.After reaching a $850 million settlement with Spitzer Marsh & McLennan, speculation as to the subsidiaries fate began to swell with uncertainty peaking Michael Cherkasky, chief executive of Marsh & McLennan, explained that they would take a hard, strategic look at the Company’s future in terms of how it would best serve shareholder interests. Cherkasky was recently named head of the firm after his predecessor, Jeffrey W. Greenberg, was forced out by the board in October 2004.