The SNL insurance broker index, which includes every public insurance company in the U.S., lost more than a quarter of its value since New York Attorney General Eliot Spitzer announced his investigation into contingent commissions and bid rigging.
In response, several large brokers abolished or suspended the commissions including Marsh and McLennan (MMC), Aon (AOC) and Willis Group (WSH). Marsh and McLennan shares quickly lost more than 40% but recently staged a modest recovery on rumors that CEO Jeffrey Greenberg would step down.
– John Leonard
Research Analyst, SNL Financial, www.snl.com/insurance/
Insurance Broker Index Price Performance 10/13/2004 – 10/22/2004
Editor’s note: Greenberg announced his resignation as CEO on Oct. 25.
Was this article valuable?
Here are more articles you may enjoy.
Abbott Presses Congress for Legal Shield Over Preemie Baby Formula Lawsuits 
Brookfield Targets Global Dominance in P/C Insurance Coverage 
Zillow Deleting Home Climate Risk Scores Reveals Limits of Flood, Fire Data 
Florida Jury Returns $779M Verdict for Family of Security Guard Killed at Gambling Cafe 
