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.
Florida’s Private Railroad, Brightline, Files for Bankruptcy 
Takeaways From AP Analysis on the Flaws in National Flood Insurance 
Zurich Insurance Completes Acquisition of Beazley 
Insurance Regulators Defend State-Led Model in Reply to Warren 
