Marsh & McLennan has been in constant contact and cooperation with New York Attorney General Eliot Spitzer and 26 other states investigating its insurance brokerage practices and while the ultimate objective is to settle all complaints, no timetable for a settlement with Spitzer or other officials has been set, according to the company.
That clarification came this morning after Bloomberg News reported that Michael Cherkasky, Marsh & McLennan chief executive, said he is “hopeful” that a settlement of the lawsuit brought by Spitzer will get done by the end of this year.
Barbara Perlmutter, spokeswoman for Marsh & McLennan, told Insurance Journal that while Marsh ultimately desires to settle all complaints, there is no guarantee this will be accomplished by year’s end. But MMC is cooperating with all officials, she said.
“We’re hopeful it will get done by the end of the year,” Bloomberg quoted Cherkasky saying yesterday. “We are actively having discussions every day.”
Perlmutter explained that the firm is in constant touch with 26 states as it is cooperating with them in their investigations.
Spitzer and Cherkasky know each other as they worked together years ago in the Manhattan district attorney’s office. Cherkasky replaced Jeffrey Greenberg at the helm of MMC on Oct. 25.
Since Spitzer launched his charges in mid-October against Marsh, the company has seen its shares fall by 40 percent.
In its third quarter report, MMC said it would establish a $232 million reserve to be used in connection with any settlement agreement that may be reached with New York’s attorney general.
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