The chief executive of Marsh & McLennan Companies Inc., the nation’s largest insurance brokerage, said this week that the management team would recommend that the board of the nation’s largest insurance brokerage raise its annual dividend to 76 cents per share from 68 cents per share.
Michael G. Cherkasky, president and chief executive, told an investors’ day gathering in New York that he expected the board to approve the 12 percent increase.
Marsh & McLennan shares have traded in a range of $24 to $33.42 in the past year, never having fully recovered from a sharp drop that occurred in the fall of 2004 when it was disclosed that New York Attorney General Eliot Spitzer was investigating bid rigging and price fixing allegations. Marsh & McLennan settled the case in January 2005 by agreeing to pay $850 million in restitution.
Its shares closed Wednesday at $31.87, and there was no premarket activity Thursday.
Cherkasky also said he expects revenue growth “in excess of 5 percent” over the next three years and earnings per share growth in the “mid-teens.”
He said that while a repurchase of shares was possible in 2007, it was unlikely “because of our confidence in more productive investment in the businesses.”
Was this article valuable?
Here are more articles you may enjoy.