Exhibit 99.1
News Release
MARSH & McLENNAN COMPANIES COMPLETES
ACQUISITION OF KROLL INC.
NEW YORK, NEW YORK, July 8, 2004 -- Marsh & McLennan Companies, Inc. (MMC)
announced today that it has completed its previously announced acquisition of
Kroll Inc., the world's leading risk mitigation services firm.
Jeffrey W. Greenberg, chairman and chief executive officer of MMC, said: "The
acquisition of Kroll is an important part of our strategy to expand MMC's client
services in the area of risk. With the addition of Kroll, we can now offer a
broader range of services that will help clients reduce the total cost of risk
to their enterprises. The combination of Marsh and Kroll creates a unique risk
services firm with global capabilities. In turn, Kroll will contribute to
building shareholder value at MMC, and we expect it to be accretive to MMC's
earnings beginning in 2005."
The acquisition, which was announced in mid-May, was completed following
approval by Kroll's shareholders at a meeting held today. Kroll has been
combined with the risk consulting practice of Marsh Inc., MMC's risk and
insurance services subsidiary, to form a new Marsh operating unit called Marsh
Kroll. Michael G. Cherkasky, formerly Kroll's chief executive officer, will
serve as chairman and chief executive officer of Marsh Kroll. Donald Birdsong,
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previously head of Marsh's Risk Consulting practice, will serve as president and
chief operating officer.
"This acquisition represents a new era of opportunity for Kroll and its
employees," said Mr. Cherkasky. "We are proud to be a part of an industry leader
that is recognized for top-quality client service and are eager to bring the
benefits of our combined capabilities to an expanding clientele worldwide."
MMC is a global professional services firm with annual revenues exceeding $11
billion. It is the parent company of Marsh Inc., the world's leading risk and
insurance services firm; Putnam Investments, one of the largest investment
management companies in the United States; and Mercer Inc., a major global
provider of consulting services. More than 60,000 employees provide analysis,
advice, and transactional capabilities to clients in over 100 countries. Its
stock (ticker symbol: MMC) is listed on the New York, Chicago, Pacific, and
London stock exchanges. MMC's website address is www.mmc.com.
This press release contains certain statements relating to future results, which
are forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Such statements may include, without limitation,
discussions concerning revenues, expenses, earnings, cash flow, capital
structure, pension funding, and the adverse consequences arising from
market-timing issues at Putnam, including fines and restitution, as well as
market and industry conditions, premium rates, financial markets, interest
rates, foreign exchange rates, contingencies, and matters relating to MMC's
operations and income taxes. Such forward-looking statements are based on
available current market and industry materials, experts' reports and opinions,
and long-term trends, as well as management's expectations concerning future
events impacting MMC. Forward-looking statements by their very nature involve
risks and uncertainties. Factors that may cause actual results to differ
materially from those contemplated by any forward-looking statements contained
herein include, in the case of MMC's risk and insurance services business,
changes in competitive conditions, movements in premium rate levels, the
conditions for the transfer of commercial risk and other changes in the global
property and casualty insurance markets, natural catastrophes, mergers between
client organizations, and insurance or reinsurance company insolvencies. Factors
to be considered in the case of MMC's investment management business include
changes in worldwide and national equity and fixed income markets, actual and
relative investment performance, the level of sales and redemptions, and the
ability to maintain investment management and administrative fees at historic
levels; and with respect to all of MMC's activities, changes in general
worldwide and national economic conditions, the impact of terrorist attacks,
changes in the value of investments made in individual companies and investment
funds, fluctuations in foreign currencies, actions of competitors or regulators,
changes in interest rates or in the ability to access financial markets,
developments relating to claims, lawsuits and contingencies, prospective and
retrospective changes in the tax or accounting treatment of MMC's operations,
and the impact of tax and other legislation and regulation in the jurisdictions
in which MMC operates. In addition, there are risks and uncertainties relating
to MMC's ability to integrate Kroll's business successfully and realize expected
synergies; the continued strength of Kroll's relationships
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with its employees, suppliers, and customers; and the accuracy of the basis
for the forecasts relating to Kroll's business.
Forward-looking statements speak only as of the date on which they are made, and
MMC undertakes no obligation to update any forward-looking statement to reflect
events or circumstances after the date on which it is made or to reflect the
occurrence of unanticipated events. Please refer to Marsh & McLennan Companies'
2003 Annual Report on Form 10-K for "Information Concerning Forward-Looking
Statements," its reports on Form 8-K, and quarterly reports on Form 10-Q.
MMC is committed to providing timely and materially accurate information to the
investing public, consistent with our legal and regulatory obligations. To that
end, MMC and its operating companies use their websites to convey meaningful
information about their businesses, including the anticipated release of
quarterly financial results and the posting of updates of assets under
management at Putnam. Monthly updates of total assets under management at Putnam
will be posted to the MMC website the first business day following the end of
each month. Putnam posts mutual fund and performance data to its website
regularly. Assets for most Putnam retail mutual funds are posted approximately
two weeks after each month-end. Mutual fund net asset value (NAV) is posted
daily. Historical performance and Lipper rankings are also provided. Investors
can link to MMC and its operating company websites through www.mmc.com.
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