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.
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