October 25, 2004

November 8, 2004 by

The SNL insurance broker index, which includes every public insurance company in the U.S., lost more than a quarter of its value after New York Attorney General Elliot 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 percent but recently staged a modest recovery on the rumors that CEO Jeffrey Greenberg would step down.

– John Leonard
Research Analyst, SNL Financial, www.snl.com/insurance/