October 25, 2004

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 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 recently staged a modest recovery upon the news that CEO Jeffrey Greenberg would step down.

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