RNS Number:8201N
Marsh & McLennan Co Inc
22 July 2003



News Release

Media Contacts:                                   Investor Contact:
Barbara Perlmutter    Jim Fingeroth               Mike Bischoff
MMC                   Kekst and Company           MMC
(212) 345-5585        (212) 521-4819              (212) 345-5470



                       MMC REPORTS SECOND QUARTER RESULTS


                Revenues and Earnings Per Share Rise 10 Percent


                         Marsh Delivers Strong Results



NEW YORK, NEW YORK, July 22, 2003-Marsh & McLennan Companies, Inc. (MMC) today
reported financial results for the quarter and six months ended June 30, 2003.
Consolidated revenues for the quarter increased 10 percent to $2.9 billion from
$2.6 billion in the second quarter of 2002. Net income grew to $365 million from
$336 million and earnings per share rose 10 percent to $.66 from $.60. For the
six months, consolidated revenues rose to $5.7 billion from $5.2 billion. Net
income grew to $808 million from $754 million and earnings per share increased
11 percent to $1.47 from $1.33.


Jeffrey W. Greenberg, chairman, said: "MMC's results continue to reflect the
strengths of the company. Marsh was the biggest contributor to our growth in the
quarter, once again generating strong revenues and increased profitability.
Putnam's average assets under management increased during the quarter. Mercer's
consulting business showed gains, reflecting careful expense management."


Risk and insurance services revenues in the second quarter rose 17 percent to
$1.7 billion. On a constant currency basis, revenues grew 14 percent. Operating
income increased 23 percent to $403 million and margins expanded to 24 percent
from 22.9 percent. Marsh's expertise in analyzing and transferring risk, its
ability to create global risk management programs, and its knowledge and
relationships with global markets will continue to be of great value to clients.
Risk management and insurance broking revenues grew 17 percent, reinsurance
broking and services grew 27 percent, and related insurance services increased 8
percent. On a constant currency basis, these revenues grew 13 percent, 24
percent, and 7 percent, respectively.


Putnam's revenues in the second quarter were $495 million, 15 percent lower than
the prior year, and operating income declined to $125 million from $169 million.
Putnam's operating environment, however, has improved recently. Assets under
management of $267 billion on June 30, 2003 were 11 percent higher than the $241
billion on March 31, 2003. Average assets under management during the second
quarter were $260 billion, 14 percent below the $301 billion in the second
quarter of 2002, but 7 percent higher than the $244 billion in the first quarter
of 2003. Mutual fund sales continued at the same pace and redemptions slowed.
Institutional assets ended the quarter at $96 billion, an increase of 12 percent
during the second quarter and 3 percent from the end of the second quarter last
year. International flows have been strong this year. International assets ended
the quarter at $37 billion, an increase from $33 billion at the end of the first
quarter of 2003 and up 23 percent over last year.


Mercer's revenues in the second quarter increased 16 percent to $690 million and
operating income rose 10 percent to $99 million. The retirement services and
health care and group benefits practices, which represent two thirds of Mercer's
revenues, continued to show growth. Second quarter results also reflect the
acquisition of Oliver, Wyman & Company, which is included in the management
consulting practice. On a constant currency basis, which also excludes
acquisitions, Mercer's revenues grew 2 percent.

In the first half of the year, MMC paid $301 million in dividends to
shareholders and increased its quarterly dividend 11 percent to $.31, effective
in the third quarter. MMC also repurchased 3.7 million shares of common stock in
the second quarter, bringing its total repurchases for the year to 11.5 million
shares for $503 million.

MMC is a global professional services firm with annual revenues exceeding $10
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. Approximately 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, financial losses and expected insurance recoveries
resulting from the September 11, 2001 attack on the World Trade Center in New
York City, 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 and
consulting businesses, the amount of actual insurance recoveries and financial
losses from the September 11 attack on the World Trade Center, or other adverse
consequences from that incident. Other factors that should be considered in the
case of MMC's risk and insurance services business are changes in competitive
conditions, movements in premium rate levels, the continuation of difficult
conditions for the transfer of commercial risk and other changes in the global
property and casualty insurance markets, the impact of terrorist attacks,
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 appropriate levels; and with respect to all of MMC's
activities, changes in general worldwide and national economic conditions,
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.


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'
2002 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, except at the end of March, June, September, and December, when such
information will be released with MMC's quarterly earnings announcement. 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.





                        Marsh & McLennan Companies, Inc.

                       Consolidated Statements of Income

                    (In millions, except per share figures)

                                  (Unaudited)



                                     Three Months Ended    Six Months Ended
                                          June 30,             June 30,
                                          2003       2002      2003       2002
Revenue:
Risk and Insurance Services             $1,680     $1,436    $3,453     $2,912
Investment Management                      495        581       940      1,175
Consulting                                 690        595     1,324      1,160
                                           -----      -----   -------    -------
Total Revenue                            2,865      2,612     5,717      5,247
                                         -------    -------   -------    -------

Expense:
Compensation and Benefits                1,475      1,281     2,853      2,530
Other Operating Expenses                   791        766     1,548      1,465
                                           -----      -----   -------    -------
Total Expense                            2,266      2,047     4,401      3,995
                                         -------    -------   -------    -------

Operating Income                           599        565     1,316      1,252

Interest Income                              7          4        13          9

Interest Expense                           (46)       (38)      (89)       (75)
                                          ------     ------    ------     ------

Income Before Income Taxes and             560        531     1,240      1,186
Minority Interest Expense

Income Taxes                               189        189       421        421

Minority Interest Expense, Net of            6          6        11         11
Tax                                          ---        ---      ----       ----

Net Income                                $365       $336   $ 808         $754
                                          ======     ====== =======       ======

Basic Net Income Per Share               $0.68      $0.62     $1.51      $1.38
                                         =======    =======   =======    =======

Diluted Net Income Per Share             $0.66      $0.60     $1.47      $1.33
                                         =======    =======   =======    =======

Average Number of
Shares Outstanding - Basic                 534        545       535        546
                                           =====      =====     =====      =====

Average Number of
Shares Outstanding - Diluted               552        562       550        565
                                           =====      =====     =====      =====



                        Marsh & McLennan Companies, Inc.

                  Supplemental Information - Revenue Analysis

                                 Second Quarter

                           (In millions) (Unaudited)




                           Three Months Ended       % Change          Currency/
                             June 30,            GAAP     Constant  Acquisitions
                          2003      2002       Revenue    Currency      Impact
Risk and Insurance
Services
Risk Management and     $1,270    $1,082         17%         13%            4%
Insurance Broking
Reinsurance Broking        189       149         27%         24%            3%
and Services
Related Insurance          221       205          8%          7%            1%
Services                   -----     -----
Total Risk and           1,680     1,436         17%         14%            3%
Insurance Services       -------   -------

Investment                 495       581        (15)%       (15)%           -
Management                 -----     -----

Consulting
Retirement Services        312       279         12%          3%            9%
Health Care and Group      103        92         12%          6%            6%
Benefits
Human Capital               89        85          5%          2%            3%
Management and             117        71         65%         (1)%          66%
Organizational
Change
Economic                    34        32          6%         (1)%           7%
                            ----      ----
                           655       559         17%          2%           15%
Reimbursed Expenses         35        36         (3)%        (3)%           -
                            ----      ----
Total Consulting           690       595         16%          2%           14%
                           -----     -----

Total Revenue           $2,865    $2,612         10%          5%            5%
                        ========  ========

Investment Income/        $ 25       $ 5
(Loss) Included
Above

Constant currency measures the change in revenue using consistent currency
exchange rates, before the impact of acquisitions and dispositions.

Related insurance services includes U.S. affinity, claims management,
underwriting management and MMC Capital businesses.

Related insurance services revenue reflects strong growth in claims management
and underwriting management, partially offset by declines in U.S. affinity
business and MMC Capital.

Interest income on fiduciary funds amounted to $30 million and $61 million for
the three months and six months ended June 30, 2003, respectively, compared with
$29 million and $56 million for the same periods of 2002.

Investment income/(loss) includes realized and unrealized gains and losses from
investments recognized in the income statement, as well as other than temporary
declines in the value of available for sale securities. MMC's investments may
include seed shares for mutual funds, direct investments in insurance,
consulting or investment management companies and investments in private equity
funds.



                        Marsh & McLennan Companies, Inc.

                  Supplemental Information - Revenue Analysis

                                  Year-to-Date

                           (In millions) (Unaudited)



                      Six Months Ended          % Change              Currency/
                          June 30,          GAAP     Constant       Acquisitions
                         2003      2002   Revenue    Currency          Impact
Risk and Insurance
Services
Risk Management and    $2,593    $2,158         20%         15%              5%
Insurance Broking
Reinsurance Broking       423       334         27%         23%              4%
and Services
Related Insurance         437       420          4%          4%              -
Services                  -----     -----
Total Risk and          3,453     2,912         19%         15%              4%
Insurance Services      -------   -------

Investment                940     1,175        (20)%       (20)%             -
Management                -----   -------

Consulting
Retirement Services       612       549         11%          3%              8%
Health Care and Group     201       176         14%          9%              5%
Benefits
Human Capital             175       163          7%          3%              4%
Management and            198       139         42%         (3)%            45%
Organizational
Change
Economic                   71        65          9%          5%              4%
                           ----      ----
                        1,257     1,092         15%          3%             12%
Reimbursed Expenses        67        68         (1)%        (1)%             -
                           ----      ----
Total Consulting        1,324     1,160         14%          3%             11%
                        -------   -------

Total Revenue          $5,717    $5,247          9%          4%              5%
                       ========  ========

Investment Income/       $ 36      $ 37
(Loss) Included
Above





            Marsh & McLennan Companies, Inc.Supplemental Information

                           (In millions) (Unaudited)

                                      Three Months Ended     Six Months Ended
                                           June 30,              June 30,
                                           2003      2002       2003      2002
Operating Income Including Minority
Interest Expense:
Risk and Insurance Services               $ 403      $329       $963      $791
Investment Management                       125       169        228       344
Consulting                                   99        90        182       164
Corporate                                   (34)      (29)       (68)      (58)
                                           ------    ------     ------    ------
                                            593       559      1,305     1,241
                                            -----     -----  ---------   -------

Minority Interest Expense, Net of
Tax, Included Above:
Risk and Insurance Services                   3         2          6         3
Investment Management                         3         4          5         8
                                              ---       ---        ---       ---
                                              6         6         11        11
                                              ---       ---       ----      ----

Operating Income                          $ 599      $565     $1,316    $1,252
                                          =======    ======   ========  ========

Segment Operating Margins:
Risk and Insurance Services                24.0%     22.9%      27.9%     27.2%
Investment Management                      25.3%     29.1%      24.3%     29.3%
Consulting                                 14.3%     15.1%      13.7%     14.1%

Consolidated Operating Margin              20.9%     21.6%      23.0%     23.9%
Pretax Margin                              19.5%     20.3%      21.7%     22.6%
Effective Tax Rate                         34.0%     35.5%      34.0%     35.5%

Shares Outstanding at End of Period         534       539

Potential Minority Interest
Associated with the Putnam
Equity Partnership Plan Net of
Dividend Equivalent
Expense Related to MMC Common Stock         $ -       $ -        $ -        $1
Equivalents

MMC's consolidated effective tax rate was 35% for the year ended December 31,
2002. As a result of the geographic mix of MMC's businesses, the effective tax
rate in 2003 should approximate 34%.


                        Marsh & McLennan Companies, Inc.

           Supplemental Information - Putnam Assets Under Management

                           (In billions) (Unaudited)

                     June 30,    March 31,    Dec. 31,    Sept. 30,    June 30,
                        2003         2003        2002         2002        2002
Mutual Funds:
Growth Equity            $48          $43         $45          $45         $58
Value Equity              42           36          40           38          49
Blend Equity              35           30          33           32          40
Fixed Income              46           46          46           46          44
                          ----         ----        ----         ----        ----
Total Mutual Fund        171          155         164          161         191
Assets                   -----        -----       -----        -----       -----

Institutional:
Equity                    72           64          66           59          74
Fixed Income              24           22          21           18          19
                          ----         ----        ----         ----        ----
Total                     96           86          87           77          93
Institutional             ----         ----        ----         ----        ----
Assets
Total Ending            $267         $241        $251         $238        $284
Assets                  ======       ======      ======       ======      ======

Assets from Non-US      $ 37         $ 33        $ 33         $ 27        $ 30
Investors              =======      =======     =======      =======     =======

Average Assets
Under Management:

Quarter-to-Date         $260         $244        $249         $257        $301
                        ======       ======      ======       ======      ======
Year-to-Date            $252         $244        $279         $289        $305
                        ======       ======      ======       ======      ======

Net New Sales/
(Redemptions)
including
Dividends
Reinvested:
Quarter-to-Date        $(3.0)       $(1.3)      $ 0.4        $(7.1)      $(3.2)
                      --------     ========   =========     --------    --------
Year-to-Date           $(4.3)       $(1.3)     $(10.3)      $(10.7)      $(3.6)
                      --------     --------   ---------    ---------    --------

Categories of mutual fund assets reflect style designations aligned with
Putnam's various prospectuses. All quarter-end assets conform with the current
investment mandate for each product.







                      This information is provided by RNS
            The company news service from the London Stock Exchange

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