-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UbTsqspjEVEkERPm4vyM7c1DApvjNyBI4tpgnGQdOlZ1IDJaLsi/NmdsOxQLdYKe dN5lmUjafrM/FY+BklqX+w== 0000062709-96-000006.txt : 19961115 0000062709-96-000006.hdr.sgml : 19961115 ACCESSION NUMBER: 0000062709-96-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961113 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARSH & MCLENNAN COMPANIES INC CENTRAL INDEX KEY: 0000062709 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 362668272 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05998 FILM NUMBER: 96661907 BUSINESS ADDRESS: STREET 1: 1166 AVE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 2123455000 MAIL ADDRESS: STREET 1: 1166 AVE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10036 FORMER COMPANY: FORMER CONFORMED NAME: MARLENNAN CORP DATE OF NAME CHANGE: 19760505 10-Q 1 SEPTEMBER 30, 1996 10-Q FILING SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For quarter ended September 30, 1996 Marsh & McLennan Companies, Inc. 1166 Avenue of the Americas New York, New York 10036 (212) 345-5000 Commission file number 1-5998 State of Incorporation: Delaware I.R.S. Employer Identification No. 36-2668272 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X . NO . As of October 31, 1996, there were outstanding 71,817,894 shares of common stock, par value $1.00 per share, of the registrant. PART I, FINANCIAL INFORMATION MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share figures) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 1996 1995 1996 1995 Revenue $989.0 $921.6 $3,096.5 $2,812.0 Expense 814.8 763.2 2,486.5 2,265.1 Operating Income 174.2 158.4 610.0 546.9 Interest Income 3.7 4.7 10.7 13.2 Interest Expense (14.5) (15.8) (45.6) (47.3) Income Before Income Taxes 163.4 147.3 575.1 512.8 Income Taxes 60.8 56.0 214.2 194.9 Net Income $102.6 $ 91.3 $ 360.9 $ 317.9 Net Income Per Share $1.43 $1.26 $4.97 $4.37 Average Number of Shares Outstanding 71.8 72.5 72.6 72.8 Dividends Declared $.90 $.80 $2.50 $2.25 MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions of dollars) (Unaudited) September 30, December 31, 1996 1995 ASSETS Current assets: Cash and cash equivalents (including interest-bearing amounts of $372.1 at September 30, 1996 and $290.4 at December 31, 1995) $ 417.4 $ 328.1 Receivables- Commissions and fees 893.8 830.5 Advanced premiums and claims 84.7 78.8 Consumer finance and other 83.6 271.5 1,062.1 1,180.8 Less-allowance for doubtful accounts (42.5) (48.3) Net receivables 1,019.6 1,132.5 Other current assets 279.9 218.5 Total current assets 1,716.9 1,679.1 Consumer finance receivables, net - 151.3 Long-term securities 466.3 411.8 Fixed assets, net 731.6 757.5 (net of accumulated depreciation and amortization of $683.7 at September 30, 1996 and $638.5 at December 31, 1995) Intangible assets 552.4 729.7 Other assets 833.6 600.1 $4,300.8 $4,329.5 MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions of dollars) (Unaudited) September 30, December 31, 1996 1995 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term debt $ 467.9 $ 571.1 Accrued compensation and employee benefits 310.6 257.4 Accounts payable and accrued liabilities 406.9 485.4 Accrued income taxes 213.4 197.4 Dividends payable 64.6 58.2 Total current liabilities 1,463.4 1,569.5 Fiduciary liabilities 1,744.8 1,672.6 Less - cash and investments held in a fiduciary capacity (1,744.8) (1,672.6) - - Long-term debt 408.5 410.6 Other liabilities 689.4 683.9 Commitments and contingencies - - Stockholders' equity: Preferred stock, $1 par value, authorized 6,000,000 shares, none issued - - Common stock, $1 par value, authorized 200,000,000 shares, issued 76,794,531 shares at September 30, 1996 and December 31, 1995 76.8 76.8 Additional paid-in capital 149.0 155.5 Retained earnings 1,868.3 1,688.4 Unrealized securities holding gains, net of income taxes 176.1 149.2 Cumulative translation adjustments (96.9) (86.7) 2,173.3 1,983.2 Less - treasury shares, at cost, 5,086,121 shares at September 30, 1996 and 4,020,742 shares at December 31, 1995 (433.8) (317.7) Total stockholders' equity 1,739.5 1,665.5 $4,300.8 $4,329.5 MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions of dollars) (Unaudited) Nine Months Ended September 30, 1996 1995 Operating cash flows: Net income $360.9 $317.9 Gain on sale of business (33.2) - Unusual charges 33.4 - Depreciation and amortization 104.0 99.9 Deferred income taxes 38.7 39.8 Other liabilities 16.2 (3.5) Prepaid dealer commissions (267.4) (64.2) Other, net (4.7) (12.4) Net changes in operating working capital other than cash and cash equivalents - Receivables (28.8) (85.0) Other current assets 2.2 41.0 Accrued compensation and employee benefits 56.1 (17.4) Accounts payable and accrued liabilities (41.9) (35.4) Accrued income taxes 22.7 0.3 Effect of exchange rate changes 4.6 (9.0) Net cash generated from operations 262.8 272.0 Financing cash flows: Net change in debt 24.4 140.9 Purchase of treasury shares (225.4) (90.5) Issuance of common stock 96.3 67.8 Dividends paid (174.5) (158.6) Other, net 2.4 2.4 Net cash used for financing activities (276.8) (38.0) Investing cash flows: Additions to fixed assets (93.4) (100.0) Proceeds from sale of business, net of cash sold 241.8 - Acquisitions (4.7) (6.8) Other, net (37.9) (46.1) Net cash provided by (used for) investing activities 105.8 (152.9) Effect of exchange rate changes on cash and cash equivalents (2.5) 7.2 Increase in cash & cash equivalents 89.3 88.3 Cash & cash equivalents at beginning of period 328.1 294.9 Cash & cash equivalents at end of period $417.4 $383.2 MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. The consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company's latest annual report on Form 10-K. The financial information contained herein reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the three and nine month periods ended September 30, 1996 and 1995. 2. Fiduciary Cash and Liabilities In its capacity as an insurance broker or agent, the Company collects premiums from insureds and, after deducting its commissions, remits the premiums to the respective insurance underwriters; the Company also collects claims or refunds from underwriters on behalf of insureds. Unremitted insurance premiums and claims are held in a fiduciary capacity. Interest income on these fiduciary funds, included in revenue, amounted to $71.0 million and $77.4 million for the nine months ended September 30, 1996 and 1995, respectively. Net uncollected premiums and claims and the related payables amounting to $2.9 billion at September 30, 1996 and $3.1 billion at December 31, 1995, are not included in the accompanying Consolidated Balance Sheets. 3. Net Income Per Share Net income per share is computed by dividing net income by the average number of shares of common stock outstanding. Common stock equivalents (relating principally to stock options), which have been excluded from the calculation because their dilutive effect is immaterial, are shown below for the three and nine month periods ended September 30, 1996 and 1995. (In millions of shares) Three Months Ended Nine Months Ended September 30, September 30, 1996 1995 1996 1995 Primary 1.2 .9 1.2 .8 Fully Diluted 1.4 1.2 1.4 1.1 4. Supplemental Disclosure to the Consolidated Statements of Cash Flows The following schedule provides additional information concerning acquisitions: Nine Months Ended September 30, (In millions of dollars) 1996 1995 Purchase acquisitions: Assets acquired, excluding cash $ 8.1 $21.5 Liabilities assumed (3.4) (8.2) Issuance of debt and other obligations - (6.5) Net cash outflow for acquisitions $ 4.7 $ 6.8 The following schedule provides details of changes in the Company's short-term and long-term debt. Although a portion of the Company's commercial paper borrowings is classified as long-term debt in the Consolidated Balance Sheets, borrowings and repayments of commercial paper are shown below based on original maturities. Nine Months Ended September 30, (In millions of dollars) 1996 1995 Net change in debt with maturities of three months or less $ (2.8) $(84.7) Borrowings with maturities over three months 391.0 528.9 Repayments of debt with maturities over three months (363.8) (303.3) Net increase in debt $ 24.4 $140.9 Interest paid during the nine months ended September 30, 1996 and 1995 was $45.0 million and $52.1 million, respectively. Income taxes paid during the nine months ended September 30, 1996 and 1995 were $155.2 million and $163.5 million, respectively. 5. Income Taxes Taxing authorities periodically challenge positions taken by the Company on its tax returns. On the basis of present information and advice received from counsel, it is the opinion of the Company's management that any assessments resulting from current tax audits will not have a material adverse effect on the Company's consolidated results of operations or its consolidated financial position. 6. Claims, Lawsuits and Other Contingencies The Company and its subsidiaries are subject to claims and lawsuits that arise in the ordinary course of business, consisting principally of alleged errors and omissions in connection with the placement of insurance or reinsurance and in rendering consulting and investment services. Some of these claims and lawsuits seek damages, including punitive damages, in amounts which could, if assessed, be significant. Among these is a group of claims relating to reinsurance contracts placed by reinsurance broking subsidiaries of the Company that were called into question. In general, these contracts concern so-called run-off exposures under which reinsurers assumed some or all remaining liability for claims against Lloyd's syndicates or other London insurers on policies, typically written in the past over a period of many years and sometimes without aggregate limits. The initial disputes, primarily between reinsurers and cedants, concerned these contracts, and have largely been resolved. More recently, related disputes, including litigation, have arisen or been deferred by agreement between the members of syndicates, their underwriting and members' names agencies and, in some cases, subsidiaries of the Company. The syndicate members have experienced significant and continuing losses on policies, some of which were the subject of run-off reinsurance contracts that have been voided or compromised. As part of the Lloyd's Reconstruction and Renewal ("R&R") plan, most of this group of claims have been extinguished or assigned to the reinsurance entity created to effectuate the R&R plan. The Company believes that its subsidiaries performed their reinsurance broking services in conformity with accepted and customary practices in the London market. Subsidiaries of the Company in the course of their consulting and insurance activities advised certain clients in connection with their purchase of guaranteed investment contracts and annuities issued by Executive Life Insurance Company, which is in rehabilitation under the supervision of the California Insurance Department. Some of those clients as well as the Company's subsidiaries have been or may be involved in claims or lawsuits relating to losses in connection with those investments. In some instances, the subsidiaries have entered into agreements extending the time in which possible claims may be asserted against them, or have engaged in negotiating the deferral or resolution of claims and litigation. The Company believes that its subsidiaries acted in a proper and professional manner in connection with these matters. On the basis of present information, available insurance coverage and advice received from counsel, it is the opinion of the Company's management that the disposition or ultimate determination of these claims and lawsuits will not have a material adverse effect on the Company's consolidated results of operations or its consolidated financial position. 7. New Accounting Standard In October 1995, the Financial Accounting Standards Board issued SFAS No. 123 "Accounting for Stock-Based Compensation," which is effective for fiscal years beginning after December 15, 1995. In accordance with the statement, the Company will provide new footnote disclosures in its 1996 annual report presenting pro forma net income and earnings per share amounts as if employee stock options had been expensed based on their estimated fair value on the grant date, determined by using certain option pricing models. 8. Unusual Items In June 1996, the Company completed the sale of The Frizzell Group Limited for approximately $290 million. Second quarter results include a $33.2 million pretax gain on the sale which was offset by non-recurring charges totaling $33.4 million, representing a $15.5 million provision related to the London market, a $10 million goodwill write-off primarily attributable to a U.K. reinsurance operation and a $7.9 million provision for various real estate matters. These amounts are included in Expense in the Consolidated Statements of Income. Marsh & McLennan Companies, Inc. and Subsidiaries Management's Discussion and Analysis of Financial Condition and Results of Operations Third Quarter and Nine Months Ended September 30, 1996 General Marsh & McLennan Companies, Inc. and Subsidiaries (the "Company") is a professional services firm with insurance services, consulting and investment management businesses. More than 25,000 employees provide analysis, advice and transactional capabilities to clients worldwide. This management's discussion and analysis of financial condition and results of operations should be read in conjunction with the Company's latest annual report on Form 10-K. The consolidated results of operations follow: Third Quarter Nine Months (In millions of dollars) 1996 1995 1996 1995 Revenue: Insurance Services $425.0 $459.1 $1,458.6 $1,488.8 Consulting 292.2 269.0 862.4 784.5 Investment Management 271.8 193.5 775.5 538.7 989.0 921.6 3,096.5 2,812.0 Expense: Compensation and Benefits 542.1 482.5 1,630.9 1,428.2 Other Operating Expenses 272.7 280.7 855.4 836.9 Unusual Charge, net - - .2 - 814.8 763.2 2,486.5 2,265.1 Operating Income $174.2 $158.4 $ 610.0 $ 546.9 Operating Income Margin 17.6% 17.2% 19.7% 19.4% Revenue, derived mainly from commissions and fees, rose 7% from the third quarter of 1995 and 10% for the nine months. Excluding The Frizzell Group Limited ("Frizzell"), which was sold in June 1996, revenue grew 12% for both the third quarter and the nine months driven principally by increased revenue in the investment management segment, largely attributable to higher assets under management. In addition, there was increased demand for the Company's consulting services. Operating expenses rose 7% in the third quarter of 1996 and 10% for the nine months. Excluding the impact of Frizzell, operating expenses grew 11% for both the third quarter and the nine months primarily due to increased incentive compensation levels especially within investment management. Volume-related costs, particularly those associated with higher staff levels, grew for both investment management and consulting as a result of the increased level of business activity. The translated values of revenue and expense from the Company's international insurance services and consulting operations are affected by fluctuations in currency exchange rates. However, the net impact of these fluctuations on the Company's results of operations has not been material. In October 1995, the Financial Accounting Standards Board issued SFAS No. 123, "Accounting for Stock-Based Compensation," which is effective for fiscal years beginning after December 15, 1995. In accordance with the statement, the Company will provide new footnote disclosures in its 1996 annual report presenting pro forma net income and earnings per share amounts as if employee stock options had been expensed based on their estimated fair value on the grant date, determined by using certain option pricing models. Insurance Services Third Quarter Nine Months (In millions of dollars) 1996 1995 1996 1995 Revenue: Insurance Broking $293.9 $280.6 $ 994.8 $ 951.4 Reinsurance Broking 62.2 72.4 204.1 231.2 Insurance Program Management 43.7 79.0 188.7 228.8 Interest Income on Fiduciary Funds 25.2 27.1 71.0 77.4 425.0 459.1 1,458.6 1,488.8 Expense 363.0 385.8 1,152.2 1,167.9 Operating Income $ 62.0 $ 73.3 $ 306.4 $ 320.9 Operating Income Margin 14.6% 16.0% 21.0% 21.6% Insurance Broking Revenue Insurance broking revenue, received from a predominantly corporate clientele, increased 5% from the third quarter of 1995 and 5% for the nine months. Third quarter results reflect a 3% increase in direct insurance broking revenue along with higher revenue from Marsh & McLennan Risk Capital related activities. Client revenue rose primarily due to an increase in new business in the United States offset by declines in commercial property and casualty premium rates. The Company does not expect premium rate levels to change significantly in the near term and anticipates that the insurance broking marketplace will continue to be highly competitive. Reinsurance Broking Revenue Reinsurance broking revenue decreased 14% in the third quarter of 1996. This decline was primarily due to the consolidation among various U.S. and U.K. insurance companies and higher risk retentions which had the effect of reducing reinsurance demands, and the impact of lower property catastrophe premium rates. The Company expects a similar decline in reinsurance broking revenue during the fourth quarter. For the first nine months of 1996 reinsurance broking revenue decreased 12% compared with the same period of 1995. Insurance Program Management Revenue Insurance program management revenue decreased 45% from the third quarter of 1995 and 18% for the nine months due to the sale of Frizzell. Revenue for Seabury & Smith, which comprises the whole of program management subsequent to the sale of Frizzell, increased 7% from the third quarter of 1995 and 6% for the nine months. This growth was largely the result of increased services provided to corporations and institutions and their employees along with increased insurance placed on behalf of small businesses. Interest Income on Fiduciary Funds Interest income on fiduciary funds decreased 7% in the third quarter of 1996 and 8% for the nine months due to generally lower average short-term interest rates particularly in North America and Continental Europe. Expense Insurance services expenses decreased 6% from the third quarter of 1995 and 1% for the nine months due to the sale of Frizzell. Excluding the impact of Frizzell, expenses increased 2% in the third quarter compared with the prior year and 1% for the nine months reflecting continued cost containment measures while maintaining expenditures for systems related improvements. Unusual Charge, net In June 1996, the Company completed the sale of Frizzell for approximately $290 million. Second quarter results include a $33.2 million pretax gain on the sale which was offset by non-recurring charges totaling $33.4 million, representing a $15.5 million provision related to the London market, a $10 million goodwill write-off largely attributable to a U.K. reinsurance operation and a $7.9 million provision for various real estate matters. Consulting Third Quarter Nine Months (In millions of dollars) 1996 1995 1996 1995 Revenue $292.2 $269.0 $862.4 $784.5 Expense 258.5 238.0 770.1 701.3 Operating Income $ 33.7 $ 31.0 $ 92.3 $ 83.2 Operating Income Margin 11.5% 11.5% 10.7% 10.6% Revenue Consulting services revenue increased 9% in 1996 compared with the third quarter of 1995 and grew 10% for the nine months. Retirement consulting revenue, which represented 43% of the consulting segment, grew 8% in the third quarter reflecting higher demand in North America, Continental Europe and Latin America. Revenue rose 18% in health care consulting and 16% in the global compensation practice while general management consulting revenue was essentially flat during the third quarter of 1996. For the nine months, retirement consulting revenue grew 9% while revenue rose 15% in the global compensation practice, 13% in health care consulting and 9% in general management consulting. Expense Consulting services expenses increased 9% in the third quarter of 1996 and 10% for the nine months. The increase primarily reflects the impact of staff growth to support new business, higher incentive compensation and normal salary progressions. Investment Management Third Quarter Nine Months (In millions of dollars) 1996 1995 1996 1995 Revenue $271.8 $193.5 $775.5 $538.7 Expense 181.0 127.3 531.7 362.7 Operating Income $ 90.8 $ 66.2 $243.8 $176.0 Operating Income Margin 33.4% 34.2% 31.4% 32.7% Revenue Putnam's revenue increased 40% compared with the third quarter of 1995 and 44% for the nine months reflecting exceptional growth in the level of assets under management on which management fees are earned. The higher asset level reflects a substantial increase in the level of mutual fund sales, higher equity market valuations and new 401(k) business. Expense Putnam's expenses rose 42% in the third quarter of 1996 and 47% for the nine months reflecting the effect of significantly higher incentive compensation levels, staff growth to support new business, and increased costs resulting from the higher level of business activity. Quarter-end and average assets under management for the third quarter are presented below: (In billions of dollars) 1996 1995 Mutual Funds: Domestic Equity $ 72.7 $ 40.9 Taxable Bond 28.0 25.0 Tax-Free Income 16.3 16.2 International Equity 6.4 3.3 123.4 85.4 Institutional Accounts: Fixed Income 18.6 18.6 Domestic Equity 12.9 8.7 International Equity 5.3 3.5 36.8 30.8 Quarter-end Assets $160.2 $116.2 Average Assets $150.8 $112.5 Assets under management are affected by fluctuations in domestic and international bond and stock market prices, by the level of investments and withdrawals for current and new fund shareholders and clients, by the development and marketing of new investment products, and by investment performance and service to clients. Revenue levels are sensitive to all of the factors above, but in particular, to significant changes in stock and bond market valuations. Putnam provides individual and institutional investors with a broad range of equity and fixed income investment products and services designed to meet varying investment objectives. At the end of the third quarter, assets held in equity securities represented 61% of assets under management, compared with 49% in 1995, while investments in fixed income products represented 39%, compared with 51% last year. Interest Interest income earned on corporate funds declined to $3.7 million in the third quarter of 1996 compared with $4.7 million in 1995 and decreased 19% for the nine months primarily due to generally lower yields worldwide. Interest expense decreased to $14.5 million in the third quarter of 1996 from $15.8 million in 1995. This decline was primarily due to lower average interest rates on commercial paper borrowings. The average level of commercial paper borrowings during the period was slightly higher than the comparable period of 1995 principally due to the funding of Putnam's prepaid dealer commissions and the cash outflows associated with the Company's share repurchases which more than offset the lower level of debt following the Frizzell transaction. For the nine months, interest expense decreased to $45.6 million from $47.3 million in 1995. Income Taxes The Company's consolidated tax rates were 37.25% of income before income taxes in the third quarter and nine months of 1996 compared with 38.0%, respectively, for the comparable periods of 1995. The reduction in the 1996 tax rate reflects the continued implementation of tax minimization strategies around the world. The overall tax rates are higher than the U.S. statutory rates primarily because of the impact of state and local income taxes. Liquidity and Capital Resources The Company's cash and cash equivalents aggregated $417.4 million on September 30, 1996, compared with $328.1 million on December 31, 1995. In the nine months ended September 30, 1996, the Company generated $262.8 million of cash from operations compared with $272.0 million in 1995. Cash flow from operations includes the net cash requirements of Putnam's prepaid dealer commissions, which amounted to $267.4 million for the nine months of 1996 compared with $64.2 million during the same period of 1995. The long-term portion of these prepaid dealer commissions is included in other assets in the Consolidated Balance Sheets. The Company's capital expenditures, which amounted to $93.4 million in the first nine months of 1996 and $100.0 million in 1995, were primarily related to computer equipment purchases and the refurbishing and modernizing of office facilities. As previously mentioned, the Company sold Frizzell for approximately $290 million in June of 1996. Subsequent to the disposition, the Company repurchased 2.2 million of its own shares. The other liabilities in the Consolidated Balance Sheets, which totaled $689.4 million on September 30, 1996 and $683.9 million on December 31, 1995, include the Company's long-term pension liability, reserves related to the Company's professional liability insurance program, and the postretirement liability for certain health care and life insurance benefits. PART II, OTHER INFORMATION MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES INFORMATION REQUIRED FOR FORM 10-Q QUARTERLY REPORT SEPTEMBER 30, 1996 Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits. 27. Financial Data Schedule (b) Reports on Form 8-K. None. MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed this 14th day of November, 1996 on its behalf by the undersigned, thereunto duly authorized and in the capacity indicated. MARSH & McLENNAN COMPANIES, INC. By:/s/FRANK J. BORELLI Senior Vice President and Chief Financial Officer EX-27 2 ARTICLE 5
5 This schedule contains summary financial information extracted from the consolidated Marsh & McLennan Companies, Inc. and subsidiaries September 30, 1996 financial statements and is qualified in its entirety by reference to such financial statements. 9-MOS DEC-31-1996 SEP-30-1996 417,400,000 0 1,062,100,000 42,500,000 0 1,716,900,000 1,415,300,000 683,700,000 4,300,800,000 1,463,400,000 408,500,000 76,800,000 0 0 1,662,700,000 4,300,800,000 0 3,096,500,000 0 2,486,500,000 0 0 45,600,000 575,100,000 214,200,000 360,900,000 0 0 0 360,900,000 4.97 4.97
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