1st Quarter Results

Marsh & McLennan Co Inc
21 April 2004



News Release

Media Contacts:                                   Investor Contact:
Barbara Perlmutter    Jim Fingeroth               Mike Bischoff
MMC                   Kekst and Company           MMC
[phone]        [phone]              [phone]


                       MMC REPORTS FIRST QUARTER RESULTS



NEW YORK, NEW YORK, April 21, 2004-Marsh & McLennan Companies, Inc. (MMC) today
reported financial results for the quarter ended March 31, 2004. Consolidated
revenues increased 13 percent to $3.2 billion from $2.9 billion in the first
quarter of 2003. Net income rose to $446 million, and earnings per share
increased to $.83. The results include Putnam's previously announced regulatory
settlements, which are not tax deductible, severance, and expenses related to
regulatory issues. These were partially offset by the final insurance settlement
related to the World Trade Center. These items reduced net income for the
quarter by $59 million and earnings per share by $.11. In the first quarter of
2003, net income and earnings per share were $443 million and $.81,
respectively.


Jeffrey W. Greenberg, chairman and chief executive officer, said: 'We are
gratified that Putnam reached settlement agreements with regulators relating to
market timing issues, a critical step in restoring investor confidence. We
believe the changes that Putnam is making will result in a stronger
organization, and we are positive about Putnam's long-term business prospects.
MMC's risk and insurance services business had a good quarter, reflecting
Marsh's ability to deliver services across a wide spectrum of client needs, from
transaction execution to advisory services. Mercer continued to expand revenues
and profits in the quarter, led by growth in its international operations.'


Risk and insurance services revenues in the first quarter rose 12 percent to $2
billion, and operating income increased 14 percent to $637 million. Marsh
recently completed the acquisition of the Australia and New Zealand operations
of Heath Lambert and Alaska's largest insurance broker Brady & Company, Inc.
Excluding the effects of foreign exchange, acquisitions, and dispositions,
revenues grew 7 percent. On the same basis, risk management and insurance
broking, which accounts for approximately three quarters of this sector's
revenues, grew 6 percent; reinsurance broking and services increased revenues 9
percent; and related insurance services grew 11 percent. The recent trend in
insurance premium rates continued in the first quarter with declines in property
lines and increases in casualty lines.


Putnam's revenues in the first quarter increased 4 percent to $461 million,
reflecting modest investment gains in the current year, compared to a loss in
2003, as well as increased revenues from its equity investment in Thomas H. Lee.
Average assets under management during the first quarter were $234 billion,
compared with $244 billion last year. Total assets under management on March 31,
2004 were $227 billion, comprising $157 billion of mutual fund assets and $70
billion of institutional assets. Assets under management were $240 billion at
December 31, 2003. On April 8, 2004, Putnam reached settlement agreements with
the Securities and Exchange Commission and the Office of the Secretary of the
Commonwealth of Massachusetts on market timing issues for $110 million of
penalties and restitution. Since $10 million was provided in the fourth quarter
of 2003, $100 million is included in first quarter results. Also, $25 million of
severance as well as $15 million of costs related to regulatory issues were
incurred. As a result, Putnam had a $26 million operating loss. Operating income
in last year's first quarter was $103 million.


Earlier this month, Putnam sold its 20 percent equity interest in Fineco
Gestioni to its joint venture partner in Italy, FinecoGroup, resulting in an
investment gain of $25 million, which will be included in second quarter
results. Putnam will continue to manage Fineco-sponsored international equity
and specialty bond funds.


In addition, Putnam has signed a letter of intent to acquire an additional 30
percent of PanAgora Asset Management, increasing its ownership to 80 percent.
PanAgora Asset Management, established in 1989, manages quantitative equity and
fixed income investments for institutional clients.


Mercer's revenues in the first quarter increased 19 percent to $755 million,
including 10 percent from acquisitions. Operating income increased 7 percent to
$89 million. Excluding the effects of foreign exchange, acquisitions, and
dispositions, retirement services revenues increased 1 percent, management and
organizational change revenues increased 4 percent, and economic consulting grew
8 percent.


MMC reached a final settlement for insured losses totaling $278 million related
to the World Trade Center. The replacement value of assets exceeded book value
by $105 million, reducing corporate operating expenses by this amount in the
quarter.


Cash flow from MMC's operations continued to be strong. During the first
quarter, the company repurchased 7 million shares of its common stock for $330
million and paid $163 million in dividends to shareholders.


MMC is a global professional services firm with annual revenues exceeding $11
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. More than 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, and the adverse consequences arising from
market-timing issues at Putnam, including fines and restitution, 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 business,
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, 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 historic levels; and with respect to all of MMC's
activities, changes in general worldwide and national economic conditions, the
impact of terrorist attacks, 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'
2003 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. 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
                                                             March 31,
                                                        2004              2003
                                                      --------          --------

Revenue:
Service Revenue                                       $3,177            $2,841
Investment Income (Loss)                                  33                11
                                                      --------          --------
  Total Revenue                                        3,210             2,852
                                                      --------          --------

Expense:
Compensation and Benefits                              1,635             1,378
Other Operating Expenses                                 802               757
                                                      --------          --------
  Total Expense                                        2,437             2,135
                                                      --------          --------

Operating Income                                         773               717

Interest Income                                            5                 6

Interest Expense                                         (50)              (43)
                                                      --------          --------

Income Before Income Taxes and Minority Interest         728               680
Expense

Income Taxes                                             281               232

Minority Interest Expense, Net of Tax                      1                 5
                                                      --------          --------

Net Income                                             $ 446             $ 443
                                                      ========          ========

Basic Net Income Per Share                             $0.85             $0.83
                                                      ========          ========

Diluted Net Income Per Share                           $0.83             $0.81
                                                      ========          ========

Average Number of
  Shares Outstanding - Basic                             525               536
                                                      ========          ========

Average Number of
  Shares Outstanding - Diluted                           540               547
                                                      ========          ========

                                                                   Page 1 of 4


                        Marsh & McLennan Companies, Inc.
                  Supplemental Information - Revenue Analysis
                             (Millions) (Unaudited)



                                                      Components of Revenue Change
               Three Months Ended    % Change                  Acquisitions/
                    March 31,          GAAP      Underlying    Dispositions   Currency
                   2004       2003    Revenue      Revenue        Impact       Impact
                  -------    -------  ---------    --------      ---------      -------
Risk and
Insurance
Services
Risk             
Management and
Insurance
Broking          $1,486     $1,320         13%            6%             -           7%
Reinsurance         
Broking and
Services            275        243         13%            9%             -           4%
Related             233        210         11%           11%             -           -
Insurance         
Services
                  -------    -------
 Total Risk and   
 Insurance        
 Services         1,994      1,773         12%            7%             -           5%
                  -------    -------
Investment          461        445          4%            4%             -           -
Management        -------    -------

Consulting
Retirement          
Services            350        300         16%            1%             6%          9%
Management and      
Organizational
Change              134         81         66%            4%            56%          6%
Health Care         
and Group
Benefits            100         98          2%           (3)%            -           5%
Human                
Capital              94         86         10%           (1)%            -          11%
Economic             42         37         12%            8%             -           4%
                  -------    -------
                    720        602         19%            1%            10%          8%
Reimbursed           
Expenses             35         32
                  -------    -------
 Total              
 Consulting         755        634         19%            2%            10%          7%
                  -------    -------
 Total           
 Revenue         $3,210     $2,852         13%            5%             3%          5%
                  =======    =======

Notes to Consolidated Statements of Income and Supplemental Information:

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


Related Insurance Services includes U.S. affinity, claims management, wholesale
broking, underwriting management and MMC Capital businesses.


Interest income on fiduciary funds amounted to $29 million and $31 million for
the three months ended March 31, 2004 and 2003, respectively.


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, and investments in
private equity funds. Costs related to the management of MMC's investments,
including incentive compensation partially derived from investment income and
loss, are recorded in operating expenses.


MMC's direct investment in AXIS is classified as an available for sale security.
As restrictions on the sale of AXIS shares expire, changes in fair value are
reflected on the Balance Sheet until realized. Trident II's investments are
carried at fair value, in accordance with investment company accounting. MMC's
proportionate share of the change in value of its investment in Trident II is
recorded as part of the investment income (loss) in the Consolidated Statements
of Income.


Putnam's year-over-year revenues reflect modest investment gains in the current
year, compared to a loss in 2003, as well as increased revenues from Putnam's
equity investment in Thomas H. Lee. The year-over-year impact of these items
more than offset the impact of lower average assets under management.


The year-over-year increase in compensation and benefits includes the effect of
severance, increases in pension and other benefits costs and the impact of
foreign exchange and acquisitions.


Certain reclassifications have been made to prior year amounts to conform with
current presentation.


Page 2 of 4



                        Marsh & McLennan Companies, Inc.
                            Supplemental Information
                             (Millions) (Unaudited)

                                                         Three Months Ended
                                                              March 31,
                                                           2004           2003
                                                        ---------     ----------

Operating Income Including Minority Interest Expense:

Risk and Insurance Services                                $637           $560
Investment Management (a)                                   (26)           103
Consulting (c)                                               89             83
Corporate (b)                                                72            (34)
                                                        ---------     ----------
                                                            772            712
                                                        ---------     ----------

Minority Interest Expense, Net of Tax, Included Above:

Risk and Insurance Services                                   3              3
Investment Management                                        (2)             2
                                                        ---------     ----------
                                                              1              5
                                                        ---------     ----------

Operating Income                                           $773           $717
                                                        =========     ==========

Segment Operating Margins:
Risk and Insurance Services                                31.9%          31.6%
Investment Management                                      (5.6)%         23.1%
Consulting                                                 11.8%          13.1%

Consolidated Operating Margin                              24.1%          25.1%
Pretax Margin                                              22.7%          23.8%
Effective Tax Rate (d)                                     38.6%          34.0%

Shares Outstanding at End of Period                         524            536

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



(a) Expenses in the first quarter of 2004 include non-deductible regulatory
fines of $100 million related to Putnam's settlement agreements with the
Securities and Exchange Commission and the Office of the Secretary of the
Commonwealth of Massachusetts. In addition, severance of $25 million as well as
costs related to regulatory issues of $15 million, were incurred. These items
reduced Putnam's NOI by $136 million, after the impact of minority interests,
and reduced net income by $122 million.


(b) MMC reached final settlement for insured losses totaling $278 million
related to the World Trade Center. The replacement value of assets exceeded the
book value by $105 million, which was recorded as a reduction of other operating
expenses in the first quarter of 2004, and increased net income by $63 million.


(c) Includes severance as well as amortization of purchase consideration subject
to continued employment, recorded as compensation expense.


(d) The 38.6% effective tax rate includes the impact of Putnam's non-deductible
settlement payments of $100 million and a 40% tax rate on the WTC settlement
gain of $105 million. Ongoing operating income has an effective tax rate of 33%.

Page 3 of 4



                        Marsh & McLennan Companies, Inc.
           Supplemental Information - Putnam Assets Under Management
                             (Billions) (Unaudited)

                      March 31,    Dec. 31,    Sept. 30,    June 30,    March 31,
                        2004        2003         2003        2003         2003
                      --------    --------     --------    --------     --------
Mutual Funds:
Growth Equity           $ 45        $ 46         $ 48        $ 48         $ 43
Value Equity              42          43           42          42           36
Blend Equity              30          32           36          35           30
Fixed Income              40          42           45          46           46
                      --------    --------     --------    --------     --------
 Total Mutual Fund       
 Assets                  157         163          171         171          155
                      --------    --------     --------    --------     --------
Institutional:
Equity                    44          51           76          72           64
Fixed Income              26          26           25          24           22
                      --------    --------     --------    --------     --------
 Total                    
 Institutional            70          77          101          96           86
                      --------    --------     --------    --------     --------
Assets
Total Ending            
Assets                  $227        $240         $272        $267         $241
                      ========    ========     ========    ========     ========
Assets from             
Non-US                
Investors               $ 38        $ 39         $ 39        $ 37         $ 33
                      ========    ========     ========    ========     ========
Average Assets
Under Management:

 Quarter-to-Date        $234        $259         $270        $260         $244
                      ========    ========     ========    ========     ========
 Year-to-Date           $234        $258         $258        $252         $244
                      ========    ========     ========    ========     ========

Net New Sales/
(Redemptions)
including
Dividends
Reinvested:
 Quarter-to-Date    $ (17.6)    $ (53.7)      $ (2.7)     $ (3.0)      $ (1.3)
                      ========    ========     ========    ========     ========
 Year-to-Date       $ (17.6)    $ (60.7)      $ (7.0)     $ (4.3)      $ (1.3)
                      ========    ========     ========    ========     ========

Impact of Market/
Performance on
Ending
Assets Under           
Management             $ 4.5      $ 21.9        $ 7.4      $ 29.1      $ (8.9)
                      ========    ========     ========    ========     ========


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.


Page 4 of 4








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