3rd Quarter & 9 Mths Results

Marsh & McLennan Co Inc
7 November 2001

FOR IMMEDIATE RELEASE

Contact:  Barbara Perlmutter                      Jim Fingeroth
          MMC                                     Kekst and Company
          [phone]                          [phone]


MMC REPORTS THIRD QUARTER AND NINE MONTHS RESULTS

NEW YORK, NEW YORK, November 7, 2001 - Marsh & McLennan Companies, Inc. (MMC),
a leading global professional services firm, today reported financial results
for the quarter and nine months ended September 30, 2001.

In the third quarter, consolidated revenues were $2.4 billion, compared with
$2.5 billion last year. Excluding charges relating to the events of September
11, net income was $274 million, compared with $282 million, and earnings per
share decreased 1 percent to $.96 from $.97. For the nine months, consolidated
revenues were $7.5 billion, compared with $7.7 billion last year. Net income
increased 5 percent to $936 million from $895 million, and earnings per share
increased 4 percent to $3.25 from $3.12.

In announcing the results, J.W. Greenberg, chairman of MMC, said, 'We lost
295 members of the MMC family in the atrocities of September 11, a day that
changed forever the lives of the victims' families and friends and affected
our Company directly and profoundly. We continue to pay tribute to these men
and women and to help their families cope in the aftermath of the tragedy.

'As we dealt with the tragedy, our first priority was our people, but we
never lost sight of the fact that as a professional services firm we had
important commitments to our clients and investors. Across the MMC companies,
and under very trying conditions, we saw our people work tirelessly to resume
operations and help clients, most immediately those affected directly by the
attacks. The strength of our organization combined with the determination of
our colleagues has allowed us to move forward during this difficult time,'
Mr. Greenberg said.

MMC experienced business disruption and financial loss as a result of the
attacks of September 11 but has insurance coverage for a substantial portion
of the loss. MMC recorded pretax charges in the third quarter of $173
million, or $.38 per share. The charges, net of insurance recoveries, include
$55 million relating to services and benefits for the victims' families and
for employees, as well as a commitment to The MMC Victims Relief Fund. About
$32 million covers the write-off of intangible assets or non-cash items that
were impaired, and $25 million pertains to disrupted operations.
Approximately $61 million is to provide for staff reductions and office
consolidations, primarily at Mercer, which are necessary to adjust to
business conditions that weakened substantially after September 11.

Third quarter revenues from Marsh rose 8 percent to $1.2 billion. Underlying
revenues, which exclude the effects of foreign exchange, acquisitions and
dispositions, increased 10 percent. Margins rose to 19.7 percent from 17.6
percent, and operating income increased 21 percent to $240 million. Over the
last 18 months, the transfer of commercial risk has become more difficult and
more expensive for clients. The terrorist attacks have accelerated these
trends. Insurance industry losses will be felt across multiple product lines,
most acutely commercial property. Now, clients face a more difficult
marketplace as insurance and reinsurance markets worldwide tighten, capacity
is reduced and rates increase. The size of the increases varies according to
product line and clients' loss experience and reflects a marketplace that is
changing daily as the January 2002 renewals begin. Marsh has the resources,
knowledge and relationships with underwriters around the world to help
clients understand and deal with these changes.

Putnam has been affected by the significant decline in U.S. equity markets
since spring 2000. Over the last 12 months, the S&P 500 Index and the Nasdaq
Composite have declined 28 percent and 59 percent, respectively. In the third
quarter, average assets under management at Putnam decreased 23 percent to
$316 billion compared with the prior year. Putnam's revenues in the third
quarter decreased 29 percent to $616 million, and operating income declined
30 percent to $189 million. Margins in the third quarter and year to date
have declined slightly to approximately 31 percent, a reflection of
cost-containment efforts taken earlier in the year, primarily reductions in
variable compensation. Putnam had net redemptions of $3 billion in the third
quarter and net new sales of $8 billion through the nine months. Assets under
management on September 30, 2001 were $286 billion and were $293 billion on
October 31, 2001.

Mercer's third quarter revenues declined 1 percent from $540 million last
year, and operating income declined 4 percent to $81 million. Margins in the
third quarter declined to 15.1 percent from 15.6 percent, but increased
slightly year to date to 14.7 percent. Underlying revenues for retirement
consulting, which is more than 40 percent of Mercer's business, increased 10
percent. Mercer experienced good revenue growth in its health and group
benefits, economic consulting, and organizational change practices, but
weakness in demand led to a decline in compensation and communications
consulting and a 25 percent decline in general management consulting.

MMC has strengthened its financial position and balance sheet over the course
of the year. The impact of the charges related to September 11 on
consolidated cash flow is not material. Cash generated from operations has
enabled MMC to repurchase 3 million shares of common stock in the third
quarter and over 6 million shares year to date. Effective in the third
quarter, MMC increased its quarterly dividend to $.53 from $.50.

MMC is a global professional services firm with annual revenues of $10
billion. It is the parent company of Marsh, the world's leading risk and
insurance services firm; Putnam Investments, one of the largest investment
management companies in the United States; and Mercer Consulting Group, a
major global provider of consulting services. Approximately 57,000 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 MMC's 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 revenue and expenses,
cash flow, capital structure, 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, interest rates, foreign exchange rates, contingencies, matters
relating to MMC's operations and income taxes. 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 loss 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
service business are changes in competitive conditions, movements in premium
rate levels and other changes in the global property and casualty insurance
markets, the impact of terrorist attacks, natural catastrophes and mergers
between client organizations, including insurance and reinsurance companies.
Factors to be considered in the case of MMC's investment management business
include changes in worldwide and national equity and fixed income markets and
the level of sales and redemptions; and with respect to all of MMC's
activities, changes in general worldwide and national economic conditions,
fluctuations in foreign currencies, actions of competitors or regulators,
changes in interest rates, 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. Please refer to Marsh
& McLennan Companies' 2000 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 posting of
updates of assets under management at Putnam, and from time to time, Marsh
Inc.'s view of insurance market conditions. Monthly updates of assets under
management at Putnam will be posted on 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. 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         Nine Months Ended
                                     September 30,              September 30,
                                   ________________          _________________
                                    2001      2000             2001      2000
                                    ____      ____             ____       ____
  Revenue:

  Risk and Insurance              $1,219    $1,132           $3,824    $3,581
  Services

  Investment                         616       863            2,002     2,502
  Management

  Consulting                         536       540            1,644     1,598
                                    ____      ____             ____       ____

  Total Revenue                    2,371     2,535            7,470     7,681
                                    ____      ____             ____       ____

  Expense:
  Compensation and                 1,184     1,267            3,622     3,782
  Benefits

  Amortization of                     48        46              145       134
  Intangibles

  Other Operating                    654       696            2,047     2,106
  Expenses

  Charges Related to                 173         -              173         -
  September 11
                                    ____      ____             ____       ____

  Total Expense                    2,059     2,009            5,987     6,022
                                    ____      ____             ____       ____

  Operating Income                   312       526            1,483     1,659

  Interest Income                      6         7               18        18

  Interest Expense                  (46)      (63)            (154)     (191)
                                    ____      ____             ____       ____

  Income Before Income               272       470            1,347     1,486
  Taxes and Minority
  Interest

  Income Taxes                       100       182              503       576

  Minority Interest,                   4         6               14        15
  Net of Tax
                                    ____      ____             ____       ____
  Net Income                       $ 168     $ 282            $ 830     $ 895
                                    ====      ====             ====       ===

  Basic Net Income Per             $0.62     $1.04            $3.02     $3.32
  Share
                                    ====      ====             ====       ===

  Diluted Net Income               $0.58     $0.97            $2.87     $3.12
  Per Share
                                    ====      ====             ====       ===

  Diluted Net Income
  Per Share
  Excluding                        $0.96     $0.97            $3.25     $3.12
  Charges Related to
  September 11
                                    ====      ====             ====       ===

  Average Number of
  Shares                             274       272              275       270
  Outstanding - Basic
                                    ====      ====             ====       ===

  Average Number of
  Shares                             284       286              286       283
  Outstanding - Diluted
                                    ====      ====             ====       ===

  Note: Minority interest for 2000 has been reclassified to be consistent
  with the 2001 presentation.


Marsh & McLennan Companies, Inc.
Supplemental Information - Excluding Charges Related to September 11
(In millions) (Unaudited)

                                Three Months Ended          Nine Months Ended
                                    September 30,               September 30,
                                ___________________        ___________________
                                  2001       2000              2001      2000
                                    ____      ____             ____       ____

  Operating Income
  Including Minority
  Interest Expense:

  Risk and Insurance              $ 240     $ 199             $ 874     $ 727
  Services

  Investment                        189       271               613       782
  Management

  Consulting                         81        84               242       233

  Corporate                        (29)      (34)              (87)      (98)
                                    ____      ____             ____       ____

                                  $ 481     $ 520            $1,642    $1,644
                                    ____      ____             ____       ____

  Minority Interest
  Expense, Net of
  Tax, Included
  Above:

  Risk and Insurance                $ 1       $ 2               $ 3       $ 4
  Services

  Investment                          3         4                11        11
  Management
                                    ____      ____             ____       ____

                                    $ 4       $ 6              $ 14      $ 15
                                    ____      ____             ____       ____

  Operating Income                $ 485     $ 526            $1,656    $1,659

  Income Before                   $ 445     $ 470            $1,520    $1,486
  Income Taxes

  Income Taxes                    $ 167     $ 182             $ 570     $ 576

  Net Income                      $ 274     $ 282             $ 936     $ 895

  Segment Operating
  Margins:

  Risk and Insurance              19.7%     17.6%             22.9%     20.3%
  Services

  Investment                      30.7%     31.4%             30.6%     31.3%
  Management

  Consulting                      15.1%     15.6%             14.7%     14.6%

  Consolidated                    20.5%     20.7%             22.2%     21.6%
  Operating Margin

  Pretax Margin                   18.8%     18.5%             20.3%     19.3%

  Tax Rate                       37.50%    38.75%            37.50%    38.75%

  Underlying Change
  in Revenue:

  Risk and Insurance                10%        9%               10%        7%
  Services

  Investment                      (29%)       28%             (20%)       27%
  Management

  Consulting                         1%       10%                5%       11%

  Consolidated                     (5%)       15%              (1%)       14%

  Interest Income on               $ 40      $ 53             $ 135     $ 142
  Fiduciary Funds

  Basic Shares                      274       275
  Outstanding at End
  of Period

  Potential Minority
  Interest Associated
  with the Putnam
  Equity Partnership
  Plan, Net of
  Dividend Equivalent
  Expense Related to                $ 2       $ 5               $ 8      $ 14
  MMC Common Stock
  Equivalents

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

                                   Three Months Ended       Nine Months Ended
                                       September 30,            September 30,
                                   __________________      ___________________
                                       2001     2000             2001    2000
                                      _____     ____             ____    _____
  Putnam Assets Under
  Management:

  Mutual Funds:
  Growth Equity                         $ 55    $142
  Core Equity                             51      59
  Value Equity                            49      57
  Fixed Income                            48      45
                                       _____    ____
                                         203     303
                                       _____    ____

  Institutional Accounts:
  Growth Equity                           20      39
  Core Equity                             41      42
  Value Equity                             6       5
  Fixed Income                            16      17
                                       _____    ____
                                          83     103
                                       _____    ____
  Total Ending Assets                   $286    $406
  (September 30)
                                       ====     ====
  Assets from Non-US                    $ 26    $ 30
  Investors

  Average Assets                        $316    $412             $337    $403

  Net (Redemptions)/Sales
  including Dividends                  $ (3)     $ 6              $ 8    $ 24
  Reinvested

____________________________________________
Through the first nine months of 2001, the realized net savings associated
with the Sedgwick integration has amounted to $35 million of the $40 million
(and totaling $160 million overall) anticipated for 2001. The remaining $5
million is expected to be realized in the fourth quarter.

Underlying change in revenue on a comparable basis excludes the effect of
such items as foreign exchange, acquisitions and dispositions.

Minority interest, net of tax, is presented as a separate line item on the
face of the Consolidated Statements of Income.

The Financial Accounting Standards Board approved the issuance of Statement
of Financial Accounting Standards (SFAS) No. 142, 'Goodwill and Other
Intangible Assets,' which changes the accounting for goodwill from an
amortization method to an impairment-only approach. Amortization of goodwill
will cease upon adoption of that statement in January 2002. The full impact
of applying this standard is yet to be determined, however, reported annual
earnings for MMC are expected to increase by at least $.40 per share
beginning in 2002.