3rd Quarter Results

Marsh & McLennan Co Inc
21 October 2003



News Release

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


                      MMC REPORTS INCREASED THIRD QUARTER
                            AND NINE MONTHS RESULTS

      Quarterly Revenues Increase 11 Percent, Net Income Rises 19 Percent


NEW YORK, NEW YORK, October 21, 2003-Marsh & McLennan Companies, Inc. (MMC)
today reported financial results for the quarter and nine months ended September
30, 2003. Consolidated revenues for the quarter increased 11 percent to $2.8
billion. Net income rose 19 percent to $357 million, the largest increase since
2000, and earnings per share grew 18 percent to $0.65 from $0.55. For the nine
months, consolidated revenues rose 10 percent to $8.6 billion. Net income grew
11 percent to $1.2 billion, and earnings per share increased 13 percent to $2.12
from $1.88.


Jeffrey W. Greenberg, chairman, commented: 'MMC performed well in the third
quarter, with improvement in each of our businesses. Marsh produced excellent
results. Secular changes are having a lasting effect on the business of advice
and risk transfer. Clients face risks that have grown in number, complexity, and
severity. Heightened awareness of these risks creates a great need for
expertise, and Marsh is uniquely qualified to address these needs around the
world. Marsh also brings to clients a distinctive strength through collaboration
with other MMC companies. For example, Marsh and MMC Capital worked together to
form AXIS Capital to bring much needed new capacity to the insurance markets in
a time of stress. And the addition of Mercer Oliver Wyman to MMC significantly
strengthens our risk management capabilities in financial services.'


Mr. Greenberg continued: 'We're pleased that both Mercer and Putnam showed
improved results in the current environment. Over the last decade, MMC's
activities in retirement and benefits have alternated with risk and insurance
services as our major business. Putnam and Mercer are dedicated to responding to
retirement needs around the world. Demographic trends in the developed world and
the need for a private sector response to retirement issues will provide
important opportunities for growth. Putnam and Mercer will be well positioned to
take advantage of these growing markets.'


Risk and insurance services revenues rose 15 percent in the third quarter to
$1.6 billion. On a constant currency basis, which excludes changes in foreign
exchange and acquisitions, revenues grew 13 percent. Operating income increased
16 percent to $388 million. Risk management and insurance broking, representing
approximately 75 percent of Marsh's revenues, grew 12 percent on a constant
currency basis, with double-digit growth throughout the world. Reinsurance
broking and services revenues increased 20 percent. Related insurance services
revenues grew 9 percent, with strong growth in claims management and
underwriting management, a modest increase at MMC Capital, and a slight decline
in affinity business.


During the quarter, AXIS Capital Holdings Limited successfully completed its
public offering. AXIS was formed through the collaboration of Marsh and MMC
Capital in November 2001 with $1.6 billion of capital. As a founding
shareholder, MMC invested $100 million directly in AXIS and an additional $60
million through its holding in Trident II.


Risk and insurance services revenues for the nine months reached $5.1 billion,
an increase of 17 percent, 14 percent on a constant currency basis. Operating
income increased 20 percent to $1.4 billion. Marsh's operating margin expanded
for the nine months to 26.5 percent. This indicates the strength of Marsh's
performance, particularly as it reflects investments in operating efficiencies
to drive future profitability.

Putnam has benefited from more favorable equity markets. It has posted stronger
financial results, has higher assets under management, and has made a number of
important changes in its business operations. Putnam's revenues in the third
quarter were $507 million, compared with $522 million last year. Operating
income grew 17 percent to $136 million. Putnam's total assets under management
on September 30, 2003 were $272 billion, 14 percent higher than assets under
management at the end of last year's third quarter. Average assets under
management during the third quarter were $270 billion, 5 percent higher than
average assets in the third quarter last year. At the end of the quarter, mutual
fund assets were $171 billion, up 6 percent, and institutional assets were $101
billion, an increase of 31 percent. This includes international assets of $39
billion, which were 44 percent higher than at the end of last year's third
quarter.


Mercer's revenues in the third quarter increased 15 percent to $690 million from
$600 million, and operating income rose 12 percent to $96 million. On a constant
currency basis, revenues grew 3 percent. In the quarter, Mercer's human resource
practices reported strong revenue growth in Europe and Asia, partially offset by
modest declines in North America. Mercer's economic consulting practice
performed well. Management consulting results reflect the strong new business
growth of recently acquired Mercer Oliver Wyman. For the nine months, retirement
services revenues on a constant currency basis grew 3 percent, health care and
group benefits increased 7 percent, and economic consulting grew 9 percent.


Year-to-date, MMC has paid $452 million in dividends to shareholders, including
an 11 percent increase in the quarterly dividend effective in the third quarter.
MMC also repurchased 8.2 million shares of common stock in the third quarter,
bringing its total repurchases for the year to 19.6 million shares for $910
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, 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, 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'
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                Nine Months Ended
                           September 30,                     September 30,
                           -------------                    --------------
                       2003             2002              2003            2002
                      -------          -------          --------         -------

Revenue:
Risk and             $1,640           $1,431            $5,093          $4,343
Insurance
Services
Investment              507              522             1,447           1,697
Management
Consulting              690              600             2,014           1,760
                   ----------       ----------       -----------       ---------
Total Revenue         2,837            2,553             8,554           7,800
                    ---------        ---------       -----------       ---------

Expense:
Compensation          1,486            1,299             4,339           3,829
and Benefits
Other Operating         758              742             2,306           2,207
Expenses           ----------       ----------       -----------       ---------
Total Expense         2,244            2,041             6,645           6,036
                    ---------        ---------       -----------       ---------

Operating               593              512             1,909           1,764
Income

Interest                  6                5                19              14
Income

Interest                (48)             (43)             (137)           (118)
Expense          ------------     ------------      ------------     -----------

Income Before           551              474             1,791           1,660
Income Taxes
and Minority
Interest
Expense

Income Taxes            188              168               609             589

Minority                  6                7                17              18
Interest         ------------     ------------     -------------     -----------
Expense, Net of
Tax

Net Income            $ 357            $ 299            $1,165          $1,053
                    =========        =========        ==========        ========

Basic Net             $0.67            $0.56             $2.18           $1.94
Income Per          =========        =========       ===========       =========
Share

Diluted Net           $0.65            $0.55             $2.12           $1.88
Income Per          =========        =========       ===========       =========
Share

Average Number
of
Shares                  531              535               534             542
Outstanding -      ==========       ==========      ============      ==========
Basic

Average Number
of
Shares                  550              548               550             559
Outstanding -      ==========       ==========      ============      ==========
Diluted



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

                Three Months Ended        % Change               Currency/
                    September 30,      GAAP      Constant      Acquisitions
                  2003       2002    Revenue     Currency         Impact
                 -------  -------   --------     --------       ---------
Risk and
Insurance
Services
Risk             $1,207    $1,052        15%          12%              3%
Management and
Insurance
Broking
Reinsurance         204       168        21%          20%              1%
Broking and
Services
Related             229       211         9%           9%              -
Insurance       --------  --------
Services
Total Risk and    1,640     1,431        15%          13%              2%
Insurance       --------  --------
Services
                    
Investment          507       522        (3)%         (3)%             -
Management      --------  --------

Consulting
Retirement          300       283         6%           1%              5%
Services
Health Care          99        93         7%           3%              4%
and Group
Benefits
Human               100        92         8%          (1)%             9%
Capital
Management and      117        65        76%           3%             73%
Organizational
Change
Economic             38        33        18%          16%              2%
                --------  --------
                    654       566        15%           2%             13%
Reimbursed           36        34         7%           7%              -
Expenses        --------  --------
Total               690       600        15%           3%             12%
Consulting      --------  --------
                         
Total            $2,837    $2,553        11%           7%              4%
Revenue         ========  ========
             
Revenue from
Investment
Income (Loss)
Included
Above              $ 28      $ 15

Notes to Consolidated Income Statement and Supplemental Information:

Constant currency 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,
underwriting management and MMC Capital businesses.

Interest income on fiduciary funds amounted to $30 million and $91 million for
the three months and nine months ended September 30, 2003, respectively,
compared with $34 million and $90 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.

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 investment income (loss) in the Consolidated Income
Statement.



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

                      Nine Months Ended          % Change            Currency/
                        September 30,         GAAP      Constant   Acquisitions                 
                    2003            2002     Revenue    Currency      Impact
                  -------          -------   --------    --------    ---------
Risk and
Insurance
Services
Risk              $3,800           $3,210        18%         14%           4%
Management and
Insurance
Broking
Reinsurance          627              502        25%         23%           2%
Broking and
Services
Related              666              631         6%          5%           1%
Insurance        --------         --------
Services
Total Risk and     5,093            4,343        17%         14%           3%
Insurance        --------         --------
Services

Investment         1,447            1,697       (15)%       (15)%           -
Management       --------         --------

Consulting
Retirement           912              832        10%          3%           7%
Services
Health Care          300              269        12%          7%           5%
and Group
Benefits
Human                275              255         8%          2%           6%
Capital
Management and       315              204        54%         (1)%         55%
Organizational
Change
Economic             109               98        12%          9%           3%
                 --------         --------
                   1,911            1,658        15%          3%          12%
Reimbursed           103              102         1%          1%           -
Expenses         --------         --------
Total              2,014            1,760        14%          3%          11%
Consulting       --------         --------

Total             $8,554           $7,800        10%          5%           5%
Revenue          ========         ========

Revenue from
Investment
Income (Loss)
Included
Above               $ 64             $ 52





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

                         -------------                    --------------
                      Three Months Ended                Nine Months Ended
                         September 30,                     September 30,
                         -------------                    --------------
                      2003           2002             2003            2002
                     -------        -------         --------         -------

Operating Income
Including
Minority
Interest
Expense:
Risk and              $ 388          $ 334           $1,351          $1,125
Insurance
Services
Investment              136            116              364             460
Management
Consulting               96             86              278             250
Corporate               (33)           (31)            (101)            (89)
                    ----------        --------        ---------       ---------
                        587            505            1,892           1,746
                    ----------        --------        ---------       ---------

Minority
Interest
Expense, Net of
Tax, Included
Above:
Risk and                  3              4                9               7
Insurance
Services
Investment                3              3                8              11
Management          --------       --------         --------        --------
                          6              7               17              18
                    ---------      --------         --------        --------

Operating             $ 593          $ 512           $1,909          $1,764
Income              =========     =========         ========        ========

Segment
Operating
Margins:
Risk and                23.7%            23.3%            26.5%        25.9%
Insurance
Services
Investment              26.8%            22.2%            25.2%        27.1%
Management
Consulting              13.9%            14.3%            13.8%        14.2%

Consolidated            20.9%            20.1%            22.3%        22.6%
Operating
Margin
Pretax Margin           19.4%            18.6%            20.9%        21.3%
Effective Tax           34.0%            35.5%            34.0%        35.5%
Rate

Shares                   533              537
Outstanding at
End of Period

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

                       
Included in operating results in the third quarter of 2002 was a write down of
Putnam's investment related to Thomas H. Lee Equity Fund IV, partially offset by
a contractual payment received from Putnam's Italian joint venture partner. The
net impact of these items reduced operating income by approximately $20 million.
The remaining intangible asset related to Fund IV was written off in the third
quarter of 2003 and had a net impact of approximately $10 million.


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

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

Institutional:
Equity                 76           72          64          66          59
Fixed Income           25           24          22          21          18
                    --------   --------    --------    --------    --------
Total                 101           96          86          87          77
Institutional       --------   --------    --------    --------    --------
Assets
Total Ending         $272         $267        $241        $251        $238
Assets              ========   ========    ========      =======   ========
                    
Assets from Non-US   $ 39         $ 37        $ 33        $ 33        $ 27
Investors           ========   ========    ========     =======    ========

Average Assets
Under Management:

Quarter-to-Date       $270        $260        $244        $249        $257
                    ========   ========    ========    ========    ========
Year-to-Date          $258        $252        $244        $279        $289
                    ========   ========    ========    ========    ========

Net New Sales/
(Redemptions)
including
Dividends
Reinvested:
Quarter-to-Date      $(2.7)     $(3.0)      $(1.3)      $ 0.4      $ (7.1)
                    ========   ========    ========   ========    ========
Year-to-Date         $(7.0)     $(4.3)      $(1.3)     $(10.3)     $(10.7)
                    ========   ========    ========   ========    ========



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.




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            The company news service from the London Stock Exchange