Year-End Results

Marsh & McLennan Co Inc
30 January 2002


FOR IMMEDIATE RELEASE


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


           MMC REPORTS FOURTH QUARTER AND YEAR-END RESULTS

          Strong Performance in Risk and Insurance Services


New York, New York, January 30, 2002-Marsh & McLennan Companies, Inc. (MMC)
today reported financial results for both the quarter and year ended December
31, 2001.

In the fourth quarter, consolidated revenues of $2.5 billion were unchanged
from 2000. Excluding one-time items, net income was $286 million, and
earnings per share increased to $0.99 from $0.98 a year ago. For the year,
revenues were $9.9 billion, a decline of 2 percent. Net income increased 4
percent to $1.2 billion, and earnings per share increased 3 percent to $4.24
from $4.10 in 2000.

Several one-time items discussed below affected MMC's results for the
quarter. The reduction in earnings per share as a result of these items was
$0.48. Combined with third quarter pretax charges of $173 million relating to
the events of September 11, the full-year effect was $0.85 per share. Net
income was $144 million or $0.51 per share for the quarter and $974 million or
$3.39 per share for the full year.

Risk and insurance services results were excellent. For the quarter, revenues
grew by 11 percent to $1.3 billion, and operating income increased 22 percent
to $265 million. For the year, revenues increased by 8 percent to $5.2
billion, and underlying revenue growth, which excludes the effect of foreign
exchange, acquisitions and dispositions, was 10 percent. Operating income
grew 21 percent to $1.1 billion. Marsh's clients faced a difficult insurance
and reinsurance marketplace throughout 2001 as premiums continued to rise and
capacity, particularly for large risks, became more scarce. The terrorist
attacks in September accelerated these trends and created a more uncertain
environment in terms of coverage limits, risk exposures and exclusions for
certain risks. These conditions have heightened demand for Marsh's
professional services.

Equity market declines affected Putnam's results throughout 2001. Putnam's
revenues in the fourth quarter declined 15 percent to $629 million. Excluding
the one-time item discussed below, operating income declined 22 percent to
$190 million from $245 million in 2000. Average assets under management for
the quarter were $304 billion, compared with $381 billion in the fourth
quarter of 2000. Putnam ended 2001 with $315 billion in assets under
management, a 10 percent increase over $286 billion at the end of the third
quarter. Led by Putnam's institutional businesses, net new sales totaled $4
billion in the quarter and $11.5 billion for the year.

Putnam's strategic alliance established in 1995 in Italy with Gruppo
Bipop-Carire S.p.A. has significantly expanded Putnam's European
distribution. Putnam's investment in this alliance consists of a direct
private investment that has increased in value and a $286 million investment
in the publicly traded common shares of Bipop that has declined in value.
MMC's decision to recognize a cumulative valuation adjustment in the common
shares of Bipop resulted in a noncash pretax charge to income of $222
million, of which $206 million was recorded in prior quarters on MMC's
balance sheet. MMC has done this in accordance with Statement of Financial
Accounting Standards (SFAS) No. 115, 'Accounting for Certain Investments in
Debt and Equity Securities.'

Mercer's revenues in the fourth quarter declined 4 percent to $516 million
from $537 million in 2000. Operating income declined 10 percent to $71
million from $79 million. For the year, Mercer's revenues increased to $2.2
billion from $2.1 billion, with underlying revenues growing 3 percent.
Operating income rose to $313 million from $312 million. Many of Mercer's
consulting practices reported strong annual revenue growth. Revenues for
Mercer's retirement consulting practice, which accounts for more than 40
percent of its business, increased 11 percent. Revenues for health and group
benefits consulting grew 8 percent and economic consulting revenues grew 11
percent. General management consulting revenues were 21 percent lower for the
year.

Since September 11, MMC has responded rapidly and comprehensively to the
immediate and emerging needs of the members of its corporate family who have
suffered from the terrorist attacks. The Company has assisted the families of
colleagues who were lost with financial, emotional and administrative
support. In the fourth quarter, the Company increased its commitment by $14
million to provide additional payments and services to the families in
response to the unique circumstances of September 11.

In conjunction with the planned adoption in the first quarter of 2002 of SFAS
No. 142, 'Goodwill and Other Intangible Assets,' MMC considered issues of
impairment, particularly acquisition goodwill. Intangible assets, mainly
goodwill, were approximately $5.3 billion at year-end 2001. With the
successful integration of Johnson & Higgins and Sedgwick, no goodwill
impairment will occur from the adoption of SFAS No. 142. Additionally, the
cost to integrate these firms was lower than anticipated, which led to a
reduction in other liabilities and a special credit of $13 million in the
fourth quarter.

In 2001, MMC strengthened its financial position and used cash generated from
operations to repurchase approximately 8 million shares of its common stock.
The Company expects to continue this share repurchase program in 2002.

J.W. Greenberg, chairman, said: 'MMC performed well in 2001 despite difficult
business conditions and while dealing with the events of September 11. We
have been greatly encouraged by the resilience of our people, their continued
ability to serve clients and their resolve to move forward during a trying
time. As in the past, the strength of our culture and the quality and
combination of our diverse professional services businesses contributed to
earnings growth. Moreover, we implemented a number of initiatives to position
MMC for future growth. We are confident about our prospects.'

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 58,000 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. 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  Twelve Months Ended
                                             December 31,         December 31,
                                       __________________  ___________________
                                           2001      2000       2001      2000
                                         ________  ________   ________  _______
  Revenue:
  Risk and Insurance Services            $1,328    $1,199     $5,152    $4,780
  Investment Management                     629       740      2,631     3,242
  Consulting                                516       537      2,160     2,135
                                         ________  ________   ________  _______
  Total Revenue                           2,473     2,476      9,943    10,157
                                         ________  ________   ________  _______

  Expense:
  Compensation and Benefits               1,255     1,159      4,877     4,941
  Amortization of Intangibles                47        49        192       183
  Other Operating Expenses                  668       750      2,715     2,856
  Net One-Time Items                        223        (2)       396        (2)
                                         ________  ________   ________  _______
  Total Expense                           2,193     1,956      8,180     7,978
                                         ________  ________   ________  _______

  Operating Income                          280       520      1,763     2,179

  Interest Income                             5         5         23        23

  Interest Expense                          (42)      (56)      (196)     (247)
                                         ________  ________   ________  _______
  Income Before Income Taxes and
  Minority Interest                         243       469      1,590     1,955

  Income Taxes                               96       177        599       753

  Minority Interest, Net of Tax               3         6         17        21
                                         ________  ________   ________  _______

  Net Income                              $ 144     $ 286      $ 974    $1,181
                                         ========  ========   ========  =======
  Basic Net Income Per Share              $0.52     $1.03      $3.54     $4.35
                                         ========  ========   ========  =======
  Diluted Net Income Per Share            $0.51     $0.98      $3.39     $4.10
                                         ========  ========   ========  =======
  Diluted Net Income Per Share
       Excluding One-Time Items           $0.99     $0.98      $4.24     $4.10
                                         ========  ========   ========  =======
  Average Number of
       Shares Outstanding - Basic           275       277        275       272
                                         ========  ========   ========  =======
  Average Number of
       Shares Outstanding - Diluted         285       288        286       284
                                         ========  ========   ========  =======



                    Marsh & McLennan Companies, Inc.
           Supplemental Information - Excluding One-Time Items
                       (In millions) (Unaudited)



                                       Three Months Ended  Twelve Months Ended
                                             December 31,         December 31,
                                       __________________  ___________________
                                           2001      2000       2001      2000
                                         ________  ________   ________  _______

  Operating Income Including Minority
  Interest Expense:
  Risk and Insurance Services              $ 265    $ 217     $1,139    $  944
  Investment Management                      190      245        803     1,027
  Consulting                                  71       79        313       312
  Corporate                                  (29)     (29)      (116)     (127)
                                         ________  ________   ________  _______
                                           $ 497    $ 512     $2,139    $2,156
                                         ________  ________   ________  _______

  Minority Interest Expense, Net of
  Tax, Included Above:
  Risk and Insurance Services                $ 3      $ 2       $  6      $  6
  Investment Management                        3        4         14        15
                                         ________  ________   ________  _______
                                             $ 6      $ 6       $ 20      $ 21
                                         ________  ________   ________  _______

  Operating Income                         $ 503    $ 518     $2,159    $2,177
  Income Before Income Taxes and           $ 466    $ 467     $1,986    $1,953
  Minority Interest
  Income Taxes                             $ 174    $ 176     $  744    $  752
  Net Income                               $ 286    $ 285     $1,222    $1,180

  Segment Operating Margins:
  Risk and Insurance Services              20.0%    18.1%      22.1%     19.7%
  Investment Management                    30.2%    33.1%      30.5%     31.7%
  Consulting                               13.8%    14.7%      14.5%     14.6%

  Consolidated Operating Margin            20.3%    20.9%      21.7%     21.4%
  Pretax Margin                            18.8%    18.9%      20.0%     19.2%
  Tax Rate                                 37.5%    37.7%      37.5%     38.5%

  Underlying Change in Revenue:
  Risk and Insurance Services                11%       9%        10%        8%
  Investment Management                     (15%)      3%       (19%)      21%
  Consulting                                 (3%)     10%         3%       11%
  Consolidated                                0%       7%        (1%)      12%

  Interest Income on Fiduciary Funds        $ 30     $ 53      $ 165     $ 195

  Basic Shares Outstanding at End of         274      276
  Period

  Potential Minority Interest
  Associated with the Putnam
  Equity Partnership Plan Net of
  Dividend Equivalent Expense
  Related to MMC Common Stock
  Equivalents                                $ 2      $ 1       $ 10      $ 15



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


                                       Three Months Ended  Twelve Months Ended
                                             December 31,         December 31,
                                       __________________  ___________________
                                           2001      2000        2001     2000
                                         ________  ________   ________  _______
  Putnam Assets Under Management
  (billions):
  Mutual Funds:
  Growth Equity                             $ 62     $104
  Core Equity                                 53       59
  Value Equity                                55       58
  Fixed Income                                49       48
                                         ________  ________
                                             219      269
                                         ________  ________
  Institutional Accounts:
  Growth Equity                               24       34
  Core Equity                                 44       46
  Value Equity                                11        6
  Fixed Income                                17       15
                                         ________  ________
                                              96      101
                                         ________  ________
  Total Ending Assets (December 31)         $315     $370
                                         ========  ========
  Assets from Non-US Investors              $ 30     $ 29

  Average Assets                            $304     $381        $328     $397

  Net New Sales including Dividends
  Reinvested                                 $ 4      $ 9       $11.5     $ 33

  One-Time Items (millions)
  SFAS 115 Valuation Adjustment (a)         $222      $ -        $222      $ -
  Charges Related to September 11             14        -         187        -
  Special Credits (b)                        (13)      (2)        (13)      (2)
                                         ________  ________   ________  _______
                                            $223     $ (2)       $396     $ (2)
                                         ________  ________   ________  _______

___________________________________________________

(a)  Putnam has a strategic investment in the financial services industry in
     Italy, which consists of an equity method investment in a non-publicly
     Traded entity and a publicly traded equity security of a related company.
     The publicly traded security is carried at market value within Long-term
     Investments, with changes in value recorded in Other Comprehensive Income
     on the balance sheet. In accordance with SFAS No. 115, MMC determined the
     decline in value of this security was other than temporary and accordingly,
     wrote down the cost basis of the security to its market value at December
     31, 2001. This resulted in a pretax charge of $222 million, of which $206
     million had been reflected in Other Comprehensive Income through the end
     of the third quarter.

(b)  Special credits were recorded to reflect lower than anticipated costs of
     integrating Johnson & Higgins and Sedgwick, which led to a reduction in
     Other Liabilities.

The realized net pretax savings associated with the Sedgwick integration
amounted to $40 million in 2001 and totaled $160 million overall.

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 $0.40 per share
beginning in 2002.

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