Moody's: Marsh outlook negative

Moody's Investors Service said it changed the outlook on the A2 senior debt rating of Marsh & McLennan Cos. Inc. to negative from stable following the filing of a civil complaint by the New York attorney general.

The civil complaint arose from an investigation that began in April when the New York attorney general issued subpoenas to several insurance brokers and insurance companies. The subpoenas primarily related to an inquiry into market service and other similar agreements which compensate brokers for distribution and other services provided to insurance carriers.

The civil complaint alleges that some of Marsh's business practices involving contingent commission arrangements were "anti competitive" in nature and specifically included allegations of "bid rigging" and "improper steering" of business. To Moody's knowledge, Marsh is currently the only company to be named as a defendant in a civil complaint arising out of this investigation.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.