The cost of handling compensation investigations and other regulatory matters hit earnings hard during the fourth quarter of 2004 at a big New York insurance broker.[@@]
The broker, Marsh & McLennan Companies Inc., is reporting a $676 million net loss for the latest quarter on $3 billion in revenue, compared with $375 million in net income on $3 billion in revenue for the fourth quarter of 2003.
Marsh says it is responding to the fourth-quarter loss by restructuring its operations and eliminating unprofitable accounts. The changes could affect 2,500 employees, Marsh says.
Marsh also says it will be cutting its first-quarter dividend in half, to 17 cents per share.