Guy Carpenter to Disclose Compensation on Facultative Placements; Impl

Guy Carpenter to Disclose Compensation on Facultative Placements; Implements Industry's First Global Disclosure Policy

    Business Editors

    NEW YORK--(BUSINESS WIRE)--May 5, 2005--Guy Carpenter & Company, Inc., the leading global risk and reinsurance specialist and a part of the Marsh & McLennan Companies (NYSE: MMC), today announced that its policy regarding disclosure of compensation to clients has been extended to include facultative placements worldwide.
    Previously, Guy Carpenter announced its commitment to transparency regarding its compensation by introducing the industry's first global Disclosure Doctrine for treaty placements. By extending the policy to include facultative placements, the company has now implemented a single "Global Disclosure Doctrine" that addresses all reinsurance placed by the company throughout the world. Guy Carpenter is the only reinsurance intermediary to implement such a policy.
    "Several months ago, we made the commitment to lead the industry through our actions by addressing the key issues of the day in a meaningful way. In addition to fostering better decision-making, transparency regarding compensation can only strengthen the bonds of trust between client and advisor," said Salvatore D. Zaffino, Guy Carpenter's Chairman & CEO. "Trust is an issue of fairness, not geography. As a result, we have implemented a policy that supports full disclosure on a worldwide basis," Zaffino added.
    The "Global Disclosure Doctrine" updates procedures and rates of brokerage for treaty reinsurance placements (originally released in December 2004), and introduces protocols for facultative reinsurance placements.
    Facultative reinsurance business varies in complexity, structure and variety of solutions, and is complicated by line of business and geographic region. Still, Guy Carpenter has committed to a global policy, which includes the following:

--	Guy Carpenter will present all new clients with a copy of our "Global Disclosure Doctrine" when we begin working on new facultative business.
--	We will disclose to clients a range of brokerage rates applicable to facultative reinsurance transactions in the regions of the world in which we operate.
--	Any upward deviation in brokerage rates will be disclosed to the client.
--	Guy Carpenter will only work on a reinsurance placement with a retail agent, broker or other representative of an insured when that agent, broker or representative confirms that the insured has agreed to our participation. In such transactions, we will also obtain agreement to our participation in the placement from our client, the reinsurance ceding entity. We will also disclose to that client if we share any revenue generated from the reinsurance placement with the retail agent, broker or representative of the insured.

    The full text of Guy Carpenter's "Global Disclosure Doctrine" can be found at www.guycarp.com.
    Guy Carpenter & Company, Inc. is the world's leading risk and reinsurance specialist and a part of the Marsh & McLennan Companies, Inc. Guy Carpenter creates and executes reinsurance and risk management solutions for clients worldwide through 2,600 professionals across the globe. The firm's full breadth of services includes 16 centers of excellence in Accident & Health, Agriculture, Alternative Risk Transfer, Environmental, General Casualty, Investment Banking*, Life & Annuity, Marine and Energy, Professional Liability, Program Manager Solutions, Property, Retrocessional, Structured Risk, Surety, Terror Risk, and Workers Compensation. In addition, Guy Carpenter's Instrat(R) unit utilizes industry-leading quantitative skills and modeling tools that optimize the reinsurance decision-making process and help make the firm's clients more successful. Guy Carpenter's website address is www.guycarp.com.

    *Securities are offered in the United States through MMC Securities Corp., Member NASD/SIPC. MMC Securities Corp. is an affiliate of Guy Carpenter & Company, Inc.

--30--NM/ny*

CONTACT: Guy Carpenter Karen Griffiths, 917-937-3215 karen.griffiths@guycarp.com or Miller DeMartine Group Joanne Lessner, 203-221-2790 jlessner@mdgpr.com

KEYWORD: NEW YORK INDUSTRY KEYWORD: INSURANCE PRODUCT SOURCE: Guy Carpenter & Company, Inc.

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