Second Quarter Results

Marsh & McLennan Co Inc
28 July 2004

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

                       MMC REPORTS SECOND QUARTER RESULTS

            Risk and Insurance Services and Consulting Sectors Drive
                   11 Percent Increase in Earnings Per Share

NEW YORK, NEW YORK, July 28, 2004-Marsh & McLennan Companies, Inc. (MMC) today
reported financial results for the second quarter ended June 30, 2004.
Consolidated revenues for the quarter increased 6 percent to $3.0 billion. Net
income rose 7 percent to $389 million, and earnings per share increased 11
percent to $0.73 from $0.66 in last year's second quarter. For the six months of
2004, consolidated revenues rose 9 percent to $6.2 billion from $5.7 billion.
Net income grew to $835 million from $808 million, and earnings per share
increased to $1.56 from $1.47.

Jeffrey W. Greenberg, chairman and chief executive officer, said: 'MMC had a
good quarter. Strength in Marsh and Mercer more than offset weakness at Putnam.
Marsh showed earnings growth in a softening insurance pricing environment based
on its breadth of services, geographies and client segments and because of
expense control. Mercer earned over $100 million for the first time in its
history and grew earnings at the highest rate since 2000.

'Putnam's business is not where we want it to be. However, we see some signs
that are encouraging. Redemptions occurred at a decreasing rate. Investment
performance is improving with competitive results across all fixed income
products, in selected equity mutual funds, and in several institutional classes
such as structured products. And Putnam has increased its marketing efforts to
improve sales of these investment products. It has reduced its costs,
streamlined its management, and made a number of key promotions and new hires in
the investment division.

'The second quarter was especially active for MMC. The acquisition of Kroll,
which we completed earlier this month, adds significantly to our expanding risk
services offerings. Integration is going smoothly, and both organizations are
enthusiastic about our combined capabilities and the value we can bring to
clients to manage their total cost of risk.

'We took a number of steps to align the human resources practices and services
of our operating companies under a single management organization to take
advantage of our professional strength and client relationships. At the
beginning of the year, we acquired Synhrgy HR Technologies, which adds
particular expertise in health care and defined benefits administration
outsourcing. In June, we formed Mercer HR Outsourcing by combining the defined
contributions administration business of Putnam with Mercer's human resources
outsourcing operations. We also brought together Mercer's health care and group
benefits and Marsh's employee benefits practices to serve clients better.
Mercer's global consulting capabilities, supported by the creation of Mercer HR
Outsourcing and our ability to offer a full range of services in retirement and
benefits, will be an important source of future growth for MMC.'

Risk and insurance services revenues in the second quarter rose 8 percent to
$1.8 billion, and operating income rose 13 percent to $455 million from $403
million. Marsh continued to achieve strong earnings growth and margin
improvement in a quarter that saw declines in commercial insurance rates.
Excluding the effect of exchange rates, underlying revenue growth was 5 percent.
Risk management and insurance broking revenues grew 3 percent, reinsurance
broking and services 4 percent, and related insurance services 13 percent.
Marsh's business outside of the United States as well as in the middle market
segment and in risk consulting contributed significantly. In addition,
efficiencies and expense control resulted in margin expansion of one percentage
point in the quarter.

The third Trident investment fund sponsored by MMC Capital has completed
fundraising with over $1 billion in capital commitments to make investments in
the insurance and financial services sectors where MMC has specialized
knowledge.

Mercer's revenues in the second quarter increased 12 percent to $773 million
from $690 million, and operating income rose 14 percent to $113 million from $99
million. Revenue growth was particularly strong in its human resources practices
in Europe and Asia and in management and economic consulting. Mercer's operating
results also reflect excellent expense management. Underlying revenue growth was
5 percent, with acquisitions contributing an additional 3 percent and exchange
rates contributing 4 percent. Retirement services revenues were flat on an
underlying basis. Management and organizational change consulting revenues
increased 15 percent, economic consulting 14 percent, and health care and group
benefits consulting 7 percent.

Putnam's revenues in the second quarter declined 10 percent to $446 million, and
operating income declined 24 percent to $95 million. Average assets under
management during the second quarter were $216 billion. Total assets under
management on June 30, 2004 were $213 billion, comprising $148 billion of mutual
fund assets and $65 billion of institutional assets.

There were a number of notable items affecting Putnam's results in the quarter.
The gain on the sale of Putnam's interest in its Italian joint venture partner
and related securities contributed $38 million to revenues and is reflected in
investment income. As previously disclosed, the settlement with Putnam's former
chief executive officer resulted in a credit of $25 million. The positive impact
of these items was offset by $27 million of severance and $34 million of
additional costs, such as legal, audit, and communications expenses, relating to
regulatory issues and repositioning Putnam.

MMC repurchased 4 million shares of its common stock in the quarter for $180
million, bringing its total repurchases for the year to 11 million shares for
$510 million. The company paid $325 million in dividends to shareholders year to
date and increased its quarterly dividend 10 percent to $0.34, effective in the
third quarter.

Conference Call
A conference call to discuss second quarter results will be held at 10 a.m. EDT
today. To participate in the live teleconference, please dial [phone]
(U.S.) or [phone] (international). The access code for both numbers is
589056. The live audio webcast (which will be listen-only) may be accessed at
www.mmc.com/cc.html. A replay of the webcast will be available beginning
approximately two hours after the event at the same address. A continuous
telephone replay will be available beginning at 1 p.m. EDT, Wednesday, July 28
and continuing through 11 p.m. EDT, Wednesday, August 4. To listen to the
replay, please dial [phone] (U.S.) or [phone] (international). The
access code for both numbers is 589056.

MMC is a global professional services firm with annual revenues exceeding $11
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. More than 63,000 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 flows, capital
structure, pension funding, and the adverse consequences arising from
market-timing issues at Putnam, including fines and restitution, 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 business,
changes in competitive conditions, movements in premium rate levels, the
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 historic
levels; and with respect to all of MMC's activities, the ability to successfully
integrate acquired businesses, 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. In
addition, there are risks and uncertainties relating to MMC's ability to
integrate Kroll's business successfully and realize expected synergies; the
continued strength of Kroll's relationships with its employees, suppliers, and
customers; and the accuracy of the basis for the forecasts relating to Kroll's
business.

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'
2003 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. 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         Six Months Ended
                                        June 30,                 June 30,
                                       -------------           --------------
                                      2004         2003        2004       2003
                                     -------      -------     -------    -------

Revenue:
Service Revenue                     $2,964       $2,840      $6,141     $5,681
Investment Income (Loss)                72           25         105         36
                                     -------      -------     -------    -------
Total Revenue                        3,036        2,865       6,246      5,717
                                     -------      -------     -------    -------

Expense:
Compensation and Benefits            1,596        1,475       3,231      2,853
Other Operating Expenses               808          791       1,610      1,548
                                     -------      -------     -------    -------
Total Expense                        2,404        2,266       4,841      4,401
                                     -------      -------     -------    -------

Operating Income                       632          599       1,405      1,316

Interest Income                          4            7           9         13

Interest Expense                       (48)         (46)        (98)       (89)
                                     -------      -------     -------    -------

Income Before Income Taxes and
Minority Interest Expense              588          560       1,316      1,240

Income Taxes                           194          189         475        421

Minority Interest Expense, Net of
Tax                                      5            6           6         11
                                     -------      -------     -------    -------

Net Income                            $389         $365       $ 835       $808
                                     =======      =======     =======    =======

Basic Net Income Per Share           $0.75        $0.68       $1.60      $1.51
                                     =======      =======     =======    =======

Diluted Net Income Per Share         $0.73        $0.66       $1.56      $1.47
                                     =======      =======     =======    =======

Average Number of
Shares Outstanding - Basic             522          534         523        535
                                     =======      =======     =======    =======

Average Number of
Shares Outstanding - Diluted           534          552         537        550
                                     =======      =======     =======    =======

Page 1 of 5

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

                                                     Components of Revenue Change
                                                        ----------------------
               Three Months Ended   %Change                    Acquisitions/
                    June 30,          GAAP        Underlying   Dispositions       Currency
                 2004     2003       Revenue        Revenue      Impact            Impact
                -------   ------    -------         --------    --------           -------
Risk and
Insurance
Services
Risk
Management and
Insurance
Broking        $1,363   $1,269            7%             3%          1%                 3%
Reinsurance
Broking and
Services          207      194            7%             4%          -                  3%
Related
Insurance
Services          247      217           13%            13%          -                  -
                -------   ------
Total Risk and
Insurance
Services        1,817    1,680            8%             5%          -                  3%
                -------   ------

Investment
Management        446      495          (10)%          (10)%         -                  -
                -------   ------

Consulting
Retirement
Services          339      309           10%             -           5%                 5%
Management and
Organizational
Change            141      117           21%            15%          2%                 4%
Health Care &
Group Benefits    111      103            7%             7%          -                  -
Human             103       92           11%             4%          -                  7%
Capital
Economic           39       34           16%            14%          -                  2%
                -------   ------
                  733      655           12%             5%          3%                 4%
Reimbursed
Expenses           40       35
                -------   ------
Total
Consulting        773      690           12%             5%          3%                 4%
                -------   ------

Total          $3,036   $2,865            6%             2%          1%                 3%
Revenue         =======   ======

Notes to Consolidated Statements of Income and Supplemental Information:

Underlying revenue 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, wholesale
broking, underwriting management and MMC Capital businesses.

Interest income on fiduciary funds amounted to $30 million for the three months
ended June 30, 2004 and 2003, respectively.

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, and investments in
private equity funds. Costs related to the management of MMC's investments,
including incentive compensation partially derived from investment income and
loss, are recorded in operating expenses.

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 Statements of
Income.

Certain reclassifications have been made to prior year amounts to conform with
current presentation.
                                                                   Page 2 of 5

                      

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

                                                        Components of Revenue Change
                                                           ----------------------
                Six Months Ended     % Change                       Acquisitions/
                   June 30,            GAAP         Underlying       Dispositions     Currency
                 2004       2003      Revenue         Revenue            Impact        Impact
                -------     ------     --------       --------          --------       -------
Risk and
Insurance
Services
Risk
Management and
Insurance
Broking        $2,849     $2,589           10%             5%                1%           4%
Reinsurance
Broking and
Services          482        437           10%             7%                -            3%
Related
Insurance
Services          480        427           12%            12%                -            -
                -------     ------
Total Risk and
Insurance
Services        3,811      3,453           10%             6%                -            4%
                -------     ------

Investment
Management        907        940           (3)%           (3)%               -            -
                -------     ------

Consulting
Retirement
Services          689        606           14%             -                 6%           8%
Management and
Organizational
Change            275        198           39%            10%               24%           5%
Health Care &
Group Benefits    211        201            5%             2%                -            3%
Human             197        181            9%             2%                -            7%
Capital
Economic           81         71           14%            11%                -            3%
                -------     ------
                1,453      1,257           15%             3%                6%           6%
Reimbursed
Expenses           75         67
                -------     ------
Total
Consulting      1,528      1,324           15%             3%                6%           6%
                -------     ------

Total          
Revenue        $6,246     $5,717            9%             4%                1%           4% 
                =======     ======

Notes to Consolidated Statements of Income and Supplemental Information:

Underlying revenue 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, wholesale
broking, underwriting management and MMC Capital businesses.

Interest income on fiduciary funds amounted to $59 million and $61 million for
the six months ended June 30, 2004 and 2003, respectively.

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, and investments in
private equity funds. Costs related to the management of MMC's investments,
including incentive compensation partially derived from investment income and
loss, are recorded in operating expenses.

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 Statements of
Income.

Certain reclassifications have been made to prior year amounts to conform with
current presentation.
                                                                   Page 3 of 5



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

                                       Three Months Ended     Six Months Ended
                                            June 30,              June 30,
                                          -------------          -------------
                                         2004        2003       2004       2003
                                        -------     -------    -------    -------

Operating Income Including Minority
Interest Expense:
Risk and Insurance Services              $455       $ 403     $1,092       $963
Investment Management                      95         125         69        228
Consulting                                113          99        202        182
Corporate                                 (36)        (34)        36        (68)
                                        -------     -------    -------    -------
                                          627         593      1,399      1,305
                                        -------     -------    -------    -------

Minority Interest Expense, Net of Tax,
Included Above:
Risk and Insurance Services                 4           3          7          6
Investment Management                       1           3         (1)         5
                                        -------     -------    -------    -------
                                            5           6          6         11
                                        -------     -------    -------    -------

Operating Income                         $632        $599     $1,405     $1,316
                                        =======     =======    =======    =======

Segment Operating Margins:
Risk and Insurance Services              25.0%       24.0%      28.7%      27.9%
Investment Management                    21.3%       25.3%       7.6%      24.3%
Consulting                               14.6%       14.3%      13.2%      13.7%

Consolidated Operating Margin            20.8%       20.9%      22.5%      23.0%
Pretax Margin                            19.4%       19.5%      21.1%      21.7%
Effective Tax Rate                       33.0%       34.0%      36.1%      34.0%

Shares Outstanding at End of Period       521         534

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

There were a number of notable items affecting results for the six months ended
June 30, 2004:

During the first quarter of 2004 MMC reached final settlement for insured losses
totaling $278 million related to the World Trade Center. The replacement value
of assets exceeded the book value by $105 million, which was recorded in
Corporate as a reduction of other operating expenses and increased net income
for the six months ended June 30, 2004 by $63 million.

Putnam's results include: gains of $38 million related to the disposal of
Putnam's interest in its Italian joint venture partner and related securities,
which is recorded in investment income; a credit of $25 million related to the
settlement with Putnam's former chief executive officer; non-deductible
regulatory fines of $100 million related to settlement agreements with the
Securities and Exchange Commission and the Office of the Secretary of the
Commonwealth of Massachusetts; severance of $52 million; and costs related to
regulatory matters and repositioning Putnam, including legal and audit costs of
$28 million, communications costs of $16 million and other costs of $5 million.
These items reduced Putnam's net operating income for the six months ended June
30, 2004 by $134 million, after the impact of minority interest of $4 million,
and reduced net income by $121 million.
                                                                   Page 4 of 5



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

                        June 30,   March 31,   Dec. 31,   Sept. 30,   June 30,
                            2004        2004       2003        2003       2003
                          --------    --------   --------    --------   --------
Mutual Funds:
Growth Equity                $41         $45        $46         $48        $48
Value Equity                  41          42         43          42         42
Blend Equity                  28          30         32          36         35
Fixed Income                  38          40         42          45         46
                          --------    --------   --------    --------   --------
Total Mutual Fund
Assets                       148         157        163         171        171
                          --------    --------   --------    --------   --------

Institutional:
Equity                        39          44         51          76         72
Fixed Income                  26          26         26          25         24
                          --------    --------   --------    --------   --------
Total Institutional
Assets                        65          70         77         101         96
                          --------    --------   --------    --------   --------
Total Ending Assets         $213        $227       $240        $272       $267
                          ========    ========               ========   ========

Assets from Non-US
Investors                    $36         $38        $39         $39        $37
                          ========    ========   ========    ========   ========

Average Assets Under
Management:
Quarter-to-Date             $216        $234       $259        $270       $260
                          ========    ========   ========    ========   ========
Year-to-Date                $225        $234       $258        $258       $252
                          ========    ========   ========    ========   ========

Net New Sales/
(Redemptions)
including
Dividends Reinvested:
Quarter-to-Date           $(12.2)     $(17.6)    $(53.7)      $(2.7)     $(3.0)
                          ========    ========   ========    ========   ========
Year-to-Date              $(29.8)     $(17.6)    $(60.7)      $(7.0)     $(4.3)
                          ========    ========   ========    ========   ========

Impact of Market/
Performance on Ending
Assets Under
Management                 $(1.4)       $4.5      $21.9        $7.4      $29.1
                          ========    ========   ========    ========   ========

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.
                                                                   Page 5 of 5




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