Marsh & McLennan Companies Inc. said it has completed itssale of MMC Capital, its private equity subsidiary, to themanagement team of MMC Capital.

The new firm, based in Greenwich, Conn., will be named StonePoint Capital, LLC.

Stone Point will continue to focus on investments in theinsurance and financial services sectors, New York-based MMCsaid.

Stone Point will assume management responsibility for theTrident Funds, a private equity group that has invested in theinsurance and financial services sectors since 1985. It will managemore than $2 billion of capital, including its most recent fund,Trident III, L.P., a $1.1 billion fund formed in 2003.

MMC made the decision to sell MMC Capital after questions ofconflict of interest in brokerage handling of customer accountswere raised in a lawsuit filed by New York Attorney General EliotSpitzer in October.

The suit led a number of brokerages to stop accepting incentivefees from insurers, which were said to have led to steering ofcustomers, price-fixing an inflation of fees.

Last week, Marsh said it is considering the sale of two of itswholesale brokerage units, Crump Group Inc., based in Dallas, andPrice Forbes Limited, based in London.

"We believe this new structure will remove any appearance ofconflict, while at the same time continuing to facilitate thecreation of new capacity in the insurance market as needed," saidMichael G. Cherkasky, president and chief executive officer ofMMC.

He added that MMC would remain the largest investor in theTrident Funds but would not participate in the investment decisionsor management of Stone Point or the Trident Funds.

Charles A. Davis, chief executive officer of Stone Point, saidthe company is excited about its future and intends to continue itsspecialized focus on the insurance and financial services sectors.He added that the Trident Limited partners voted overwhelmingly forthe move.

MMC said terms of the deal were disclosed in the firm's ProxyStatement filed with the Securities and Exchange Commission onMarch 31, 2005.

In addition, MMC Capital has agreed to pay a partial year bonusof $3.3 million in total to the professional staff of MMC Capitalfor service through May 31, 2005.