The suit accused Marsh of corrupting and the insurance marketplace by "distorting and elevating the price of insurance for every policyholder" and said shareholders were victims "who have never been told that hundreds of millions of dollars of Marsh's profits derive from illegal activities."

Mr. Spitzer had estimated the fees amounted to about $800 million last year.

The company in its announcement said the $845 million that Marsh pulled in as 2003 MSA revenue represented 12 percent of MMC's risk and insurance services revenue of $6.9 billion and seven percent of MMC's total consolidated revenue of $11.6 billion.

For the six months ended June 30, 2004, MSA revenue was approximately $420 million, which was 11 percent of risk and insurance services revenue and seven percent of MMC's total consolidated revenue.

MMC said the suspension of the fees will negatively impact near-term operating income. The expenses directly associated with Marsh's global distribution activities amounted to approximately $340 million for 2003.

The company said this amount excludes embedded local office expenses that support placement activities. MMC said it cannot calculate a specific operating income margin for MSA fees revenue.

In 2003, MMC said, total expenses in risk and insurance services amounted to $5.1 billion, and operating income was $1.8 billion. MMC consolidated operating income for 2003 was $2.5 billion, and net income was $1.5 billion.

For the six months ended June 30, 2004, total expenses in risk and insurance services were $2.7 billion, and operating income was $1.1 billion. MMC consolidated operating income for the six months ended June 30 was $1.4 billion, and net income was $835 million.

The announcement did nothing to halt MMC's slumping stock today. In early trading the share price was at $23.34 after closing at $25.57 yesterday. The announcement was made after the market closed yesterday.