Marsh & McLennan Companies, Inc. announced today that DanielS. Glaser, an American International Group executive, has beennamed chairman and chief executive officer of its Marsh Inc.brokerage subsidiary

The announcement made this morning said his appointment iseffective Dec. 10. Mr. Glaser replaces Brian Storms who left as thechief executive of Marsh in September.

MMC said Mr. Glaser is currently the managing director ofAmerican International Group Europe (U.K.) Limited and the regionalpresident of AIG's American International Underwriters, UnitedKingdom/Ireland division.

Mr. Glaser began his career in the insurance industry as a Marshbroker in 1982. He worked at Marsh for a decade, serving in rolesin New York, London and Saudi Arabia. He then spent eight years atWillis, where he served as president and chief operating officer ofWillis Risk Solutions, the large accounts practice.

In 2000, he joined AIG as president of the global energydivision and, in 2002, was named managing director of AIG Europe(U.K.).

“Dan has broad expertise in the insurance industry as well asfirst-hand knowledge of the Marsh organization,” said Michael G.Cherkasky, MMC's president and CEO. “His perspectives as both abroker and an underwriter, coupled with his extensive internationalexperience, make him the ideal candidate to take Marshforward.”

Mr. Glaser commented, “In returning to Marsh, I will come fullcircle to the start of my career in the insurance industry 25 yearsago.”

Mr. Glaser called Marsh a strong and resilient organization“with great people, the strongest client base in the world and abright future.”

He acknowledged the firm has “challenges” that must beaddressed

Since Marsh agreed to eliminate contingent commissions to end acivil suit by New York's attorney general the company has struggledwith profitability. For the third quarter of this year the companyreported income from continuing operations was down 40 percent or$53 million, to $80 million.

The new appointee said despite challenges, “There are alsotremendous opportunities, and with the support of thousands ofMarsh employees, I intend to move promptly to seize thoseopportunities.”

Mr. Glaser currently lives in London and will relocate to MMC'scorporate headquarters in New York. He will report to Mr.Cherkasky.

In an analyst's note David Small at Bear Stearns said one of Mr.Glaser's first challenges will be to reengage the employee basethat never brought into prior restructuring efforts under Mr.Storms. He will also have to deal with continued defections fromthe workforce and ameliorating the feelings of senior executiveswho felt they should have his job.

Mr. Glaser will also have to tackle the broker's “bloated coststructure” but considering the number of past efforts atrestructuring employees “may already have restructuringfatigue.”

Alain Karaoglan, an analyst with Bank of America, said in hisnote that Mr. Glaser's appointment was a positive developmentbecause of his background and understanding of the industry. Whilehe will have to deal with financials, Mr. Karaoglan said employeesat Marsh should be more open to accepting him than they were of hispredecessor.

(This story was updated on Dec. 4 at 10:40 a.m.)