NU Online News Service, Aug. 19, 9:43 a.m.EDT

Marsh & McLennan Companies, Inc. says it has increased itsstock buy-back program to $1 billion with the addition of $500million in repurchase authority.

The company made the announcement late yesterday after New Yorkmarkets closed.

Yesterday's authorization by the firm's board, combined with the$500 million share repurchase program announced on Sept. 30, 2010,brings the total buy-back authorization to $1 billion.

Marsh & McLennan says it already repurchased $312million—11.2 million shares of common stock—as of June 30, and itplans to continue repurchasing stock in the current quarter.

A company purchases its own stock with retained profits when itis thought they cannot be reinvested to produce good returns.

“Our earnings power has continued to strengthen over thepast several years, allowing us to invest in our businesses andreturn capital to shareholders. This share repurchase program,combined with the two increases in our quarterly dividend over thelast year totaling 10 percent, illustrates our commitment toenhancing shareholder value,” Brian Duperreault, president andchief executive officer of Marsh & McLennan says in astatement.

Shares of Marsh & McLennan closed yesterday virtuallyunchanged from where they started at $28.43.

Marsh & McLennan is the parent company of insurance brokerMarsh and reinsurance broker Guy Carpenter.