Marsh CEO Storms Departs

Brian M. Storms, the chief executive officer of insurance broker Marsh, has stepped down in what analysts say is a sign of continued turmoil within the insurance brokerage firm.

Late Friday, New York-based Marsh & McLennan Companies Inc. said Mr. Storms' departure was effective immediately and that a search for a successor is underway. In the interim Michael G. Cherkasky, president and chief executive officer of MMC, will serve as acting CEO of Marsh.

“Brian has made important contributions to Marsh's recovery over the past two years,” said Mr. Cherkasky. “Our long-term strategy is sound and a solid foundation has been built. That said, we now need a different set of leadership and operational skills to complete the successful transformation of Marsh.”

Christine Walton, a spokeswoman for MMC, said the company has not set a timeline for finding a new CEO but plans to make the move as “expeditiously as possible.” The search for Mr. Storms' replacement will not be limited to within MMC, she added. “We want to make sure we have the right person for the job.”

According to analysts, the move underscores disorder at the number one brokerage firm in the world, which has been struggling to regain its juggernaut earnings of the past ever since a profile scandal over steering of customers and bid-rigging led it to give up contingent commissions.

David Small at Bear Steans said the resignation follows management turmoil in the brokerage division where the company has seen a number of management figures leave for other brokerage firms.

Mr. Small wrote that the moves are underscored by the brief departure of Tim Mahoney, CEO of North America for Marsh, who resigned to move to Integro but returned on a counter offer, as a sign of that turmoil.

Loss of market share to Aon and a number of disappointing earnings reports probably contributed to Mr. Storms' departure, said Mr. Small.

William Wilt at Morgan Stanley said in a note that the turmoil at Marsh “could weigh on client relationships…in a relationship business,” suggesting that both Aon and Willis could gain market share at Marsh's expense.

Addressing comments from analysts concerning the turmoil at MMC, Ms. Walton said that as the company has tried to transform itself into a leaner operation and refocus its business initiatives it created “a lot of noise” and confusion among the rank and file. The new CEO's focus will be to streamline the changes in the organization and let people get back to what they do best, which is “being the world's biggest insurance broker,” she said.

Mr. Storms was named CEO at Marsh in September of 2005. He was chief executive and president of MMC subsidiary Mercer Human Resources Consulting before being named CEO at Marsh.

(This story was updated at 11:15 a.m.)