Marsh & McLennan Companies has reported strong revenue and earnings growth for both the quarter and year ended December 31, 2000.

Over the year, revenue rose 11 percent, net income increased 23 percent and earnings per share grew 18 percent.

Since its founding in 1871, Marsh & McLennan Companies has grown to employ over 50,000 people serving the needs of corporate, institutional and individual clients in over 100 countries.

The group specialises in risk and insurance services, investment management and risk consulting.

Bermuda plays a pivotal role in the group's structure with Marsh Management Services, Marsh & McLennan properties and Marsh Global Broking all having offices in Hamilton.

Andrew Carr, Bermuda-based managing director of Marsh Inc. and president and chief executive officer of Marsh Captive Management said: "Yes, Marsh has had a phenomenal year. Revenue has grown 11 percent to $10.2 billion, net income has increased 23 percent to $1.2 billion, with earnings per share increasing 18 percent for the year.

"Marsh has enjoyed considerable success in integrating the business of Johnson & Higgins and Sedgwick and as promised, our clients, employees and shareholders have all benefited.'' "We in captive management are very pleased to have played our part in the company's success. We have just concluded our most successful year ever, with regard to growth in numbers of clients, revenue and profits.'' The group has its captive management headquarters in Bermuda and is a leader in the local industry with around 310 captives under management. Last year around 20 of the new incorporations in the Island were under Marsh's management.

Marsh describes a typical captive operation as: "A fully-owned, capitalised subsidiary of its parent company or association.

It will be incorporated in a domicile appropriate to the captive's role in its parent's insurance programme and will be authorised to trade by the regulatory authorities of that domicile.

"Control will be exercised by a board of directors appointed by the captive's shareholders, generally the parent company. The board will appoint selected local organisations to provide support services to the captive including, if appropriate, solicitors, investment managers, auditors, bankers, etc. A management company is normally appointed as well.

"The management company carries out all of the operational functions on behalf of the captive and provides the insurance and other expertise that is required by the captive.

"The scope of the management company's activities and the extent of its authority are defined by the board in the formal management agreement.

Management reports are prepared by the manager and it is usual for the manager to liase with the appropriate parental departments.''