Marsh
Marsh: Helping Companies Mitigate Risk in the Rapidly Changing Power and Utilities Industry Marsh, the world’s leading risk and insurance services firm, has 36,000 employees and annual revenues of $5.2 billion. The firm provides advice and transactional capabilities to clients in more than 100 countries. Marsh is a unit of Marsh & McLennan Companies (MMC), a global professional services firm with approximately 59,000 employees and annual revenues of $10 billion. MMC is also the parent company of Putnam Investments and Mercer Inc. MMC’s stock is traded under the ticker MMC on the New York, Chicago, and Pacific stock exchanges, and under MHM on the London stock exchange.
In the transformed power and utilities marketplace, risk management and loss control will take on increased importance. Driven by new market-place expectations, competitive pressures, restructuring, and corporate transactions, energy and utility companies must rethink their existing risk management and loss control strategies and develop new approaches to managing more complex and evolving risks. Both traditional utility risk and new risk factors, created by the changes in market structures and unforeseen corporate misconduct, have contributed to instability within utilities. The spectrum of utility risk has extended beyond traditional risks within core regulated business, including weather risks, commodity risks, and supply risks, to new and more complex risks that have thrown some energy and utility companies into a downward spiral of slumping stock prices, debt downgrades, positions of liquidity crisis business failures and even bankruptcy. These companies find themselves facing the results of risks that were for the most part caused by a changing marketplace, still evolving regulatory schemes, and unforeseen external forces. Recent events have fur ther compounded utility risks by illuminating increased security risks, and the need for improved physical asset protection plans. Today, more than ever,energy and utility companies need a strategic par tner that has an indepth understanding of the complex mirage of risks that face their industr y. A par tner with the ability and agility to provide innovative tools and for ward-looking
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solutions that anticipate changes in the market, and effectively integrate risk management into your organization.
Why Marsh? Marsh risk and loss control specialists help power and utility companies manage risks to enhance shareholder value. Marsh has a global network of risk professionals that specialize in providing innovative insurance brokerage, property loss control, claims management and risk consulting services. Marsh currently serves 75
local offices and offer our clients unparalleled levels of service and relationship management. Integrated Solutions The real power of the solutions we provide rests in the integration of our service and product offerings. It is common practice within Marsh to apply our highest and best resources to a client’s problems. Marsh takes a comprehensive approach to risk management and, with access to our sister companies such as Mercer Consultants
Our experience in serving a variety of electric, gas, and water companies is unmatched and empowers Marsh professionals with a tremendous breadth of industry expertise ... percent of power companies in both the regulated and deregulated market. Our experience in serving a variety of electric, gas, and water companies is unmatched and empowers Marsh professionals with a tremendous breadth of industry expertise in addition to a deeper understanding of the risk and loss control marketplace. We strongly believe that the financial, regulatory, and operating environments of energy companies are so distinctive that they require and deserve tailored assistance.
The Marsh Advantage Industry Expertise We have developed groups of specialist industry teams, which bring specific skills, products, and services to the industry. Our professionals apply their industry and functional knowledge and their hands-on involvement to help our clients achieve their vision and strategy. Beyond Insurance Brokerage We complement our strong insurance-brokerage and loss control solutions with a unique set of consultancy services. We have studied industry trends and helped clients understand their impact on strategies and operations. Global Reach We have the ability to mobilize worldwide industry and consulting skills in conjunction with
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and NERA for management integration issues and economic analysis, we have the resources to keep your company competitive. We believe that this integration provides our clients with the best opportunity to benefit from the substantial cumulative knowledge that resides within our firm.
Customized Solutions for the Energy Industry Brokerage Solutions We develop products and services that address reinsurance brokerage, property loss control, claims management, contract review, and risk funding. Marsh energy and utility professionals can leverage our long-standing relationships with insurance markets and lenders to structure project finance and credit enhancement transactions that provide the highest degree of lender confidence and therefore lower financing cost for our clients. Business Risk Consulting We assist clients in understanding and managing business risks that can impact per formance and financial results. Our comprehensive approach to risk management includes enterprise-wide risk management, risk related to financial results and business processes, risk based asset management, and risk mapping.
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CONTACT INFORMATION
Transcos John McLane Practice Leader Mike Smith Director, Regional Development
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New Rewards, New Risks
Mergers and Acquisitions Mergers create unique risk management issues. Even if your company has a strong set of risk controls and can manage its energy portfolio effectively, a merger results in an immediate degradation of risk management capability for the combined entity. We help clients understand the exposures and improve the success of their mergers, acquisitions, and divestitures by creating solutions that address regulatory intervention, tax opinion, shareholder disapproval, competing bids, withdrawal of one party, or failure to meet closing conditions.
Environmental Solutions Marsh embraces environmental impact as an intrinsic part of risk mitigation and management. We deliver a broad spectrum of related services associated with environmental clean up, cost capping, and risk strategy to ensure that the cost associated with clean ups are contained within the projected budget. Marsh has worked with an insurer to mitigate the cost to provide a layer of protection in the event of cost overruns.
Human Capital People are your organization’s greatest asset. We help clients discover and optimize the true value of that asset – maximizing your return while minimizing risk. Areas of focus include employee benefits, workforce composition, per formance optimization, international acquisitions, worker compensation, workforce integration and change management.
Advanced Risk Solutions Marsh risk specialists offer advanced risk solutions to address risks associated with weather, credit, and energy price protection. Marsh professionals help clients identify a variety of capital sources to fund their risk by merging the best of capital market techniques with insurance structures to create alternative risk transfer solutions that enable clients to select the most cost effective risk finance option.
Assurance and Due Diligence Marsh assurance and due diligence professionals help clients analyze and resolve complex, high-stakes matters. Our expertise in insurance recovery, assurances on the reliability of financial information, market assessments, insurance asset valuations, business processes and controls, and regulatory compliance empowers our clients with information that is critical to making the right strategic decisions. Our list of
From Risk Comes Opportunity
assurance clients includes management, corporate directors, investors, lenders, and others.
Marsh 1166 Avenue of the Americas New York, NY 10036 Phone 212.345.6000 BUSINESS CONTACTS
Chris Scontras (Nor theast) Portland, ME
[email protected] Phone 207.879.5203 Dan McGarvey (South) Charlotte, NC
[email protected] Phone 704.343.4753
As impor tant as preventing problems, is uncovering oppor tunity. Marsh is ready to work with you, studying your organization to identify and develop creative solutions to optimize earnings while minimizing costs. To find out more about Marsh ser vices and solutions, visit us on the Web at www.marsh.com. For local telephone information please use the contact information provided to reach our representatives. ■
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