 Eliot Spitzer's inquiry has sent shock waves through the industry |
The chief executive of the world's largest insurance broker has resigned, 11 days after the firm faced a civil lawsuit over alleged price-fixing. New York Attorney General Eliot Spitzer sued Marsh & McLennan, accusing it of rigging insurance prices.
He also publicly called for management changes at the firm.
Jeffrey Greenberg, 53, who was also chairman, will be replaced by Michael Cherkasky, currently head of Marsh's risk and insurance services unit.
In launching the suit against Marsh, Mr Spitzer claimed it had received illegal payments for steering clients to favoured insurers.
His investigation has sent shock waves through the insurance industry, leading to sharp falls in insurers' share prices.
In a statement, Marsh said it planned to announce "significant reforms" of its operations on Tuesday.
On Wall Street, Marsh & McLennan's shares closed down 37 cents at $26.42, or 43% lower than they traded at before Mr Spitzer's inquiry.
However, they jumped nearly 10% in after-hours electronic trading after the news of Mr Greenberg's resignation was announced.
Mr Greenberg had been Marsh CEO since November 1999, adding the title of chairman three years later.
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