Just how large a bite will the insurance industry scandals take out of Marsh McLennan & Cos.' bottom line?

MMC received $800 million last year in contingent commissions, the insurance industry's term for pay for play. The revenue source made up seven percent of MMC's $11.5 billion in total revenues, according to the WSJ.

MMC's total insurance and risk businesses contributed 59 percent to total 2003 revenues, compared to 24 percent from consulting and 17 percent from investment management.

The WSJ cited one analyst who estimates that taking MMC's contingent commissions out of the picture could hit the company's earnings per share by as much as 53 percent.

And that's not including any monies that Spitzer may extract in settlements from the company

According to Spitzer's comments at a conference last Thursday, it doesn't sound like the AG will take it easy on thrice-thrashed company. Spitzer characterized MMC executives in less than favorable terms: "The leadership of that company is not a leadership I will talk to," reported the WSJ.

Jeffrey Greenberg is chairman and chief executive officer of MMC.

On Monday, MMC postponed a scheduled call for until next week or the week after, and said it would file an 8-K disclosing the financial effects of service agreements with insurance companies. MMC announced that it would halt market service agreements with carriers on October 15, in light of Spitzer's investigations.

MMC plans to announce its third quarter earnings on October 27. 

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