March & McLennan shares have dropped to a 52-week low today after shedding more than 5%. This drop was prompted by news that the head of the company's main insurance brokerage business has stepped down. The announcement came late Friday that Brian Storms was leaving, effective immediately. Thomas Cholnoky, an analyst at Goldman Sachs noted, This is another blow for the company as Mr. Storms appeared to have provided much needed direction for this unit. The reason for the departure is not clear, but it could be that MMC's CEO was unhappy with the pace of change and a lack of meaningful incremental revenue generation and margin improvement. Storms became the CEO of its Marsh brokerage as the company was recovering from the bid-rigging scandal from 2005.
The stock has obviously seen better days, slipping some 20% this year. Should the stock not finish September above the 25 level, it would be the first monthly close below 25 since August 1998. This level has provided support in the past, but there may need to be some good news to help usher the stock back above 25.