The flow-on effect is proving beneficial to mega-broker Marsh, which has reported a 15% increase in its second-quarter earnings. Chairman Jeffrey Greenberg (coincidentally son of the legendary AIG chief) said strong revenue growth and increased profitability in risk and insurance services drove the result.

Net income was $627 million, and consolidated revenues for the quarter increased 3% to $4.9 billion. MMC’s risk and insurance services revenues also rose 15% to $2.6 billion.

Mr Greenberg said Marsh has benefitted from the rise in insurance premiums since last year’s September 11 attacks. This has taken some pressure off the declines experienced by mutual fund subsidiary Putnam Investments, which is feeling the heat from declining equity markets. Putnam’s total assets under management fell to $530 billion, compared with $633 billion in the second quarter last year.