Brian Duperreault is set to stay on as president and CEO of Marsh & McLennan Companies Inc. (MMC) for the next five years after reaching an agreement with company yesterday.

Mr. Duperreault, who was appointed to the post in January 2008, has agreed to extend his contract with MMC through to January 2014.

"I am extremely pleased to announce this positive development," said Stephen Hardis, chairman of MMC's Board of Directors. "Since arriving at MMC, Brian Duperreault has done a tremendous job – not only in stabilising the Marsh&McLennan franchise but in leading the company through one of the worst economic periods in the past century.

"In a very short timeframe, he has proven his ability to produce results at MMC. This contract extension will allow Brian to bring the initiatives he has already begun through to completion.

"On behalf of the board of directors, let me say we are very pleased with his performance thus far and look forward to his continued leadership."

Under the terms of the new agreement, Mr. Duperreault's employment with MMC will be extended an additional three years to January 29, 2014; the original term of contract was due to expire on January 29, 2011.

The agreement is also intended to provide for an orderly transition if Mr. Duperreault's successor is identified prior to the end of his term.

Since his arrival at Marsh, the company's shares have dropped 12 percent, while shares of rival insurance brokers Aon Corp. and Willis Group were down 2.3 percent and 22 percent respectively. The Standard & Poor's 500 index was down 22 percent in the same period.

On taking the helm, Mr. Duperreault pledged to improve MMC's main insurance brokerage business, which had been languishing after a bid-rigging scandal, making some progress as the brokerage unit's profit margins expanded in recent quarters.

Prior to joining MMC, between 1994 and 2004 Mr. Duperreault served as CEO of Ace Ltd., which MMC helped found in 1985. He then served as chairman of the Board from 2004 to 2007.

Under his leadership, Ace grew from a boutique catastrophe insurance specialist into a global multi-line commercial enterprise. He presided over significant growth as well as the takeover of several businesses, including Cigna's property and casualty business in 1999.