PROFITS UP AT M&M, GALLAGHER.

First-half profits increased at Marsh & McLennan Cos. Inc. and Arthur J. Gallagher & Co. but dropped at Aon Corp.

The world's three largest publicly held brokers recently announced their six-month results.

Brokerage and consulting revenues for New York-based M&M rose 38.8% to $3.31 billion for the first six months of 1999. Including investment income and revenues from M&M's investment management company, Boston-based The Putnam Co., corporate revenues rose 30.2% to $4.61 billion.

Corporatewide profits rose 7.5% to $456.0 million and reflect an $84.0 million pretax charge taken in the second quarter. The charge primarily relates to severance payments resulting from the acquisition of Sedgwick Group P.L.C. Excluding the special charge, profits for the first half of 1999 rose 20%.

In a statement, M&M said it expects to take another charge in the fourth quarter related to additional integration efforts.

Chicago-based Aon's brokerage and consulting revenues rose in the first half of 1999 8.6% to $2.33 billion, which includes …