Marsh McLennan Reports Third Quarter 2023 Results

GAAP Revenue Increases 13%; Underlying Revenue Rises 10%

Growth in GAAP Operating Income of 26% and Adjusted Operating Income of 24%

Third Quarter GAAP EPS Rises 36% to $1.47 and Adjusted EPS Increases 33% to $1.57

Nine Months GAAP EPS Rises 18% to $6.01 and Adjusted EPS Increases 17% to $6.31

Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, today reported financial results for the third quarter ended September 30, 2023.

John Doyle, President and CEO, said: "Marsh McLennan's third quarter results were outstanding, reflecting strength across the business. We had another quarter of double-digit underlying revenue growth, strong adjusted EPS growth and margin expansion. We achieved these results while also continuing to make significant investments for the future."

"With our performance through the third quarter, we are on track for another terrific year."

Consolidated Results

Consolidated revenue in the third quarter of 2023 was $5.4 billion, an increase of 13% compared with the third quarter of 2022. On an underlying basis, revenue increased 10%. Operating income was $996 million, an increase of 26% from a year ago. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 24% to $1.1 billion. Net income attributable to the Company was $730 million, or $1.47 per diluted share, compared with $1.08 in the third quarter of 2022. Adjusted earnings per share rose 33% to $1.57 per diluted share compared with $1.18 a year ago and included a benefit of 10 cents per share from favorable discrete tax items.

For the nine months ended September 30, 2023, consolidated revenue was $17.2 billion, an increase of 9%, or 10% on an underlying basis compared to the prior period. Operating income was $4.2 billion, an increase of 16% from the prior year period. Adjusted operating income rose 17% to $4.4 billion.

Net income attributable to the Company was $3.0 billion, or $6.01 per diluted share, compared with $5.11 in the first nine months of 2022. Adjusted earnings per share increased 17% to $6.31 per diluted share compared with $5.38 for the first nine months of 2022.

Risk & Insurance Services

Risk & Insurance Services revenue was $3.2 billion in the third quarter of 2023, an increase of 12%, or 11% on an underlying basis. Operating income rose 21% to $640 million, and adjusted operating income was $671 million, an increase of 19% versus a year ago. For the nine months ended September 30, 2023, revenue was $10.8 billion, an increase of 12% both on a GAAP and underlying basis. Operating income rose 22% to $3.2 billion, and adjusted operating income was $3.3 billion, an increase of 18% versus a year ago.

Marsh's revenue in the third quarter was $2.7 billion, an increase of 8% on an underlying basis. In U.S./Canada, underlying revenue rose 6%. International operations produced underlying revenue growth of 10%, reflecting 14% growth in Latin America, 10% growth in Asia Pacific, and 9% growth in EMEA. For the nine months ended September 30, 2023, Marsh’s underlying revenue growth was 9%.

Guy Carpenter's revenue in the third quarter was $359 million, an increase of 8% on an underlying basis. For the nine months ended September 30, 2023, Guy Carpenter’s underlying revenue growth was 10%.

Consulting

Consulting revenue was $2.2 billion in the third quarter of 2023, an increase of 13%, or 9% on an underlying basis. Operating income increased 21% to $424 million, while adjusted operating income increased 24% to $447 million. For the first nine months ended September 30, 2023, revenue was $6.4 billion, an increase of 6%, or 7% on an underlying basis. Operating income of $1.2 billion rose 1% versus a year ago, while adjusted operating income increased 11% to $1.3 billion.

Mercer's revenue in the third quarter was $1.4 billion, an increase of 8% on an underlying basis. Health revenue of $496 million increased 8% on an underlying basis. Wealth revenue of $635 million increased 7% on an underlying basis. Career revenue of $294 million increased 7% on an underlying basis. For the nine months ended September 30, 2023, Mercer’s revenue was $4.1 billion, an increase of 7% on an underlying basis.

Oliver Wyman’s revenue in the third quarter was $781 million, an increase of 12% on an underlying basis. For the nine months ended September 30, 2023, Oliver Wyman’s revenue was $2.3 billion, an increase of 8% on an underlying basis.

Other Items

The Company repurchased 1.6 million shares of stock for $300 million in the third quarter of 2023. Through nine months ended September 30, 2023, the Company has repurchased 5.1 million shares of stock for $900 million.

In the third quarter of 2023, the Company issued $1.6 billion of senior notes.

In August, Marsh McLennan Agency (MMA) acquired Graham Company, a leading risk management consultancy and one of the top independent insurance and employee benefits brokers in the U.S.

Conference Call

A conference call to discuss third quarter 2023 results will be held today at 8:30 a.m. Eastern time. The live audio webcast may be accessed at marshmclennan.com. A replay of the webcast will be available approximately two hours after the event. The webcast is listen-only. Those interested in participating in the question-and-answer session may register here to receive the dial-in numbers and unique PIN to access the call.

About Marsh McLennan

Marsh McLennan (NYSE: MMC) is the world’s leading professional services firm in the areas of risk, strategy and people. The Company’s more than 85,000 colleagues advise clients in 130 countries. With annual revenue of over $20 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses. Marsh provides data-driven risk advisory services and insurance solutions to commercial and consumer clients. Guy Carpenter develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities. Mercer delivers advice and technology-driven solutions that help organizations redefine the world of work, reshape retirement and investment outcomes, and unlock health and well being for a changing workforce. Oliver Wyman serves as a critical strategic, economic and brand advisor to private sector and governmental clients. For more information, visit marshmclennan.com, follow us on LinkedIn and X.

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future events or results, use words like "anticipate," "assume," "believe," "continue," "estimate," "expect," "intend," "plan," "project" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would".

Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. Factors that could materially affect our future results include, among other things:

  • the impact of geopolitical or macroeconomic conditions on us, our clients and the countries and industries in which we operate, including from conflicts such as the war in Ukraine and the evolving events in Israel and Gaza, slower GDP growth or recession, capital markets volatility, and inflation;
  • the increasing prevalence of ransomware, supply chain and other forms of cyber attacks, and their potential to disrupt our operations, or the operations of our third party vendors, and result in the disclosure of confidential client or company information;
  • the impact from lawsuits or investigations arising from errors and omissions, breaches of fiduciary duty or other claims against us in our capacity as a broker or investment advisor, including claims related to our investment business’ ability to execute timely trades;
  • the financial and operational impact of complying with laws and regulations, including domestic and international sanctions regimes, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act, U.K. Anti Bribery Act and cybersecurity, data privacy and artificial intelligence regulations;
  • our ability to attract, retain and develop industry leading talent;
  • our ability to compete effectively and adapt to competitive pressures in each of our businesses, including from disintermediation as well as technological change, digital disruption and other types of innovation such as artificial intelligence;
  • our ability to manage potential conflicts of interest, including where our services to a client conflict, or are perceived to conflict, with the interests of another client or our own interests;
  • the impact of changes in tax laws, guidance and interpretations, such as the implementation of the Organization for Economic Cooperation and Development international tax framework, or the increasing number of disagreements with and challenges by tax authorities in the current global tax environment; and
  • the regulatory, contractual and reputational risks that arise based on insurance placement activities and insurer revenue streams.

The factors identified above are not exhaustive. Marsh McLennan and its subsidiaries (collectively, the "Company") operate in a dynamic business environment in which new risks emerge frequently. Accordingly, we caution readers not to place undue reliance on any forward-looking statements, which are based only on information currently available to us and speak only as of the dates on which they are made. The Company undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made.

Further information concerning the Company, including information about factors that could materially affect our results of operations and financial condition, is contained in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section and the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section of our most recently filed Annual Report on Form 10-K.

 

Marsh & McLennan Companies, Inc.

Consolidated Statements of Income

(In millions, except per share data)

(Unaudited)

 
 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

Revenue

 

$

5,382

 

$

4,770

 

$

17,182

 

$

15,698

Expense:

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

3,287

 

 

2,923

 

 

9,831

 

 

9,033

Other operating expenses

 

 

1,099

 

 

1,056

 

 

3,172

 

 

3,065

Operating expenses

 

 

4,386

 

 

3,979

 

 

13,003

 

 

12,098

Operating income

 

 

996

 

 

791

 

 

4,179

 

 

3,600

Other net benefit credits

 

 

62

 

 

57

 

 

180

 

 

178

Interest income

 

 

16

 

 

4

 

 

40

 

 

6

Interest expense

 

 

(145)

 

 

(118)

 

 

(427)

 

 

(342)

Investment income (loss)

 

 

1

 

 

(1)

 

 

6

 

 

27

Income before income taxes

 

 

930

 

 

733

 

 

3,978

 

 

3,469

Income tax expense

 

 

192

 

 

181

 

 

941

 

 

853

Net income before non-controlling interests

 

 

738

 

 

552

 

 

3,037

 

 

2,616

Less: Net income attributable to non-controlling interests

 

 

8

 

 

6

 

 

37

 

 

32

Net income attributable to the Company

 

$

730

 

$

546

 

$

3,000

 

$

2,584

Net income per share attributable to the Company:

 

 

 

 

 

 

 

 

- Basic

 

$

1.48

 

$

1.10

 

$

6.07

 

$

5.16

- Diluted

 

$

1.47

 

$

1.08

 

$

6.01

 

$

5.11

Average number of shares outstanding:

 

 

 

 

 

 

 

 

- Basic

 

 

494

 

 

498

 

 

494

 

 

501

- Diluted

 

 

499

 

 

503

 

 

499

 

 

506

Shares outstanding at September 30

 

 

493

 

 

497

 

 

493

 

 

497

 

Marsh & McLennan Companies, Inc.

Supplemental Information - Revenue Analysis

Three Months Ended September 30

(Millions) (Unaudited)

The Company conducts business in 130 countries. As a result, foreign exchange rate movements may impact period over period comparisons of revenue. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period over period comparisons of revenue. Non-GAAP underlying revenue measures the change in revenue from one period to the next by isolating these impacts.

 

 

 

 

 

 

Components of Revenue Change*

 

 

Three Months Ended

September 30,

 

% Change

GAAP

Revenue*

 

Currency

Impact

 

Acquisitions/

Dispositions/

Other Impact**

 

Non-GAAP

Underlying

Revenue

 

 

 

2023

 

 

 

2022

 

 

Risk and Insurance Services

 

 

 

 

 

 

 

 

 

 

 

 

Marsh

 

$

2,700

 

 

$

2,470

 

 

9

%

 

1

%

 

1

%

 

8

%

Guy Carpenter

 

 

359

 

 

 

328

 

 

9

%

 

1

%

 

1

%

 

8

%

Subtotal

 

 

3,059

 

 

 

2,798

 

 

9

%

 

1

%

 

1

%

 

8

%

Fiduciary interest income

 

 

131

 

 

 

40

 

 

 

 

 

 

 

 

 

Total Risk and Insurance Services

 

 

3,190

 

 

 

2,838

 

 

12

%

 

1

%

 

1

%

 

11

%

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

Mercer

 

 

1,425

 

 

 

1,284

 

 

11

%

 

1

%

 

2

%

 

8

%

Oliver Wyman Group

 

 

781

 

 

 

667

 

 

17

%

 

2

%

 

3

%

 

12

%

Total Consulting

 

 

2,206

 

 

 

1,951

 

 

13

%

 

2

%

 

2

%

 

9

%

Corporate Eliminations

 

 

(14

)

 

 

(19

)

 

 

 

 

 

 

 

 

Total Revenue

 

$

5,382

 

 

$

4,770

 

 

13

%

 

1

%

 

2

%

 

10

%

 

Revenue Details

The following table provides more detailed revenue information for certain of the components presented above:

 

 

 

 

 

 

Components of Revenue Change*

 

 

Three Months Ended

September 30,

 

% Change

GAAP

Revenue*

 

Currency

Impact

 

Acquisitions/

Dispositions/

Other Impact**

 

Non-GAAP

Underlying

Revenue

 

 

 

2023

 

 

2022

 

Marsh:

 

 

 

 

 

 

 

 

 

 

 

 

EMEA (a)

 

$

692

 

$

615

 

13

%

 

4

%

 

 

 

9

%

Asia Pacific (a)

 

 

311

 

 

286

 

9

%

 

(2

)%

 

 

 

10

%

Latin America

 

 

134

 

 

118

 

14

%

 

1

%

 

(1

)%

 

14

%

Total International

 

 

1,137

 

 

1,019

 

12

%

 

2

%

 

 

 

10

%

U.S./Canada

 

 

1,563

 

 

1,451

 

8

%

 

 

 

2

%

 

6

%

Total Marsh

 

$

2,700

 

$

2,470

 

9

%

 

1

%

 

1

%

 

8

%

Mercer:

 

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

$

635

 

$

561

 

13

%

 

2

%

 

4

%

 

7

%

Health

 

 

496

 

 

451

 

10

%

 

1

%

 

 

 

8

%

Career

 

 

294

 

 

272

 

8

%

 

 

 

1

%

 

7

%

Total Mercer

 

$

1,425

 

$

1,284

 

11

%

 

1

%

 

2

%

 

8

%

(a)

In the first quarter of 2023, the Company began reporting the Marsh India operations in EMEA. Prior year results for India have been reclassified from Asia Pacific to EMEA for comparative purposes.

 

*

Rounded to whole percentages. Components of revenue may not add due to rounding.

**

Acquisitions, dispositions, and other includes the impact of current and prior year items excluded from the calculation of non-GAAP underlying revenue for comparability purposes. Details on these items are provided in the reconciliation of non-GAAP revenue to GAAP revenue tables included in this release.

 

Marsh & McLennan Companies, Inc.

Supplemental Information - Revenue Analysis

Nine Months Ended September 30

(Millions) (Unaudited)

The Company conducts business in 130 countries. As a result, foreign exchange rate movements may impact period over period comparisons of revenue. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period over period comparisons of revenue. Non-GAAP underlying revenue measures the change in revenue from one period to the next by isolating these impacts.

 

 

 

 

 

 

Components of Revenue Change*

 

 

Nine Months Ended

September 30,

 

% Change

GAAP

Revenue*

 

Currency

Impact

 

Acquisitions/

Dispositions/

Other Impact**

 

Non-GAAP

Underlying

Revenue

 

 

 

2023

 

 

 

2022

 

 

Risk and Insurance Services

 

 

 

 

 

 

 

 

 

 

 

 

Marsh

 

$

8,482

 

 

$

7,794

 

 

9

%

 

(1

)%

 

1

%

 

9

%

Guy Carpenter

 

 

2,006

 

 

 

1,849

 

 

8

%

 

(1

)%

 

 

 

10

%

Subtotal

 

 

10,488

 

 

 

9,643

 

 

9

%

 

(1

)%

 

1

%

 

9

%

Fiduciary interest income

 

 

330

 

 

 

57

 

 

 

 

 

 

 

 

 

Total Risk and Insurance Services

 

 

10,818

 

 

 

9,700

 

 

12

%

 

(1

)%

 

1

%

 

12

%

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

Mercer

 

 

4,143

 

 

 

4,016

 

 

3

%

 

(1

)%

 

(3

)%

 

7

%

Oliver Wyman Group

 

 

2,266

 

 

 

2,029

 

 

12

%

 

 

 

4

%

 

8

%

Total Consulting

 

 

6,409

 

 

 

6,045

 

 

6

%

 

(1

)%

 

 

 

7

%

Corporate Eliminations

 

 

(45

)

 

 

(47

)

 

 

 

 

 

 

 

 

Total Revenue

 

$

17,182

 

 

$

15,698

 

 

9

%

 

(1

)%

 

 

 

10

%

 

Revenue Details

The following table provides more detailed revenue information for certain of the components presented above:

 

 

 

 

 

 

Components of Revenue Change*

 

 

Nine Months Ended

September 30,

 

% Change

GAAP

Revenue*

 

Currency

Impact

 

Acquisitions/

Dispositions/

Other Impact**

 

Non-GAAP

Underlying

Revenue

 

 

 

2023

 

 

2022

 

Marsh:

 

 

 

 

 

 

 

 

 

 

 

 

EMEA (a)

 

$

2,482

 

$

2,264

 

10

%

 

(1

)%

 

1

%

 

10

%

Asia Pacific (a)

 

 

980

 

 

927

 

6

%

 

(4

)%

 

 

 

9

%

Latin America

 

 

386

 

 

340

 

13

%

 

 

 

 

 

14

%

Total International

 

 

3,848

 

 

3,531

 

9

%

 

(2

)%

 

1

%

 

10

%

U.S./Canada

 

 

4,634

 

 

4,263

 

9

%

 

 

 

2

%

 

7

%

Total Marsh

 

$

8,482

 

$

7,794

 

9

%

 

(1

)%

 

1

%

 

9

%

Mercer:

 

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

$

1,853

 

$

1,775

 

4

%

 

(1

)%

 

1

%

 

4

%

Health

 

 

1,559

 

 

1,562

 

 

 

(1

)%

 

(9

)%

 

10

%

Career

 

 

731

 

 

679

 

8

%

 

(1

)%

 

1

%

 

8

%

Total Mercer

 

$

4,143

 

$

4,016

 

3

%

 

(1

)%

 

(3

)%

 

7

%

(a)

In the first quarter of 2023, the Company began reporting the Marsh India operations in EMEA. Prior year results for India have been reclassified from Asia Pacific to EMEA for comparative purposes.

 

*

Rounded to whole percentages. Components of revenue may not add due to rounding.

**

Acquisitions, dispositions, and other includes the impact of current and prior year items excluded from the calculation of non-GAAP underlying revenue for comparability purposes. Details on these items are provided in the reconciliation of non-GAAP revenue to GAAP revenue tables included in this release.

 

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Three Months Ended September 30

(Millions) (Unaudited)

Overview

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (referred to in this release as in accordance with "GAAP" or "reported" results). The Company also refers to and presents certain additional non-GAAP financial measures, within the meaning of Regulation G and item 10(e) Regulation S-K in accordance with the Securities Exchange Act of 1934. These measures are: non-GAAP revenue, adjusted operating income (loss), adjusted operating margin, adjusted income, net of tax and adjusted earnings per share (EPS). The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP in the following tables.

The Company believes these non-GAAP financial measures provide useful supplemental information that enables investors to better compare the Company’s performance across periods. Management also uses these measures internally to assess the operating performance of its businesses and to decide how to allocate resources. However, investors should not consider these non-GAAP measures in isolation from, or as a substitute for, the financial information that the Company reports in accordance with GAAP. The Company's non-GAAP measures include adjustments that reflect how management views its businesses, and may differ from similarly titled non-GAAP measures presented by other companies.

Adjusted Operating Income (Loss) and Adjusted Operating Margin

Adjusted operating income (loss) is calculated by excluding the impact of certain noteworthy items from the Company's GAAP operating income (loss). The following tables identify these noteworthy items and reconcile adjusted operating income (loss) to GAAP operating income (loss), on a consolidated and reportable segment basis, for the three and nine months ended September 30, 2023 and 2022. The following tables also present adjusted operating margin. For the three and nine months ended September 30, 2023 and 2022, adjusted operating margin is calculated by dividing the sum of adjusted operating income and identified intangible asset amortization by consolidated or segment adjusted revenue. The Company's adjusted revenue used in the determination of adjusted operating margin is calculated by excluding the impact of certain noteworthy items from the Company's GAAP revenue.

 

Risk & Insurance

Services

 

Consulting

 

Corporate/

Eliminations

 

Total

Three Months Ended September 30, 2023

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

640

 

 

$

424

 

 

$

(68

)

 

$

996

 

Operating margin

 

 

20.0

%

 

 

19.2

%

 

 

N/A

 

 

 

18.5

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring, excluding JLT (a)

 

 

20

 

 

 

17

 

 

 

9

 

 

 

46

 

Changes in contingent consideration (b)

 

 

4

 

 

 

 

 

 

 

 

 

4

 

JLT integration and restructuring costs (c)

 

 

6

 

 

 

 

 

 

 

 

 

6

 

Westpac acquisition related costs

 

 

 

 

 

5

 

 

 

 

 

 

5

 

Other

 

 

1

 

 

 

1

 

 

 

 

 

 

2

 

Operating income adjustments

 

 

31

 

 

 

23

 

 

 

9

 

 

 

63

 

Adjusted operating income (loss)

 

$

671

 

 

$

447

 

 

$

(59

)

 

$

1,059

 

Total identified intangible amortization expense

 

$

74

 

 

$

11

 

 

$

 

 

$

85

 

Adjusted operating margin

 

 

23.4

%

 

 

20.8

%

 

 

N/A

 

 

 

21.3

%

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2022

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

529

 

 

$

350

 

 

$

(88

)

 

$

791

 

Operating margin

 

 

18.7

%

 

 

17.9

%

 

 

N/A

 

 

 

16.6

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring, excluding JLT (a)

 

 

18

 

 

 

 

 

 

14

 

 

 

32

 

Changes in contingent consideration (b)

 

 

11

 

 

 

 

 

 

 

 

 

11

 

JLT integration and restructuring costs (c)

 

 

 

 

 

5

 

 

 

1

 

 

 

6

 

JLT acquisition related retention costs

 

 

4

 

 

 

 

 

 

 

 

 

4

 

Other

 

 

 

 

 

7

 

 

 

 

 

 

7

 

Operating income adjustments

 

 

33

 

 

 

12

 

 

 

15

 

 

 

60

 

Adjusted operating income (loss)

 

$

562

 

 

$

362

 

 

$

(73

)

 

$

851

 

Total identified intangible amortization expense

 

$

74

 

 

$

10

 

 

$

 

 

$

84

 

Adjusted operating margin

 

 

22.4

%

 

 

19.1

%

 

 

N/A

 

 

 

19.6

%

(a)

In 2023, costs primarily include severance and lease exit charges for activities focused on workforce actions, rationalization of technology and functional resources, and reductions in real estate.

(b)

Change in fair value of contingent consideration related to acquisitions and dispositions measured each quarter.

(c)

In 2023, reflects adjustments to restructuring liabilities for lease exit charges for a legacy JLT U.K. location.

 

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Nine Months Ended September 30

(Millions) (Unaudited)

 
 

 

 

Risk & Insurance

Services

 

Consulting

 

Corporate/

Eliminations

 

Total

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

3,192

 

 

$

1,223

 

 

$

(236

)

 

$

4,179

 

Operating margin

 

 

29.5

%

 

 

19.1

%

 

 

N/A

 

 

 

24.3

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring, excluding JLT (a)

 

 

67

 

 

 

33

 

 

 

48

 

 

 

148

 

Changes in contingent consideration (b)

 

 

20

 

 

 

1

 

 

 

 

 

 

21

 

JLT integration and restructuring costs (c)

 

 

22

 

 

 

 

 

 

 

 

 

22

 

JLT legacy legal charges (d)

 

 

 

 

 

(51

)

 

 

 

 

 

(51

)

Disposal of business (e)

 

 

 

 

 

17

 

 

 

 

 

 

17

 

Westpac acquisition related costs

 

 

 

 

 

32

 

 

 

 

 

 

32

 

Other

 

 

1

 

 

 

1

 

 

 

 

 

 

2

 

Operating income adjustments

 

 

110

 

 

 

33

 

 

 

48

 

 

 

191

 

Adjusted operating income (loss)

 

$

3,302

 

 

$

1,256

 

 

$

(188

)

 

$

4,370

 

Total identified intangible amortization expense

 

$

221

 

 

$

36

 

 

$

 

 

$

257

 

Adjusted operating margin

 

 

32.6

%

 

 

20.1

%

 

 

N/A

 

 

 

26.9

%

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2022

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

2,617

 

 

$

1,217

 

 

$

(234

)

 

$

3,600

 

Operating margin

 

 

27.0

%

 

 

20.1

%

 

 

N/A

 

 

 

22.9

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring, excluding JLT (a)

 

 

38

 

 

 

6

 

 

 

34

 

 

 

78

 

Changes in contingent consideration (b)

 

 

33

 

 

 

5

 

 

 

 

 

 

38

 

JLT integration and restructuring costs (c)

 

 

6

 

 

 

10

 

 

 

2

 

 

 

18

 

JLT legacy legal charges (d)

 

 

14

 

 

 

(11

)

 

 

 

 

 

3

 

Disposal of business (e)

 

 

 

 

 

(114

)

 

 

 

 

 

(114

)

JLT acquisition related retention costs

 

 

24

 

 

 

1

 

 

 

3

 

 

 

28

 

Legal claims and other (f)

 

 

30

 

 

 

9

 

 

 

 

 

 

39

 

Deconsolidation of Russian businesses and other related charges (g)

 

 

42

 

 

 

10

 

 

 

 

 

 

52

 

Operating income adjustments

 

 

187

 

 

 

(84

)

 

 

39

 

 

 

142

 

Adjusted operating income (loss)

 

$

2,804

 

 

$

1,133

 

 

$

(195

)

 

$

3,742

 

Total identified intangible amortization expense

 

$

223

 

 

$

35

 

 

$

 

 

$

258

 

Adjusted operating margin

 

 

31.1

%

 

 

19.6

%

 

 

N/A

 

 

 

25.6

%

(a)

In 2023, costs primarily include severance and lease exit charges for activities focused on workforce actions, rationalization of technology and functional resources, and reductions in real estate. Costs also reflect charges for Marsh's operational excellence program.

(b)

Change in fair value of contingent consideration related to acquisitions and dispositions measured each quarter.

(c)

In 2023, reflects adjustments to restructuring liabilities for lease exit charges for a legacy JLT U.K. location.

(d)

Reflects insurance and indemnity recoveries for a legacy JLT E&O matter relating to suitability of advice provided to individuals for defined benefit pension transfers in the U.K.

(e)

Loss on sale of an individual financial advisory business in Canada. In 2022, the amount reflects a gain of $112 million on the sale of the Mercer U.S. affinity business. These amounts are included in revenue in the consolidated statements of income and excluded from non-GAAP revenue and adjusted revenue used in the calculation of adjusted operating margin.

(f)

Primarily reflects settlement charges and legal costs related to strategic recruiting.

(g)

Loss on deconsolidation of Russian businesses and other related charges. The loss on deconsolidation of $39 million is included in revenue in the consolidated statements of income and excluded from non-GAAP revenue and adjusted revenue used in the calculation of adjusted operating margin. The remaining expenses of $13 million are included in other operating expenses in the consolidated statements of income.

 

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Three and Nine Months Ended September 30

(In millions, except per share data)

(Unaudited)

Adjusted income, net of tax is calculated as the Company's GAAP income from continuing operations, adjusted to reflect the after tax impact of the operating income adjustments in the preceding tables and the additional items listed below. Adjusted EPS is calculated by dividing the Company’s adjusted income, net of tax, by the average number of shares outstanding-diluted for the relevant period. The following tables reconcile adjusted income, net of tax to GAAP income from continuing operations and adjusted EPS to GAAP EPS for three and nine months ended September 30, 2023 and 2022.

 

Three Months Ended

September 30, 2023

 

Three Months Ended

September 30, 2022

 

Amount

 

Adjusted

EPS

 

Amount

 

Adjusted

EPS

Net income before non-controlling interests, as reported

 

 

$

738

 

 

 

 

 

$

552

 

 

Less: Non-controlling interest, net of tax

 

 

 

8

 

 

 

 

 

 

6

 

 

Subtotal

 

 

$

730

 

$

1.47

 

 

 

$

546

 

$

1.08

Operating income adjustments

$

63

 

 

 

 

 

 

$

60

 

 

 

 

 

Investments adjustment

 

1

 

 

 

 

 

 

 

4

 

 

 

 

 

Income tax effect of adjustments (a)

 

(12

)

 

 

 

 

 

 

(16

)

 

 

 

 

 

 

 

 

52

 

 

0.10

 

 

 

 

48

 

 

0.10

Adjusted income, net of tax

 

 

$

782

 

$

1.57

 

 

 

$

594

 

$

1.18

 

 

Nine Months Ended

September 30, 2023

 

Nine Months Ended

September 30, 2022

 

Amount

 

Adjusted

EPS

 

Amount

 

Adjusted

EPS

Net income before non-controlling interests, as reported

 

 

$

3,037

 

 

 

 

 

$

2,616

 

 

Less: Non-controlling interest, net of tax

 

 

 

37

 

 

 

 

 

 

32

 

 

Subtotal

 

 

$

3,000

 

$

6.01

 

 

 

$

2,584

 

$

5.11

Operating income adjustments

$

191

 

 

 

 

 

 

$

142

 

 

 

 

 

Investments adjustment

 

2

 

 

 

 

 

 

 

(4

)

 

 

 

 

Pension settlement adjustment

 

 

 

 

 

 

 

 

1

 

 

 

 

 

Income tax effect of adjustments (a)

 

(45

)

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

148

 

 

0.30

 

 

 

 

138

 

 

0.27

Adjusted income, net of tax

 

 

$

3,148

 

$

6.31

 

 

 

$

2,722

 

$

5.38

(a)

For items with an income tax impact, the tax effect was calculated using an effective tax rate based on the tax jurisdiction for each item.

 

Marsh & McLennan Companies, Inc.

Supplemental Information

Three and Nine Months Ended September 30

(Millions) (Unaudited)

 
 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

Consolidated

 

 

 

 

 

 

 

 

Compensation and benefits

 

$

3,287

 

$

2,923

 

$

9,831

 

$

9,033

Other operating expenses

 

 

1,099

 

 

1,056

 

 

3,172

 

 

3,065

Total expenses

 

$

4,386

 

$

3,979

 

$

13,003

 

$

12,098

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

95

 

$

85

 

$

270

 

$

259

Identified intangible amortization expense

 

 

85

 

 

84

 

 

257

 

 

258

Total

 

$

180

 

$

169

 

$

527

 

$

517

 

 

 

 

 

 

 

 

 

Risk and Insurance Services

 

 

 

 

 

 

 

 

Compensation and benefits

 

$

1,900

 

$

1,688

 

$

5,703

 

$

5,239

Other operating expenses

 

 

650

 

 

621

 

 

1,923

 

 

1,844

Total expenses

 

$

2,550

 

$

2,309

 

$

7,626

 

$

7,083

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

49

 

$

40

 

$

135

 

$

123

Identified intangible amortization expense

 

 

74

 

 

74

 

 

221

 

 

223

Total

 

$

123

 

$

114

 

$

356

 

$

346

 

 

 

 

 

 

 

 

 

Consulting

 

 

 

 

 

 

 

 

Compensation and benefits

 

$

1,251

 

$

1,107

 

$

3,690

 

$

3,416

Other operating expenses

 

 

531

 

 

494

 

 

1,496

 

 

1,412

Total expenses

 

$

1,782

 

$

1,601

 

$

5,186

 

$

4,828

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

30

 

$

26

 

$

78

 

$

79

Identified intangible amortization expense

 

 

11

 

 

10

 

 

36

 

 

35

Total

 

$

41

 

$

36

 

$

114

 

$

114

 

Marsh & McLennan Companies, Inc.

Consolidated Balance Sheets

(Millions)

 

 

 

(Unaudited)

September 30,

2023

 

December 31,

2022

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

2,901

 

$

1,442

Cash and cash equivalents held in a fiduciary capacity (a)

 

 

11,828

 

 

10,660

Net receivables

 

 

6,520

 

 

5,852

Other current assets

 

 

1,030

 

 

1,005

Total current assets

 

 

22,279

 

 

18,959

 

 

 

 

 

Goodwill and intangible assets

 

 

19,153

 

 

18,788

Fixed assets, net

 

 

859

 

 

871

Pension related assets

 

 

2,310

 

 

2,127

Right of use assets

 

 

1,519

 

 

1,562

Deferred tax assets

 

 

348

 

 

358

Other assets

 

 

1,532

 

 

1,449

TOTAL ASSETS

 

$

48,000

 

$

44,114

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

 

$

1,868

 

$

268

Accounts payable and accrued liabilities

 

 

3,143

 

 

3,278

Accrued compensation and employee benefits

 

 

2,632

 

 

3,095

Current lease liabilities

 

 

303

 

 

310

Accrued income taxes

 

 

480

 

 

221

Dividends payable

 

 

351

 

 

Fiduciary liabilities (a)

 

 

11,828

 

 

10,660

Total current liabilities

 

 

20,605

 

 

17,832

 

 

 

 

 

Long-term debt

 

 

11,781

 

 

11,227

Pension, post-retirement and post-employment benefits

 

 

840

 

 

921

Long-term lease liabilities

 

 

1,643

 

 

1,667

Liabilities for errors and omissions

 

 

319

 

 

355

Other liabilities

 

 

1,226

 

 

1,363

 

 

 

 

 

Total equity

 

 

11,586

 

 

10,749

TOTAL LIABILITIES AND EQUITY

 

$

48,000

 

$

44,114

(a)

In the second quarter of 2023, the Company changed the presentation of fiduciary assets and liabilities on the consolidated balance sheets. Cash and cash equivalents held in a fiduciary capacity was reclassified from an offset to fiduciary liabilities to current assets, with the corresponding fiduciary liabilities reclassified to current liabilities. The presentation in the December 31, 2022 consolidated balance sheet was conformed to the current presentation.

 

Marsh & McLennan Companies, Inc.

Consolidated Statements of Cash Flows

(Millions) (Unaudited)

 
 

 

 

Nine Months Ended

September 30,

 

 

 

2023

 

 

 

2022

 

Operating cash flows:

 

 

 

 

Net income before non-controlling interests

 

$

3,037

 

 

$

2,616

 

Adjustments to reconcile net income to cash provided by operations:

 

 

 

 

Depreciation and amortization

 

 

527

 

 

 

517

 

Non-cash lease expense

 

 

215

 

 

 

223

 

Deconsolidation of Russian businesses

 

 

 

 

 

39

 

Share-based compensation expense

 

 

273

 

 

 

283

 

Net gain on investments, disposition of assets and other

 

 

(7

)

 

 

(139

)

 

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

Accrued compensation and employee benefits

 

 

(458

)

 

 

(451

)

Provision for taxes, net of payments and refunds

 

 

242

 

 

 

156

 

Net receivables

 

 

(670

)

 

 

(745

)

Other changes to assets and liabilities

 

 

(201

)

 

 

14

 

Contributions to pension and other benefit plans in excess of current year credit

 

 

(246

)

 

 

(306

)

Operating lease liabilities

 

 

(237

)

 

 

(244

)

Net cash provided by operations

 

 

2,475

 

 

 

1,963

 

Financing cash flows:

 

 

 

 

Purchase of treasury shares

 

 

(900

)

 

 

(1,600

)

Net proceeds from issuance of commercial paper

 

 

 

 

 

600

 

Proceeds from issuance of debt

 

 

2,170

 

 

 

 

Repayments of debt

 

 

(12

)

 

 

(14

)

Net issuance of common stock from treasury shares

 

 

20

 

 

 

(105

)

Net distributions of non-controlling interests and deferred/contingent consideration

 

 

(342

)

 

 

(161

)

Dividends paid

 

 

(944

)

 

 

(840

)

Change in fiduciary liabilities

 

 

1,223

 

 

 

2,148

 

Net cash provided by financing activities

 

 

1,215

 

 

 

28

 

Investing cash flows:

 

 

 

 

Capital expenditures

 

 

(296

)

 

 

(367

)

Net purchases of long term investments and other

 

 

(28

)

 

 

(5

)

Sales of long term investments

 

 

18

 

 

 

84

 

Dispositions

 

 

(18

)

 

 

138

 

Acquisitions, net of cash and cash held in a fiduciary capacity acquired

 

 

(619

)

 

 

(213

)

Net cash used for investing activities

 

 

(943

)

 

 

(363

)

Effect of exchange rate changes on cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity

 

 

(120

)

 

 

(1,592

)

Increase in cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity

 

 

2,627

 

 

 

36

 

Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at beginning of period

 

 

12,102

 

 

 

11,374

 

Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at end of period

 

$

14,729

 

 

$

11,410

 

Reconciliation of cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity to the Consolidated Balance Sheets

Balance at September 30,

 

 

2023

 

 

2022

(In millions)

 

 

 

 

Cash and cash equivalents

 

$

2,901

 

$

802

Cash and cash equivalents held in a fiduciary capacity

 

 

11,828

 

 

10,608

Total cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity

 

$

14,729

 

$

11,410

 

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Three Months Ended September 30

(Millions) (Unaudited)

Non-GAAP revenue isolates the impact of foreign exchange rate movements and certain transaction-related items from the current period GAAP revenue. The non-GAAP revenue measure is presented on a constant currency basis, excluding the impact of foreign currency fluctuations. The Company isolates the impact of foreign exchange rate movements period over period, by translating the current period foreign currency GAAP revenue into U.S. Dollars based on the difference in the current and corresponding prior period exchange rates. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period over period comparisons of revenue and are consistently excluded from current and prior period GAAP revenues for comparability purposes. Percentage changes, referred to as non-GAAP underlying revenue, are calculated by dividing the period over period change in non-GAAP revenue by the prior period non-GAAP revenue.

The following table provides the reconciliation of GAAP revenue to non-GAAP revenue:

 

 

2023

 

2022

Three Months Ended September 30,

 

GAAP

Revenue

 

Currency

Impact

 

Acquisitions/

Dispositions/

Other Impact

 

Non-GAAP

Revenue

 

GAAP

Revenue

 

Acquisitions/

Dispositions/

Other Impact

 

Non-GAAP

Revenue

Risk and Insurance Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marsh

 

$

2,700

 

 

$

(15

)

 

$

(31

)

 

$

2,654

 

 

$

2,470

 

 

$

(2

)

 

$

2,468

 

Guy Carpenter

 

 

359

 

 

 

(3

)

 

 

(3

)

 

 

353

 

 

 

328

 

 

 

 

 

 

328

 

Subtotal

 

 

3,059

 

 

 

(18

)

 

 

(34

)

 

 

3,007

 

 

 

2,798

 

 

 

(2

)

 

 

2,796

 

Fiduciary interest income

 

 

131

 

 

 

 

 

 

 

 

 

131

 

 

 

40

 

 

 

 

 

 

40

 

Total Risk and Insurance Services

 

 

3,190

 

 

 

(18

)

 

 

(34

)

 

 

3,138

 

 

 

2,838

 

 

 

(2

)

 

 

2,836

 

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mercer (a)

 

 

1,425

 

 

 

(17

)

 

 

(4

)

 

 

1,404

 

 

 

1,284

 

 

 

21

 

 

 

1,305

 

Oliver Wyman Group

 

 

781

 

 

 

(15

)

 

 

(21

)

 

 

745

 

 

 

667

 

 

 

 

 

 

667

 

Total Consulting

 

 

2,206

 

 

 

(32

)

 

 

(25

)

 

 

2,149

 

 

 

1,951

 

 

 

21

 

 

 

1,972

 

Corporate Eliminations

 

 

(14

)

 

 

 

 

 

 

 

 

(14

)

 

 

(19

)

 

 

 

 

 

(19

)

Total Revenue

 

$

5,382

 

 

$

(50

)

 

$

(59

)

 

$

5,273

 

 

$

4,770

 

 

$

19

 

 

$

4,789

 

 

Revenue Details

The following table provides more detailed revenue information for certain of the components presented above:

 

 

2023

 

2022

Three Months Ended September 30,

 

GAAP

Revenue

 

Currency

Impact

 

Acquisitions/

Dispositions/

Other Impact

 

Non-GAAP

Revenue

 

GAAP

Revenue

 

Acquisitions/

Dispositions/

Other Impact

 

Non-GAAP

Revenue

Marsh:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA (b)

 

$

692

 

$

(23

)

 

$

(2

)

 

$

667

 

$

615

 

$

(1

)

 

$

614

Asia Pacific (b)

 

 

311

 

 

6

 

 

 

(1

)

 

 

316

 

 

286

 

 

 

 

 

286

Latin America

 

 

134

 

 

(1

)

 

 

1

 

 

 

134

 

 

118

 

 

 

 

 

118

Total International

 

 

1,137

 

 

(18

)

 

 

(2

)

 

 

1,117

 

 

1,019

 

 

(1

)

 

 

1,018

U.S./Canada

 

 

1,563

 

 

3

 

 

 

(29

)

 

 

1,537

 

 

1,451

 

 

(1

)

 

 

1,450

Total Marsh

 

$

2,700

 

$

(15

)

 

$

(31

)

 

$

2,654

 

$

2,470

 

$

(2

)

 

$

2,468

Mercer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth (a)

 

$

635

 

$

(11

)

 

$

(1

)

 

$

623

 

$

561

 

$

21

 

 

$

582

Health

 

 

496

 

 

(6

)

 

 

 

 

 

490

 

 

451

 

 

 

 

 

451

Career

 

 

294

 

 

 

 

 

(3

)

 

 

291

 

 

272

 

 

 

 

 

272

Total Mercer

 

$

1,425

 

$

(17

)

 

$

(4

)

 

$

1,404

 

$

1,284

 

$

21

 

 

$

1,305

(a)

Acquisitions, dispositions, and other in 2022 includes revenue from the Westpac superannuation fund transaction in Wealth.

(b)

In the first quarter of 2023, the Company began reporting the Marsh India operations in EMEA. Prior year results for India have been reclassified from Asia Pacific to EMEA for comparative purposes.

 

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Nine Months Ended September 30

(Millions) (Unaudited)

The following table provides the reconciliation of GAAP revenue to Non-GAAP revenue:

 

 

2023

 

2022

Nine Months Ended September 30,

 

GAAP

Revenue

 

Currency

Impact

 

Acquisitions/

Dispositions/

Other Impact

 

Non-GAAP

Revenue

 

GAAP

Revenue

 

Acquisitions/

Dispositions/

Other Impact

 

Non-GAAP

Revenue

Risk and Insurance Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marsh (a)

 

$

8,482

 

 

$

82

 

 

$

(79

)

 

$

8,485

 

 

$

7,794

 

 

$

15

 

 

$

7,809

 

Guy Carpenter

 

 

2,006

 

 

 

20

 

 

 

(18

)

 

 

2,008

 

 

 

1,849

 

 

 

(19

)

 

 

1,830

 

Subtotal

 

 

10,488

 

 

 

102

 

 

 

(97

)

 

 

10,493

 

 

 

9,643

 

 

 

(4

)

 

 

9,639

 

Fiduciary interest income

 

 

330

 

 

 

2

 

 

 

 

 

 

332

 

 

 

57

 

 

 

 

 

 

57

 

Total Risk and Insurance Services

 

 

10,818

 

 

 

104

 

 

 

(97

)

 

 

10,825

 

 

 

9,700

 

 

 

(4

)

 

 

9,696

 

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mercer (b)

 

 

4,143

 

 

 

44

 

 

 

11

 

 

 

4,198

 

 

 

4,016

 

 

 

(92

)

 

 

3,924

 

Oliver Wyman Group (a)

 

 

2,266

 

 

 

(1

)

 

 

(71

)

 

 

2,194

 

 

 

2,029

 

 

 

11

 

 

 

2,040

 

Total Consulting

 

 

6,409

 

 

 

43

 

 

 

(60

)

 

 

6,392

 

 

 

6,045

 

 

 

(81

)

 

 

5,964

 

Corporate Eliminations

 

 

(45

)

 

 

 

 

 

 

 

 

(45

)

 

 

(47

)

 

 

 

 

 

(47

)

Total Revenue

 

$

17,182

 

 

$

147

 

 

$

(157

)

 

$

17,172

 

 

$

15,698

 

 

$

(85

)

 

$

15,613

 

 

Revenue Details

The following table provides more detailed revenue information for certain of the components presented above:

 

 

2023

 

2022

Nine Months Ended September 30,

 

GAAP

Revenue

 

Currency

Impact

 

Acquisitions/

Dispositions/

Other Impact

 

Non-GAAP

Revenue

 

GAAP

Revenue

 

Acquisitions/

Dispositions/

Other Impact

 

Non-GAAP

Revenue

Marsh:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA (a) (c)

 

$

2,482

 

$

32

 

$

(6

)

 

$

2,508

 

$

2,264

 

$

16

 

 

$

2,280

Asia Pacific (c)

 

 

980

 

 

35

 

 

(4

)

 

 

1,011

 

 

927

 

 

 

 

 

927

Latin America

 

 

386

 

 

 

 

1

 

 

 

387

 

 

340

 

 

 

 

 

340

Total International

 

 

3,848

 

 

67

 

 

(9

)

 

 

3,906

 

 

3,531

 

 

16

 

 

 

3,547

U.S./Canada

 

 

4,634

 

 

15

 

 

(70

)

 

 

4,579

 

 

4,263

 

 

(1

)

 

 

4,262

Total Marsh

 

$

8,482

 

$

82

 

$

(79

)

 

$

8,485

 

$

7,794

 

$

15

 

 

$

7,809

Mercer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth (b)

 

$

1,853

 

$

24

 

$

19

 

 

$

1,896

 

$

1,775

 

$

45

 

 

$

1,820

Health (b)

 

 

1,559

 

 

10

 

 

(1

)

 

 

1,568

 

 

1,562

 

 

(137

)

 

 

1,425

Career

 

 

731

 

 

10

 

 

(7

)

 

 

734

 

 

679

 

 

 

 

 

679

Total Mercer

 

$

4,143

 

$

44

 

$

11

 

 

$

4,198

 

$

4,016

 

$

(92

)

 

$

3,924

(a)

Acquisitions, dispositions and other in 2022 includes the loss on deconsolidation of the Company's Russian businesses at Marsh of $27 million and Oliver Wyman Group of $12 million.

(b)

Acquisitions, dispositions, and other in 2022 includes revenue from the Westpac superannuation fund transaction in Wealth and a gain from the sale of the Mercer U.S. affinity business of $112 million in Health. Results for 2023 in Wealth include the loss on sale of an individual financial advisory business in Canada of $17 million.

(c)

In the first quarter of 2023, the Company began reporting the Marsh India operations in EMEA. Prior year results for India have been reclassified from Asia Pacific to EMEA for comparative purposes.

 

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