Marsh McLennan Reports Second Quarter 2023 Results

GAAP Revenue Increases 9%; Underlying Revenue Rises 11%

Growth in GAAP Operating Income of 7% and Adjusted Operating Income of 17%

Second Quarter GAAP EPS Rises 8% to $2.07 and Adjusted EPS Increases 16% to $2.20

Six Months GAAP EPS Rises 13% to $4.55 and Adjusted EPS Increases 13% to $4.74

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 second quarter ended June 30, 2023.

Commenting on the results, John Doyle, President and CEO, said: "We delivered another excellent quarter, demonstrating continued momentum and strength across our business. We generated underlying revenue growth of 11%, adjusted EPS growth of 16%, and we continued to expand margins."

"I am proud of our performance in the first half of 2023. Our results reflect the strength of our position, the value we deliver to our clients, and terrific execution by our colleagues."

Consolidated Results

Consolidated revenue in the second quarter of 2023 was $5.9 billion, an increase of 9% compared with the second quarter of 2022. On an underlying basis, revenue increased 11%. Operating income was $1.5 billion, an increase of 7% from a year ago. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 17% to $1.5 billion. Net income attributable to the Company was $1.0 billion, or $2.07 per diluted share, compared with $1.91 in the second quarter of 2022. Adjusted earnings per share rose 16% to $2.20 per diluted share compared with $1.89 a year ago.

For the six months ended June 30, 2023, consolidated revenue was $11.8 billion, an increase of 8%, or 10% on an underlying basis compared to the prior period. Operating income was $3.2 billion, an increase of 13% from the prior year period. Adjusted operating income rose 15% to $3.3 billion. Net income attributable to the Company was $2.3 billion, or $4.55 per diluted share, compared with $4.01 in the first six months of 2022. Adjusted earnings per share increased 13% to $4.74 per diluted share compared with $4.19 for the first six months of 2022.

Risk & Insurance Services

Risk & Insurance Services revenue was $3.7 billion in the second quarter of 2023, an increase of 12%, or 13% on an underlying basis. Operating income rose 20% to $1.2 billion, and adjusted operating income was $1.2 billion, an increase of 18% versus a year ago. For the six months ended June 30, 2023, revenue was $7.6 billion, an increase of 11%, or 12% on an underlying basis. Operating income rose 22% to $2.6 billion, and adjusted operating income was $2.6 billion, an increase of 17% versus a year ago.

Marsh's revenue in the second quarter was $3.0 billion, an increase of 10% on an underlying basis. In U.S./Canada, underlying revenue rose 9%. International operations produced underlying revenue growth of 10%, reflecting 17% growth in Latin America, 11% growth in EMEA, and 6% growth in Asia Pacific. For the six months ended June 30, 2023, Marsh’s underlying revenue growth was 9%.

Guy Carpenter's revenue in the second quarter was $576 million, an increase of 11% on an underlying basis. For the six months ended June 30, 2023, Guy Carpenter’s underlying revenue growth was 10%.

Consulting

Consulting revenue was $2.2 billion in the second quarter of 2023, an increase of 4%, or 8% on an underlying basis. Operating income decreased 18% to $388 million, while adjusted operating income increased 9% to $403 million. For the first six months ended June 30, 2023, revenue was $4.2 billion, an increase of 3%, or 6% on an underlying basis. Operating income of $799 million decreased 8%, while adjusted operating income increased 5% to $809 million.

Mercer's revenue in the second quarter was $1.4 billion, an increase of 6% on an underlying basis. Health revenue of $518 million increased 10% on an underlying basis. Wealth revenue of $637 million increased 3% on an underlying basis. Career revenue of $219 million increased 6% on an underlying basis. For the six months ended June 30, 2023, Mercer’s revenue was $2.7 billion, an increase of 7% on an underlying basis.

Oliver Wyman’s revenue in the second quarter was $798 million, an increase of 11% on an underlying basis. For the six months ended June 30, 2023, Oliver Wyman’s revenue was $1.5 billion, an increase of 6% on an underlying basis.

Other Items

The Company repurchased 1.7 million shares of stock for $300 million in the second quarter of 2023. Through six months ended June 30, 2023, the Company has repurchased 3.5 million shares of stock for $600 million.

Last week, the Board of Directors increased the quarterly dividend 20% to $0.710 per share, with the third quarter dividend payable on August 15, 2023.

Conference Call

A conference call to discuss second 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 or follow us on LinkedIn and Twitter.

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, slower GDP growth or recession, capital markets volatility, instability in the banking sector 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 and data privacy 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;
  • 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 disagreements with tax authorities; 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

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

2022

 

2023

 

2022

Revenue

 

$

5,876

 

 

$

5,379

 

 

$

11,800

 

 

$

10,928

 

Expense:

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

3,337

 

 

 

3,010

 

 

 

6,544

 

 

 

6,110

 

Other operating expenses

 

 

1,082

 

 

 

1,005

 

 

 

2,073

 

 

 

2,009

 

Operating expenses

 

 

4,419

 

 

 

4,015

 

 

 

8,617

 

 

 

8,119

 

Operating income

 

 

1,457

 

 

 

1,364

 

 

 

3,183

 

 

 

2,809

 

Other net benefit credits

 

 

60

 

 

 

59

 

 

 

118

 

 

 

121

 

Interest income

 

 

10

 

 

 

1

 

 

 

24

 

 

 

2

 

Interest expense

 

 

(146

)

 

 

(114

)

 

 

(282

)

 

 

(224

)

Investment income

 

 

3

 

 

 

2

 

 

 

5

 

 

 

28

 

Income before income taxes

 

 

1,384

 

 

 

1,312

 

 

 

3,048

 

 

 

2,736

 

Income tax expense

 

 

337

 

 

 

334

 

 

 

749

 

 

 

672

 

Net income before non-controlling interests

 

 

1,047

 

 

 

978

 

 

 

2,299

 

 

 

2,064

 

Less: Net income attributable to non-controlling interests

 

 

12

 

 

 

11

 

 

 

29

 

 

 

26

 

Net income attributable to the Company

 

$

1,035

 

 

$

967

 

 

$

2,270

 

 

$

2,038

 

Net income per share attributable to the Company:

 

 

 

 

 

 

 

 

- Basic

 

$

2.09

 

 

$

1.93

 

 

$

4.59

 

 

$

4.06

 

- Diluted

 

$

2.07

 

 

$

1.91

 

 

$

4.55

 

 

$

4.01

 

Average number of shares outstanding:

 

 

 

 

 

 

 

 

- Basic

 

 

495

 

 

 

501

 

 

 

495

 

 

 

502

 

- Diluted

 

 

499

 

 

 

506

 

 

 

499

 

 

 

508

 

Shares outstanding at June 30

 

 

494

 

 

 

499

 

 

 

494

 

 

 

499

 

 

Marsh & McLennan Companies, Inc.

Supplemental Information - Revenue Analysis

Three Months Ended June 30

(Millions) (Unaudited)

The Company conducts business in 130 countries. As a result, foreign exchange rate movements may impact period-to-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

June 30,

 

% Change

GAAP

Revenue*

 

Currency

Impact

 

Acquisitions/

Dispositions/

Other Impact**

 

Non-GAAP

Underlying

Revenue

 

 

2023

 

2022

 

Risk and Insurance Services

 

 

 

 

 

 

 

 

 

 

 

 

Marsh

 

$

3,038

 

 

$

2,778

 

 

9

%

 

(1

)%

 

1

%

 

10

%

Guy Carpenter

 

 

576

 

 

 

522

 

 

10

%

 

(1

)%

 

 

 

11

%

Subtotal

 

 

3,614

 

 

 

3,300

 

 

9

%

 

(1

)%

 

1

%

 

10

%

Fiduciary interest income

 

 

108

 

 

 

13

 

 

 

 

 

 

 

 

 

Total Risk and Insurance Services

 

 

3,722

 

 

 

3,313

 

 

12

%

 

(1

)%

 

1

%

 

13

%

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

Mercer

 

 

1,374

 

 

 

1,389

 

 

(1

)%

 

(1

)%

 

(6

)%

 

6

%

Oliver Wyman Group

 

 

798

 

 

 

695

 

 

15

%

 

 

 

4

%

 

11

%

Total Consulting

 

 

2,172

 

 

 

2,084

 

 

4

%

 

 

 

(3

)%

 

8

%

Corporate Eliminations

 

 

(18

)

 

 

(18

)

 

 

 

 

 

 

 

 

Total Revenue

 

$

5,876

 

 

$

5,379

 

 

9

%

 

(1

)%

 

(1

)%

 

11

%

 

Revenue Details

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

 

 

 

 

 

 

Components of Revenue Change*

 

 

Three Months Ended

June 30,

 

% Change

GAAP

Revenue*

 

Currency

Impact

 

Acquisitions/

Dispositions/

Other Impact**

 

Non-GAAP

Underlying

Revenue

 

 

2023

 

2022

 

Marsh:

 

 

 

 

 

 

 

 

 

 

 

 

EMEA (a)

 

$

858

 

$

780

 

10

%

 

(1

)%

 

 

 

11

%

Asia Pacific (a)

 

 

357

 

 

347

 

3

%

 

(4

)%

 

1

%

 

6

%

Latin America

 

 

137

 

 

118

 

15

%

 

(1

)%

 

 

 

17

%

Total International

 

 

1,352

 

 

1,245

 

9

%

 

(2

)%

 

 

 

10

%

U.S./Canada

 

 

1,686

 

 

1,533

 

10

%

 

 

 

1

%

 

9

%

Total Marsh

 

$

3,038

 

$

2,778

 

9

%

 

(1

)%

 

1

%

 

10

%

Mercer:

 

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

$

637

 

$

597

 

7

%

 

(1

)%

 

4

%

 

3

%

Health

 

 

518

 

 

587

 

(12

)%

 

 

 

(19

)%

 

10

%

Career

 

 

219

 

 

205

 

6

%

 

(1

)%

 

1

%

 

6

%

Total Mercer

 

$

1,374

 

$

1,389

 

(1

)%

 

(1

)%

 

(6

)%

 

6

%

(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

Six Months Ended June 30

(Millions) (Unaudited)

The Company conducts business in 130 countries. As a result, foreign exchange rate movements may impact period-to-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*

 

 

Six Months Ended

June 30,

 

% Change

GAAP

Revenue*

 

Currency

Impact

 

Acquisitions/

Dispositions/

Other Impact**

 

Non-GAAP

Underlying

Revenue

 

 

2023

 

2022

 

Risk and Insurance Services

 

 

 

 

 

 

 

 

 

 

 

 

Marsh

 

$

5,782

 

 

$

5,324

 

 

9

%

 

(2

)%

 

1

%

 

9

%

Guy Carpenter

 

 

1,647

 

 

 

1,521

 

 

8

%

 

(1

)%

 

 

 

10

%

Subtotal

 

 

7,429

 

 

 

6,845

 

 

9

%

 

(2

)%

 

1

%

 

9

%

Fiduciary interest income

 

 

199

 

 

 

17

 

 

 

 

 

 

 

 

 

Total Risk and Insurance Services

 

 

7,628

 

 

 

6,862

 

 

11

%

 

(2

)%

 

1

%

 

12

%

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

Mercer

 

 

2,718

 

 

 

2,732

 

 

(1

)%

 

(2

)%

 

(5

)%

 

7

%

Oliver Wyman Group

 

 

1,485

 

 

 

1,362

 

 

9

%

 

(1

)%

 

4

%

 

6

%

Total Consulting

 

 

4,203

 

 

 

4,094

 

 

3

%

 

(2

)%

 

(2

)%

 

6

%

Corporate Eliminations

 

 

(31

)

 

 

(28

)

 

 

 

 

 

 

 

 

Total Revenue

 

$

11,800

 

 

$

10,928

 

 

8

%

 

(2

)%

 

 

 

10

%

 

Revenue Details

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

 

 

 

 

 

 

Components of Revenue Change*

 

 

Six Months Ended

June 30,

 

% Change

GAAP

Revenue*

 

Currency

Impact

 

Acquisitions/

Dispositions/

Other Impact**

 

Non-GAAP

Underlying

Revenue

 

 

2023

 

2022

 

Marsh:

 

 

 

 

 

 

 

 

 

 

 

 

EMEA (a)

 

$

1,790

 

$

1,649

 

9

%

 

(3

)%

 

1

%

 

10

%

Asia Pacific (a)

 

 

669

 

 

641

 

4

%

 

(5

)%

 

1

%

 

8

%

Latin America

 

 

252

 

 

222

 

13

%

 

 

 

 

 

14

%

Total International

 

 

2,711

 

 

2,512

 

8

%

 

(3

)%

 

1

%

 

10

%

U.S./Canada

 

 

3,071

 

 

2,812

 

9

%

 

 

 

1

%

 

8

%

Total Marsh

 

$

5,782

 

$

5,324

 

9

%

 

(2

)%

 

1

%

 

9

%

Mercer:

 

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

$

1,218

 

$

1,214

 

 

 

(3

)%

 

 

 

3

%

Health

 

 

1,063

 

 

1,111

 

(4

)%

 

(1

)%

 

(12

)%

 

11

%

Career

 

 

437

 

 

407

 

7

%

 

(3

)%

 

1

%

 

9

%

Total Mercer

 

$

2,718

 

$

2,732

 

(1

)%

 

(2

)%

 

(5

)%

 

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 June 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 six months ended June 30, 2023 and 2022. The following tables also present adjusted operating margin. For the three and six months ended June 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 June 30, 2023

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

1,157

 

 

$

388

 

 

$

(88

)

 

$

1,457

 

Operating margin

 

 

31.1

%

 

 

17.9

%

 

 

N/A

 

 

 

24.8

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring, excluding JLT (a)

 

 

28

 

 

 

7

 

 

 

27

 

 

 

62

 

Changes in contingent consideration (b)

 

 

10

 

 

 

 

 

 

 

 

 

10

 

JLT integration and restructuring costs (c)

 

 

3

 

 

 

 

 

 

 

 

 

3

 

Acquisition related costs (d)

 

 

 

 

 

10

 

 

 

 

 

 

10

 

Disposal of business

 

 

 

 

 

(2

)

 

 

 

 

 

(2

)

Operating income adjustments

 

 

41

 

 

 

15

 

 

 

27

 

 

 

83

 

Adjusted operating income (loss)

 

$

1,198

 

 

$

403

 

 

$

(61

)

 

$

1,540

 

Total identified intangible amortization expense

 

$

73

 

 

$

14

 

 

$

 

 

$

87

 

Adjusted operating margin

 

 

34.2

%

 

 

19.2

%

 

 

N/A

 

 

 

27.7

%

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2022

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

967

 

 

$

475

 

 

$

(78

)

 

$

1,364

 

Operating margin

 

 

29.2

%

 

 

22.8

%

 

 

N/A

 

 

 

25.4

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring, excluding JLT (a)

 

 

11

 

 

 

4

 

 

 

13

 

 

 

28

 

Changes in contingent consideration (b)

 

 

12

 

 

 

5

 

 

 

 

 

 

17

 

JLT acquisition-related costs (e)

 

 

11

 

 

 

 

 

 

3

 

 

 

14

 

JLT legacy legal charges (f)

 

 

11

 

 

 

(1

)

 

 

 

 

 

10

 

Disposal of business (g)

 

 

 

 

 

(112

)

 

 

 

 

 

(112

)

Deconsolidation of Russian businesses and other related charges

 

 

2

 

 

 

(2

)

 

 

 

 

 

 

Operating income adjustments

 

 

47

 

 

 

(106

)

 

 

16

 

 

 

(43

)

Adjusted operating income (loss)

 

$

1,014

 

 

$

369

 

 

$

(62

)

 

$

1,321

 

Total identified intangible amortization expense

 

$

71

 

 

$

12

 

 

$

 

 

$

83

 

Adjusted operating margin

 

 

32.8

%

 

 

19.3

%

 

 

N/A

 

 

 

26.7

%

(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)

Reflects adjustments to restructuring liabilities for future rent under non-cancelable leases for a legacy JLT U.K. location.

(d)

Integration costs for the Westpac superannuation fund transaction in Australia, which closed on April 1, 2023.

(e)

Retention costs related to the acquisition of JLT.

(f)

Charges and recoveries related to legacy JLT legal matters.

(g)

Reflects a gain of $112 million on the sale of the Mercer U.S. affinity business in the second quarter of 2022. This amount 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.

 

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Six Months Ended June 30

(Millions) (Unaudited)

 

 

 

Risk & Insurance

Services

 

Consulting

 

Corporate/

Eliminations

 

Total

Six Months Ended June 30, 2023

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

2,552

 

 

$

799

 

 

$

(168

)

 

$

3,183

 

Operating margin

 

 

33.5

%

 

 

19.0

%

 

 

N/A

 

 

 

27.0

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring, excluding JLT (a)

 

 

47

 

 

 

16

 

 

 

39

 

 

 

102

 

Changes in contingent consideration (b)

 

 

16

 

 

 

1

 

 

 

 

 

 

17

 

JLT integration and restructuring costs (c)

 

 

16

 

 

 

 

 

 

 

 

 

16

 

JLT legacy legal charges (d)

 

 

 

 

 

(51

)

 

 

 

 

 

(51

)

Disposal of business (e)

 

 

 

 

 

17

 

 

 

 

 

 

17

 

Acquisition related costs (f)

 

 

 

 

 

27

 

 

 

 

 

 

27

 

Operating income adjustments

 

 

79

 

 

 

10

 

 

 

39

 

 

 

128

 

Adjusted operating income (loss)

 

$

2,631

 

 

$

809

 

 

$

(129

)

 

$

3,311

 

Total identified intangible amortization expense

 

$

147

 

 

$

25

 

 

$

 

 

$

172

 

Adjusted operating margin

 

 

36.4

%

 

 

19.8

%

 

 

N/A

 

 

 

29.5

%

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2022

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

2,088

 

 

$

867

 

 

$

(146

)

 

$

2,809

 

Operating margin

 

 

30.4

%

 

 

21.2

%

 

 

N/A

 

 

 

25.7

%

Add (deduct) impact of noteworthy items:

 

 

 

 

 

 

 

 

Restructuring, excluding JLT (a)

 

 

20

 

 

 

6

 

 

 

20

 

 

 

46

 

Changes in contingent consideration (b)

 

 

22

 

 

 

5

 

 

 

 

 

 

27

 

JLT integration and restructuring costs (c)

 

 

6

 

 

 

5

 

 

 

1

 

 

 

12

 

JLT legacy legal charges (d)

 

 

14

 

 

 

(11

)

 

 

 

 

 

3

 

Disposal of business (e)

 

 

 

 

 

(112

)

 

 

 

 

 

(112

)

JLT acquisition-related costs (g)

 

 

20

 

 

 

1

 

 

 

3

 

 

 

24

 

Legal claims (h)

 

 

30

 

 

 

 

 

 

 

 

 

30

 

Deconsolidation of Russian businesses and other related charges (i)

 

 

42

 

 

 

10

 

 

 

 

 

 

52

 

Operating income adjustments

 

 

154

 

 

 

(96

)

 

 

24

 

 

 

82

 

Adjusted operating income (loss)

 

$

2,242

 

 

$

771

 

 

$

(122

)

 

$

2,891

 

Total identified intangible amortization expense

 

$

149

 

 

$

25

 

 

$

 

 

$

174

 

Adjusted operating margin

 

 

34.7

%

 

 

19.9

%

 

 

N/A

 

 

 

28.2

%

(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)

Reflects adjustments to restructuring liabilities for future rent under non-cancelable leases 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. The second quarter of 2022 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)

Integration costs for the Westpac superannuation fund transaction in Australia, which closed on April 1, 2023.

(g)

Retention costs related to the acquisition of JLT.

(h)

Settlement charges and legal costs related to strategic recruiting.

(i)

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 expense charges 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 Six Months Ended June 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 the three and six months ended June 30, 2023 and 2022.

 

Three Months Ended

June 30, 2023

 

Three Months Ended

June 30, 2022

 

Amount

 

Adjusted

EPS

 

Amount

 

Adjusted

EPS

Net income before non-controlling interests, as reported

 

 

$

1,047

 

 

 

 

 

$

978

 

 

 

Less: Non-controlling interest, net of tax

 

 

 

12

 

 

 

 

 

 

11

 

 

 

Subtotal

 

 

$

1,035

 

$

2.07

 

 

 

$

967

 

 

$

1.91

 

Operating income adjustments

$

83

 

 

 

 

 

 

$

(43

)

 

 

 

 

Investments adjustment

 

(1

)

 

 

 

 

 

 

1

 

 

 

 

 

Pension settlement adjustment

 

 

 

 

 

 

 

 

1

 

 

 

 

 

Income tax effect of adjustments (a)

 

(17

)

 

 

 

 

 

 

33

 

 

 

 

 

 

 

 

 

65

 

 

0.13

 

 

 

 

(8

)

 

 

(0.02

)

Adjusted income, net of tax

 

 

$

1,100

 

$

2.20

 

 

 

$

959

 

 

$

1.89

 

 

 

Six Months Ended

June 30, 2023

Six Months Ended

June 30, 2022

 

Amount

 

Adjusted

EPS

Amount

Adjusted

EPS

Net income before non-controlling interests, as reported

 

 

$

2,299

 

$

2,064

 

Less: Non-controlling interest, net of tax

 

 

 

29

 

 

26

 

Subtotal

 

 

$

2,270

 

$

4.55

$

2,038

 

$

4.01

 

Operating income adjustments

$

128

 

 

 

 

$

82

 

Investments adjustment

 

1

 

 

 

 

 

(8

)

Pension settlement adjustment

 

 

 

 

 

 

1

 

Income tax effect of adjustments (a)

 

(33

)

 

 

 

 

15

 

 

 

 

 

96

 

 

0.19

 

90

 

 

0.18

 

Adjusted income, net of tax

 

 

$

2,366

 

$

4.74

$

2,128

 

$

4.19

 

(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 Six Months Ended June 30

(Millions) (Unaudited)

 

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

2022

 

2023

 

2022

Consolidated

 

 

 

 

 

 

 

 

Compensation and benefits

 

$

3,337

 

$

3,010

 

$

6,544

 

$

6,110

Other operating expenses

 

 

1,082

 

 

1,005

 

 

2,073

 

 

2,009

Total expenses

 

$

4,419

 

$

4,015

 

$

8,617

 

$

8,119

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

91

 

$

85

 

$

175

 

$

174

Identified intangible amortization expense

 

 

87

 

 

83

 

 

172

 

 

174

Total

 

$

178

 

$

168

 

$

347

 

$

348

 

 

 

 

 

 

 

 

 

Risk and Insurance Services

 

 

 

 

 

 

 

 

Compensation and benefits

 

$

1,923

 

$

1,750

 

$

3,803

 

$

3,551

Other operating expenses

 

 

642

 

 

596

 

 

1,273

 

 

1,223

Total expenses

 

$

2,565

 

$

2,346

 

$

5,076

 

$

4,774

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

49

 

$

40

 

$

86

 

$

83

Identified intangible amortization expense

 

 

73

 

 

71

 

 

147

 

 

149

Total

 

$

122

 

$

111

 

$

233

 

$

232

 

 

 

 

 

 

 

 

 

Consulting

 

 

 

 

 

 

 

 

Compensation and benefits

 

$

1,271

 

$

1,145

 

$

2,439

 

$

2,309

Other operating expenses

 

 

513

 

 

464

 

 

965

 

 

918

Total expenses

 

$

1,784

 

$

1,609

 

$

3,404

 

$

3,227

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

27

 

$

27

 

$

48

 

$

53

Identified intangible amortization expense

 

 

14

 

 

12

 

 

25

 

 

25

Total

 

$

41

 

$

39

 

$

73

 

$

78

 

Marsh & McLennan Companies, Inc.

Consolidated Balance Sheets

(Millions)

 

 

 

(Unaudited)

June 30,

2023

 

December 31,

2022

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

1,171

 

$

1,442

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

 

 

11,564

 

 

10,660

Net receivables

 

 

6,986

 

 

5,852

Other current assets

 

 

1,081

 

 

1,005

Total current assets

 

 

20,802

 

 

18,959

 

 

 

 

 

Goodwill and intangible assets

 

 

19,129

 

 

18,788

Fixed assets, net

 

 

870

 

 

871

Pension related assets

 

 

2,331

 

 

2,127

Right of use assets

 

 

1,569

 

 

1,562

Deferred tax assets

 

 

365

 

 

358

Other assets

 

 

1,500

 

 

1,449

TOTAL ASSETS

 

$

46,566

 

$

44,114

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

 

$

2,375

 

$

268

Accounts payable and accrued liabilities

 

 

3,137

 

 

3,278

Accrued compensation and employee benefits

 

 

2,021

 

 

3,095

Current lease liabilities

 

 

309

 

 

310

Accrued income taxes

 

 

407

 

 

221

Fiduciary liabilities (a)

 

 

11,564

 

 

10,660

Total current liabilities

 

 

19,813

 

 

17,832

 

 

 

 

 

Long-term debt

 

 

10,247

 

 

11,227

Pension, post-retirement and post-employment benefits

 

 

866

 

 

921

Long-term lease liabilities

 

 

1,699

 

 

1,667

Liabilities for errors and omissions

 

 

364

 

 

355

Other liabilities

 

 

1,438

 

 

1,363

 

 

 

 

 

Total equity

 

 

12,139

 

 

10,749

TOTAL LIABILITIES AND EQUITY

 

$

46,566

 

$

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)

 

 

 

 

 

Six Months Ended

June 30,

 

 

2023

 

2022

Operating cash flows:

 

 

 

 

Net income before non-controlling interests

 

$

2,299

 

 

$

2,064

 

Adjustments to reconcile net income to cash provided by operations:

 

 

 

 

Depreciation and amortization

 

 

347

 

 

 

348

 

Non-cash lease expense

 

 

143

 

 

 

152

 

Deconsolidation of Russian businesses

 

 

 

 

 

39

 

Share-based compensation expense

 

 

191

 

 

 

194

 

Net gain on investments, disposition of assets and other

 

 

(9

)

 

 

(130

)

 

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

Accrued compensation and employee benefits

 

 

(1,101

)

 

 

(992

)

Provision for taxes, net of payments and refunds

 

 

245

 

 

 

235

 

Net receivables

 

 

(1,029

)

 

 

(978

)

Other changes to assets and liabilities

 

 

(98

)

 

 

40

 

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

 

 

(164

)

 

 

(226

)

Operating lease liabilities

 

 

(159

)

 

 

(166

)

Net cash provided by operations

 

 

665

 

 

 

580

 

Financing cash flows:

 

 

 

 

Purchase of treasury shares

 

 

(600

)

 

 

(1,100

)

Borrowings from term-loan and credit facilities

 

 

200

 

 

 

 

Net proceeds from issuance of commercial paper

 

 

308

 

 

 

944

 

Proceeds from issuance of debt

 

 

589

 

 

 

 

Repayments of debt

 

 

(8

)

 

 

(8

)

Net issuance of common stock from treasury shares

 

 

(21

)

 

 

(115

)

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

 

 

(332

)

 

 

(104

)

Dividends paid

 

 

(591

)

 

 

(547

)

Change in fiduciary liabilities

 

 

682

 

 

 

1,428

 

Net cash provided by financing activities

 

 

227

 

 

 

498

 

Investing cash flows:

 

 

 

 

Capital expenditures

 

 

(185

)

 

 

(239

)

Net purchases of long term investments and other

 

 

(23

)

 

 

(3

)

Sales of long term investments

 

 

16

 

 

 

 

Dispositions

 

 

(17

)

 

 

135

 

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

 

 

(292

)

 

 

(151

)

Net cash used for investing activities

 

 

(501

)

 

 

(258

)

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

 

 

242

 

 

 

(755

)

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

 

 

633

 

 

 

65

 

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

 

$

12,735

 

 

$

11,439

 

 

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

Balance at June 30,

 

2023

 

2022

(In millions)

 

 

 

 

Cash and cash equivalents

 

$

1,171

 

 

$

909

 

Cash and cash equivalents held in a fiduciary capacity

 

 

11,564

 

 

 

10,530

 

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

 

$

12,735

 

 

$

11,439

 

 

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Three Months Ended June 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 June 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

 

$

3,038

 

 

$

26

 

 

$

(24

)

 

$

3,040

 

 

$

2,778

 

 

$

(5

)

 

$

2,773

 

Guy Carpenter

 

 

576

 

 

 

5

 

 

 

(1

)

 

 

580

 

 

 

522

 

 

 

 

 

 

522

 

Subtotal

 

 

3,614

 

 

 

31

 

 

 

(25

)

 

 

3,620

 

 

 

3,300

 

 

 

(5

)

 

 

3,295

 

Fiduciary interest income

 

 

108

 

 

 

 

 

 

 

 

 

108

 

 

 

13

 

 

 

 

 

 

13

 

Total Risk and Insurance Services

 

 

3,722

 

 

 

31

 

 

 

(25

)

 

 

3,728

 

 

 

3,313

 

 

 

(5

)

 

 

3,308

 

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mercer (a)

 

 

1,374

 

 

 

11

 

 

 

(4

)

 

 

1,381

 

 

 

1,389

 

 

 

(86

)

 

 

1,303

 

Oliver Wyman Group

 

 

798

 

 

 

(2

)

 

 

(26

)

 

 

770

 

 

 

695

 

 

 

 

 

 

695

 

Total Consulting

 

 

2,172

 

 

 

9

 

 

 

(30

)

 

 

2,151

 

 

 

2,084

 

 

 

(86

)

 

 

1,998

 

Corporate Eliminations

 

 

(18

)

 

 

 

 

 

 

 

 

(18

)

 

 

(18

)

 

 

 

 

 

(18

)

Total Revenue

 

$

5,876

 

 

$

40

 

 

$

(55

)

 

$

5,861

 

 

$

5,379

 

 

$

(91

)

 

$

5,288

 

 

Revenue Details

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

 

 

2023

 

2022

Three Months Ended June 30,

 

GAAP

Revenue

 

Currency

Impact

 

Acquisitions/

Dispositions/

Other Impact

 

Non-GAAP

Revenue

 

GAAP

Revenue

 

Acquisitions/

Dispositions/

Other Impact

 

Non-GAAP

Revenue

Marsh:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA (b)

 

$

858

 

$

5

 

$

(1

)

 

$

862

 

$

780

 

$

(5

)

 

$

775

Asia Pacific (b)

 

 

357

 

 

14

 

 

(2

)

 

 

369

 

 

347

 

 

 

 

 

347

Latin America

 

 

137

 

 

1

 

 

 

 

 

138

 

 

118

 

 

 

 

 

118

Total International

 

 

1,352

 

 

20

 

 

(3

)

 

 

1,369

 

 

1,245

 

 

(5

)

 

 

1,240

U.S./Canada

 

 

1,686

 

 

6

 

 

(21

)

 

 

1,671

 

 

1,533

 

 

 

 

 

1,533

Total Marsh

 

$

3,038

 

$

26

 

$

(24

)

 

$

3,040

 

$

2,778

 

$

(5

)

 

$

2,773

Mercer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth (a)

 

$

637

 

$

7

 

$

(1

)

 

$

643

 

$

597

 

$

26

 

 

$

623

Health (a)

 

 

518

 

 

2

 

 

 

 

 

520

 

 

587

 

 

(112

)

 

 

475

Career

 

 

219

 

 

2

 

 

(3

)

 

 

218

 

 

205

 

 

 

 

 

205

Total Mercer

 

$

1,374

 

$

11

 

$

(4

)

 

$

1,381

 

$

1,389

 

$

(86

)

 

$

1,303

(a)

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.

(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

Six Months Ended June 30

(Millions) (Unaudited)

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

 

 

2023

 

2022

Six Months Ended June 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)

 

$

5,782

 

 

$

97

 

$

(48

)

 

$

5,831

 

 

$

5,324

 

 

$

17

 

 

$

5,341

 

Guy Carpenter

 

 

1,647

 

 

 

23

 

 

(15

)

 

 

1,655

 

 

 

1,521

 

 

 

(19

)

 

 

1,502

 

Subtotal

 

 

7,429

 

 

 

120

 

 

(63

)

 

 

7,486

 

 

 

6,845

 

 

 

(2

)

 

 

6,843

 

Fiduciary interest income

 

 

199

 

 

 

2

 

 

 

 

 

201

 

 

 

17

 

 

 

 

 

 

17

 

Total Risk and Insurance Services

 

 

7,628

 

 

 

122

 

 

(63

)

 

 

7,687

 

 

 

6,862

 

 

 

(2

)

 

 

6,860

 

Consulting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mercer (b)

 

 

2,718

 

 

 

61

 

 

15

 

 

 

2,794

 

 

 

2,732

 

 

 

(113

)

 

 

2,619

 

Oliver Wyman Group (a)

 

 

1,485

 

 

 

14

 

 

(50

)

 

 

1,449

 

 

 

1,362

 

 

 

11

 

 

 

1,373

 

Total Consulting

 

 

4,203

 

 

 

75

 

 

(35

)

 

 

4,243

 

 

 

4,094

 

 

 

(102

)

 

 

3,992

 

Corporate Eliminations

 

 

(31

)

 

 

 

 

 

 

 

(31

)

 

 

(28

)

 

 

 

 

 

(28

)

Total Revenue

 

$

11,800

 

 

$

197

 

$

(98

)

 

$

11,899

 

 

$

10,928

 

 

$

(104

)

 

$

10,824

 

 

Revenue Details

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

 

 

2023

 

2022

Six Months Ended June 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)

 

$

1,790

 

$

55

 

$

(4

)

 

$

1,841

 

$

1,649

 

$

17

 

 

$

1,666

Asia Pacific (c)

 

 

669

 

 

29

 

 

(3

)

 

 

695

 

 

641

 

 

 

 

 

641

Latin America

 

 

252

 

 

1

 

 

 

 

 

253

 

 

222

 

 

 

 

 

222

Total International

 

 

2,711

 

 

85

 

 

(7

)

 

 

2,789

 

 

2,512

 

 

17

 

 

 

2,529

U.S./Canada

 

 

3,071

 

 

12

 

 

(41

)

 

 

3,042

 

 

2,812

 

 

 

 

 

2,812

Total Marsh

 

$

5,782

 

$

97

 

$

(48

)

 

$

5,831

 

$

5,324

 

$

17

 

 

$

5,341

Mercer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth (b)

 

$

1,218

 

$

35

 

$

20

 

 

$

1,273

 

$

1,214

 

$

24

 

 

$

1,238

Health (b)

 

 

1,063

 

 

16

 

 

(1

)

 

 

1,078

 

 

1,111

 

 

(137

)

 

 

974

Career

 

 

437

 

 

10

 

 

(4

)

 

 

443

 

 

407

 

 

 

 

 

407

Total Mercer

 

$

2,718

 

$

61

 

$

15

 

 

$

2,794

 

$

2,732

 

$

(113

)

 

$

2,619

(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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