MARSH & MCLENNAN COMPANIES, INC.

Previous wording

References in this report are to Marsh & McLennan Companies, Inc. and its consolidated subsidiaries (the "Company" or "Marsh"), unless the context otherwise requires. Effective January 14, 2026, the Company updated its brand name from Marsh McLennan to Marsh and the brand names of Marsh and Oliver Wyman Group businesses to Marsh Risk and Marsh Management Consulting, respectively. References to the Company and its businesses in this report reflect these changes. Mercer and Guy Carpenter will continue to report under their current brands through a transition period.

Current wording

References in this report are to Marsh & McLennan Companies, Inc. and its consolidated subsidiaries (the "Company" or "Marsh"), unless the context otherwise requires. Effective January 14, 2026, the Company updated its brand name from Marsh McLennan to Marsh and the brand names of Marsh and Oliver Wyman Group businesses to Marsh Risk ("Risk") and Marsh Management Consulting ("Management Consulting"), respectively. As a result of the Company's previously announced brand change, results that were previously reported under our Guy Carpenter business will now be reported as "Reinsurance" and results that were previously reported as Mercer will now be reported as "People and Investments". Within People and Investments, results for Wealth will now be reported as "Investments and Retirement", Health will now be reported as "Health and Benefits" and Career will now be reported as "Workforce and Rewards". References to the Company and its businesses in this report reflect these changes.

Previous wording

•Risk and Insurance Services: risk management activities and insurance/reinsurance broking and services, conducted through Marsh Risk and Guy Carpenter.

Current wording

•Risk and Insurance Services: risk management activities and insurance/reinsurance broking and services, conducted through Risk and Reinsurance.

Previous wording

•Consulting: health, wealth and career advice, solutions and products, and specialized management, strategic, economic and brand consulting services conducted through Mercer and Marsh Management Consulting.

Current wording

•Consulting: investments and retirement, health and benefits, and workforce and rewards solutions and products, and specialized management, strategic, economic and brand consulting services conducted through People and Investments and Management Consulting.

Previous wording

The results of operations in the Management Discussion & Analysis ("MD&A") include an overview of the Company's consolidated results for the three and six months ended June 30, 2026, compared to the corresponding periods in 2025, and should be read in conjunction with the consolidated financial statements and notes. This section also includes a discussion of the key drivers impacting the Company's financial results of operations both on a consolidated basis and by reportable segments.

Current wording

The results of operations in the Management Discussion & Analysis ("MD&A") include an overview of the Company's consolidated results for the three and nine months ended September 30, 2026, compared to the corresponding periods in 2025, and should be read in conjunction with the consolidated financial statements and notes. This section also includes a discussion of the key drivers impacting the Company's financial results of operations both on a consolidated basis and by reportable segments.

Previous wording

For information and comparability of the Company's results of operations and liquidity and capital resources for the three and six months ended June 30, 2025, refer to "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Company's Form 10-Q for the quarter ended June 30, 2025.

Current wording

For information and comparability of the Company's results of operations and liquidity and capital resources for the three and nine months ended September 30, 2025, refer to "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Company's Form 10-Q for the quarter ended September 30, 2025.

Previous wording

•Consolidated revenue for the three months ended June 30, 2026 was $7.4 billion, an increase of 6%, or 5% on an underlying basis. For the six months ended June 30, 2026, consolidated revenue was $15.0 billion, an increase of 7%, or 4% on an underlying basis.

Current wording

•Consolidated revenue for the three months ended September 30, 2026 was $6.9 billion, an increase of 8%, or 5% on an underlying basis. For the nine months ended September 30, 2026, consolidated revenue was $21.9 billion, an increase of 7%, or 5% on an underlying basis.

Previous wording

•Consolidated operating income for the three months ended June 30, 2026 was $1.9 billion, an increase of 4%, compared to the corresponding quarter in the prior year. Net income attributable to the Company was $1.3 billion. Earnings per share on a diluted basis was $2.63, an increase of 7% compared to the corresponding quarter in the prior year. For the six months ended June 30, 2026, consolidated operating income was $3.7 billion, a decrease of 5%, compared to the corresponding period in the prior year. Net income attributable to the Company was $2.4 billion. Earnings per share on a diluted basis was $4.99, a decrease of 5% compared to the corresponding period in the prior year.

Current wording

•Consolidated operating income for the three months ended September 30, 2026 was $1.2 billion, an increase of 4%, compared to the corresponding quarter in the prior year. Net income attributable to the Company was $808 million. Earnings per share on a diluted basis was $1.69, an increase of 12% compared to the corresponding quarter in the prior year. For the nine months ended September 30, 2026, consolidated operating income was $4.9 billion, a decrease of 3%, compared to the corresponding period in the prior year. Net income attributable to the Company was $3.2 billion. Earnings per share on a diluted basis was $6.68, a decrease of 1% compared to the corresponding period in the prior year.

Previous wording

•Risk and Insurance Services revenue for the three months ended June 30, 2026 was $4.8 billion, an increase of 4%, or 3% on an underlying basis. Operating income was $1.5 billion, compared with $1.4 billion for the corresponding quarter in the prior year. For the six months ended June 30, 2026, Risk and Insurance Services revenue was $9.9 billion, an increase of 5%, or 3% on an underlying basis. Operating income was $2.8 billion, compared with $3.1 billion for the corresponding period in the prior year.

Current wording

•Risk and Insurance Services revenue for the three months ended September 30, 2026 was $4.2 billion, an increase of 7%, or 3% on an underlying basis. Operating income was $745 million, compared with $750 million for the corresponding quarter in the prior year. For the nine months ended September 30, 2026, Risk and Insurance Services revenue was $14.1 billion, an increase of 6%, or 3% on an underlying basis. Operating income was $3.5 billion, compared with $3.8 billion for the corresponding period in the prior year.

Previous wording

•Marsh Risk's revenue for the three months ended June 30, 2026 was $4.1 billion, an increase of 6%, or 4% on an underlying basis. For the six months ended June 30, 2026, Marsh Risk's revenue was $7.8 billion, an increase of 7%, or 4% on an underlying basis. Guy Carpenter's revenue for the three months ended June 30, 2026 was $664 million, a decrease of 2% on a reported and underlying basis. For the six months ended June 30, 2026, Guy Carpenter's revenue was $1.9 billion, an increase of 1%, or flat on an underlying basis.

Current wording

•Risk's revenue for the three months ended September 30, 2026 was $3.7 billion, an increase of 10%, or 5% on an underlying basis. For the nine months ended September 30, 2026, Risk's revenue was $11.5 billion, an increase of 8%, or 4% on an underlying basis. Reinsurance revenue for the three months ended September 30, 2026 was $374 million, a decrease of 6% on a reported and underlying basis. For the nine months ended September 30, 2026, Reinsurance revenue was $2.3 billion, flat compared to the corresponding period in the prior year and a decrease of 1% on an underlying basis.

Previous wording

•Consulting revenue for the three months ended June 30, 2026 was $2.6 billion, an increase of 10%, or 8% on an underlying basis. Operating income was $502 million, compared with $456 million for the corresponding quarter in the prior year. For the six months ended June 30, 2026, Consulting revenue was $5.2 billion, an increase of 10%, or 7% on an underlying basis. Operating income was $1.0 billion, compared with $912 million for the corresponding period in the prior year.

Current wording

•Consulting revenue for the three months ended September 30, 2026 was $2.7 billion, an increase of 9%, or 8% on an underlying basis. Operating income was $563 million, compared with $501 million for the corresponding quarter in the prior year. For the nine months ended September 30, 2026, Consulting revenue was $7.8 billion, an increase of 10%, or 7% on an underlying basis. Operating income was $1.6 billion, compared with $1.4 billion for the corresponding period in the prior year.

Previous wording

•In the first quarter of 2026, the Company recorded an estimated liability and legal expenses of $425 million related to the Greensill litigation. Additional information on this matter is included in Note 17, Claims, Lawsuits and Other Contingencies, in the notes to the consolidated financial statements.

Current wording

•For the three and nine months ended September 30, 2026, the Company recorded a charge of $144 million and $569 million, respectively, net of insurance proceeds, related to the Greensill settlement. Additional information on this matter is included in Note 17, Claims, Lawsuits and Other Contingencies, in the notes to the consolidated financial statements.

Previous wording

•The Company's results of operations for the three and six months ended June 30, 2026 included restructuring costs of $58 million and $103 million, respectively, related primarily to severance, lease exit charges, and consulting and outside services.

Current wording

•The Company's results of operations for the three and nine months ended September 30, 2026 included restructuring costs of $79 million and $182 million, respectively, related primarily to severance, lease exit charges, and consulting and outside services.

Previous wording

•The Company completed 5 acquisitions in 2026 for a total purchase consideration of $181 million.

Current wording

•The Company completed 8 acquisitions in 2026 for a total purchase consideration of $550 million.

Previous wording

•The Company's effective tax rate for the three and six months ended June 30, 2026 was 24.2% and 24.6%, respectively.

Current wording

•The Company's effective tax rate for the three and nine months ended September 30, 2026 was 21.3% and 23.8%, respectively.

Previous wording

•The Company repurchased approximately 4.5 million shares for $750 million in the second quarter of 2026. For the six months ended June 30, 2026, the Company repurchased 8.7 million shares for $1.5 billion.

Current wording

•The Company repurchased approximately 2.7 million shares for $500 million in the third quarter of 2026. For the nine months ended September 30, 2026, the Company repurchased 11.4 million shares for $2.0 billion.

Previous wording

The macroeconomic and geopolitical environment including from the conflict in the Middle East and other wars and global conflicts, social unrest, tariffs or changes in trade policies, slower GDP growth or recession, fluctuations in foreign exchange rates, lower interest rates, capital markets volatility, inflation and changes in insurance premium rates could impact our business, financial condition, results of operations and cash flows. For more information about these risks, please see "Part I, Item 1A. Risk Factors" in our annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

Geopolitical, macroeconomic and other external factors, including the conflict in the Middle East and other wars and global conflicts, social unrest, tariffs or changes in trade policies, slower GDP growth or recession, fluctuations in foreign exchange rates, lower interest rates, capital markets volatility, inflation, changes in insurance premium rates and extreme weather events could impact our business, financial condition, results of operations and cash flows. For more information about these risks, please see "Part I, Item 1A. Risk Factors" in our annual Report on Form 10-K for the year ended December 31, 2025.

Previous wording

Consolidated operating income increased $70 million, or 4% to $1.9 billion for the three months ended June 30, 2026, compared to $1.8 billion for the corresponding quarter in the prior year, reflecting a 6% increase in revenue and a 7% increase in expenses. Revenue growth was driven by increases in the Risk and Insurance Services and Consulting segments of 4% and 10%, respectively.

Current wording

Consolidated operating income increased $45 million, or 4% to $1.2 billion for the three months ended September 30, 2026, compared to the corresponding quarter in the prior year, reflecting an 8% increase in revenue and a 9% increase in expenses. Revenue growth was driven by increases in the Risk and Insurance Services and Consulting segments of 7% and 9%, respectively. Revenue for Risk and Insurances Services includes a remeasurement gain of $126 million as a result of the step-up to fair value of the previously held equity method investment in Deasterra Partners, S.L. (the "Remeasurement Gain"). Expenses include a charge of $144 million, net of insurance proceeds, related to the Greensill settlement.

Previous wording

Consolidated operating income decreased $181 million, or 5% to $3.7 billion for the six months ended June 30, 2026, compared to $3.8 billion for the corresponding period in the prior year, reflecting a 7% increase in revenue and an 11% increase in expenses. Revenue growth was driven by increases in the Risk and Insurance Services and Consulting segments of 5% and 10%, respectively. The increase in expenses includes the recording of an estimated liability and legal expenses of $425 million related to the Greensill litigation.

Current wording

Consolidated operating income decreased $136 million, or 3% to $4.9 billion for the nine months ended September 30, 2026, compared to $5.0 billion for the corresponding period in the prior year, reflecting a 7% increase in revenue and an 10% increase in expenses. Revenue growth was driven by increases in the Risk and Insurance Services and Consulting segments of 6% and 10%, respectively. Expenses include a charge of $569 million, net of insurance proceeds, related to the Greensill settlement.

Previous wording

For the three and six months ended June 30, 2026, foreign exchange movements associated with the weakening of the U.S. dollar, increased consolidated revenue, expenses, and operating income by approximately 1% and 2%, respectively.

Current wording

For the nine months ended September 30, 2026, foreign exchange movements associated with the weakening of the U.S. dollar increased consolidated revenue and expenses by approximately 1%, and operating income by approximately 2%.

Previous wording

Diluted earnings per share for the three months ended June 30, 2026 increased to $2.63 from $2.45, or 7% from the prior year, reflecting an increase in operating income. For the six months ended June 30, 2026, diluted earnings per share decreased to $4.99 from $5.23, or 5% from the prior year, reflecting a decrease in operating income.

Current wording

Diluted earnings per share for the three months ended September 30, 2026 increased to $1.69 from $1.51, or 12% from the prior year, reflecting an increase in operating income. For the nine months ended September 30, 2026, diluted earnings per share decreased to $6.68 from $6.75, or 1% from the prior year, reflecting a decrease in operating income.

Previous wording

The following tables present the Company's non-GAAP revenue for the three and six months ended June 30, 2026 and 2025, and the related non-GAAP underlying revenue change:

Current wording

The following tables present the Company's non-GAAP revenue for the three and nine months ended September 30, 2026 and 2025, and the related non-GAAP underlying revenue change:

Previous wording

The following tables provide the reconciliation of GAAP revenue to Non-GAAP revenue for the three and six months ended June 30, 2026 and 2025:

Current wording

The following tables provide the reconciliation of GAAP revenue to Non-GAAP revenue for the three and nine months ended September 30, 2026 and 2025:

Previous wording

Consolidated revenue increased $966 million, or 7%, to $15.0 billion for the six months ended June 30, 2026, compared to $14.0 billion for the six months ended June 30, 2025. Consolidated revenue increased 4% on an underlying basis, 2% from the impact of foreign currency translation and 1% from acquisitions. On an underlying basis, revenue increased 3% and 7% for the six months ended June 30, 2026, in the Risk and Insurance Services and Consulting segments, respectively.

Current wording

Consolidated revenue increased $512 million, or 8%, to $6.9 billion for the three months ended September 30, 2026, compared to $6.4 billion for the three months ended September 30, 2025. Consolidated revenue increased 5% on an underlying basis and 3% from acquisitions. On an underlying basis, revenue increased 3% and 8% for the three months ended September 30, 2026, in the Risk and Insurance Services and Consulting segments, respectively.

Previous wording

Consolidated revenue increased $430 million, or 6%, to $7.4 billion for the three months ended June 30, 2026, compared to $7.0 billion for the three months ended June 30, 2025. Consolidated revenue increased 5% on an underlying basis, 1% from the impact of foreign currency translation, and 1% from acquisitions. On an underlying basis, revenue increased 3% and 8% for the three months ended June 30, 2026, in the Risk and Insurance Services and Consulting segments, respectively.

Current wording

Consolidated revenue increased $1.5 billion, or 7%, to $21.9 billion for the nine months ended September 30, 2026, compared to $20.4 billion for the nine months ended September 30, 2025. Consolidated revenue increased 5% on an underlying basis, 1% from the impact of foreign currency translation and 1% from acquisitions. On an underlying basis, revenue increased 3% and 7% for the nine months ended September 30, 2026, in the Risk and Insurance Services and Consulting segments, respectively.

Previous wording

Consolidated revenue growth for the three and six months ended June 30, 2026 reflects the continued demand for our advice and solutions.

Current wording

Consolidated revenue growth for the three and nine months ended September 30, 2026 reflects the continued demand for our advice and solutions.

Previous wording

Consolidated operating expenses increased $1.1 billion, or 11%, to $11.3 billion for the six months ended June 30, 2026, compared to $10.2 billion for the six months ended June 30, 2025. Expenses also reflect a 2% increase from the impact of foreign currency translation and 1% from acquisitions.

Current wording

Consolidated operating expenses increased $467 million, or 9%, to $5.6 billion for the three months ended September 30, 2026, compared to $5.2 billion for the three months ended September 30, 2025. Expenses also reflect a 1% increase from the impact of acquisitions.

Previous wording

Consolidated operating expenses increased $360 million, or 7%, to $5.5 billion for the three months ended June 30, 2026, compared to $5.1 billion for the three months ended June 30, 2025. Expenses also reflect a 1% increase from the impact of foreign currency translation and 1% from acquisitions.

Current wording

Consolidated operating expenses increased $1.6 billion, or 10%, to $17.0 billion for the nine months ended September 30, 2026, compared to $15.4 billion for the nine months ended September 30, 2025. Expenses also reflect a 1% increase from the impact of foreign currency translation and 1% from acquisitions.

Previous wording

Consolidated operating expenses for three and six months ended June 30, 2026 reflect increased compensation and benefits, driven by higher base salaries and incentive compensation. Consolidated operating expenses for the six months ended June 30, 2026 also reflect the recording of an estimated liability and legal expenses of $425 million related to the Greensill litigation.

Current wording

Consolidated operating expenses for three and nine months ended September 30, 2026 reflect increased compensation and benefits, driven by higher base salaries and incentive compensation, and charges of $144 million and $569 million, respectively, net of insurance proceeds, related to the Greensill settlement.

Previous wording

The Company incurred a total of $58 million and $103 million for restructuring costs for the three and six months ended June 30, 2026, respectively.

Current wording

The Company incurred a total of $79 million and $182 million for restructuring costs for the three and nine months ended September 30, 2026, respectively.

Previous wording

Based on current Program estimates, the Company expects to incur approximately $500 million of cost over the three years. Costs will primarily relate to severance, technology and outside services. Total annualized savings are expected to be approximately $400 million. The Company expects savings realized and charges incurred to be evenly distributed over the Program period.

Current wording

In the third quarter of 2026, the Company increased the Program cost estimates from $500 million to approximately $750 million, to be incurred over the duration of the Program. Costs include severance, technology and outside services. Total expected annualized savings increased from $400 million to approximately $600 million. The Company expects savings realized and charges incurred to be evenly distributed over the Program period.

Previous wording

The Company incurred $239 million of restructuring costs in connection with the Program through June 30, 2026, primarily severance, of which $52 million and $89 million were incurred for the three and six months ended June 30, 2026, respectively.

Current wording

The Company incurred $310 million of restructuring costs in connection with the Program through September 30, 2026, primarily severance. For the three and nine months ended September 30, 2026, costs incurred were $71 million and $160 million, respectively.

Previous wording

The Company conducts business in its Risk and Insurance Services segment through Marsh Risk and Guy Carpenter. Marsh Risk is an insurance broker and risk advisor, offering risk management, insurance broking, insurance program management, risk consulting, analytical modeling and alternative risk financing services to a wide range of businesses, government entities, professional service organizations and individuals in over 130 countries. Guy Carpenter, the Company's reinsurance intermediary and advisor, provides specialized reinsurance broking, strategic advisory and actuarial services, and analytics solutions.

Current wording

The Company conducts business in its Risk and Insurance Services segment through Risk and Reinsurance. Risk is an insurance broker and risk advisor, offering risk management, insurance broking, insurance program management, risk consulting, analytical modeling and alternative risk financing services to a wide range of businesses, government entities, professional service organizations and individuals in over 130 countries. Reinsurance, the Company's reinsurance intermediary and advisor, provides specialized reinsurance broking, strategic advisory and actuarial services, and analytics solutions.

Previous wording

Revenue in the Risk and Insurance Services segment increased $487 million, or 5%, to $9.9 billion for the six months ended June 30, 2026, compared to $9.4 billion for the six months ended June 30, 2025. Revenue increased 3% on an underlying basis and 2% from the impact of foreign currency translation.

Current wording

Revenue in the Risk and Insurance Services segment increased $293 million, or 7%, to $4.2 billion for the three months ended September 30, 2026, compared to $3.9 billion for the three months ended September 30, 2025. Revenue increased 3% on an underlying basis and 4% from acquisitions.

Previous wording

Interest earned on fiduciary funds decreased $11 million to $88 million for the three months ended June 30, 2026, compared to $99 million for the three months ended June 30, 2025, due to lower average interest rates compared to the corresponding quarter in the prior year.

Current wording

Interest earned on fiduciary funds decreased $9 million to $100 million for the three months ended September 30, 2026, compared to $109 million for the three months ended September 30, 2025, due to lower average interest rates compared to the corresponding quarter in the prior year.

Previous wording

Revenue in the Risk and Insurance Services segment increased $198 million, or 4%, to $4.8 billion for the three months ended June 30, 2026, compared to $4.6 billion for the three months ended June 30, 2025. Revenue increased 3% on an underlying basis, 1% from the impact of foreign currency translation, and 1% from acquisitions.

Current wording

Revenue in the Risk and Insurance Services segment increased $780 million, or 6%, to $14.1 billion for the nine months ended September 30, 2026, compared to $13.3 billion for the nine months ended September 30, 2025. Revenue increased 3% on an underlying basis, 2% from acquisitions, and 1% from the impact of foreign currency translation.

Previous wording

Interest earned on fiduciary funds decreased $29 million to $173 million for the six months ended June 30, 2026, compared to $202 million for the six months ended June 30, 2025, due to lower average interest rates compared to the corresponding period in the prior year.

Current wording

Interest earned on fiduciary funds decreased $38 million to $273 million for the nine months ended September 30, 2026, compared to $311 million for the nine months ended September 30, 2025, due to lower average interest rates compared to the corresponding period in the prior year.

Previous wording

In the Risk and Insurance Services segment, underlying revenue growth for the three and six months ended June 30, 2026 was driven by growth at Marsh Risk. Guy Carpenter's underlying revenue growth declined for the three months ended June 30, 2026, and was flat for the six months.

Current wording

In the Risk and Insurance Services segment, underlying revenue growth for the three and nine months ended September 30, 2026 was driven by growth at Risk. Reinsurance's underlying revenue growth declined for the three and nine months ended September 30, 2026.

Previous wording

The underlying revenue growth at Marsh Risk for the three and six months ended June 30, 2026 was driven by higher new business and renewal revenue, partially offset by declining insurance premium rates.

Current wording

The underlying revenue growth at Risk for the three and nine months ended September 30, 2026 was driven by higher new business and renewal revenue, partially offset by declining insurance premium rates.

Previous wording

Marsh Risk's revenue increased $222 million, or 6%, to $4.1 billion for the three months ended June 30, 2026, compared to $3.8 billion for the three months ended June 30, 2025. This reflects an increase of 4% on an underlying basis, 1% from the impact of foreign currency translation, and 1% from acquisitions. U.S./Canada rose 4% on an underlying basis. Total International produced underlying revenue growth of 5%, reflecting growth of 8% in Latin America, 5% in EMEA, and 5% in Asia Pacific.

Current wording

Risk's revenue increased $326 million, or 10%, to $3.7 billion for the three months ended September 30, 2026, compared to $3.4 billion for the three months ended September 30, 2025. This reflects an increase of 5% on an underlying basis and 5% from acquisitions and the remeasurement gain. U.S./Canada rose 4% on an underlying basis. Total International produced underlying revenue growth of 6%, reflecting growth of 7% in EMEA and 4% in Asia Pacific. Latin America was flat compared to the corresponding period in the prior year.

Previous wording

Marsh Risk's revenue increased $495 million, or 7%, to $7.8 billion for the six months ended June 30, 2026, compared to $7.3 billion for the six months ended June 30, 2025. This reflects an increase of 4% on an underlying basis, 2% from the impact of foreign currency translation, and 1% from acquisitions. U.S./Canada rose 4% on an underlying basis. Total International operations produced underlying revenue growth of 5%, reflecting growth of 6% in EMEA, 5% in Latin America, and 5% in Asia Pacific.

Current wording

Risk's revenue increased $821 million, or 8%, to $11.5 billion for the nine months ended September 30, 2026, compared to $10.7 billion for the nine months ended September 30, 2025. This reflects an increase of 4% on an underlying basis, 2% from acquisitions, and 1% from the impact of foreign currency translation. U.S./Canada rose 4% on an underlying basis. Total International operations produced underlying revenue growth of 5%, reflecting growth of 6% in EMEA, 5% in Asia Pacific, and 3% in Latin America.