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MARSH & MCLENNAN COMPANIES, INC.

MRSH
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Business Summary

Marsh & McLennan Companies, Inc. is a global professional services firm operating in the areas of risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries . The Company conducts business through two segments: Risk and Insurance Services, which includes Marsh Risk and Guy Carpenter, and Consulting, which includes Mercer and Marsh Management Consulting. The Risk and Insurance Services segment accounted for approximately 64% of the Company's total revenue in 2025 , while the Consulting segment generated approximately 36% of total revenue in 2025 .

The Company faces intense competition across all its businesses, from providers of similar services to competition from third parties in identifying acquisition targets. In insurance and reinsurance, the Company encounters strong competition from other global, regional, national, and local brokerage firms, from insurance and reinsurance companies that market directly without brokers, and from commercial and investment banks, consultants, and online platforms. The consulting business faces competition from global, regional, and local firms, including independent consulting, broking, and outsourcing firms affiliated with accounting, technology, and financial services, as well as new entrants utilizing generative AI.

Marsh generates revenue through commissions and fees for brokerage and consulting services in its Risk and Insurance Services segment, and through client fees, commissions, and fees based on assets or members in its Consulting segment. Marsh Risk and Guy Carpenter are compensated for brokerage and consulting services through commissions and fees, with commission rates and fees varying based on coverage provided, the insurer or reinsurer selected, and the capacity in which the broker acts. Marsh Risk also receives other compensation from insurance companies, including payments for consulting and analytics services, compensation for administrative and other services, payments for participation in sponsorship programs, and contingent commissions based on factors such as volume or profitability of placements, primarily driven by MMA and parts of Marsh Risk's international operations. Marsh Management Consulting is primarily compensated through client fees, while Mercer receives client fees and commissions and fees based on assets or members.

Marsh Risk is the world's leading 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 130 countries . It employs approximately 52,000 colleagues and generated approximately 54% of the Company's total revenue in 2025 . Marsh Risk includes services such as risk management, specialty support, corporate middle-market clients served through Marsh McLennan Agency (MMA), which has acquired more than 135 agencies since its first acquisition in 2009 , and Commercial & Consumer services including Victor Insurance Managers and Affinity. Guy Carpenter, the Company's reinsurance intermediary and advisor, provides specialized reinsurance broking, strategic advisory and actuarial services, and analytics solutions, employing approximately 3,700 colleagues and generating approximately 10% of the Company's total revenue in 2025 .

Mercer is a leading provider of advice, solutions, and products that help organizations meet the health, wealth, and career needs of a changing workforce, employing approximately 21,900 colleagues and generating approximately 23% of the Company's total revenue in 2025 . Mercer operates in Health, Wealth, and Career areas, with its Wealth business managing approximately $692 billion in assets worldwide at December 31, 2025 . Marsh Management Consulting offers management consulting and advisory services across various industries through three operating units—Oliver Wyman, Lippincott, and NERA Economic Consulting—employing over 7,200 colleagues and generating approximately 13% of the Company's total revenue in 2025 .

In 2025, the Company launched a three-year program called Thrive, which focuses on brand strategy, delivering greater value to clients, accelerating growth, and improving efficiency. As part of the Program, the Company created a new unit, Business Client Services (BCS), to accelerate innovation and centralize investments in operational excellence, data, AI, and other analytics. The Company completed 20 acquisitions in 2025 for a total purchase consideration of $857 million . In November 2025, the Board of Directors authorized the Company to repurchase up to $6 billion in shares of the Company's common stock , superseding any prior authorizations. The Company repurchased approximately 10.1 million shares of its common stock for $2.0 billion in 2025 . In March 2025, the Company repaid $500 million of 3.500% senior notes at maturity . The Company also paid dividends on its common stock shares of $1.7 billion in 2025 .

Consolidated revenue in 2025 was $27.0 billion , an increase of 10% compared to $24.5 billion in 2024 . Consolidated operating income increased $406 million, or 7%, to $6.2 billion in 2025 , compared to $5.8 billion in 2024 . Net income attributable to the Company was $4.2 billion in 2025, compared to $4.1 billion in 2024 . Earnings per share on a diluted basis increased to $8.43 from $8.18 in 2024, or 3%. Risk and Insurance Services revenue in 2025 was $17.3 billion , an increase of 12% from $15.4 billion in 2024 , with operating income of $4.6 billion compared to $4.4 billion in the prior year . Consulting revenue in 2025 was $9.8 billion , an increase of 7% from $9.1 billion in 2024 , with operating income of $1.9 billion compared to $1.8 billion in the prior year .

Business Outlook

The Company expects to incur approximately $500 million of cost over the three years of the Thrive program , with costs primarily related to severance, technology, and outside services. Total annualized savings are expected to be approximately $400 million , with savings realized and charges incurred expected to be evenly distributed over the Program period. In 2025, costs incurred in connection with the Program were $150 million , primarily related to severance. The Company expects to recognize costs of approximately $250 million, primarily retention incentives over the next 2 years related to the McGriff acquisition .

The Company's growth strategy includes continued acquisitions, with a total of 102 acquisitions completed in the period from 2021 to 2025 , including the acquisitions of McGriff Insurance Services, LLC and Gerolamo Holding S.à.r.l. (Cardano). The Company completed 20 acquisitions in 2025 for a total purchase consideration of $857 million . The Company's underlying revenue growth in 2025 was driven by higher new business and renewal revenue at Marsh Risk and Guy Carpenter, with Marsh Risk's underlying revenue growth of 4% and Guy Carpenter's underlying revenue growth of 5% . In Consulting, underlying revenue growth was driven by growth in both Mercer and Marsh Management Consulting, with Mercer's underlying revenue growth of 4% and Marsh Management Consulting's underlying revenue growth of 6% .

The Company's results of operations in 2025 included restructuring costs of $222 million related to severance, lease exit charges, and consulting and outside services , compared to $276 million in 2024 . The Company expects savings from the Thrive program to be generated from process and automation efficiencies and optimization of its global operating model. The Company continues to refine its detailed plans for the Program, which may change the timing, expected costs, and related savings.

The Company's additions to fixed assets and capitalized software amounted to $291 million in 2025 and $316 million in 2024 , related primarily to software development costs, the refurbishing and modernizing of office facilities, and technology equipment purchases. The Company has commitments for potential future investments of approximately $101 million in private equity funds that invest primarily in financial services companies at December 31, 2025 .

In November 2025, the Board of Directors authorized the Company to repurchase up to $6 billion in shares of the Company's common stock , superseding any prior authorizations. At December 31, 2025, the Company remained authorized to repurchase up to approximately $5.7 billion in shares of its common stock . In January 2026, the Board of Directors declared a quarterly dividend of $0.900 per share on outstanding common stock , payable in February 2026. The Company paid dividends on its common stock shares of $1.7 billion ($3.43 per share) in 2025 , as compared with $1.5 billion ($3.05 per share) in 2024 .

The Company's results of operations and investments could be adversely affected by geopolitical or macroeconomic conditions, including from multiple major 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. Approximately 51% of the Company's total revenue reported in 2025 was from business outside of the U.S. , exposing the Company to exchange rate fluctuations. The Company's defined benefit pension obligations totaled approximately $11.7 billion and related plan assets of approximately $13.1 billion at December 31, 2025 , with changes in financial markets potentially causing increased pension expense or additional cash payments.

The Company faces risks related to its ability to fully realize the benefits of its Thrive program and Business Client Services, as actual total costs, savings, and timing may differ from estimates due to changes in scope or assumptions. The Company also faces risks from potential regulatory, legal, or other developments concerning how intermediaries are compensated by insurers or clients, with other compensation from insurance companies representing approximately 7% of Marsh Risk's revenue in 2025 . Additionally, the Company's Consulting segment faces risks from changes in economic conditions, the value of equity, debt, and other asset classes, and an accelerated trend away from actively managed investments to passively managed investments.

Risk Factors

The Company faces significant uninsured exposures arising from errors and omissions, breach of fiduciary duty, and other claims, which could subject the Company to significant liability for monetary damages, including punitive and treble damages. The Company's receivables for commissions and fees were approximately $7.0 billion at December 31, 2025 , or approximately one-quarter of total annual revenues, and portions of these receivables are increasingly concentrated in certain businesses and geographies, creating collection risk. The Company's defined benefit pension obligations totaled approximately $11.7 billion and related plan assets of approximately $13.1 billion at December 31, 2025 , with changes in financial markets potentially causing significant fluctuation in earnings and cash flow. The Company's other compensation from insurance companies, separate from retail fees and commissions, represented approximately 7% of Marsh Risk's revenue in 2025 , presenting potentially heightened regulatory, litigation, and reputational risks from alleged anti-competitive behavior or conflicts of interest. The Company's total consolidated debt outstanding of approximately $19.6 billion at December 31, 2025 could adversely affect financial flexibility by reducing cash flows and the ability to use cash from operations for other purposes.

Management Priorities

Management's message emphasizes the Company's position as a global leader in risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries with an annual revenue of $27.0 billion and more than 95,000 colleagues . The strategic priorities emphasized for the period ahead include the Thrive program, which focuses on brand strategy, delivering greater value to clients, accelerating growth, and improving efficiency, as well as the formation of Business Client Services to accelerate innovation and centralize investments in operational excellence, data, AI, and other analytics. Management highlights that the Company's results of operations in 2025 included restructuring costs of $222 million related to the Thrive program and that the Company expects to incur approximately $500 million of cost over the three years with total annualized savings expected to be approximately $400 million .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — General
  2. [2] Item 1, Business — Risk and Insurance Services
  3. [3] Item 1, Business — Consulting
  4. [4] Item 1, Business — Marsh Risk
  5. [5] Item 1, Business — Marsh Risk
  6. [6] Item 1, Business — Marsh Risk
  7. [7] Item 1, Business — Marsh Risk
  8. [8] Item 1, Business — Guy Carpenter
  9. [9] Item 1, Business — Guy Carpenter
  10. [10] Item 1, Business — Mercer
  11. [11] Item 1, Business — Mercer
  12. [12] Item 1, Business — Mercer
  13. [13] Item 1, Business — Marsh Management Consulting
  14. [14] Item 1, Business — Marsh Management Consulting
  15. [15] Item 7, MD&A — Financial Highlights
  16. [16] Item 5, Market for Common Equity — Share Repurchases
  17. [17] Item 7, MD&A — Financial Highlights
  18. [18] Item 7, MD&A — Financial Highlights
  19. [19] Item 7, MD&A — Financial Highlights
  20. [20] Item 7, MD&A — Financial Highlights
  21. [21] Item 7, MD&A — Consolidated Results of Operations
  22. [22] Item 7, MD&A — Financial Highlights
  23. [23] Item 7, MD&A — Consolidated Results of Operations
  24. [24] Item 7, MD&A — Financial Highlights
  25. [25] Item 7, MD&A — Consolidated Results of Operations
  26. [26] Item 7, MD&A — Financial Highlights
  27. [27] Item 7, MD&A — Financial Highlights
  28. [28] Item 7, MD&A — Risk and Insurance Services
  29. [29] Item 7, MD&A — Risk and Insurance Services
  30. [30] Item 7, MD&A — Risk and Insurance Services
  31. [31] Item 7, MD&A — Risk and Insurance Services
  32. [32] Item 7, MD&A — Consulting
  33. [33] Item 7, MD&A — Consulting
  34. [34] Item 7, MD&A — Consulting
  35. [35] Item 7, MD&A — Consulting
  36. [36] Item 7, MD&A — Restructuring Activities
  37. [37] Item 7, MD&A — Restructuring Activities
  38. [38] Item 7, MD&A — Restructuring Activities
  39. [39] Item 7, MD&A — Risk and Insurance Services
  40. [40] Item 1A, Risk Factors — Acquisitions and Dispositions Risks
  41. [41] Item 7, MD&A — Financial Highlights
  42. [42] Item 7, MD&A — Consolidated Revenue and Expense
  43. [43] Item 7, MD&A — Consolidated Revenue and Expense
  44. [44] Item 7, MD&A — Consulting
  45. [45] Item 7, MD&A — Consulting
  46. [46] Item 7, MD&A — Financial Highlights
  47. [47] Item 7, MD&A — Restructuring Activities
  48. [48] Item 7, MD&A — Investing Cash Flows
  49. [49] Item 7, MD&A — Investing Cash Flows
  50. [50] Item 7, MD&A — Investing Cash Flows
  51. [51] Item 5, Market for Common Equity — Share Repurchases
  52. [52] Item 5, Market for Common Equity — Share Repurchases
  53. [53] Item 7, MD&A — Dividends
  54. [54] Item 7, MD&A — Dividends
  55. [55] Item 7, MD&A — Dividends
  56. [56] Item 1A, Risk Factors — Global Operations
  57. [57] Item 1A, Risk Factors — Financial Risks
  58. [58] Item 1A, Risk Factors — Financial Risks
  59. [59] Item 1A, Risk Factors — Risk and Insurance Services Segment
  60. [60] Item 1A, Risk Factors — Financial Risks
  61. [61] Item 1A, Risk Factors — Financial Risks
  62. [62] Item 1A, Risk Factors — Financial Risks
  63. [63] Item 1A, Risk Factors — Risk and Insurance Services Segment
  64. [64] Item 1A, Risk Factors — Financial Risks
  65. [65] Item 1, Business — General
  66. [66] Item 7, MD&A — General
  67. [67] Item 1, Business — Human Capital
  68. [68] Item 7, MD&A — Financial Highlights
  69. [69] Item 7, MD&A — Restructuring Activities
  70. [70] Item 7, MD&A — Restructuring Activities
  71. [71] Item 8, Consolidated Statements of Income
  72. [72] Item 8, Consolidated Statements of Income
  73. [73] Item 8, Consolidated Statements of Income
  74. [74] Item 8, Consolidated Statements of Income
  75. [75] Item 8, Consolidated Statements of Income
  76. [76] Item 8, Consolidated Statements of Income
  77. [77] Item 8, Consolidated Statements of Income
  78. [78] Item 8, Consolidated Statements of Income
  79. [79] Item 7, MD&A — Income and Other Taxes
  80. [80] Item 7, MD&A — Income and Other Taxes
  81. [81] Item 7, MD&A — Operating Cash Flows
  82. [82] Item 7, MD&A — Operating Cash Flows
  83. [83] Item 1A, Risk Factors — Financial Risks
  84. [84] Item 7, MD&A — Financial Highlights
  85. [85] Item 7, MD&A — Risk and Insurance Services
  86. [86] Item 7, MD&A — Risk and Insurance Services
  87. [87] Item 7, MD&A — Risk and Insurance Services
  88. [88] Item 7, MD&A — Risk and Insurance Services
  89. [89] Item 7, MD&A — Risk and Insurance Services
  90. [90] Item 7, MD&A — Consulting
  91. [91] Item 7, MD&A — Consulting
  92. [92] Item 7, MD&A — Consulting

Analysis on 6/10/2026