filings.toolsItem 1. Financial Statements.
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Item 1. Financial Statements.
MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (In millions, except per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Revenue | $ | 7,404 | $ | 6,974 | $ | 15,001 | $ | 14,035 | |||||||||||||||
| Expense: | |||||||||||||||||||||||
| Compensation and benefits | 4,141 | 3,895 | 8,271 | 7,745 | |||||||||||||||||||
| Other operating expenses | 1,364 | 1,250 | 3,077 | 2,456 | |||||||||||||||||||
| Operating expenses | 5,505 | 5,145 | 11,348 | 10,201 | |||||||||||||||||||
| Operating income | 1,899 | 1,829 | 3,653 | 3,834 | |||||||||||||||||||
| Other net benefit credits | 50 | 48 | 100 | 91 | |||||||||||||||||||
| Interest income | 8 | 5 | 19 | 24 | |||||||||||||||||||
| Interest expense | (250) | (243) | (490) | (488) | |||||||||||||||||||
| Investment (loss) income | (5) | 7 | 1 | 12 | |||||||||||||||||||
| Income before income taxes | 1,702 | 1,646 | 3,283 | 3,473 | |||||||||||||||||||
| Income tax expense | 411 | 415 | 806 | 830 | |||||||||||||||||||
| Net income before non-controlling interests | 1,291 | 1,231 | 2,477 | 2,643 | |||||||||||||||||||
| Less: Net income attributable to non-controlling interests | 25 | 20 | 65 | 51 | |||||||||||||||||||
| Net income attributable to the Company | $ | 1,266 | $ | 1,211 | $ | 2,412 | $ | 2,592 | |||||||||||||||
| Net income per share attributable to the Company: | |||||||||||||||||||||||
| – Basic | $ | 2.64 | $ | 2.46 | $ | 5.00 | $ | 5.27 | |||||||||||||||
| – Diluted | $ | 2.63 | $ | 2.45 | $ | 4.99 | $ | 5.23 | |||||||||||||||
| Average number of shares outstanding: | |||||||||||||||||||||||
| – Basic | 480 | 492 | 482 | 492 | |||||||||||||||||||
| – Diluted | 482 | 495 | 484 | 495 | |||||||||||||||||||
| Shares outstanding at June 30, | 478 | 492 | 478 | 492 |
The accompanying notes are an integral part of these unaudited consolidated statements.
MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (In millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net income before non-controlling interests | $ | 1,291 | $ | 1,231 | $ | 2,477 | $ | 2,643 | |||||||||||||||
| Other comprehensive income (loss), before tax: | |||||||||||||||||||||||
| Foreign currency translation adjustments | (46) | 787 | (244) | 1,189 | |||||||||||||||||||
| Gain (loss) related to pension/post-retirement plans | 45 | (208) | 143 | (296) | |||||||||||||||||||
| Other comprehensive (loss) income, before tax | (1) | 579 | (101) | 893 | |||||||||||||||||||
| Income tax expense (benefit) on other comprehensive loss | 14 | (73) | 45 | (103) | |||||||||||||||||||
| Other comprehensive (loss) income, net of tax | (15) | 652 | (146) | 996 | |||||||||||||||||||
| Comprehensive income | 1,276 | 1,883 | 2,331 | 3,639 | |||||||||||||||||||
| Less: comprehensive income attributable to non-controlling interest | 25 | 20 | 65 | 51 | |||||||||||||||||||
| Comprehensive income attributable to the Company | $ | 1,251 | $ | 1,863 | $ | 2,266 | $ | 3,588 |
The accompanying notes are an integral part of these unaudited consolidated statements.
MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| (In millions, except share data) | (Unaudited) June 30, 2026 | December 31, 2025 | |||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,700 | $ | 2,687 | |||||||
| Cash and cash equivalents held in a fiduciary capacity | 12,203 | 11,473 | |||||||||
| Receivables | |||||||||||
| Commissions and fees | 8,289 | 7,015 | |||||||||
| Advanced premiums and claims | 86 | 67 | |||||||||
| Other | 727 | 750 | |||||||||
| 9,102 | 7,832 | ||||||||||
| Less-allowance for credit losses | (159) | (162) | |||||||||
| Net receivables | 8,943 | 7,670 | |||||||||
| Other current assets | 1,487 | 1,370 | |||||||||
| Total current assets | 24,333 | 23,200 | |||||||||
| Goodwill | 24,352 | 24,337 | |||||||||
| Other intangible assets | 4,505 | 4,746 | |||||||||
| Fixed assets (net of accumulated depreciation and amortization of $1,732 at June 30, 2026 and $1,669 at December 31, 2025) | 806 | 829 | |||||||||
| Pension related assets | 2,225 | 2,140 | |||||||||
| Right of use assets | 1,428 | 1,460 | |||||||||
| Deferred tax assets | 199 | 212 | |||||||||
| Other assets | 1,834 | 1,786 | |||||||||
| $ | 59,682 | $ | 58,710 |
The accompanying notes are an integral part of these unaudited consolidated statements.
MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Continued)
| (In millions, except share data) | (Unaudited) June 30, 2026 | December 31, 2025 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Short-term debt | $ | 1,670 | $ | 1,267 | |||||||
| Accounts payable and accrued liabilities | 4,051 | 3,652 | |||||||||
| Accrued compensation and employee benefits | 2,629 | 3,962 | |||||||||
| Current lease liabilities | 327 | 333 | |||||||||
| Accrued income taxes | 479 | 373 | |||||||||
| Fiduciary liabilities | 12,203 | 11,473 | |||||||||
| Total current liabilities | 21,359 | 21,060 | |||||||||
| Long-term debt | 18,891 | 18,320 | |||||||||
| Pension, post-retirement and post-employment benefits | 739 | 786 | |||||||||
| Long-term lease liabilities | 1,494 | 1,529 | |||||||||
| Liabilities for errors and omissions | 280 | 288 | |||||||||
| Other liabilities | 1,486 | 1,412 | |||||||||
| Commitments and contingencies | — | — | |||||||||
| Equity: | |||||||||||
| Preferred stock, $1 par value, authorized 6,000,000 shares, none issued | — | — | |||||||||
| Common stock, $1 par value, authorized 1,600,000,000 shares, issued 560,641,640 shares at June 30, 2026 and December 31, 2025 | 561 | 561 | |||||||||
| Additional paid-in capital | 1,566 | 1,547 | |||||||||
| Retained earnings | 29,301 | 27,767 | |||||||||
| Accumulated other comprehensive loss | (5,575) | (5,429) | |||||||||
| Non-controlling interests | 250 | 215 | |||||||||
| 26,103 | 24,661 | ||||||||||
| Less – treasury shares, at cost, 82,719,184 shares at June 30, 2026 and 75,783,063 shares at December 31, 2025 | (10,670) | (9,346) | |||||||||
| Total equity | 15,433 | 15,315 | |||||||||
| $ | 59,682 | $ | 58,710 |
The accompanying notes are an integral part of these unaudited consolidated statements.
MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the Six Months Ended June 30, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Operating cash flows: | |||||||||||
| Net income before non-controlling interests | $ | 2,477 | $ | 2,643 | |||||||
| Adjustments to reconcile net income provided by operations: | |||||||||||
| Depreciation and amortization of fixed assets and capitalized software | 179 | 179 | |||||||||
| Amortization of intangible assets | 275 | 279 | |||||||||
| Non-cash lease expense | 151 | 145 | |||||||||
| Adjustments and payments related to contingent consideration assets and liabilities | (33) | 11 | |||||||||
| Gain on consolidation of entity | — | (13) | |||||||||
| Net (gain) on investments | (1) | (12) | |||||||||
| Net (gain) on disposition of assets | (7) | (15) | |||||||||
| Share-based compensation expense | 235 | 210 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Net receivables | (1,365) | (921) | |||||||||
| Other assets | (154) | (69) | |||||||||
| Accrued compensation and employee benefits | (1,319) | (1,334) | |||||||||
| Provision for taxes, net of payments and refunds | 169 | 190 | |||||||||
| Contributions to pension and other benefit plans in excess of current year credit | (123) | (117) | |||||||||
| Other liabilities | 521 | 38 | |||||||||
| Operating lease liabilities | (170) | (165) | |||||||||
| Net cash provided by (used for) operations | 835 | 1,049 | |||||||||
| Financing cash flows: | |||||||||||
| Purchase of treasury shares | (1,512) | (600) | |||||||||
| Net proceeds from issuance of commercial paper | 1,024 | 150 | |||||||||
| Proceeds from issuance of debt | 595 | — | |||||||||
| Repayments of debt | (610) | (510) | |||||||||
| Payment to acquire non-controlling interest | (54) | — | |||||||||
| Shares withheld for taxes on vested units – treasury shares | (123) | (142) | |||||||||
| Issuance of common stock from treasury shares | 91 | 175 | |||||||||
| Payments of deferred and contingent consideration for acquisitions | (61) | (43) | |||||||||
| Receipts of deferred and contingent consideration for dispositions | 12 | — | |||||||||
| Distributions of non-controlling interests | (30) | (34) | |||||||||
| Dividends paid | (878) | (810) | |||||||||
| Change in fiduciary liabilities | 860 | (19) | |||||||||
| Net cash provided by (used for) financing activities | (686) | (1,833) | |||||||||
| Investing cash flows: | |||||||||||
| Capital expenditures | (134) | (114) | |||||||||
| Purchases of long-term investments | (9) | (15) | |||||||||
| Sales of long-term investments | 1 | 84 | |||||||||
| Dispositions | 12 | 15 | |||||||||
| Acquisitions, net of cash and cash held in a fiduciary capacity acquired | (129) | (62) | |||||||||
| Other, net | (6) | (3) | |||||||||
| Net cash provided by (used for) investing activities | (265) | (95) | |||||||||
| Effect of exchange rate changes on cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity | (141) | 753 | |||||||||
| Increase (Decrease) in cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity | (257) | (126) | |||||||||
| Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at beginning of period | 14,160 | 13,674 | |||||||||
| Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at end of period | $ | 13,903 | $ | 13,548 |
| Reconciliation of cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity to the Consolidated Balance Sheets | |||||||||||
| Balance at June 30, | 2026 | 2025 | |||||||||
| (In millions) | |||||||||||
| Cash and cash equivalents | $ | 1,700 | $ | 1,677 | |||||||
| Cash and cash equivalents held in a fiduciary capacity | 12,203 | 11,871 | |||||||||
| Total cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity | $ | 13,903 | $ | 13,548 |
The accompanying notes are an integral part of these unaudited consolidated statements.
MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (In millions, except per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| COMMON STOCK | |||||||||||||||||||||||
| Balance, beginning and end of period | $ | 561 | $ | 561 | $ | 561 | $ | 561 | |||||||||||||||
| ADDITIONAL PAID-IN CAPITAL | |||||||||||||||||||||||
| Balance, beginning of period | $ | 1,474 | $ | 1,253 | $ | 1,547 | $ | 1,370 | |||||||||||||||
| Change in accrued stock compensation costs | 75 | 95 | (119) | (131) | |||||||||||||||||||
| Issuance of shares under stock compensation and employee stock purchase plans | 17 | 14 | 138 | 123 | |||||||||||||||||||
| Balance, end of period | $ | 1,566 | $ | 1,362 | $ | 1,566 | $ | 1,362 | |||||||||||||||
| RETAINED EARNINGS | |||||||||||||||||||||||
| Balance, beginning of period | $ | 28,037 | $ | 25,881 | $ | 27,767 | $ | 25,306 | |||||||||||||||
| Net income attributable to the Company | 1,266 | 1,211 | 2,412 | 2,592 | |||||||||||||||||||
| Dividends declared | — | (1) | (872) | (802) | |||||||||||||||||||
| Dividend equivalents declared | (2) | (3) | (6) | (8) | |||||||||||||||||||
| Balance, end of period | $ | 29,301 | $ | 27,088 | $ | 29,301 | $ | 27,088 | |||||||||||||||
| ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||||||||||||
| Balance, beginning of period | $ | (5,560) | $ | (5,896) | $ | (5,429) | $ | (6,240) | |||||||||||||||
| Other comprehensive (loss) income, net of tax | (15) | 652 | (146) | 996 | |||||||||||||||||||
| Balance, end of period | $ | (5,575) | $ | (5,244) | $ | (5,575) | $ | (5,244) | |||||||||||||||
| TREASURY SHARES | |||||||||||||||||||||||
| Balance, beginning of period | $ | (9,943) | $ | (7,734) | $ | (9,346) | $ | (7,655) | |||||||||||||||
| Issuance of shares under stock compensation and employee stock purchase plans | 30 | 34 | 188 | 255 | |||||||||||||||||||
| Purchase of treasury shares | (757) | (300) | (1,512) | (600) | |||||||||||||||||||
| Balance, end of period | $ | (10,670) | $ | (8,000) | $ | (10,670) | $ | (8,000) | |||||||||||||||
| NON-CONTROLLING INTERESTS | |||||||||||||||||||||||
| Balance, beginning of period | $ | 237 | $ | 203 | $ | 215 | $ | 193 | |||||||||||||||
| Net income attributable to non-controlling interests | 25 | 20 | 65 | 51 | |||||||||||||||||||
| Distributions and other changes | (12) | (14) | (30) | (35) | |||||||||||||||||||
| Balance, end of period | $ | 250 | $ | 209 | $ | 250 | $ | 209 | |||||||||||||||
| TOTAL EQUITY | $ | 15,433 | $ | 15,976 | $ | 15,433 | $ | 15,976 | |||||||||||||||
| Dividends declared per share | $ | — | $ | — | $ | 1.80 | $ | 1.63 | |||||||||||||||
The accompanying notes are an integral part of these unaudited consolidated statements.
MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Nature of Operations
Marsh & McLennan Companies, Inc., and its consolidated subsidiaries (the "Company" or "Marsh") is a global professional services firm in the areas of risk, reinsurance and capital, people and investments, and management consulting.
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 the consolidated financial statements reflect these changes. Mercer and Guy Carpenter will continue to report under their current brands through a transition period.
The changes to the brand names had no impact on the Company's operating and reporting segments.
The Company is organized based on the different services that it offers. Under this structure, the Company’s two business segments are Risk and Insurance Services and Consulting.
The Risk and Insurance Services segment ("RIS") includes risk management activities and insurance/reinsurance broking and services conducted 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. Guy Carpenter, the Company's reinsurance intermediary and advisor, provides specialized reinsurance broking, strategic advisory and actuarial services, and analytics solutions.
The Consulting segment includes health, wealth and career advice, solutions and products, and specialized management, strategic, economic and brand consulting services conducted through Mercer and Marsh Management Consulting. Mercer delivers advice, solutions and products that help organizations meet the health, wealth and career needs of a changing workforce. Marsh Management Consulting offers management consulting and advisory services across various industries.
2. Principles of Consolidation and Other Matters
The Company prepared the consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission. For interim filings, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S.) have been omitted pursuant to such rules and regulations. The Company believes that the information and disclosures presented are adequate to make such information and disclosures not misleading. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Form 10-K").
The accompanied consolidated financial statements include all wholly-owned and majority-owned subsidiaries. All significant inter-company transactions and balances have been eliminated. The financial information contained herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the Company’s consolidated financial statements as of and for the six months ended June 30, 2026 and 2025.
The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. On an ongoing basis, the Company evaluates its estimates, judgments and methodologies. The estimates are based on historical experience and on various other assumptions that the Company believes are reasonable.
Such matters include:
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estimates of revenue;
-
impairment assessments and charges;
-
recoverability of long-lived assets;
-
liabilities for errors and omissions;
-
deferred tax assets, uncertain tax positions and income tax expense;
-
share-based and incentive compensation expense;
-
the allowance for current expected credit losses on receivables;
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useful lives assigned to long-lived assets, and depreciation and amortization; and
-
fair value estimates of contingent consideration receivable or payable, related to acquisitions or dispositions.
The Company believes these estimates are reasonable based on information currently available at the time they are made. The Company also considered the potential impact of macroeconomic factors 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 to its customer base in various industries and geographies. Insurance exposures subject to variable factors are subject to mid-term and end of term adjustments, as well as policy audits, which may reduce premiums and corresponding commissions. Estimates were updated based on internal and industry specific economic data. Actual results may differ from these estimates.
Cash and Cash Equivalents
Cash and cash equivalents primarily consist of certificates of deposit and time deposits, with original maturities of three months or less, and money market funds. The estimated fair value of the Company's cash and cash equivalents approximates their carrying value.
The Company is required to maintain operating funds primarily related to regulatory requirements outside of the U.S., or as collateral under captive insurance arrangements. At June 30, 2026, the Company maintained $588 million, compared to $553 million at December 31, 2025 related to these regulatory requirements.
Allowance for Credit Losses on Accounts Receivable
The Company’s policy for providing an allowance for credit losses on its accounts receivable is based on a combination of factors, including historical write-offs, aging of balances, and other qualitative and quantitative analyses. The charge related to expected credit losses was not material to the consolidated statements of income for the three and six months ended June 30, 2026 and 2025, respectively.
Investments
The caption "Investment income" in the consolidated statements of income comprises of realized and unrealized gains and losses from investments recognized in earnings. It includes, when applicable, other than temporary declines in the value of securities, mark-to-market increases or decreases in equity investments with readily determinable fair values and equity method gains or losses on the Company's investments in private equity funds.
The Company holds investments in certain private equity funds. Investments in private equity funds are accounted for in accordance with the equity method of accounting using a consistently applied three-month lag period adjusted for any known significant changes from the lag period to the reporting date of the Company. The underlying private equity funds follow investment company accounting, where investments within the fund are carried at fair value. Investment gains or losses for its proportionate share of the change in fair value of the funds are recorded in earnings. Investments accounted for in accordance with the equity method of accounting are included in other assets in the consolidated balance sheets.
The Company recorded net investment losses of $5 million and net investment income of $1 million for the three and six months ended June 30, 2026, respectively, compared to net investment income of $7 million and $12 million, respectively, for the corresponding periods in the prior year.
Income Taxes
The Company's effective tax rate for the three months ended June 30, 2026 was 24.2%, compared with 25.2% for the corresponding quarter of 2025. The effective tax rates for the six months ended June 30, 2026 and 2025 were 24.6% and 23.9%, respectively.
The tax rate in each period reflects the impact of discrete tax items such as excess tax benefits related to share-based compensation, enacted tax legislation, changes in uncertain tax positions, deferred tax adjustments, non-taxable adjustments related to contingent consideration for acquisitions, and valuation allowances for certain tax credits and attributes.
For the three and six months ended June 30, 2026, changes to country implementation of Pillar Two gave rise to the most significant discrete item, increasing the effective tax rate by 0.7% and 0.3%, respectively. For the three and six months ended June 30, 2025, the most significant discrete item was the excess tax benefit related to share-based payments, which reduced the effective tax rate by 0.2% and 1.2%, respectively.
The Company's tax rate reflects its income, statutory tax rates, and tax planning in the various jurisdictions in which it operates. Significant judgment is required in determining the annual effective tax rate and in evaluating uncertain tax positions. Losses in one jurisdiction generally cannot offset earnings in another, and within certain jurisdictions profits and losses may not offset between entities. Consequently, losses in certain jurisdictions may require valuation allowances affecting the effective tax rate, depending on estimates of the realizability of associated deferred tax assets. The tax rate is also sensitive to changes in unrecognized tax benefits, including the impact of settled tax audits and expired statutes of limitations.
The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in tax returns. The Company's gross unrecognized tax benefits were $112 million at June 30, 2026, and $109 million at December 31, 2025.
In 2024, the Company received closure notices and assessments from the United Kingdom (U.K.) tax authority in relation to its 2016-2020 examinations which disallowed certain interest expense deductions. The Company has appealed the assessments and resolving this matter through litigation or alternative dispute resolution may take several years.
The Company has established liabilities for uncertain tax positions in relation to potential assessments in the jurisdictions in which it operates. The Company believes the resolution of tax matters will not have a material effect on the consolidated financial position of the Company. However, an adverse resolution of tax matters could have a material impact on the Company's net income or cash flows and on its effective tax rate in a particular future period.
Changes in tax laws, rulings, policies, or related legal and regulatory interpretations occur frequently and may have significant favorable or adverse impacts on our effective tax rate.
On July 4, 2025, U.S tax legislation was signed into law (known as the "One Big Beautiful Bill Act" or "OBBBA") which made permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act. In addition, the OBBBA made changes to certain U.S. corporate tax provisions, which are effective beginning in 2026. The enactment of the OBBBA does not have a material impact on the results from operations for the current year or future years.
The Organization for Economic Cooperation and Development ("OECD") provided model rules for a 15% global minimum tax, known as Pillar Two. Pillar Two has now been enacted by most key non-U.S. jurisdictions where the Company operates, including the U.K. and Ireland. Parts of the minimum tax rules were applicable for 2024, with the remaining provisions becoming fully effective for 2025. This minimum tax is treated as a period cost and does not have a material impact on the Company's financial results of operations for the current period.
While the U.S. has negotiated a "side-by-side" arrangement for the existing U.S. minimum taxes with the intent to exempt U.S. multinational companies from certain of the Pillar Two provisions, uncertainty remains related to the implementation of this arrangement.
The Company continues to monitor legislative developments, as well as additional guidance from countries that have enacted Pillar Two legislation, and will ensure it complies with any changes.
Restructuring Costs
Charges associated with restructuring activities are recognized in accordance with applicable accounting guidance, which includes accounting for disposal or exit activities, guidance related to impairment of right-of-use ("ROU") assets related to real estate leases, as well as other costs resulting from accelerated depreciation or amortization of leasehold improvements and other property and equipment.
Severance and related costs are recognized based on amounts due under established severance plans or estimates of one-time benefits that will be provided. Typically, severance benefits are recognized when the impacted colleagues are notified of their expected termination and such termination is expected to occur within the legally required notification period. These costs are included in compensation and benefits in the consolidated statements of income.
Costs for real estate consolidation are recognized based on the type of cost, and the expected future use of the facility. For locations where the Company does not expect to sub-lease the property, the amortization of any ROU asset is accelerated from the decision date to the cease use date. For locations where the Company expects to sub-lease the properties subsequent to vacating the property, the ROU asset is reviewed for potential impairment at the earlier of the cease use date or the date a sub-lease is signed. To determine the amount of impairment, the fair value of the ROU asset is determined based on the present value of the estimated net cash flows related to the property. Contractual costs outside of the ROU asset are recognized based on the net present value of expected future cash outflows for which the Company will not receive any benefit. Such amounts are reliant on estimates of future sub-lease income to be received and future contractual costs to be incurred. These costs are included in other operating expenses in the consolidated statements of income.
Other costs related to restructuring such as moving, legal or consulting costs are recognized as incurred. These costs are included in other operating expenses in the consolidated statements of income.
Foreign Currency
The financial statements of international subsidiaries are translated from functional currency to U.S. dollars using month-end exchange rates for assets and liabilities, and average monthly exchange rates during the period for revenues and expenses. Translation adjustments are recorded in accumulated other comprehensive income (loss) ("AOCI") within the consolidated statements of equity. Foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency are included in operating income in the consolidated statements of income.
3. Revenue
The core principle of the revenue recognition guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
To achieve this principle, the entity applies the following steps: identify the contract(s) with the customer, identify the performance obligations in the contract(s), determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the entity satisfies a performance obligation. In accordance with the accounting guidance, a performance obligation is satisfied either at a "point in time" or "over time", depending on the nature of the product or service provided, and the specific terms of the contract with customers.
Other revenue included in the consolidated statements of income that is not from contracts with customers is less than 1% of total revenue and is not presented as a separate line item.
The Company's revenue policies are provided in more detail in Note 2, Revenue, in the 2025 Form 10-K.
The following table disaggregates various components of the Company's revenue:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (In millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Marsh Risk: | |||||||||||||||||||||||
| EMEA | $ | 1,063 | $ | 1,006 | $ | 2,271 | $ | 2,065 | |||||||||||||||
| Asia Pacific | 439 | 409 | 808 | 744 | |||||||||||||||||||
| Latin America | 153 | 132 | 289 | 256 | |||||||||||||||||||
| Total International | 1,655 | 1,547 | 3,368 | 3,065 | |||||||||||||||||||
| U.S./Canada | 2,416 | 2,302 | 4,429 | 4,237 | |||||||||||||||||||
| Total Marsh Risk | 4,071 | 3,849 | 7,797 | 7,302 | |||||||||||||||||||
| Guy Carpenter | 664 | 677 | 1,904 | 1,883 | |||||||||||||||||||
| Subtotal | 4,735 | 4,526 | 9,701 | 9,185 | |||||||||||||||||||
| Fiduciary interest income | 88 | 99 | 173 | 202 | |||||||||||||||||||
| Total Risk and Insurance Services | $ | 4,823 | $ | 4,625 | $ | 9,874 | $ | 9,387 | |||||||||||||||
| Mercer: | |||||||||||||||||||||||
| Wealth | $ | 740 | $ | 685 | $ | 1,492 | $ | 1,355 | |||||||||||||||
| Health | 611 | 594 | 1,272 | 1,202 | |||||||||||||||||||
| Career | 247 | 219 | 495 | 437 | |||||||||||||||||||
| Total Mercer | 1,598 | 1,498 | 3,259 | 2,994 | |||||||||||||||||||
| Marsh Management Consulting | 1,004 | 873 | 1,901 | 1,691 | |||||||||||||||||||
| Total Consulting | $ | 2,602 | $ | 2,371 | $ | 5,160 | $ | 4,685 | |||||||||||||||
| Total Segments | $ | 7,425 | $ | 6,996 | $ | 15,034 | $ | 14,072 | |||||||||||||||
| Corporate/Eliminations | (21) | (22) | (33) | (37) | |||||||||||||||||||
| Total | $ | 7,404 | $ | 6,974 | $ | 15,001 | $ | 14,035 |
The following table provides contract assets and contract liabilities information from contracts with customers:
| (In millions) | June 30, 2026 | December 31, 2025 | |||||||||
| Contract assets | $ | 644 | $ | 540 | |||||||
| Contract liabilities | $ | 1,081 | $ | 927 |
The Company records accounts receivable when the right to consideration is unconditional, subject only to the passage of time. Contract assets primarily relate to quota share reinsurance brokerage and contingent insurer revenue. The Company does not have the right to bill and collect revenue for quota share brokerage until the underlying policies written by the ceding insurer attach to the treaty. Estimated revenue related to the achievement of volume or loss ratio metrics cannot be billed or collected until all related policy placements are completed and the contingency is resolved. Contract assets are included in other current assets in the Company's consolidated balance sheets.
Contract liabilities primarily relate to the advance consideration received from customers. Contract liabilities are included in current liabilities in the Company's consolidated balance sheets.
Revenue recognized for the three and six months ended June 30, 2026 that was included in the contract liability balance at the beginning of each of those periods was $233 million and $613 million, respectively, compared to revenue recognized of $246 million and $586 million, respectively, for the corresponding periods in the prior year.
The amount of revenue recognized for the three and six months ended June 30, 2026 from performance obligations satisfied in previous periods, mainly due to variable consideration from contracts with insurers, quota share business and consulting contracts previously considered constrained was $35 million and $60 million, respectively, and $30 million and $57 million, respectively, for the corresponding periods in the prior year.
The Company applies the practical expedient and does not disclose the value of unsatisfied performance obligations for (1) contracts with original contract terms of one year or less and (2) contracts where the Company has the right to invoice for services performed.
4. Fiduciary Assets and Liabilities
The Company, in its capacity as an insurance broker or agent, generally collects premiums from insureds and after deducting its commissions, remits the premiums to the respective insurance underwriters. The Company also collects claims or refunds from underwriters on behalf of insureds. Unremitted insurance premiums and claims proceeds are held by the Company in a fiduciary capacity. The Company's fiduciary assets primarily include bank or short-term time deposits and liquid money market funds, classified as cash and cash equivalents. Since cash and cash equivalents held in a fiduciary capacity are not available for corporate use, they are shown separately in the consolidated balance sheets as cash and cash equivalents held in a fiduciary capacity, with a corresponding amount in current liabilities.
Risk and Insurance Services revenue includes interest on fiduciary funds of $88 million and $173 million for the three and six months ended June 30, 2026, respectively, and $99 million and $202 million for the three and six months ended June 30, 2025, respectively.
Net uncollected premiums and claims and the related payables were $18.0 billion at June 30, 2026 and $14.6 billion at December 31, 2025. The Company is not a principal to the contracts under which the right to receive premiums or the right to receive reimbursement of insured losses arises. Accordingly, net uncollected premiums and claims and the related payables are not assets and liabilities of the Company and are not included in the accompanying consolidated balance sheets.
In certain instances, the Company advances premiums, refunds or claims to insurance underwriters or insureds prior to collection. These advances are made from corporate funds and are reflected in the accompanying consolidated balance sheets as receivables.
5. Per Share Data
Basic net income per share attributable to the Company is calculated by dividing the after-tax income attributable to the Company by the weighted average number of outstanding shares of the Company’s common stock.
Diluted net income per share attributable to the Company is calculated by dividing the after-tax income attributable to the Company by the weighted average number of outstanding shares of the Company’s common stock, which have been adjusted for the dilutive effect of potentially issuable common shares.
| Basic and Diluted EPS Calculation | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
| (In millions, except per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Net income before non-controlling interests | $ | 1,291 | $ | 1,231 | $ | 2,477 | $ | 2,643 | |||||||||||||||||||||
| Less: Net income attributable to non-controlling interests | 25 | 20 | 65 | 51 | |||||||||||||||||||||||||
| Net income attributable to the Company | $ | 1,266 | $ | 1,211 | $ | 2,412 | $ | 2,592 | |||||||||||||||||||||
| Basic weighted average common shares outstanding | 480 | 492 | 482 | 492 | |||||||||||||||||||||||||
| Dilutive effect of potentially issuable common shares | 2 | 3 | 2 | 3 | |||||||||||||||||||||||||
| Diluted weighted average common shares outstanding | 482 | 495 | 484 | 495 | |||||||||||||||||||||||||
| Average stock price used to calculate common stock equivalents | $ | 167.10 | $ | 225.68 | $ | 173.51 | $ | 226.23 |
6. Supplemental Disclosures to the Consolidated Statements of Cash Flows
The following table provides additional information concerning acquisitions, interest and income taxes paid for the six months ended June 30, 2026 and 2025:
| (In millions) | 2026 | 2025 | |||||||||
| Assets acquired, excluding cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity | $ | 195 | $ | 162 | |||||||
| Fiduciary liabilities assumed | (1) | (17) | |||||||||
| Liabilities assumed | (16) | (21) | |||||||||
| Fair value of previously-held equity investment | — | (15) | |||||||||
| Contingent/deferred purchase consideration | (49) | (47) | |||||||||
| Net cash outflow for acquisitions | $ | 129 | $ | 62 | |||||||
| (In millions) | 2026 | 2025 | |||||||||
| Interest paid | $ | 476 | $ | 442 | |||||||
| Income taxes paid, net of refunds | $ | 637 | $ | 640 |
The classification of contingent consideration in the consolidated statements of cash flows is dependent upon whether the receipt or payment was part of the initial liability established on the acquisition date (financing) or an adjustment to the acquisition date liability (operating).
The following amounts are included in the consolidated statements of cash flows as operating and financing activities:
| For the Six Months Ended June 30, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Operating: | |||||||||||
| Contingent consideration payments for prior year acquisitions | $ | (54) | $ | (19) | |||||||
| Acquisition/disposition related net charges for adjustments | 21 | 30 | |||||||||
| Adjustments and payments related to contingent consideration | $ | (33) | $ | 11 | |||||||
| Financing: | |||||||||||
| Contingent consideration for prior year acquisitions | $ | (42) | $ | (7) | |||||||
| Deferred consideration for prior year acquisitions | (19) | (36) | |||||||||
| Payments of deferred and contingent consideration for acquisitions | $ | (61) | $ | (43) | |||||||
| Receipts of deferred and contingent consideration for dispositions | $ | 12 | $ | — |
The Company had non-cash issuances of common stock in accordance with its share-based payment plan of $358 million and $345 million for the six months ended June 30, 2026 and 2025, respectively.
The Company recorded share-based compensation expense related to restricted stock units, performance stock units and stock options of $96 million and $235 million for the three and six months ended June 30, 2026, respectively, and $98 million and $210 million for the three and six months ended June 30, 2025, respectively.
7. Other Comprehensive (Loss) Income
The changes, net of tax, in the balances of each component of AOCI for the three and six months ended June 30, 2026 and 2025, including amounts reclassified out of AOCI, are as follows:
| (In millions) | Pension/Post-Retirement Plans Gains (Losses) | Foreign Currency Translation Adjustments | Total | ||||||||||||||||||||
| Balance at April 1, 2026 | $ | (3,632) | $ | (1,928) | $ | (5,560) | |||||||||||||||||
| Other comprehensive income (loss) before reclassifications | 15 | (49) | (34) | ||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income | 19 | — | 19 | ||||||||||||||||||||
| Net current period other comprehensive income (loss) | 34 | (49) | (15) | ||||||||||||||||||||
| Balance at June 30, 2026 (a) | $ | (3,598) | $ | (1,977) | $ | (5,575) |
| (In millions) | Pension/Post-Retirement Plans Gains (Losses) | Foreign Currency Translation Adjustments | Total | ||||||||||||||||||||
| Balance at April 1, 2025 | $ | (3,475) | $ | (2,421) | $ | (5,896) | |||||||||||||||||
| Other comprehensive (loss) income before reclassifications | (166) | 809 | 643 | ||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income | 9 | — | 9 | ||||||||||||||||||||
| Net current period other comprehensive (loss) income | (157) | 809 | 652 | ||||||||||||||||||||
| Balance at June 30, 2025 (a) | $ | (3,632) | $ | (1,612) | $ | (5,244) |
(a)At each June 30, 2026 and 2025, balances are net of deferred tax assets in pension and post-retirement plans gains (losses) of $1.6 billion.
| (In millions) | Pension/Post-Retirement Plans Gains (Losses) | Foreign Currency Translation Adjustments | Total | ||||||||||||||||||||
| Balance at January 1, 2026 | $ | (3,707) | $ | (1,722) | $ | (5,429) | |||||||||||||||||
| Other comprehensive income (loss) before reclassifications | 73 | (255) | (182) | ||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income | 36 | — | 36 | ||||||||||||||||||||
| Net current period other comprehensive income (loss) | 109 | (255) | (146) | ||||||||||||||||||||
| Balance at June 30, 2026 (a) | $ | (3,598) | $ | (1,977) | $ | (5,575) |
| (In millions) | Pension/Post-Retirement Plans Gains (Losses) | Foreign Currency Translation Adjustments | Total | ||||||||||||||||||||
| Balance at January 1, 2025 | $ | (3,408) | $ | (2,832) | $ | (6,240) | |||||||||||||||||
| Other comprehensive (loss) income before reclassifications | (240) | 1,220 | 980 | ||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income | 16 | — | 16 | ||||||||||||||||||||
| Net current period other comprehensive (loss) income | (224) | 1,220 | 996 | ||||||||||||||||||||
| Balance at June 30, 2025 (a) | $ | (3,632) | $ | (1,612) | $ | (5,244) |
(a)At each June 30, 2026 and 2025, balances are net of deferred tax assets in pension and post-retirement plans gains (losses) of $1.6 billion.
The components of other comprehensive (loss) income for the three and six months ended June 30, 2026 and 2025 are as follows:
| Three Months Ended June 30, | 2026 | 2025 | |||||||||||||||||||||
| (In millions) | Pre-Tax | Tax (Credit) | Net of Tax | Pre-Tax | Tax (Credit) | Net of Tax | |||||||||||||||||
| Foreign currency translation adjustments | $ | (46) | $ | 3 | $ | (49) | $ | 787 | $ | (22) | $ | 809 | |||||||||||
| Pension/post-retirement plans: | |||||||||||||||||||||||
| Amortization of losses (gains) included in net benefit (credit) cost: | |||||||||||||||||||||||
| Net actuarial losses (a) | 24 | 5 | 19 | 11 | 2 | 9 | |||||||||||||||||
| Subtotal | 24 | 5 | 19 | 11 | 2 | 9 | |||||||||||||||||
| Foreign currency translation adjustments | 21 | 6 | 15 | (224) | (54) | (170) | |||||||||||||||||
| Effect of settlement | — | — | — | 5 | 1 | 4 | |||||||||||||||||
| Pension/post-retirement plans gains (losses) | 45 | 11 | 34 | (208) | (51) | (157) | |||||||||||||||||
| Other comprehensive (loss) income | $ | (1) | $ | 14 | $ | (15) | $ | 579 | $ | (73) | $ | 652 | |||||||||||
(a) Included in other net benefit credits in the consolidated statements of income. Income tax expense on net actuarial losses are included in income tax expense.
| Six Months Ended June 30, | 2026 | 2025 | |||||||||||||||||||||
| (In millions) | Pre-Tax | Tax (Credit) | Net of Tax | Pre-Tax | Tax (Credit) | Net of Tax | |||||||||||||||||
| Foreign currency translation adjustments | $ | (244) | $ | 11 | $ | (255) | $ | 1,189 | $ | (31) | $ | 1,220 | |||||||||||
| Pension/post-retirement plans: | |||||||||||||||||||||||
| Amortization of losses (gains) included in net benefit (credit) cost: | |||||||||||||||||||||||
| Net actuarial losses (a) | 47 | 11 | 36 | 21 | 5 | 16 | |||||||||||||||||
| Subtotal | 47 | 11 | 36 | 21 | 5 | 16 | |||||||||||||||||
| Foreign currency translation adjustments | 94 | 23 | 71 | (324) | (78) | (246) | |||||||||||||||||
| Effect of remeasurement | — | — | — | (3) | (1) | (2) | |||||||||||||||||
| Effect of settlement | 2 | — | 2 | 10 | 2 | 8 | |||||||||||||||||
| Pension/post-retirement plans gains (losses) | 143 | 34 | 109 | (296) | (72) | (224) | |||||||||||||||||
| Other comprehensive (loss) income | $ | (101) | $ | 45 | $ | (146) | $ | 893 | $ | (103) | $ | 996 |
(a) Included in other net benefit credits in the consolidated statements of income. Income tax expense on net actuarial losses are included in income tax expense.
8. Acquisitions and Dispositions
The Company’s acquisitions have been accounted for as business combinations. Net assets and results of operations are included in the Company’s consolidated financial statements commencing at the respective purchase closing dates. In connection with acquisitions, the Company records the estimated values of the net tangible assets and the identifiable intangible assets purchased, which typically consist of customer relationships, developed technology, trademarks and non-compete agreements. The valuation of purchased intangible assets involves significant estimates and assumptions. The Company estimates the fair value of purchased intangible assets, primarily using the income approach, by determining the present value of future cash flows over the remaining economic life of the respective assets. The significant estimates and assumptions used in this approach include the determination of the discount rate, economic life, future revenue growth rates, expected account attrition rates and earnings margins. Refinement and completion of final valuation of net assets acquired could affect the carrying value of tangible assets, goodwill and identifiable intangible assets.
The Risk and Insurance Services segment completed three acquisitions for the six months ended June 30, 2026:
-
January – Marsh McLennan Agency ("MMA") acquired Robinson & Son, LLC., a New York-based insurance broker that provides property and casualty insurance solutions to businesses and individuals with a specialization in maritime insurance.
-
April – MMA acquired Seitz Insurance Agency, a Montana-based insurance broker that provides commercial and personal lines coverage to businesses and families, with a specialization in the agriculture, crop and energy industries.
-
June – MMA acquired TriBridge Partners, LLC and TriBridge Partners Financial, LLC, a Maryland-based insurance broker and retirement and wealth advisor that provides health and employee health and benefits, retirement plan advisory, wealth management, and individual insurance services to clients across the Mid-Atlantic.
The Consulting segment completed two acquisitions for the six months ended June 30, 2026:
-
January – Mercer acquired Profil M Beratung für Human Resources Management GmbH & Co. KG., a Germany-based provider of consulting services in the areas of leadership assessment, executive development, leadership culture and transformation.
-
June – Marsh Management Consulting acquired CR3 Partners, a Texas-based turnaround and performance transformation advisory firm specializing in transition, turnaround, and distressed situations.
Total purchase consideration for acquisitions made for the six months ended June 30, 2026 was $181 million, which consisted of cash paid of $132 million and deferred and estimated contingent purchase consideration of $49 million. Contingent purchase consideration arrangements are generally based on earnings before interest, tax, depreciation and amortization ("EBITDA") or revenue targets over a period of 2 to 4 years. The fair value of contingent purchase consideration was based on projected revenue and earnings of the acquired entities.
For the six months ended June 30, 2026, the Company also paid $19 million of deferred purchase consideration and $96 million of contingent purchase consideration related to prior year acquisitions. Estimated fair values of assets acquired and liabilities assumed are subject to adjustment until purchase accounting is finalized.
The following table presents the preliminary allocation of purchase consideration to the assets acquired and liabilities assumed in 2026, based on the estimated fair values for the acquisitions as of their respective acquisition dates.
| Acquisitions through June 30, 2026 | ||||||||||||||
| (In millions) | Total | |||||||||||||
| Cash | $ | 132 | ||||||||||||
| Estimated fair value of deferred/contingent purchase consideration | 49 | |||||||||||||
| Total consideration | $ | 181 | ||||||||||||
| Allocation of purchase price: | ||||||||||||||
| Cash and cash equivalents | $ | 2 | ||||||||||||
| Cash and cash equivalents held in a fiduciary capacity | 1 | |||||||||||||
| Net receivables | 11 | |||||||||||||
| Goodwill | 132 | |||||||||||||
| Other intangible assets | 51 | |||||||||||||
| Other assets | 1 | |||||||||||||
| Total assets acquired | 198 | |||||||||||||
| Current liabilities | 12 | |||||||||||||
| Fiduciary liabilities | 1 | |||||||||||||
| Other liabilities | 4 | |||||||||||||
| Total liabilities assumed | 17 | |||||||||||||
| Net assets acquired | $ | 181 |
The purchase price allocation for assets acquired and liabilities assumed is based on estimates that are preliminary in nature and subject to adjustments, which could be material. Any necessary adjustments must be finalized during the measurement period, which for a particular asset, liability, or non-controlling interest ends once the acquirer determines that either (1) the necessary information has been obtained or (2) the information is not available. However, the measurement period for all items is limited to one year from the acquisition date.
Items subject to change include:
-
amounts of intangible assets, fixed assets, capitalized software assets and right-of-use assets, subject to finalization of valuation efforts;
-
amounts for contingencies, pending the finalization of the Company’s assessment of the portfolio of contingencies;
-
amounts for deferred tax assets and liabilities, pending the finalization of valuations of the assets acquired, liabilities assumed and associated goodwill; and
-
amounts for income tax assets, receivables and liabilities, pending the filing of the acquired companies' pre-acquisition income tax returns and receipt of information from taxing authorities which may change certain estimates and assumptions used.
The estimation of fair value requires numerous judgments, assumptions and estimates about future events and uncertainties, which could materially impact these values, and the related amortization, where applicable, in the Company’s results of operations.
The following table provides information about other intangible assets acquired in 2026:
| Other intangible assets through June 30, 2026 (In millions) | Amount | Weighted Average Amortization Period | ||||||||||||
| Client relationships | $ | 48 | 11.6 years | |||||||||||
| Other | 3 | 4.1 years | ||||||||||||
| Total other intangible assets | $ | 51 |
The consolidated statements of income include the results of operations of acquired companies since their respective acquisition dates. The following table provides information about the consolidated statements of income for each respective period:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (In millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Revenue | $ | 11 | $ | 8 | $ | 17 | $ | 11 | ||||||||||||||||||
| Operating (loss) income | $ | (1) | $ | 2 | $ | (1) | $ | 3 |
The Company incurred acquisition related expenses for the three and six months ended June 30, 2026 of approximately $55 million and $103 million, respectively, and $58 million and $137 million, for the corresponding periods in the prior year. These costs included approximately $47 million and $89 million of integration and retention related costs in connection with the acquisition of McGriff Insurance Services for the three and six months ended June 30, 2026, and $45 million and $114 million, respectively, for the corresponding periods in the prior year. Acquisition related expenses are included in compensation and benefits or other operating expenses in the Company's consolidated statements of income, depending on the nature of the items.
Prior year acquisitions
The Risk and Insurance Services segment completed 14 acquisitions in 2025:
-
January – Guy Carpenter acquired the remaining 51.5% ownership share in Carpenter Turner Cyprus Ltd., a Greece-based insurance broker that provides reinsurance and advisory services, including treaty and facultative reinsurance, data and analytics, strategic advisory, and capital markets solutions.
-
February – Marsh Risk acquired Fontana Rava-Toscano & Partners S.r.l., an Italy-based insurance broker that offers property and casualty insurance brokerage and risk consulting.
-
March – Marsh Risk acquired the business of Cohere Insurance Solutions, an Australia-based insurance broker that specializes in life sciences, start-up and professional services businesses.
-
April – MMA acquired Arthur C. Hall Insurance, Inc., a Pennsylvania-based insurance broker that provides commercial and personal lines solutions to clients, with specialties in life sciences, information management, non-profit, craft beverage manufacturing and municipal industries.
-
May – Marsh Risk acquired Thornton Harvey Group, LLC (d/b/a ProWriters), a Pennsylvania-based wholesale insurance broker that provides solutions for cyber, management and professional liability insurance to a network of retail brokers in the U.S.
-
July – MMA acquired Excel Insurance LLC, a Florida-based insurance broker that provides property and casualty insurance solutions to small businesses and individuals in South Florida, with specialties in watercraft and motor vehicle protection; and Donald S. Barberie Insurance Agency, Inc. (d/b/a Olympic Insurance Agency), a California-based insurance broker that provides business insurance, employee benefits, and personal asset protection expertise to clients in Southern California, serving real estate investors, property managers, and manufacturing businesses.
-
August – MMA acquired Robins Insurance Agency Inc., a Tennessee-based insurance broker that provides business insurance and personal lines solutions, with expertise in real estate, construction, hospitality, community associations and manufacturing.
-
October – MMA acquired Robison Insurance Services Inc., a North Carolina-based insurance broker that provides life, health, disability and long term care insurance services to businesses and individuals; and Hayden Wood Insurance Agency, a Massachusetts-based insurance broker that provides personal lines insurance solutions to clients nationally, with a specialty in collector auto and motorsports products.
-
November – Marsh Risk acquired Mitsubishi Electric Insurance Service Co, Ltd., a Japan-based insurance broker offering clients access to high-value, cost-effective insurance solutions across a broad range of commercial lines, including liability, property, cargo, workers compensation, commercial auto, commercial umbrella, directors and officers, and cyber, as well as non-life/life insurance, medical care, and nursing care; and Jointly – il Welfare Condiviso S.r.l., an Italy-based provider of integrated corporate well-being solutions for organizations and their employees, including parenting and family care support programs, mental and physical well-being initiatives, and flexible benefits.
-
December – MMA acquired three insurance brokers, Atlas Insurance Agency, Inc., Pyramid Insurance Centre, Ltd., and NMF Insurance, Inc. d/b/a IC International, a collective group of Hawaii-based insurance brokers offering insurance solutions to businesses and individuals throughout Hawaii with a niche industry specialization in municipality, transportation and hospitality; and Marsh Risk acquired Finassur, a France-based insurance broker offering tailored insurance solutions in Northern France, specializing in property and casualty, and health and life insurance risk management.
The Consulting segment completed 6 acquisitions in 2025:
-
April – Mercer acquired the business of Cerebrus Consultants Private Limited., an India-based provider of human resources consulting and advisory services.
-
May – Mercer acquired SECOR Asset Management, L.P., a U.S. and United Kingdom based global provider of bespoke strategic and portfolio solutions to institutional investors, including investment advisory and implementation, fiduciary and asset liability management.
-
August – Marsh Management Consulting acquired Validate Health Inc., an Illinois-based healthcare analytics consultancy that provides analytics solutions to healthcare providers and accountable care organizations to help clients to better manage costs, risk and performance. Mercer acquired ConvictionsRH, a France-based consulting firm specializing in Human Resources transformation, supporting companies of all sizes in their strategic, organizational, digital, technological and cultural changes.
-
October – Mercer acquired Fundhouse Limited and Fundhouse Bespoke Limited, a United Kingdom-based provider of investment advisory and model portfolio services to financial advisors and institutional wealth investors.
-
November – Mercer acquired Hexarem Inc., a Canada-based human resources consulting firm specializing in executive compensation and governance advisory services.
Total purchase consideration for acquisitions made for the six months ended June 30, 2025 was $148 million, which consisted of cash paid of $86 million, deferred and estimated contingent purchase consideration of $47 million, and the remeasurement to fair value of a previously held equity method investment upon consolidation of $15 million. Contingent purchase consideration arrangements are generally based primarily on EBITDA or revenue targets over a period of 2 to 4 years. The fair value of the contingent purchase consideration was based on projected revenue and earnings of the acquired entities.
For the six months ended June 30, 2025, the Company also paid $36 million of deferred purchase consideration and $26 million of contingent purchase consideration related to prior year acquisitions. Estimated fair values of assets acquired and liabilities assumed are subject to adjustment when purchase accounting is finalized.
In the first quarter of 2025, in connection with its increased investment in Carpenter Turner Cyprus Ltd., the Company recorded a gain of $13 million related to the remeasurement of its previously held equity method investment to fair value upon consolidation. The fair value of the pre-existing equity method investment was calculated considering both an income approach based on discounted future cash flows and market approach.
Prior year dispositions
In the first quarter of 2025, the Company sold MMA's Technology Consulting and Administrative Solutions ("TCAS") business for approximately $25 million, and recorded a gain of $15 million, which is included in revenue in the consolidated statements of income.
Purchases of remaining ownership interests
In June 2026, the Company made a payment for the purchase of the remaining interest in a subsidiary for $54 million, which was completed in July 2026.
In July 2026, Marsh Risk acquired the remaining 60% ownership shares in Deasterra Partners, S.L., a Spain-based insurance broker that provides insurance and reinsurance brokerage services including specialized risk management solutions.
Pro-Forma Information
The following unaudited pro-forma financial data gives effect to the acquisitions made by the Company in 2026 and 2025. In accordance with accounting guidance related to pro-forma disclosures, the information presented for acquisitions made in 2026 is as if they occurred on January 1, 2025, and reflects acquisitions made in 2025, as if they occurred on January 1, 2024. The unaudited pro-forma financial data includes the effects of amortization of acquired intangibles and acquisition related costs in all years.
The unaudited pro-forma financial data is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved if such acquisitions had occurred on the dates indicated, nor is it necessarily indicative of future consolidated results.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (In millions, except per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Revenue | $ | 7,411 | $ | 7,038 | $ | 15,025 | $ | 14,176 | |||||||||||||||
| Net income attributable to the Company | $ | 1,267 | $ | 1,216 | $ | 2,415 | $ | 2,609 | |||||||||||||||
| Basic net income per share attributable to the Company | $ | 2.64 | $ | 2.47 | $ | 5.01 | $ | 5.30 | |||||||||||||||
| Diluted net income per share attributable to the Company | $ | 2.63 | $ | 2.46 | $ | 4.99 | $ | 5.27 | |||||||||||||||
9. Goodwill and Other Intangibles
The Company is required to assess goodwill and any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate an impairment may have occurred. The Company performs the annual impairment assessment for each of its reporting units during the third quarter of each year. The reporting unit level is defined at the same level as the Company's operating segments. A company can assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. Alternatively, a company may elect to proceed directly to the quantitative goodwill impairment test. In the third quarter of 2025, the Company completed a qualitative impairment assessment and concluded that goodwill was not impaired. As part of its assessment, the Company considered numerous factors, including:
-
that the fair value of each reporting unit exceeds its carrying value by a substantial margin based on its most recent quantitative assessment in 2023;
-
whether significant acquisitions or dispositions occurred which might alter the fair value of its reporting units;
-
macroeconomic conditions and their potential impact on reporting unit fair values;
-
actual performance compared with budget and prior projections used in its estimation of reporting unit fair values;
-
industry and market conditions; and
-
the year-over-year change in the Company’s share price.
Other intangible assets that are not deemed to have an indefinite life are amortized over their estimated lives and assessed for impairment upon the occurrence of certain triggering events in accordance with applicable accounting literature. Based on its assessment, the Company concluded that other intangible assets were not impaired. The Company had no indefinite-lived intangible assets at June 30, 2026 and December 31, 2025.
Changes in the carrying amount of goodwill are as follows:
| (In millions) | 2026 | 2025 | |||||||||
| Balance at January 1, | $ | 24,337 | $ | 23,306 | |||||||
| Goodwill acquired | 132 | 100 | |||||||||
| Other adjustments (a) | (117) | 513 | |||||||||
| Balance at June 30, | $ | 24,352 | $ | 23,919 |
(a)Primarily reflects the impact of foreign exchange.
The goodwill from acquisitions in 2026 and 2025 consists largely of the synergies and economies of scale expected from combining the operations of the Company and the acquired entities and the trained and assembled workforce acquired.
The goodwill acquired in 2026 included approximately $55 million and $51 million in the Risk and Insurance Services and Consulting segments, respectively, which is expected to be deductible for tax purposes.
Goodwill allocated to the Company’s reportable segments at June 30, 2026 is $19.6 billion for Risk and Insurance Services and $4.8 billion for Consulting.
The gross cost and accumulated amortization of other identified intangible assets at June 30, 2026 and December 31, 2025 are as follows:
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| (In millions) | Gross Cost | Accumulated Amortization | Net Carrying Amount | Gross Cost | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||
| Client relationships | $ | 7,055 | $ | 2,603 | $ | 4,452 | $ | 7,091 | $ | 2,422 | $ | 4,669 | |||||||||||||||||||||||
| Other (a) | 462 | 409 | 53 | 476 | 399 | 77 | |||||||||||||||||||||||||||||
| Other intangible assets | $ | 7,517 | $ | 3,012 | $ | 4,505 | $ | 7,567 | $ | 2,821 | $ | 4,746 |
(a)Primarily reflects non-compete agreements, trade names and developed technology.
Aggregate amortization expense for the three and six months ended June 30, 2026 was $137 million and $275 million, respectively, compared to $140 million and $279 million, respectively, for the corresponding periods in the prior year.
The estimated future aggregate amortization expense is as follows:
| For the Years Ending December 31, | |||||
| (In millions) | Estimated Expense | ||||
| 2026 (excludes amortization through June 30, 2026) | $ | 269 | |||
| 2027 | 507 | ||||
| 2028 | 479 | ||||
| 2029 | 446 | ||||
| 2030 | 434 | ||||
| Subsequent years | 2,370 | ||||
| Total future amortization | $ | 4,505 |
10. Fair Value Measurements
Fair Value Hierarchy
The Company has categorized its assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy, for disclosure purposes, is determined based on the lowest level input that is significant to the fair value measurement. Assets and liabilities recorded in the consolidated balance sheets at fair value are categorized based on the inputs in the valuation techniques as follows:
*Level 1.*Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market (examples include active exchange-traded equity securities and exchange-traded money market mutual funds).
Assets and liabilities measured using Level 1 inputs include exchange-traded equity securities, exchange-traded mutual funds and money market funds.
*Level 2.*Assets and liabilities whose values are based on the following:
a)quoted prices for similar assets or liabilities in active markets;
b)quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently);
c)pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and
d)pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full asset or liability (for example, certain mortgage loans).
*Level 3.*Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
Assets and liabilities measured using Level 3 inputs relate to assets and liabilities for contingent purchase consideration.
Valuation Techniques
Equity Securities, Money Market Funds and Mutual Funds – Level 1
Investments for which market quotations are readily available are valued at the sale price on their principal exchange or, for certain markets, official closing bid price. Money market funds are valued at a readily determinable price.
Contingent Purchase Consideration Assets and Liabilities – Level 3
Purchase consideration for some acquisitions and dispositions made by the Company includes contingent consideration arrangements. Contingent consideration arrangements are based primarily on EBITDA or revenue targets over a period of 2 to 4 years. The fair value of the contingent purchase consideration asset and liability is estimated as the present value of future cash flows to be paid, based on projections of revenue and earnings and related targets of the acquired and disposed entities.
The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025:
| Identical Assets (Level 1) | Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||||||||||||||
| (In millions) | 06/30/26 | 12/31/25 | 06/30/26 | 12/31/25 | 06/30/26 | 12/31/25 | 06/30/26 | 12/31/25 | |||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Financial instruments owned: | |||||||||||||||||||||||||||||||||||
| Exchange traded equity securities (a) | $ | 14 | $ | 12 | $ | — | $ | — | $ | — | $ | — | $ | 14 | $ | 12 | |||||||||||||||||||
| Mutual funds (a) | 221 | 202 | — | — | — | — | 221 | 202 | |||||||||||||||||||||||||||
| Money market funds (b) | 140 | 633 | — | — | — | — | 140 | 633 | |||||||||||||||||||||||||||
| Total assets measured at fair value | $ | 375 | $ | 847 | $ | — | $ | — | $ | — | $ | — | $ | 375 | $ | 847 | |||||||||||||||||||
| Fiduciary Assets: | |||||||||||||||||||||||||||||||||||
| Money market funds | $ | 250 | $ | 322 | $ | — | $ | — | $ | — | $ | — | $ | 250 | $ | 322 | |||||||||||||||||||
| Total fiduciary assets measured at fair value | $ | 250 | $ | 322 | $ | — | $ | — | $ | — | $ | — | $ | 250 | $ | 322 | |||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||
| Contingent purchase consideration liabilities (c) | $ | — | $ | — | $ | — | $ | — | $ | 216 | $ | 268 | $ | 216 | $ | 268 | |||||||||||||||||||
| Total liabilities measured at fair value | $ | — | $ | — | $ | — | $ | — | $ | 216 | $ | 268 | $ | 216 | $ | 268 |
(a)Included in other assets in the consolidated balance sheets.
(b)Included in cash and cash equivalents in the consolidated balance sheets.
(c)Included in accounts payable and accrued liabilities and other liabilities in the consolidated balance sheets.
For the six months ended June 30, 2026 and 2025, there were no assets or liabilities that were transferred between levels.
The following table sets forth a summary of the changes in fair value of the Company’s Level 3 liabilities for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (In millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Balance at beginning of period | $ | 266 | $ | 160 | $ | 268 | $ | 161 | |||||||||||||||
| Net additions | 22 | 32 | 23 | 37 | |||||||||||||||||||
| Payments | (78) | (7) | (96) | (26) | |||||||||||||||||||
| Revaluation impact | 10 | 21 | 21 | 30 | |||||||||||||||||||
| Other | (4) | 1 | — | 5 | |||||||||||||||||||
| Balance at end of period | $ | 216 | $ | 207 | $ | 216 | $ | 207 |
Long-Term Investments
The Company has investments in certain private equity funds as well as in public and private companies that are accounted for using the equity method of accounting. The carrying value of these investments was $316 million and $301 million at June 30, 2026 and December 31, 2025, respectively.
Private Equity Investments
The Company's investments in private equity funds were $234 million and $220 million at June 30, 2026 and December 31, 2025, respectively. The carrying values of these private equity investments approximate fair value. The underlying private equity funds follow investment company accounting, where investments within the fund are carried at fair value. The Company records in earnings its proportionate share of the change in fair value of the funds in the investment income line in the consolidated statements of income. These investments are included in other assets in the consolidated balance sheets. The Company recorded net investment losses of $5 million and $1 million for the three and six months ended June 30, 2026, respectively, and net investment income of $8 million and $10 million from these investments for the corresponding periods in 2025.
At June 30, 2026, the Company has commitments of potential future investments of approximately $210 million in private equity funds that invest primarily in financial services companies.
Investments in Public and Private Companies
The Company has investments in private insurance brokerage and consulting companies with a carrying value of $82 million and $81 million at June 30, 2026 and December 31, 2025, respectively. These investments are accounted for using the equity method of accounting, the results of which are included in revenue in the consolidated statements of income and the carrying value of which is included in other assets in the consolidated balance sheets. The Company records its share of income or loss on its equity method investments, some of which are on a one quarter lag basis.
Other Investments
The Company held certain equity investments with readily determinable market values at June 30, 2026 and December 31, 2025, of $26 million and $24 million, respectively. For the six months ended June 30, 2026, the Company recorded mark-to-market gains on these investments of $2 million. For the three and six months ended June 30, 2025, the Company recorded mark-to-market losses of $1 million and mark-to-market gains of $2 million on these investments, respectively.
The Company also held investments without readily determinable market values of $17 million at both June 30, 2026 and December 31, 2025, respectively.
In January 2025, the Company disposed an investment in a unit trust fund.
11. Derivatives
Net Investment Hedge
The Company has investments in various subsidiaries with Euro functional currencies. As a result, the Company is exposed to the risk of fluctuations between the Euro and U.S. dollar exchange rates. As part of its risk management program, the Company designated its €1.1 billion senior note debt instruments ("Euro notes") as a net investment hedge (the "hedge") of its Euro denominated subsidiaries. The hedge effectiveness is re-assessed each quarter to confirm that the designated equity balance at the beginning of each period continues to equal or exceed 80% of the outstanding balance of the Euro debt instrument and that all the critical terms of the hedging instrument and the hedged net investment continue to match. If the hedge is highly effective, the change in the debt balance related to foreign exchange fluctuations is recorded in accumulated other comprehensive loss in the consolidated balance sheets.
The U.S. dollar value of the Euro notes decreased by $43 million through June 30, 2026 related to the change in foreign exchange rates. The Company concluded that the hedge was highly effective and recorded a decrease to accumulated other comprehensive loss for the six months ended June 30, 2026.
12. Leases
The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 10 and 25 years. The Company utilizes these leased office facilities for use by its employees in countries in which the Company conducts its business. The Company’s leases have no restrictions on the payment of dividends, the acquisition of debt or additional lease obligations, or entering into additional lease obligations. The leases also do not contain significant purchase options.
Operating leases are recognized on the consolidated balance sheets as ROU assets and operating lease liabilities based on the present value of the remaining future minimum payments over the lease term at commencement date of the lease.
The Company determined that $5 million and $8 million of ROU assets were impaired for the three and six months ended June 30, 2026, and $1 million and $5 million for the three and six months ended June 30, 2025, respectively, and recorded a charge to the consolidated statements of income with an offsetting reduction to ROU assets.
The following table provides additional information about the Company’s property leases:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (In millions, except weighted average data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Lease Cost: | ||||||||||||||||||||||||||
| Operating lease cost (a) | $ | 88 | $ | 88 | $ | 178 | $ | 174 | ||||||||||||||||||
| Short-term lease cost | 1 | 1 | 2 | 3 | ||||||||||||||||||||||
| Variable lease cost | 34 | 34 | 68 | 66 | ||||||||||||||||||||||
| Sublease income | (6) | (6) | (12) | (10) | ||||||||||||||||||||||
| Net lease cost | $ | 117 | $ | 117 | $ | 236 | $ | 233 | ||||||||||||||||||
| Other information: | ||||||||||||||||||||||||||
| Operating cash outflows from operating leases | $ | 204 | $ | 199 | ||||||||||||||||||||||
| ROU assets obtained in exchange for new operating lease liabilities | $ | 131 | $ | 42 | ||||||||||||||||||||||
| Weighted average remaining lease term – real estate leases | 7.2 years | 7.4 years | ||||||||||||||||||||||||
| Weighted average discount rate – real estate leases | 4.02 | % | 3.75 | % | ||||||||||||||||||||||
(a)Excludes ROU asset impairment charges.
Future minimum lease payments for the Company’s operating leases at June 30, 2026 are as follows:
| (In millions) | Real Estate Leases | ||||
| 2026 (excludes payments through June 30, 2026) | $ | 196 | |||
| 2027 | 376 | ||||
| 2028 | 304 | ||||
| 2029 | 255 | ||||
| 2030 | 218 | ||||
| 2031 | 193 | ||||
| Subsequent years | 549 | ||||
| Total future lease payments | 2,091 | ||||
| Less: Imputed interest | (270) | ||||
| Total | $ | 1,821 | |||
| Current lease liabilities | $ | 327 | |||
| Long-term lease liabilities | 1,494 | ||||
| Total lease liabilities | $ | 1,821 |
Note: The above table excludes obligations for leases with original terms of 12 months or less which have not been recognized as a ROU asset or liability in the consolidated balance sheets.
At June 30, 2026, the Company had additional operating real estate leases that had not yet commenced of $61 million. These operating leases will commence over the next 12 months.
13. Retirement Benefits
The Company maintains qualified and non-qualified defined benefit pension plans for its U.S. and non-U.S. eligible employees. The Company’s policy for funding its tax-qualified defined benefit retirement plans is to contribute amounts at least sufficient to meet the funding requirements set forth by U.S. law and the laws of the non-U.S. jurisdictions in which the Company offers defined benefit plans.
The weighted average actuarial assumptions utilized to calculate the net periodic benefit cost or credit for the U.S. and significant non-U.S. defined benefit plans are as follows:
| Combined U.S. and significant non-U.S. Plans | Pension Benefits | ||||||||||||||||||||||
| June 30, | 2026 | 2025 | |||||||||||||||||||||
| Weighted average assumptions: | |||||||||||||||||||||||
| Discount rate | 5.39 | % | 5.36 | % | |||||||||||||||||||
| Expected return on plan assets | 5.94 | % | 5.43 | % | |||||||||||||||||||
| Rate of compensation increase* | 3.12 | % | 3.16 | % |
(*)There are no rate of compensation increase assumptions for the primary U.S. defined benefit plans since future benefit accruals were discontinued for those plans after December 31, 2016 and earned benefits are not subject to final salary level adjustments.
The target asset allocation for the U.S. plans at June 30, 2026 is 50% equities and equity alternatives and 50% fixed income. At June 30, 2026, the actual allocation for the U.S. plans was 50% equities and equity alternatives and 50% fixed income. The target allocation for the U.K. plans at June 30, 2026 is 7% equities and equity alternatives and 93% fixed income. At June 30, 2026, the actual allocation for the U.K. plans was 8% equities and equity alternatives and 92% fixed income. The Company's U.K. plans comprised approximately 78% of non-U.S. plan assets at December 31, 2025.
The assets of the Company's defined benefit plans are diversified and are managed in accordance with applicable laws and with the goal of maximizing the plans' asset returns within acceptable risk parameters. Asset allocation is frequently monitored to ensure the actual portfolio remains consistent with target asset allocation ranges. This includes the use of threshold-based portfolio re-balancing where appropriate.
The net benefit (credit) or cost of the Company's defined benefit plans is measured on an actuarial basis using various methods and assumptions.
The components of the net benefit (credit) or cost for the defined benefit plans is as follows:
| Combined U.S. and significant non-U.S. Plans | |||||||||||
| For the Three Months Ended June 30, | Pension Benefits | ||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Service cost | $ | 7 | $ | 7 | |||||||
| Interest cost | 144 | 149 | |||||||||
| Expected return on plan assets | (220) | (212) | |||||||||
| Recognized actuarial loss | 24 | 11 | |||||||||
| Net periodic benefit credit | $ | (45) | $ | (45) | |||||||
| Settlement loss | — | 5 | |||||||||
| Net benefit credit | $ | (45) | $ | (40) |
| Combined U.S. and significant non-U.S. Plans | |||||||||||
| For the Six Months Ended June 30, | Pension Benefits | ||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Service cost | $ | 13 | $ | 13 | |||||||
| Interest cost | 288 | 294 | |||||||||
| Expected return on plan assets | (440) | (416) | |||||||||
| Recognized actuarial loss | 47 | 21 | |||||||||
| Net periodic benefit credit | $ | (92) | $ | (88) | |||||||
| Settlement loss | 2 | 10 | |||||||||
| Net benefit credit | $ | (90) | $ | (78) |
The following tables provide the amounts reported in the consolidated statements of income:
| Combined U.S. and significant non-U.S. Plans | |||||||||||||||||||||||
| For the Three Months Ended June 30, | Pension Benefits | ||||||||||||||||||||||
| (In millions) | 2026 | 2025 | |||||||||||||||||||||
| Compensation and benefits expense | $ | 7 | $ | 7 | |||||||||||||||||||
| Other net benefit credits (a) | (52) | (47) | |||||||||||||||||||||
| Net benefit credit | $ | (45) | $ | (40) |
(a)For the three months ended June 30, 2026 and 2025, the Company recorded $2 million and $1 million, respectively, of net benefit cost related to the post-retirement plans.
| Combined U.S. and significant non-U.S. Plans | |||||||||||||||||||||||
| For the Six Months Ended June 30, | Pension Benefits | ||||||||||||||||||||||
| (In millions) | 2026 | 2025 | |||||||||||||||||||||
| Compensation and benefits expense | $ | 13 | $ | 13 | |||||||||||||||||||
| Other net benefit credits (a) | (103) | (91) | |||||||||||||||||||||
| Net benefit credit | $ | (90) | $ | (78) |
(a)For the six months ended June 30, 2026, the Company recorded $3 million of net benefit cost related to the post-retirement plans.
The components of the net benefit credit for the U.S. defined benefit plans are as follows:
| U.S. Plans only | |||||||||||||||||||||||
| For the Three Months Ended June 30, | Pension Benefits | ||||||||||||||||||||||
| (In millions) | 2026 | 2025 | |||||||||||||||||||||
| Interest cost | $ | 62 | $ | 63 | |||||||||||||||||||
| Expected return on plan assets | (70) | (73) | |||||||||||||||||||||
| Recognized actuarial loss | 9 | 6 | |||||||||||||||||||||
| Net periodic benefit cost (credit) | $ | 1 | $ | (4) | |||||||||||||||||||
| Settlement loss | — | 1 | |||||||||||||||||||||
| Net benefit cost (credit) | $ | 1 | $ | (3) | |||||||||||||||||||
| U.S. Plans only | |||||||||||||||||||||||
| For the Six Months Ended June 30, | Pension Benefits | ||||||||||||||||||||||
| (In millions) | 2026 | 2025 | |||||||||||||||||||||
| Interest cost | $ | 124 | $ | 127 | |||||||||||||||||||
| Expected return on plan assets | (140) | (146) | |||||||||||||||||||||
| Recognized actuarial loss | 18 | 12 | |||||||||||||||||||||
| Net periodic benefit cost (credit) | $ | 2 | $ | (7) | |||||||||||||||||||
| Settlement loss | — | 1 | |||||||||||||||||||||
| Net benefit cost (credit) | $ | 2 | $ | (6) | |||||||||||||||||||
The components of the net benefit credit for the non-U.S. defined benefit plans are as follows:
| Significant non-U.S. Plans only | |||||||||||||||||||||||
| For the Three Months Ended June 30, | Pension Benefits | ||||||||||||||||||||||
| (In millions) | 2026 | 2025 | |||||||||||||||||||||
| Service cost | $ | 7 | $ | 7 | |||||||||||||||||||
| Interest cost | 82 | 86 | |||||||||||||||||||||
| Expected return on plan assets | (150) | (139) | |||||||||||||||||||||
| Recognized actuarial loss | 15 | 5 | |||||||||||||||||||||
| Net periodic benefit credit | $ | (46) | $ | (41) | |||||||||||||||||||
| Settlement loss | — | 4 | |||||||||||||||||||||
| Net benefit credit | $ | (46) | $ | (37) | |||||||||||||||||||
| Significant non-U.S. Plans only | |||||||||||||||||||||||
| For the Six Months Ended June 30, | Pension Benefits | ||||||||||||||||||||||
| (In millions) | 2026 | 2025 | |||||||||||||||||||||
| Service cost | $ | 13 | $ | 13 | |||||||||||||||||||
| Interest cost | 164 | 167 | |||||||||||||||||||||
| Expected return on plan assets | (300) | (270) | |||||||||||||||||||||
| Recognized actuarial loss | 29 | 9 | |||||||||||||||||||||
| Net periodic benefit credit | $ | (94) | $ | (81) | |||||||||||||||||||
| Settlement loss | 2 | 9 | |||||||||||||||||||||
| Net benefit credit | $ | (92) | $ | (72) | |||||||||||||||||||
The Company made contributions to its U.S. and non-U.S. defined benefit pension plans for the three and six months ended June 30, 2026 of approximately $17 million and $32 million, respectively, compared to contributions of $17 million and $35 million, respectively, for the corresponding periods in the prior year. The Company expects to contribute approximately $74 million to its U.S. and non-U.S. defined benefit pension plans during the remainder of 2026.
Defined Contribution Plans
The Company maintains defined contribution plans ("DC Plans") for its employees, the most significant being in the U.S. and the U.K. The cost of the U.S. DC Plans for the three and six months ended June 30, 2026 was $55 million and $111 million, respectively, and $52 million and $108 million, respectively, for the corresponding periods in the prior year. The cost of the U.K. DC Plans for the three and six months ended June 30, 2026 was $45 million and $114 million, respectively, and $42 million and $98 million, respectively, for the corresponding periods in the prior year.
14. Debt
The Company’s outstanding debt is as follows:
| (In millions) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Short-term: | ||||||||||||||
| Commercial paper | $ | 1,024 | $ | — | ||||||||||
| Current portion of long-term debt | 646 | 1,267 | ||||||||||||
| $ | 1,670 | $ | 1,267 | |||||||||||
| Long-term: | ||||||||||||||
| Senior notes – 1.349% due 2026 | $ | 626 | $ | 647 | ||||||||||
| Senior notes – 3.750% due 2026 | — | 600 | ||||||||||||
| Senior notes – 4.550% due 2027 | 947 | 946 | ||||||||||||
| Senior notes – Floating due 2027 (a) | 299 | 299 | ||||||||||||
| Senior notes – 4.375% due 2029 | 1,500 | 1,499 | ||||||||||||
| Senior notes – 1.979% due 2030 | 625 | 646 | ||||||||||||
| Senior notes – 2.250% due 2030 | 744 | 744 | ||||||||||||
| Senior notes – 4.650% due 2030 | 993 | 992 | ||||||||||||
| Senior notes – 2.375% due 2031 | 398 | 398 | ||||||||||||
| Senior notes – 4.850% due 2031 | 993 | 992 | ||||||||||||
| Senior notes – 5.750% due 2032 | 495 | 494 | ||||||||||||
| Senior notes – 5.875% due 2033 | 299 | 298 | ||||||||||||
| Senior notes – 5.400% due 2033 | 594 | 594 | ||||||||||||
| Senior notes – 5.150% due 2034 | 496 | 496 | ||||||||||||
| Senior notes – 5.000% due 2035 | 1,983 | 1,983 | ||||||||||||
| Senior notes – 4.950% due 2036 | 595 | — | ||||||||||||
| Senior notes – 4.750% due 2039 | 496 | 496 | ||||||||||||
| Senior notes – 5.350% due 2044 | 495 | 495 | ||||||||||||
| Senior notes – 4.350% due 2047 | 494 | 494 | ||||||||||||
| Senior notes – 4.200% due 2048 | 594 | 594 | ||||||||||||
| Senior notes – 4.900% due 2049 | 1,240 | 1,240 | ||||||||||||
| Senior notes – 2.900% due 2051 | 346 | 346 | ||||||||||||
| Senior notes – 6.250% due 2052 | 492 | 492 | ||||||||||||
| Senior notes – 5.450% due 2053 | 591 | 591 | ||||||||||||
| Senior notes – 5.700% due 2053 | 989 | 989 | ||||||||||||
| Senior notes – 5.450% due 2054 | 494 | 493 | ||||||||||||
| Senior notes – 5.400% due 2055 | 1,479 | 1,479 | ||||||||||||
| Mortgage – 5.701% due 2035 | 239 | 249 | ||||||||||||
| Other | 1 | 1 | ||||||||||||
| 19,537 | 19,587 | |||||||||||||
| Less: current portion | 646 | 1,267 | ||||||||||||
| $ | 18,891 | $ | 18,320 |
(a)For the Floating Notes, interest is calculated based on a compounded SOFR benchmark rate plus 0.700%.
The senior notes in the table above are registered by the Company with the Securities and Exchange Commission and are not guaranteed.
In June 2026, the Company increased its short-term commercial paper financing program to $4.25 billion from $3.5 billion. The proceeds from the issuance of commercial paper are used for general corporate purposes. The Company had $1.0 billion of commercial paper outstanding at June 30, 2026, at an average effective interest rate of 4.02%. The Company did not have any commercial paper outstanding at December 31, 2025.
Credit Facilities
In June 2026, the Company replaced its multi-currency unsecured $3.5 billion five-year revolving credit facility with a $4.25 billion facility and extended the expiration date from October 2028 to June 2031 (the "Credit Facility"). Borrowings under the Credit Facility bear interest at a rate per annum, equal, at the Company's option, either at (a) the Secured Overnight Financing Rate ("SOFR") benchmark rate for U.S. dollar borrowings, or (b) a currency specific benchmark rate, plus an applicable margin which varies with the Company's credit ratings. The Company is required to maintain certain coverage and leverage ratios for the Credit Facility, which are evaluated quarterly.
The Credit Facility includes provisions for determining a benchmark replacement rate in the event existing benchmark rates are no longer available, or in certain other circumstances, in which an alternative rate may be required. At June 30, 2026 and December 31, 2025, the Company had no borrowings under this facility.
The Company also maintains other credit and overdraft facilities with various financial institutions aggregating $120 million and $122 million at June 30, 2026 and December 31, 2025, respectively. There were no outstanding borrowings under these facilities at June 30, 2026 and December 31, 2025.
The Company also has outstanding guarantees and letters of credit with various banks aggregating $149 million and $150 million at June 30, 2026 and December 31, 2025, respectively.
Senior Notes
In March 2026, the Company repaid $600 million of 3.750% senior notes at maturity.
In February 2026, the Company issued $600 million of 4.950% senior notes due 2036. The Company used the net proceeds from these issuances for general corporate purposes.
In March 2025, the Company repaid $500 million of 3.500% senior notes at maturity.
Fair Value of Short-term and Long-term Debt
The estimated fair value of the Company's short-term and long-term debt is provided below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown in the following table are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or need to dispose of the financial instrument.
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
| (In millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
| Short-term debt | $ | 1,670 | $ | 1,668 | $ | 1,267 | $ | 1,261 | |||||||||||||||
| Long-term debt | $ | 18,891 | $ | 18,348 | $ | 18,320 | $ | 18,093 |
The fair value of the Company's short-term debt consists primarily of term debt maturing within the next year and its fair value approximates its carrying value. The estimated fair value of a primary portion of the Company's long-term debt is based on discounted future cash flows using current interest rates available for debt with similar terms and remaining maturities. Short-term and long-term debt would be classified as Level 2 in the fair value hierarchy.
15. Restructuring Costs
The Company incurred a total of $58 million and $103 million for restructuring costs for the three and six months ended June 30, 2026.
In the third quarter of 2025, the Company launched a three-year program, Thrive (the "Program"), which focuses on brand strategy, delivering greater value to clients, accelerating growth and improving efficiency. 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. The Company expects charges incurred to be evenly distributed over the Program period.
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 for the three and six months ended June 30, 2026.
The Company continues to refine its detailed plans for the Program which may change the timing and estimates of expected costs.
For the three and six months ended June 30, 2025, the Company incurred a total of $18 million and $50 million for restructuring activities related primarily to severance and lease exit charges.
The Company incurred restructuring costs as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (In millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Risk and Insurance Services | $ | 39 | $ | 8 | $ | 66 | $ | 31 | ||||||||||||||||||
| Consulting | 8 | 6 | 21 | 14 | ||||||||||||||||||||||
| Corporate | 11 | 4 | 16 | 5 | ||||||||||||||||||||||
| Total | $ | 58 | $ | 18 | $ | 103 | $ | 50 |
Details of the restructuring activity from January 1, 2025 through June 30, 2026, are as follows:
| (In millions) | Severance | Real Estate Related Costs (a) | Information Technology | Consulting and Other Outside Services | Total | ||||||||||||||||||||||||
| Liability at January 1, 2025 | $ | 75 | $ | 42 | $ | — | $ | — | $ | 117 | |||||||||||||||||||
| 2025 charges | 174 | 32 | — | 16 | 222 | ||||||||||||||||||||||||
| Cash payments | (150) | (39) | — | (16) | (205) | ||||||||||||||||||||||||
| Non-cash charges | — | (5) | — | — | (5) | ||||||||||||||||||||||||
| Liability at December 31, 2025 | $ | 99 | $ | 30 | $ | — | $ | — | $ | 129 | |||||||||||||||||||
| 2026 charges | 74 | 10 | — | 19 | 103 | ||||||||||||||||||||||||
| Cash payments | (121) | (10) | — | (19) | (150) | ||||||||||||||||||||||||
| Non-cash charges | — | (2) | — | — | (2) | ||||||||||||||||||||||||
| Liability at June 30, 2026 | $ | 52 | $ | 28 | $ | — | $ | — | $ | 80 |
(a) Includes ROU and fixed asset impairments and other real estate related costs.
The expenses associated with these initiatives are included in compensation and benefits and other operating expenses in the consolidated statements of income. The liabilities associated with these initiatives are classified on the consolidated balance sheets as accounts payable and accrued liabilities, other liabilities or accrued compensation and employee benefits, depending on the nature of the items.
16. Common Stock
The Company has a share repurchase program authorized by the Board of Directors.
In November 2025, the Board of Directors authorized the Company to repurchase up to $6 billion of the Company’s common stock, which superseded any prior authorizations.
For the six months ended June 30, 2026, the Company repurchased 8.7 million shares of its common stock for $1.5 billion. At June 30, 2026, the Company remained authorized by the Board of Directors to repurchase up to approximately $4.2 billion in shares of its common stock. There is no time limit on the authorization. For the six months ended June 30, 2025, the Company repurchased 2.7 million shares of its common stock for $600 million.
The Company issued approximately 1.8 million and 2.9 million shares related to stock compensation and employee stock purchase plans for the six months ended June 30, 2026 and 2025, respectively.
In January and February 2026, the Board of Directors of the Company declared quarterly dividends of $0.900 per share on outstanding common stock, which were paid in February and May 2026, respectively. In July 2026, the Board of Directors of the Company declared a quarterly dividend of $0.990 per share on outstanding common stock, payable in August 2026.
17. Claims, Lawsuits and Other Contingencies
Nature of Contingencies
The Company and its subsidiaries are subject to a significant number of claims, lawsuits and proceedings in the course of our business. Such claims and lawsuits consist principally of alleged errors and omissions in connection with the performance of professional services, including the placement of insurance, the provision of actuarial services for corporate and public sector clients, the provision of investment advice and investment management services to pension plans, the provision of advice relating to pension buy-out transactions and the provision of consulting services relating to the drafting and interpretation of trust deeds and other documentation governing pension plans. These claims often seek damages, including punitive and treble damages, in amounts that could be significant. In establishing liabilities for errors and omissions claims, the Company utilizes case level reviews by inside and outside counsel, internal actuarial analysis by Marsh Management Consulting, a subsidiary of the Company, and other methods to estimate potential losses. A liability is established when a loss is both probable and reasonably estimable. The liability is reviewed quarterly and adjusted as developments warrant. In many cases, the Company has not recorded a liability, other than for legal fees to defend the claim, because we are unable, at the present time, to make a determination that a loss is both probable and reasonably estimable. To the extent that expected losses exceed our deductible in any policy year, the Company also records an asset for the amount that we expect to recover under any available third-party insurance programs. The Company has varying levels of third-party insurance coverage, with policy limits and coverage terms varying significantly by policy year.
Our activities are regulated under the laws of the U.S. and its various states, the U.K., the European Union (E.U.) and its member states, Australia and the many other jurisdictions in which the Company operates.
The Company also receives subpoenas in the ordinary course of business, and from time to time requests for information in connection with government investigations.
Current Matters
Risk and Insurance Services Segment
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In January 2019, the Company received a notice that the Administrative Council for Economic Defense anti-trust agency in Brazil had commenced an administrative proceeding against a number of insurance brokers, including both Marsh and JLT, and insurers "to investigate an alleged sharing of sensitive commercial and competitive confidential information" in the aviation insurance and reinsurance sector.
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From 2014, Marsh Ltd. was engaged by Greensill Capital (UK) Limited and its affiliates as its insurance broker. Marsh Ltd. placed a number of trade credit insurance policies for Greensill. On March 1, 2021, Greensill filed an action against certain of its trade credit insurers in Australia seeking a mandatory injunction compelling these insurers to renew coverage under expiring policies. Later that day, the Australian court denied Greensill’s application. Since then, a number of Greensill entities have filed for, or been subject to, insolvency proceedings, and several litigations and investigations have been commenced in the U.K., Australia, Germany, Switzerland and the U.S., including claims brought by Greensill's administrators and loss payees under Greensill's trade credit insurance policies. The
applicants in the omnibus trade credit insurance policy litigation among Greensill and its insurers and loss payees in Australia (the "Australian proceedings") have collectively claimed losses totaling approximately $5 billion plus interest and costs.
In June 2023, White Oak, a loss payee, filed a claim in the High Court of Justice in London against Marsh Ltd., related to White Oak’s purchase of accounts receivable from Greensill. In May 2025, Marsh Ltd. reached a settlement with White Oak to resolve the matter in the U.K. The settlement was recovered through the Company's E&O insurance.
In November 2023, two Credit Suisse funds ("Credit Suisse"), bringing claims as loss payees, added Marsh Ltd. as a party to the Australian proceedings. The claims by Credit Suisse allege that Marsh Ltd. failed to take required steps to ensure representations made to them in their capacity as loss payees were complete and accurate, and that Marsh Ltd. made misleading statements and omissions. The claims are being pursued against a number of parties in addition to Marsh, and the parties are also pursuing (or are expected to pursue) various cross-claims. Credit Suisse has claimed losses totaling approximately $2 billion plus interest and costs.
In November 2024 and March 2025, Greensill Bank AG (in insolvency), an affiliate of Greensill and an insured entity under the policies, added Marsh Pty Ltd. and Marsh Ltd., respectively, as parties to the Australian proceedings. In June 2026, Marsh Ltd., Marsh Pty Ltd. and other parties reached a settlement with Greensill Bank and its insolvency administrator. Greensill Bank and its insolvency administrator had claimed losses totaling approximately $3 billion plus interest and costs.
The Company recorded a gross liability of $425 million in the first quarter of 2026 in connection with the Australian proceedings. The legal charges and fees recorded for these matters are included in other operating expenses in the consolidated statements of income for the six-months ended June 30, 2026, with the associated liabilities classified on the consolidated balance sheets in accounts payable and accrued liabilities at June 30, 2026. The recorded liability reflects the settlement with Greensill Bank and management’s best estimate of the costs and losses associated with the remaining claims in the Australian proceedings brought by Credit Suisse.
Due to ongoing negotiations and the complexity of the proceedings, including the number of claims and parties involved, there can be no assurance that the Company’s current estimate will prove to be accurate. The actual outcome may differ materially from the Company’s current estimate. The Company may record additional charges in future periods as discussions progress and the facts and circumstances develop. To the extent the Company incurs losses in excess of amounts accrued, such amounts would be recorded in the period in which they are determined to be probable and reasonably estimable.
Trial is currently scheduled for September 2026.
Other Contingencies-Guarantees
In connection with its acquisition of U.K.-based Sedgwick Group in 1998, the Company acquired several insurance underwriting businesses that were already in run-off, including River Thames Insurance Company Limited ("River Thames"), which the Company sold in 2001. Sedgwick guaranteed payment of claims on certain policies underwritten through the Institute of London Underwriters (the "ILU") by River Thames. The policies covered by this guarantee are partly reinsured by a related party of River Thames. Payment of claims under the reinsurance agreement is collateralized by funds withheld by River Thames from the reinsurer. To the extent River Thames or the reinsurer is unable to meet its obligations under those policies, a claimant may seek to recover from the Company under the guarantee.
From 1980 to 1983, the Company owned indirectly the English & American Insurance Company ("E&A"), which was a member of the ILU. The ILU required the Company to guarantee a portion of E&A's obligations. After E&A became insolvent in 1993, the ILU agreed to discharge the guarantee in exchange for the Company's agreement to post an evergreen letter of credit that is available to pay claims by policyholders on certain E&A policies issued through the ILU and incepting between July 3, 1980 and October 6, 1983. Certain claims have been paid under the letter of credit and the Company anticipates that additional claimants may seek to recover against the letter of credit.
The pending proceedings described above and other matters not explicitly described in this Note 17 on Claims, Lawsuits and Other Contingencies may expose the Company or its subsidiaries to liability for significant monetary damages, fines, penalties or other forms of relief. Where a loss is both probable and reasonably estimable, the Company establishes liabilities in accordance with the Financial Accounting Standards Board ("FASB") guidance on Contingencies - Loss Contingencies.
The Company is not able at this time to provide a reasonable estimate of the range of possible loss attributable to these matters or the impact they may have on the Company's consolidated results of operations, financial position or cash flows. This is primarily because these matters are still developing and involve complex issues subject to inherent uncertainty. Adverse determinations in one or more of these matters could have a material impact on the Company's consolidated results of operations, financial condition or cash flows in a future period.
18. Segment Information
The Company is organized based on the types of services provided. Under this structure, the Company’s operating segments are: Marsh Risk, Guy Carpenter, Mercer, and Marsh Management Consulting. The four segments are aggregated into two operating and reporting segments as follows:
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Risk and Insurance Services**, comprising Marsh Risk (insurance services) and Guy Carpenter (reinsurance services); and
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Consulting**, comprising Mercer and Marsh Management Consulting.
The accounting policies of the segments are the same as those used for the consolidated financial statements described in Note 1, Summary of Significant Accounting Policies, in the Company's 2025 Form 10-K. Revenues are attributed to geographic areas based on the location out of which the services are performed.
The Chief Executive Officer, as the Company's Chief Operating Decision Maker ("CODM"), evaluates segment performance and allocates resources based on segment operating income, which includes directly related expenses and charges or credits related to restructuring but not the Company's corporate level expenses. Segment operating income is also used to monitor budget versus actual results.
Selected information about the Company’s segments is as follows:
| Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| (In millions) | Revenue | Compensation and benefits | Depreciation and amortization expense | Identified intangible amortization expense | Other segment items | Operating Income (Loss) | |||||||||||||||||||||||||||||
| 2026 – | |||||||||||||||||||||||||||||||||||
| Risk and Insurance Services | $ | 4,823 | (a) | $ | 2,583 | $ | 51 | $ | 119 | $ | 592 | $ | 1,478 | ||||||||||||||||||||||
| Consulting | 2,602 | (b) | 1,524 | 24 | 18 | 534 | 502 | ||||||||||||||||||||||||||||
| Total Segments | 7,425 | 4,107 | 75 | 137 | 1,126 | 1,980 | |||||||||||||||||||||||||||||
| Corporate/Eliminations | (21) | 34 | 15 | — | 11 | (81) | |||||||||||||||||||||||||||||
| Total Consolidated | $ | 7,404 | $ | 4,141 | $ | 90 | $ | 137 | $ | 1,137 | $ | 1,899 | |||||||||||||||||||||||
| 2025 – | |||||||||||||||||||||||||||||||||||
| Risk and Insurance Services | $ | 4,625 | (a) | $ | 2,462 | $ | 51 | $ | 121 | $ | 548 | $ | 1,443 | ||||||||||||||||||||||
| Consulting | 2,371 | (b) | 1,398 | 25 | 19 | 473 | 456 | ||||||||||||||||||||||||||||
| Total Segments | 6,996 | 3,860 | 76 | 140 | 1,021 | 1,899 | |||||||||||||||||||||||||||||
| Corporate/Eliminations | (22) | 35 | 15 | — | (2) | (70) | |||||||||||||||||||||||||||||
| Total Consolidated | $ | 6,974 | $ | 3,895 | $ | 91 | $ | 140 | $1,019 | $ | 1,829 |
| Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| (In millions) | Revenue | Compensation and benefits | Depreciation and amortization expense | Identified intangible amortization expense | Other segment items | Operating Income (Loss) | |||||||||||||||||||||||||||||
| 2026 – | |||||||||||||||||||||||||||||||||||
| Risk and Insurance Services | $ | 9,874 | (c) | $ | 5,189 | $ | 101 | $ | 238 | $ | 1,557 | $ | 2,789 | ||||||||||||||||||||||
| Consulting | 5,160 | (d) | 2,999 | 49 | 37 | 1,048 | 1,027 | ||||||||||||||||||||||||||||
| Total Segments | 15,034 | 8,188 | 150 | 275 | 2,605 | 3,816 | |||||||||||||||||||||||||||||
| Corporate/Eliminations | (33) | 83 | 29 | — | 18 | (163) | |||||||||||||||||||||||||||||
| Total Consolidated | $ | 15,001 | $ | 8,271 | $ | 179 | $ | 275 | $ | 2,623 | $ | 3,653 | |||||||||||||||||||||||
| 2025 – | |||||||||||||||||||||||||||||||||||
| Risk and Insurance Services | $ | 9,387 | (c) | $ | 4,913 | $ | 101 | $ | 241 | $ | 1,076 | $ | 3,056 | ||||||||||||||||||||||
| Consulting | 4,685 | (d) | 2,761 | 49 | 38 | 925 | 912 | ||||||||||||||||||||||||||||
| Total Segments | 14,072 | 7,674 | 150 | 279 | 2,001 | 3,968 | |||||||||||||||||||||||||||||
| Corporate/Eliminations | (37) | 71 | 29 | — | (3) | (134) | |||||||||||||||||||||||||||||
| Total Consolidated | $ | 14,035 | $ | 7,745 | $ | 179 | $ | 279 | $ | 1,998 | $ | 3,834 |
(a)Includes inter-segment revenue of $4 million each in 2026 and 2025, interest income on fiduciary funds of $88 million and $99 million in 2026 and 2025, respectively, and equity method income of $10 million and $15 million in 2026 and 2025, respectively.
(b)Includes inter-segment revenue of $17 million and $18 million in 2026 and 2025, respectively.
(c)Includes inter-segment revenue of $4 million and $5 million in 2026 and 2025, respectively, interest income on fiduciary funds of $173 million and $202 million in 2026 and 2025, respectively, and equity method income of $18 million and $15 million in 2026 and 2025, respectively. Revenue in 2025 also includes $28 million from a gain on the sale of the TCAS business and a gain on remeasurement of a previously held equity method investment to fair value upon consolidation.
(d)Includes inter-segment revenue of $29 million and $33 million in 2026 and 2025, respectively.
Other Risk and Insurance Services and Consulting segment items consist primarily of costs such as travel and entertainment, outside services, information and technology, facilities and equipment, and taxes and insurance. For the six months ended June 30, 2026, Risk and Insurance Services also includes the recording of 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.
The reconciliation of total consolidated operating income (loss) to income before income taxes is provided on the consolidated statements of income.
The Company does not report its assets by segment, including capital expenditures, as that information is not used by the CODM in assessing segment performance and allocating resources.
Details of operating segment revenue are as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| (In millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||
| Risk and Insurance Services | ||||||||||||||||||||||||||||||||
| Marsh Risk | $ | 4,131 | $ | 3,915 | $ | 7,913 | $ | 7,435 | ||||||||||||||||||||||||
| Guy Carpenter | 692 | 710 | 1,961 | 1,952 | ||||||||||||||||||||||||||||
| Total Risk and Insurance Services | 4,823 | 4,625 | 9,874 | 9,387 | ||||||||||||||||||||||||||||
| Consulting | ||||||||||||||||||||||||||||||||
| Mercer | 1,598 | 1,498 | 3,259 | 2,994 | ||||||||||||||||||||||||||||
| Marsh Management Consulting | 1,004 | 873 | 1,901 | 1,691 | ||||||||||||||||||||||||||||
| Total Consulting | 2,602 | 2,371 | 5,160 | 4,685 | ||||||||||||||||||||||||||||
| Total Segments | 7,425 | 6,996 | 15,034 | 14,072 | ||||||||||||||||||||||||||||
| Corporate Eliminations | (21) | (22) | (33) | (37) | ||||||||||||||||||||||||||||
| Total | $ | 7,404 | $ | 6,974 | $ | 15,001 | $ | 14,035 |
19. New Accounting Pronouncements
Recently Issued Accounting Pronouncements Not Yet Adopted:
In May 2026, the FASB issued an accounting standard update to establish guidance on the recognition, measurement, presentation, and disclosure of environmental credits and environmental credit obligations. Under the new guidance, an entity will recognize and measure environmental credit assets based on their intended use (e.g., compliance environmental credits, noncompliance environmental credits, voluntary credits) as well as how the credits are obtained (e.g., acquired, internally generated). Environmental credit obligations will be recognized and measured depending on whether an entity holds and expects to use compliance environmental credits to settle that obligation. The new guidance is effective for public business entities in annual periods beginning after December 15, 2027, including interim periods within those years. Early adoption permitted as of the beginning of an annual reporting period. Entities are required to adopt the guidance on a retrospective basis by recognizing a cumulative effect adjustment to retained earnings at the date of initial application (i.e., prior reporting periods will not be recast). The Company is currently evaluating the guidance and its impact on results of operations, cash flows, or financial condition.
In December 2025, the FASB issued an accounting standard update to improve the guidance for interim reporting, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The update also provides additional guidance on what disclosures should be provided in interim reporting periods. The new guidance adds a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The new guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The update can either be applied prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the guidance and its impact on results of operations, cash flows, or financial condition.
In September 2025, the FASB issued an accounting standard update which amends certain aspects of the accounting for and disclosure for internal-use software costs. The new guidance removes references to software development project stages so that it is neutral to different software development methods, including methods that entities may use to develop software in the future. The new guidance requires an entity to capitalize software costs when: (1) Management has authorized and committed to funding the software project and (2) It is probable that the project will be completed and the software will be used to perform the function intended (referred to as the "probable-to-complete recognition threshold"). In evaluating the probable-to-complete recognition threshold, an entity is required to consider whether there is significant uncertainty associated with the development activities of the software. The new guidance is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. Entities may apply the guidance using a prospective, retrospective or modified transition approach. The Company is currently evaluating the guidance and its impact on results of operations, cash flows, or financial condition.
In November 2024, the FASB issued an accounting standard update on the disaggregated disclosure of income statement expenses. The new guidance requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement, as well as disclosures about selling expenses. The new standard does not change the requirements for the presentation of expenses on the face of the income statement. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The new guidance will be applied prospectively with the option for retrospective application. The Company is currently evaluating the guidance and expects it to only impact disclosures with no impact to results of operations, cash flows, or financial condition.
New Accounting Pronouncement Adopted Effective December 31, 2025:
In December 2023, the FASB issued an accounting standard update on income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. The new guidance requires public business entities, on an annual basis, to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, all entities are required to disclose on an annual basis the amount of income taxes paid, net of refunds received, disaggregated by federal, state and foreign taxes, and by individual jurisdictions if the amount is equal to or greater than 5% of total income taxes paid, net of refunds received. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption was permitted. An entity should apply the amendments in the standard prospectively, even though retrospective application is permitted. The Company adopted the new standard effective December 31, 2025, on a prospective basis, which impacted disclosures only, with no impact to results of operations, cash flows, or financial condition.
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