• GAAP Revenue Increases 6%; Underlying Revenue Rises 5%
• Growth in GAAP Operating Income of 11% and Adjusted Operating Income of 12%
• Third Quarter GAAP EPS Rises 3% to $1.51 and Adjusted EPS Increases 4% to $1.63
• Nine Months GAAP EPS Rises 10% to $6.59 and Adjusted EPS Increases 10% to $6.93

Marsh McLennan (NYSE: MMC), a global leader in risk, strategy and people, today reported financial results for the third quarter ended September 30, 2024.

John Doyle, President and CEO, said: "This was a milestone quarter for Marsh McLennan as we delivered strong results and announced the acquisition of McGriff Insurance Services. Our performance demonstrated continued momentum, with 5% underlying revenue growth, 110 basis points of margin expansion and adjusted EPS growth of 4%, or 11% excluding a one-time tax benefit a year ago. We remain on track for another great year in 2024."

"McGriff's excellent leadership, outstanding talent and record of strong growth complement Marsh McLennan Agency's capabilities and culture. I am excited about our future as we come together to help our clients thrive."

Consolidated Results

Consolidated revenue in the third quarter of 2024 was $5.7 billion, an increase of 6% compared with the third quarter of 2023. On an underlying basis, revenue increased 5%. Operating income rose 11% to $1.1 billion. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 12% to $1.2 billion. Net income attributable to the Company was $747 million. Earnings per share increased 3% to $1.51. Adjusted earnings per share increased 4% to $1.63. Adjusted EPS in the prior year period included a 10-cent per share benefit from a favorable discrete tax item.

For the nine months ended September 30, 2024, consolidated revenue was $18.4 billion, an increase of 7% on both a GAAP and underlying basis, compared to the prior year period. Operating income was $4.7 billion, an increase of 12% from the prior year period. Adjusted operating income rose 12% to $4.9 billion. Net income attributable to the Company was $3.3 billion, or $6.59 per diluted share, compared with $6.01 in the first nine months of 2023. Adjusted earnings per share increased 10% to $6.93.

Risk & Insurance Services

Risk & Insurance Services revenue was $3.5 billion in the third quarter of 2024, an increase of 8%, or 6% on an underlying basis. Operating income increased 15% to $733 million, while adjusted operating income increased 16% to $775 million. For the nine months ended September 30, 2024, revenue was $11.7 billion, an increase of 9%, or 8% on an underlying basis. Operating income rose 13% to $3.6 billion, and adjusted operating income increased 12% to $3.7 billion.

Marsh's revenue in the third quarter of 2024 was $2.9 billion, an increase of 9%, or 7% on an underlying basis. In U.S./Canada, underlying revenue rose 6%. International operations produced underlying revenue growth of 7%, reflecting 8% growth in Latin America, 7% growth in EMEA, and 5% growth in Asia Pacific. For the nine months ended September 30, 2024, Marsh’s underlying revenue growth was 7%.

Guy Carpenter's revenue in the third quarter of 2024 was $381 million, an increase of 6%, or 7% on an underlying basis. For the nine months ended September 30, 2024, Guy Carpenter’s underlying revenue growth was 8%.

Consulting

Consulting revenue was $2.3 billion in the third quarter of 2024, an increase of 3%, or 4% on an underlying basis. Operating income increased 9% to $462 million, while adjusted operating income increased 7% to $478 million. For the first nine months ended September 30, 2024, revenue was $6.7 billion, an increase of 4%, or 5% on an underlying basis. Operating income rose 7% to $1.3 billion, and adjusted operating income increased 7% to $1.3 billion.

Mercer's revenue in the third quarter was $1.5 billion, an increase of 2%, or 5% on an underlying basis. Health revenue of $520 million increased 8% on an underlying basis. Wealth revenue of $625 million increased 4% on an underlying basis. Career revenue of $307 million increased 5% on an underlying basis. For the nine months ended September 30, 2024, Mercer’s revenue was $4.3 billion, an increase of 6% on an underlying basis.

Oliver Wyman’s revenue in the third quarter of 2024 was $810 million, an increase of 4%, or 1% on an underlying basis. For the nine months ended September 30, 2024, Oliver Wyman’s revenue was $2.4 billion, an increase of 5% on an underlying basis.

Other Items

The Company repurchased 1.4 million shares of stock for $300 million in the third quarter of 2024. Through nine months ended September 30, 2024, the Company has repurchased 4.3 million shares of stock for $900 million.

On September 29, 2024, the Company entered into an agreement to acquire McGriff Insurance Services, LLC, a leading provider of insurance broking and risk management services in the United States, with $1.3 billion of revenue for the trailing twelve months ended June 30, 2024. Under the terms of the transaction, Marsh McLennan will pay $7.75 billion in cash consideration, funded by a combination of cash and proceeds from debt financing. In conjunction with the transaction, Marsh McLennan expects to assume a deferred tax asset valued at approximately $500 million. The transaction is targeted to close by year-end, subject to regulatory clearance and other standard closing conditions.

Conference Call

A conference call to discuss third quarter 2024 results will be held today at 8:00 a.m. Eastern time. The live audio webcast may be accessed at marshmclennan.com. A replay of the webcast will be available approximately two hours after the event. The webcast is listen-only. Those interested in participating in the question-and-answer session may register here to receive the dial-in numbers and unique PIN to access the call.

About Marsh McLennan

Marsh McLennan (NYSE: MMC) is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of $23 billion and more than 85,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit marshmclennan.com, or follow us on LinkedIn and X.

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS

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

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

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

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

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

Marsh & McLennan Companies, Inc.

Supplemental Information - Revenue Analysis

Three Months Ended September 30

(Millions) (Unaudited)

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

Revenue Details

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

Marsh & McLennan Companies, Inc.

Supplemental Information - Revenue Analysis

Nine Months Ended September 30

(Millions) (Unaudited)

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

Revenue Details

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

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Three Months Ended September 30

(Millions) (Unaudited)

Overview

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

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

Adjusted Operating Income (Loss) and Adjusted Operating Margin

Adjusted operating income (loss) is calculated by excluding the impact of certain noteworthy items from the Company's GAAP operating income (loss). The following tables identify these noteworthy items and reconcile adjusted operating income (loss) to GAAP operating income (loss), on a consolidated and reportable segment basis, for the three and nine months ended September 30, 2024 and 2023. The following tables also present adjusted operating margin. For the three and nine months ended September 30, 2024 and 2023, adjusted operating margin is calculated by dividing the sum of adjusted operating income and identified intangible asset amortization by consolidated or segment adjusted revenue. The Company's adjusted revenue used in the determination of adjusted operating margin is calculated by excluding the impact of certain noteworthy items from the Company's GAAP revenue.

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Three and Nine Months Ended September 30

(In millions, except per share data)

(Unaudited)

Adjusted income, net of tax is calculated as the Company's GAAP income from continuing operations, adjusted to reflect the after tax impact of the operating income adjustments in the preceding tables and the additional items listed below. Adjusted EPS is calculated by dividing the Company’s adjusted income, net of tax, by the average number of shares outstanding-diluted for the relevant period. The following tables reconcile adjusted income, net of tax to GAAP income from continuing operations and adjusted EPS to GAAP EPS for the three and nine months ended September 30, 2024 and 2023.