Marsh & McLennan Companies (MMC) 22 Jul 212021 Q2 Earnings call transcript

Welcome to Marsh & McLennan's Conference Call. Today's call is being recorded.

Second quarter 2021 financial results and supplemental information were issued earlier this morning. They are available on the company's website at mmc.com. Please note that remarks made today may include forward-looking statements, including certain expectations related to COVID-19 and other matters.

to cause uncertainties, materially actual contemplated such subject of a from are by may factors results statements. statements risks and and variety those Forward-looking to differ

to of to the and most Marsh available XX-K, recent our website. factors, discussion all this including our detailed filings, & recent more release for McLennan a please For on refer most our SEC of earnings quarter are those Form which

financial call today, also measures. we non-GAAP the During discuss may certain

to now the Marsh refer Glaser, measures closely over a comparable in please these For CEO & reconciliation Dan measures, most to today's GAAP of of to and President earnings turn schedule McLennan. the release. I'll this

Dan McLennan. Good for our us morning, quarter discuss thank CEO to joining you of Marsh President Glaser, and today. & results and I'm second reported earlier

quarter. McDonald his of Executive Committee, had and I years Oliver Nick me Carpenter; call I'd Marsh many second the Wyman the Hearn of July Sarah his On & an our our of like is Marsh; this the of Investor Difficulty] morning Ferland John firm. the practices became and Oliver Nick McGivney, Martine contributions to leadership. Dewitt, of has CEO for Also behalf career of of CEOs X. is Head Scott in many Relations. distinguished Wyman’s Wyman, [Technical McLennan who Mark Peter on Joining of forward of thrive major also Nick the grow led and to business Oliver to Doyle Wyman. Studer, businesses, with Guy us to with welcome CFO; and today Mercer; XX during look continue at Oliver seeing under outstanding his thank his want

an We have a and from abundance of benefiting opportunities. well-positioned

by from this solutions for is challenging We uncertainty the may time the largest and be economic in and advice four broader conditions. benefiting of are] and what the in have our There high capabilities strongest are demand rebound, decades our face [They nearly region, led [indiscernible]. stronger U.S. of market

[flight] high stability, to us a runway And as the gaps about workforce of business We there's to small it's quality the market we are growth is world, contributing And penetrated as new which protection growth talent. think of long and such a attract seeing around emerging risks, commercial. major for and client and helping retention. future levels under digitization,

for any focused and quarter quarter. are on the second brought an capitalizing opportunities am of excellent of of each record The best We year. on results our our I growth. proud earnings, two poised] geographies, We and our in decades revenue an was these all our of execution quarter generated in strength growth of the and seeing [earlier businesses major acceleration underlying based virtually in with

despite XX% and expense an impressive increased comparisons. EPS adjusted generated margin Our by challenging expansion we

As we countries the major outlook we the operate ahead, encouraging. most for the is look economic of U.S. in and

where is over there limited. pandemic And many Vaccine risk. creates availability parts hesitancy the However, is of world the yet. not vaccine are

case rising experiencing of world a the with variance. the wave much result, a is due counts of As pandemic the to another spread

economic recovery from shape the is addition, before. In different this seen we've of any very

is are opportunity is for inventory shortages. uncertainty time growth are & of The issues, significant dynamic and and disruption, by this this businesses. Navigating chain some industries impacted while being thriving, recovery. during for landscape Some even supply others labor Marsh confounding McLennan challenging,

diversity climate guiding risk, as the tackle cyber, the and our clients and issues like as safety normal, complexities well disruption. aiding and well are employees and inclusion, helping We being, them of workforce through new

talent our expertise. rest clients high and our Our provide differentiated ability to to quality solutions on

deepen with one we to see pool. in consolidation, a meaningful hiring number are competitive and colleagues advantage. invest potential opportunity world-class industry our the And Our for talent our

as mentioned and resurgence momentum efforts strong and quarter, We focused last our expansion. have are on we

we Let of of helping clients address me complex day. the our issues how are some provide examples

cybersecurity Specifically is to to critical of clients affecting the segments and number data public our Marsh is leverage healthcare. infrastructure and Cybersecurity Increasingly, organizations technology recent with high become resilient. two risk. help & manage across and a helping more rise relationships we major clients sectors to chain all to profile our climate attacks businesses one [facing change. challenges, of and with partners McLennan ransomware of are bringing continue private and society]. expertise, greatest cyber together and Supply attacks, risks all from

we are only cyber through our clients transfer about better insurance our John measure we assessment collective clients. but Under their strategies. risk inform Our Oliver helping growth risk cyber we cyber insurance. in of businesses, participation to our the mitigation leadership Wyman are and through quantify Guy the of clients Doyle, risk of across transfer to placement risk and to decisions bring Marsh, solutions Not the capabilities cyber in enterprise leveraging beyond from tools, extends help with well exposure cybersecurity, and Carpenter,

how help all challenge of action, is of Studer, how a resilience anticipate present second clients bringing with for landscape. companies efforts as businesses our constantly build and climate for broader everything face our and is We obvious evolving face. respond, defining [our consequences firms call long-term our the help deal in immediate to clients climate touching time] change. risk, topic ESG are A before, from strategy, multi-dimensional a the opportunities. is communicate. response climate has companies part challenges changing by Nick are to The clients during, to though climate more input resilience proximate complex, broader and Climate Led in together to questions the threat, virtually to strategies change various also as their and for they we Even threat events, incident that of issue threat as after with a well workforce, and of stakeholders.

economy low manage risk. Oliver example, a to insurance businesses working is climate transition carbon For and Wyman the in clients to our with support

We to risk the development clients a protection management understand responsible with positioned against are light impact pools testing to models, and climate fiduciaries and assist them We solutions And Mercer’s uniquely could providing climate challenges. with impact investment stress gaps. most clients and quantifying sustainable [indiscernible] in changing today. Guy climate technologies. and pressing how to climate impacts. of clients returns And develop our change, Marsh helping we business the are of assisting investment the to business with Carpenter, investment and carbon protect de-risk anticipate their Overall, Services Insurance of models, we're bridge future help to help investment innovative in

a on market spend insurance me conditions. PNC moment current Let

the The price property Marsh Global up insurance rate mind, increases global lines business. quarter. casualty price modestly low inflation and first while remains in rates. Index The marketplace. second index concerns and Insurance our and The on commercial PNC X% steep U.S. and insurance large skews up quarter cyber but marks up to Market of the XX% XX% XX% of Global continue workers in about moderate, high were rates increases, pace driven versus XX% was XXth the account Keep financial to in consecutive in elevated increases interest compensation declined global and the average, were professional part by still the rates quarter reflecting loss quarter. of in increases showed activity year-over-year

of market accounts. for is large the U.S. and price to less increases small complex rise middle pricing as continues However, insurance than magnitude well, although

Measured double-digit reinsurance, Guy index an a quarter, just increased moderate to Carpenter's market to rate deploy than reflecting ago, In and the single-digit at and X% willingness increased adequate rate [indiscernible]. orderly online increases catastrophe of typical Turning capital after property was years the capacity. more were rate second global two balanced increases. year and

However, losses expertise extreme and constrained where like beginning events, significant hurricane in It most certain is remain lines, these shine. have capacity weather in programs and losses lines higher the inflation, saw business, that a times increases capabilities of on around Concerns cyber. and of our notably new remains season. certain

help clients working are the environment. navigate to current We our hard

Underlying Now, a the T&E. Consulting. Marsh and our year generated basis, Total on by is quarter of underlying let underlying in two expanded basis, and in on XX% the ago quarter, which financial in growth highest revenue an turn growth and versus and of results. operating growth adjusted versus in adjusted growth We revenue a increased top RIS of second $X.XX, operating posted a of year-over-year. XX% line highest adjusted XX Overall, me growth in nearly ago, quarter continued fantastic year low the on decade. stream stronger strong rose revenue renewal up EPS grew driven points benefited levels in record growth. an of the two to Wyman grew quarter XX% decades second an underlying the income revenue excellent XX% underlying the decades. XX% its quarterly quarterly XX% our and reported margin Oliver grew saw Mercer XX%. highest underlying basis Carpenter X% was the And in XX%. almost from quarter, in continuing business underlying the XX% Guy basis performance.

of full-year our be are out growth underlying we will the look As date, we well growth positioned. to With revenue XXXX, year for X% strong. rest

persist favorable the least the at expect We to market for of year. dynamics remainder

challenging. pace the quarter Although become second the growth of as could year-over-year comparisons moderate more versus

full-year review also for to me let Mark expansion of margin that, in a results. more strong it expect our the EPS. generate turn detailed and With to for growth over We adjusted

and Dan you, Thank good morning.

XXXX, significant growth second best decades, quarter in were our underlying margin the meaningful and earnings. quarter Our excellent growth in record included the [growth adjusted with performance Oliver results in Wyman. at revenue from XX growth Highlights years, earnings, second expansion Guy first underlying since Carpenter two quarterly of the solid of the the rebound market] quarter record X% in strongest in Mercer, reported and in underlying strongest

rising quarter revenue share in quarter quarter more X XX% per any of quarter growth increased of the EPS a to was pace earnings the to billion, operating X.X increase than to and second decade. adjusted our [XX income billion, increased increased adjusted GAAP EPS the Adjusted XX% XX% $X.XX reflecting at adjusted growth underlying Consolidated the $X.XX. of an XX%. was XX.X%. income impressive, X.X in fastest margin prior points] quarter Operating XX% billion, the also was and increased and operating to year. in basis over Second

For X%, basis XX% XXX our to margin points, six operating adjusted operating the increased our and first was adjusted revenue underlying grew growth increased months EPS adjusted $X.XX. X.X our to to XXXX, XX% billion, income

up million. our billion, income or quarter ago operating margin XX.X%. XXX at X.X basis. XX% XX% increased points to second on million, was compared Looking revenue expanded & and basis Insurance XX% XX% year a increased operating to Operating with to income an adjusted Risk Adjusted underlying Services, XXX XX

was recorded we delivered months XX% driven was quarter Asia of ago, half and underlying solid Pacific was billion with X of margin For exceptional growth the we revenue the of was U.S. of at growth up XX%. to a of year, X.X the increased revenue reporting Adjusted quarter compared Marsh for with segment. underlying X%. XX%. operating retention. growth underlying first up by highest the was growth year same six XXX basis region and the was the income Growth excluding billion the grew first with the ago. year ago, Canada was XX%. an a was XX.X%, year in basis. on business revenue up At period result a international, robust March, in billion, The XX% XX%, new from began and America since up underlying of year X.X XX%, XX% XX%, points impact a In revenue Even underlying the Latin with EMEA the broad-based and adjustment quarter another revenue this up

or million, For the international XX%. quarter Guy underlying first the quarters. Carpenter U.S. Carpenter’s the X underlying underlying with of all on second and revenue basis. ago billion X up a was of specialties. in XX% Marsh's has of an with up Growth growth now X% broad-based growth revenue and growth or Canada XX% and X compared was Guy year, was XXX achieved X%. year XX%, was across underlying was geographies months higher six last

rebound XX.X%. XX% from of consulting a operating Adjusted revenue XX% to million. [and] six the quarter half for underlying first up expanded the first Mercer’s income first Adjusted representing million. billion, growth underlying for year revenue in XX% to of X%. XXX generated generated underlying XX% segment, X.X six first year, an million X.X the the increased XXX basis, of In operating the from income of X% billion offset the in by on growth. Consulting in X% margin a to quarter. revenue increased the decline confidence. billion acceleration on increased XX% was points months representing of year billion underlying basis, the X.X an underlying underlying the Career to XXX ago basis, management reflecting XXX and strong up meaningful adjusted increased an the quarter, XXXX, and For of X% Operating the defined reflecting investment by a in on operating on or benefit. basis. the Wealth growth was income economy revenue grew modest X.X basis months XX% Guy Carpenter and business an

Our underlying the Health internationally. new XXX XX% grew was assets from XX% the an the benefiting growth to in influence under XXX and underlying quarter revenue delegated sequentially, increase year-over-year, at on market and of by X% an the in billion net management up driven revenue quarter, of gain. million, second end was strength quarter Oliver basis. Wyman’s X%

contraction the quarter we saw quarter from year. in last Second results rebound a second represent the sharp

of revenue Adjusted an year, was million XX XX% increase Wyman the For X.X expense an at second corporate months Oliver quarter. first the billion, in basis. on was underlying of six the

a to quarter. benefit in earnings Exchange the Foreign modest was

rates have EPS exchange expect year. of we FX minimal Assuming impact at a the the for current level, remainder remain to on

net XX the However, in asset credit quarter. was million

For approximately consistent million private the in of with forecasts, Based quarter our reflecting reflect in XXX the of other second quarter. basis, level of the second the basis, second in portfolio. third XXX adjusted current expense we gains net we debt expense equity mainly on our Investment and million expect lower on quarters was million to year, million, on remaining be second income in the period. benefit will compared quarter expect GAAP quarter the XX XX and in credit a mostly the an quarter. was our Interest interest in the XXXX, levels on XXX the two million

rate second XX% year. in second XX.X%, effective compared adjusted was to the the quarter tax quarter Our in last

accounting discrete compensation. largest the from tax Our for was of the share benefited based items, which rate favorable

approximately items, XX.X%. our was adjusted effective Excluding discrete tax rate

on a second the UK was XXXX. tax to from items. XXXX. in The tax of excluding the impact of of year. half continue deferred in rate the due revaluation effective and year, Through tax tax effect environment, effective XX.X% increase that an the from $XXX in XX.X% in Based the XX% an compared last was Our goes to rate expect adjusted GAAP up XX.X%, reflects with the our discrete first XX% current quarter second increase quarter, the liabilities, tax between rate XX% adjusted statutory XXXX, into we million for rate

economic mind for balance the expect the Keep top As and our to growth. we second favorable the of remain we in favorable out comparison currently revenue growth look year, quarter line rebound strong, for the most faced reflecting environment. the year-over-year

result progress more rest expenses combined we this of the comparison. of continued the with through As will in year, normalization challenging

performance momentum we second businesses full-year. continue, and have in the a in half in expect our trends strong positive terrific However, to resulting

which total of in deleveraging. sheet, April, our completed billion Turning XXX quarter notes a of we to XX.X This related and capital management million balance reflects of repayment our ended senior with debt. the JLT

XXX debt of mature. scheduled of notes in January [when] senior next maturity XXXX million is Our

the approximately to X.X third dividends, which the continue repurchases capital develop. level week, XX%, how increase X raised in is at M&A and XXXX. repurchases. of more and our will share pipeline the on Last deployed deploy largest We dividends to possibly will of which depend ultimate of since billion billion acquisitions, The expect across least share we be XXXX, quarter

stock second We quarter. also for repurchased of the XXX million shares our X.X million in

was acquisitions. repurchases, at XXX and million XXX million. XXX million for of second million Our for Uses the included the XXX dividends, of the million and for cash in quarter share cash position end quarter XXX total

for Dan. we second first billion revenue that, and to and of positioning XXX growth dividends, X.X deliver And the to back strong million XXXX. to repurchases, well it XXX XXX turn in exceptional included acquisitions. million share an earnings both cash with total for million months, had for Overall, I'm adjusted and uses six For us in quarter happy

ready to are operator Q&A. and Mark, Thanks we begin

question [Operator Our Fargo. Wells first Greenspan Elyse comes with Instructions] from

line open. is Your

comps but, of is half morning. second year. growth organic Good a the the outlook, bit last was in year, first the still the thanks. little My QX harder question do recognizing negative Hi, know, on you get the

are what the So, like little given question about you guess cautious my a you economy. guys I is, positive, sounds now, bit but know

it it's the is double-digit over year? know, growth organic sounds possible, still remaining we it possible, quarters You see like the of could two

So, we economy. fearful about obviously, got as how very and and not we're we're good Mark momentum, was saying, positioned, that we we've feel the about

but, and COVID, waves resilient know, spring certainly about XXXX. the in fearful continuing somewhat world than many the the are economies We more of of in they have parts are of you were adjusted

severe the growth high-end even X% XXXX waves last be so with higher. our as and quarter impact, economic X% mean, to COVID. that seen, And continuing said I be at we've of we what impact the of range won't as possibly Elyse, would

I think say months, we're that at in the category. it's X% six higher underlying growth through safe to

we feel We set just And We're good us. You base position. a year. as XXXX good earnings a intend very about very XXXX to well. and in revenues to new have going going is grow our know, to for

So, not going to this be wonder. a is one-year

Okay, side. that's question my margin on helpful. And the then was second

as said T&E I growth guys, you Dan, helped you the you know, well. revenue So, that know, some has drive you come not back, pretty you impressive both know, also, but think fully margin that, improvement

on So, second remains we us can improvement? back, and help also strong, the margin the of especially some revenue the margins, half think know, just about you through, impact half the maybe the you back think if coming see year could T&E resulting

margin of how year mean, we expenses. we an the by expansion year, a of pace Margins grow grow expansion. we will revenue our run start we our every at faster than this business. and that's in year the consecutive expect our how margin saying I'll outcome XXth I absolutely Well, be that are

I about of be you back overly the back think T&E may this really year. roaring optimistic half in

gradual, And that more think the think I And I about ours. traveling. think be same it's with companies, slow, very thoughtful purpose and expect more not I will going will providers travel just be to will actually. clients and & McLennan like Marsh of

do And way that of to, may you quite that so, from know, XXXX back you but levels, time, T&E and kind know, a point-in-time. be expect away we hope over gets we

that's overcome our know, strong pleased that line – said, minus in from. expansion driven look at our by a [for of with you comparable, last And us]. XX us that margins] it [yes the are bips, You at like which top margin was expense of I expansion up And very the quarter. us were it quarter second was we – a helped XXX margin line helped largely bips mean, in top year. as our X% on but top that's came where look

where are. So, we we like

We ultimately the margins don't will year. every for know feel may that but right we grow not the It good now, quarter, be for year.

question Next please.

Our JPMorgan. Jimmy next with from Bhullar question comes

is Your line open.

Hi, good morning.

organic just in such higher PNC that maybe mentioned to periods? So, price on might as of other comps, you in were demand or extent growth, pent-up certain hikes the same tailwinds, future there benefit the just easy again, industries obviously any in not repeat

comp a levels were year, of X. growth X last easy all. high Guy mean, Carpenter’s March comps at The know, just was was you of I Yeah. because a not

So, in exactly it terms was not comps. of layoffs

is than stronger behind foot. is the right combined getting we us stronger, our U.S. organization the think integration] and what front pandemic real in the [family and and went focus I from is well economy that now, emerging the on momentum

is flight was tailwind, generation strong, a quality business disruption based. our from benefiting New and the stability. growth broad Retention we're is and was and pricing to across And businesses. terrific

revenue revenue very of growth, lot the a are about future. are we into factors are there that growth our good that and feel So, underpinning

to share then over you buybacks, million in first And pace you spent XXX Okay. did the that's over I XQ prior XXX a for than And pandemic. higher the on think half. typically

of should last of year it back assume not more going more up or is this rate a from is forward? we catch to – So, buying is stock be going run a

ultimately, And to don't believing capital every the we that of money we'll same waited and its in one an catching is a share spend own we've with approach the every adventure. buckets period up approach versus in not of three that said We're balanced repurchase, but management, as [every before, year], other. each year start and principal our dividend, have we acquisition to not

large mean, of be is million every part function know, And acquisition the not perfectly uses XXX so I half a our XXX like, looks XXX share you of of acquisition. of activity year what and share purchase repurchases, pretty of was our in dividends, first balanced, might but balanced.

think mean, or I and a it we see Mark deploy. have that saying, the I is you’ll from at billion to So, X.X approach end, balanced more as us. was

generation We type are cash a of company.

is we're grow to going high So, is put shares. to a This to to We're be not dividend. buy quality We're I that's our toward this we're going money every going to again, going firms going dividend. year-after-year. wonder. our own one-year an and acquire mean our year, back

Okay, thank you.

Next question please.

Our next David ISI. question with comes from Evercore Motemaden

Your line is open.

a Good little to talk wanted Hi, morning. thanks. bit about the expenses. more I

guess, favorable Just comp the as relatedly, I operating on side. Like, not off there? else as back, I a thing? COVID-XX? expense one continues still you I'm expense or sort to more you know, you and realizing changes sounds due That's in estate were the up, roar not of anything expense it as year-over-year, to only know, would the much benefit. pretty X% thought. you result like tough are but there pretty going a sustainable guys saves T&E a wondering despite that operational I be real if mean, to was have And up know, some saves, expenses of other of

it's more significant so will Also, well. in as going some The doing estate of or right than [indiscernible] more to several T&E And in we've the gains that know, that's operations, just, over undergoing next and a years. future – hopefully are projects purposeful, and efficiency on you been real as us on growth nearly is, our in cost the along I frankly with I growth. compensation. our good our the a see We're two has headcount our variable expenses six they competitors first coming And the year, some their opportunity thing Most mean, of is on up It's with and biggest going of general we a distraction this that's realize XXXX. and David. grown market, benefit think question, now. And you of biggest is the they're Marsh, good within months certainly traveling number having we're is modernization that as mentioned that element hiring. capitalizing in technology uncertainty.

know, expense is at from. it's time. related the headcount But you where we know, that's the now. market and of right So, end, growth compensation more that, we’re good to related And pretty manage expense can to feel that the over in coming about expense you we

building of on industry have. talent know, the pool our leading already business already You and we building

course, definitely the I had Great. more tail follow where a that you are much on I year where I something that getting just X,XXX growth as than there's some something thought, Like, you of is, is guess you just much guys significant. headcount of Yeah, then once that can this know, in, think, or to talent, know, is guys know, have that's back maybe over, it's, you of was still consolidation And is to that's know, you a sort and the are that through that's headcount. I is, that, of hear. know, sort continue year capitalizing good you period you up you not that? have? a mean, where how thinking does time like uncertainty you of normal there, it's how end that – the on think know, the this, you I of

begets talent talent. I think

environments You in is the times prior are talent way the And its in are that and was in course more I the Willis It's with have three a issues the than basis Aon at short-term the Willis recently people from post, to run or higher the mean, looking dedicated know, that creating people opportunity are Aon, XX attracted attract. on of announcement. one like you a in months announcement will the creative, it stats hiring I more was particular, people. just that other. the to smart, work you net clear

So [powers] our run doing that's not ultimately, formidable forever, to and already going capabilities best we're within to build but continue our to firm.

question Next please.

Our Shields with from Meyer next KBW. question comes

line is Your open.

Thanks.

questions what two So, talking were you related to about. I think

to to when the tailwind or was in the margins a stability, a headwind First, you flight that about quarter? talk

the think indicates our levels are they stability in new that be. account I to otherwise would flight higher our protection business than

a be. It's would a be otherwise an that the So, margins to it only impact not benefit higher than revenue revenue, would having in but expense. because is benefit not on

new perfect. in Okay, has competitive you And of environment? on out bit fantastic a the color there. then the a obviously, reinsurance, what's like was companies happening There little are, you for long-time. been are a us lot seems there organic I growth it more know, hoping could give

number very pleased with can Peter to but dig deeper. we're Guy we off over in I'll of performance know, a little You hand bit Carpenter’s a years, so

take you that? Peter, want to So,

Dan. Thanks, Meyer. Yeah. Thanks,

the We past have, we've several enjoyed a terrific over years. run

from a able of a model, and capitalize Our on sales we're know, based over period to wins, consistent pipeline compelling from look a quarters Meyer, wins, new growth business came at clients. of new business from coming the clients, amount significantly, new that the result in grown of Disciplined and of on business we the has our that model XX% QX as that have extent resulted over that past very new was number and both in around our revenue as to is, growth new XXXX, you time, new several long proposition. business

produced that you out new have know, of challenger to on based we're are we continued on mindful, us So, of are has there brokers a number that built. we all for opportunity over the compelling very continuing growth long worthy of have seeing our you and know, But proposition believe we a sustained time model a Yes, a we basis. competitors growth period there, adversaries. be and

Thank you. fantastic. Okay,

thanks Alright, Meyer.

please. Next question

comes Our question from with Meredith UBS. next Brian

open. is line Your

here. Two Yeah, thanks. ones quick

what speaking, break impact if Just one, revenue growth the Dan, exposure market generally call organic gains, could you just rate wondering speaking? versus growth First from down share was I'm generally at Marsh? versus in

up anniversary [have hand decades. If down to are performance. grow just but best at faint. is our couple you break a speak how line you top Marsh we XX%. In This We with growth year the in phenomenal start saying XXXth company. the can by I'll of little over it particular, want a in John, more? GAAP in was bit? the overall thrilled a John, I to But bit by got a growth you little all could a – its] know, question, I’ll just but, the

Brian, question. Sure. the for thanks

mentioned, As we last both during earlier, the a the it Dan little of pandemic]. the and about of pricing benefited from our that soft his certainly year in PNC about XX% Dan year revenue The quarter rebound, environment, sensitive second to prior is [indiscernible], pricing. [speck relatively of talked proud bit growth economic remarks a Mark in

we're really want commission, quarter. the rate compared pricings, they of from areas. where quarter to of where held but first have and increases to emphasize year, quarter While come really last different to it's down we sensitive the number that well also modestly, in we But executed I the get year of this fourth a

difficult. up. delivering Our as as before, as They're of strong bit focused as know, I been. were a do it's rates know, been are on team they you while highly catch remains our again, think, clients. market much And quite engaged, It's, you they nearly ever is even there's aren't the for challenging.

examples in is new markets, transaction business. our very You a we're in with quarter. But case. are construction, again, the results some in pleased where risk there's results, the amount In in it's so know, whether of cyber of that in the or fair there

Brian? else, Anything

that a is, then some and of Great. kind Aon run approvals, That's great. second Thanks. M&A the little and looks that also question into now talk of your can has the kind you like about, now? Dan view M&A kind strategic Willis environment have all of And the issues at have kind here, of what regulatory changed right bit with of it right

It impact. No. had no

stretch come time our we're the of generally our the team Pipeline that it then other really with M&A and capital them not streams, better businesses. Our over like quality We it's approach. for to and each that deciding and that's in a strong clients buying, our generation, philosophy remains are know we us together. requirements, and recurring figuring remains low place, it's not to high getting and be us, believe a history throughout firms separate. And than up us, revenue in basically long leadership for and outcome for high selling, success is sets together will it’s cash of a out, buying people

you as know, of acquired fact, strategy more year McLennan building. Marsh long, you agency, in decade & last the which highest than within know, In revenue was terms been has a

a I about world. capital good very feel there's that. obviously, mean, we So, lot the in of

has ways Geographic anomaly what pearls, was with been JLT manifestation in time and a not we specialty know, in for capabilities. combination are thought long So, [indiscernible] biggest results, JLT, where very is that need pro have, and most particularly than an We would long it we because was have was careful together, going been coming one relationship, are a period combination because some higher at were be strategy of Growth of our history. for type clients, acquisition, to acquisition building time. forma perhaps that. multiples better, [indiscernible] in like. operation. company's of for very but period we of of something And it you're evaluation seeing our the you because better we've because the we it's know, of And looked cultivating our our broad a a selective more you and private. in to of be companies a string mega acquisition, of the of is But our

you so, kind that's, are. And know, of we where

on thoughts Our changed. M&A not have

Great. you. Thank

Next question please.

next Our Research. comes question Ryan Tunis with Autonomous from

open. is line Your

thanks. I about a Hey, of thinking just guess, couple consulting, Good morning. things.

more it challenging just comps difficult, focus back with any call been visibility half that, all, comps guess, I guess of becoming the some year? Mercer, the the Wyman, any that about the that First of obvious within you're organic, And XX how is on on just get much I of that Oliver sounds on, thinking there. color it has the sort about more

the Martine curious and months on, back looking give quarter half? of – three could some business maybe in you perspective us you I'm at at developed of So, the now, sort we're how know, the if where

before, sort you business our fastest glad just more of over big that to I’m of performance, will it Oliver you Martine, is It Wyman comments a part our part be stretches of Ryan long consulted. a a we've that our couple off I'll time, tend then volatility. but to first. and hand have, grower of of big but with over and me say know, mentioned and let One, Nick to first

of And so back to second yeah, the quarter minus year look last XX.

recent [this it's love of history. together, difficult put we XX], periods and X% but one ultimately the human them over in more So, you

quarters, And terrific we does wealth, X% XXXX, know, got X% in other terrific that's growth and tick go growth, underpinning with growth some a of the back and great well the on held as then Mercer so businesses, to you in last if then And X% you result. and health, pandemic year. X on very throughout hand, sequential first is career, of ways, minus box quarter up growth, a you in and [indiscernible] know that. in end yeah, some the Martine work. And expected XXXX. the And the X% Mercer growth

that pace the in to, It Martine same to same So, of going pre-pandemic. to you getting getting back quarter. Mercer are sort and the a back second terrific processes the back existed know, is result or

to we'll Let's start Nick? with go Nick, Martine. and then

comp. the in to much. where back an it's affected impact greatest The was it's The the was Americas, that demand, referred from sectors, growth the highest in the the for and very in very rising Yes, as particularly economic performance. then suffered which take, you very materially, pandemic the which and sector, conditions And the business if Dan you the broad incredibly from, Thank said, both through and coming by base. confidence and regions strongly. seen transportation rebound have the adversely to most as sector example, the the with sharp thrilled springing pandemic in U.S. been have a client we're the last year, quarter

see healthcare, of similar Europe industry Asia quite And also at Americas Pacific rates. outlier, places all this robust. global skill were some improve, even the high, region we growth was and return and know possess. industrial of applied of confidence lot labor think financial the in remarkably it a the also all semblance do to is actually you across we And operate. growth what some going groups outsides in conditions the our the While of market that major And in QX economic we remaining an in services, we in consumer set business outsized normality see as the for consoles

a decent the year. outlook business for for the we of have rest So, the

Thanks Nick. Martine?

workforce. the for Thanks along Times of in We’ve for a lot pandemic And absolutely think where the helping growth quarter back. business with the have would a be of through most more There's post the discretionary regions. there. have have connected been restarted the But spending it's the came bit come that we [on out Wyman Oliver a was this out clients little the operating. war and question. talent it's Similar there. Wyman the our projects. There to I asking Oliver career,] said a projects all really moment demand their to worth we is pandemic,

demand for rewards, [indiscernible] their as accelerate and for to sets, digital technology. companies and demands transformation, So, skill skills, assessment, newer engagement,

see wealth And wealth balance combined a investment is our wealth, size management clients type is this rest quarter business, structural DB the of sales, that in we you implement all is the modeling for with little our business, of on momentum our providing some that than our flight is, another management well. X% and growth And in And research, the go year portfolio helping and the XXXX. clients. because where some portfolio governance which see with a I can the questions we there, to sustaining the see becomes smaller part the moment good ESG all in Again, particular, [sub-divisions] I to and strong life should deep we strong as we same is this that beyond of XXXX. investment our of and have cards think solution. lastly comments for we bit. year. In for So And on the and [DDI], seen QX want know in business. spend be asset [through] tailwinds business our did since years, decline, actually OCIO the than in We not you have which the manager business where [indiscernible]

Thanks Nick, thanks Martine.

and strategic well, then on using just can for Doyle evolved update guess And Dan it. as importance I Got just, time? the over the an follow-up John Thanks. brokers you side how maybe wholesale a and of us on PNC that's maybe give

interesting take and it an over it I'll hand to Yeah. John. It’s question.

what lot different of I skills. my wholesale [indiscernible] they quite the really ago. exactly wholesale some ways a in years XX think think a with or brokers Those know, what in are back areas career, specialists you in like I lot of good in really that, become XX meant

talk appropriate. specialty to of wholesalers? want placement more might use But I about you be think John,

Sure.

part certain respect focused their And particular, need You we on to when [ENS capabilities. in markets, know, specialty insurance, [Technical largely specialty Difficulty] the we [Technical access Difficulty] access certain certain insurance] to most it's distribution wholesalers brokers. use

but clients wholesalers our for own the the teams. I extent States. we most well, for quality we're happens happens United our part our outcome from some same as that came say Like us. efforts that back almost with utilizing have the a preferred States, specialty United other delivering of For risk in in originated relationship a States, we and the the of a focus in United utilization marketplace no London it from kind the making sure To couple

Next question please.

Thank you. with comes Instructions] Sandler. Piper [Operator Our next Paul question Newsome from

open. is Your line

of some My you there Do the gains. organic system these the congrats morning, full thinking on a think It’s it for kind hire happened. and you of happening year of to year of for acquisition to kind for drag benefit the effect? moved is it sense the that's market to, about today so we new things that positive the kind about as of sort I'm people, the potential Good integration of JLT a share these a read and question persistency what's was through flight quarter. a quality? on impact takes, of as about should a on revenue a of kind me the there's and really think to little growth of seemed of you and year-by-year through bit the about how kind back

we're you Yeah, know, company. I by start an saying, awfully would Paul big

generally, capabilities, So, add and to our more our capability, broad talent, we etcetera. build to make decisions content, to skill,

to As amount opposed over of cost course and the going is this them expect oh, to to amount couple next years. the of us this person that we produce necessarily saying,

will are that's some you book thoughts culture know, but of businesses to is might how and producer, is firms, that But expense senior basic this what the a premise that? know, hire a on, content the capabilities. firm John more as buying, get produce, of are focused your premise Your more on We're true, operate. and people building generally revenue just they much that broadly, that we first if you be and what they not involved unlike you later. the is [PT] it's their come then think some Yeah, not of with you know, we this just

premiums insurance The this personal of market measure. I've a about shares estimates will XX% is year. hard to thing grow read some

then, the So, cannot as market share. then, for you use proxy yes, a that if you we know

know picking I [indiscernible] up new you know, mentioned construction, earlier, some You we're business, primarily.

in And Our the number drive which All at speaks time, it's talent offensive when that's the to in to up to at growth. we're success I future and considerably the [indiscernible] time. win better, of historical same think rates been is up of investing going RFPs, the quality defensive RFPs are passed. it's look the compared I RFPs, the levels,

have momentum, pace], means we and excited what we’re about So, good for [indiscernible]. that [on us we're

Paul? Anything else,

it that more you of on bit business share, [indiscernible]? there little a X looks that it came Or benefits like the a your is some market just in everywhere sense? terms businesses, were really gains, in Yeah, fair

level] growth company. business we've since seen, at [lowest is I've certainly, been of the This the that

notably to companies you're put market, I a of our And And in different growth one many and so it segment, market relevant spots. small middle an is would as people, risk strategy government, global that Large the you know, to on got it last the got in whether focus occurring our completely our the you business. our three fundamental organization the number segment, advantages you approach to starts large you have down best-in-class And to of a acquire competitive how lot or advantages. work those if match We've businesses. that They're that that with footprint, over people, JLT. up any further can of way don't And those competitive even are in most a advantages. we done capabilities We gone years, of we've culture. segment, for competitors have quality the in through continue things. acquisitions to account those

and success. Our number focus on quality, of is one history

kinds of particularly brokerage. risk our all commercial, so got awareness know, is you we've general for and digital, middle in scripts, We small market And spoke And climate about opportunities. in much in higher. that's cyber,

we're you were our we're than as more before, closer strengths And know, mentioned I've never more We're ever we leveraging connected. brought like so, collaborative before. And than ever the – We're maybe combined pandemic before. before. us

you together win of in are we're come and know, business. a And the market. And force factors all that's going going So, those we to more formidable to continue.

you. Thank great. That's

question. Next

President over back like I remarks. would and any of the to you. call closing now McLennan Thank to & for CEO Glaser, Marsh turn Dan

Okay. first. Well, a that's

and the with everyone thank dedication for this work, Thank and morning. very Okay, quarter. you on appreciate next to but us want colleagues McLennan, I Marsh much. forward joining their & speaking hard I look you call I to our to commitment, XX,XXX

This for concludes you today's participating. conference call. Thank

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