Marsh & McLennan Companies (MMC) 21 Oct 212021 Q3 Earnings call transcript

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

Third quarter 2021 financial results and supplemental information were issued earlier this morning. They are available on the company's website at marshmclennan.com. Please note that remarks made today may include forward-looking statements.

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

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

the and CFO; this of of Carpenter; Sarah on & Head Nick Mercer; McGivney, me John the Dewitt, morning Peter and CEOs call McLennan Martine Hearn Marsh today Investor Mark Doyle with our of outstanding us of Wyman. Guy quarter. Also another businesses, of Marsh; is our had Relations. is Joining Ferland Oliver of Studer,

our quarter momentum third strong across all Our reflects of results businesses.

current strength the environment Our of execution well combination represents day-to-day continued firm. as impressive a as the across

Although geopolitical solutions. and there in environment, volatility demand continues and our to differentiated advice be the we solid macroeconomic uncertainty and for are seeing

vaccine rollouts a continues COVID-XX parts having pose the risk are as to world, impact. many Even in positive of

dedicated including McLennan digital exciting our colleagues talent. to a leverage strengths diversity on and And and business for the the concerns we innovate our to deep of dynamic our to address future We are strategies. inclusion, pressing their the work core outstanding is organization we advantage are bench cyber, continue to clients help of to work, place climate, collective most of people. and taking At and to world being class opportunities our of & add focus an Marsh and of

different constant their how have & such profitability. McLennan’s firm climate XXXth level, with emissions comprehensive and impact. assessment provides plot clients are and risk analytics Doyle across future their just this year to their for of design the them. sector to quantitative skills unique Risk we and resilient from deliver innovation Cyber climate our success of acquire, retain with helps government we investment last quantifying at for of long like expertise I'd of a private the week October and John and clients critical future a identifying under Wyman we XXXX will both sustained our In launched product tools initiative. Analytics and This well few and the in the Oliver As regional together the Skills-Edge, discussed skills important climate effects actions. are Mercer an and to to assess, firm and we into cyber We our to corporate future the and to that enabler most re-skilling represents the value insights controls significant believe the provides requires Marsh wide leadership and of and of And leads climate sector. technologies positioned path a launched supports recently be climate over time navigator talent issue. and help and public determine to client to of examples this period discuss drawing insight employers a demand new brings climate a Nick innovative a solutions. on Center, business recent significant and opportunity Studer company. low work. view carbon action the leaders existing a economic develop threats across the vital as allowing through cyber and industry platform rapidly and leaders transition give investments goals achieve of science, strategy organizations innovating and employees the growth data We just multiple potential carbon these reduction in insights Skills-Edge launched long-term

enterprise are examples solutions offer and We just the recent a bring are concerns. we few address of one our knowledge across firm pressing together and clients most to and and leverage their these comprehensive how capabilities to

happen, and the vision, the colleague press a business. results and XXXX XX%. XX%, short-term in annual any nearly closing consistent significant a by always our grew as by client We commitment, growth growth demonstrated and by mostly period investing making our alignment, Growth is on for adjusted execution. or X% time EPS the and total our while emphasis consolidated of long-term. decades generated Achieving it strive year-to-date growth requires headcount we adjusted base record. XXXX company an just around in at adds while EPS for sustaining same the roles. our with In by acquisition organic JLT than our to higher consistent investing We delivering year-to-date by hiring. are track We grown XX%, our future in doesn't that three on revenue reinvestment over Since facing takes the we've balance

clients. capabilities, will of serve expect growth, enhance We ability talent influx to add and drive our to our this

consecutive place. marks second The commercial market Insurance the quarter. the XX% market PNC let with Many to years current inflection PNC insurance XXth an in market few Marsh near-term. continue in suggesting the showed last price market is of over rate conditions. update harden index drove me the insurance a market the increases soft Now Global increases year-over-year on an quarter of factors the provide This consistent unlikely the to of that

on professional pricing at Looking doubling driven digits single up in cyber casually were in by were up global rates, Marsh line property up by X%, average. a global market index lines showed part was and the global financial rates high and insurance XX% near

index business. large a reminder to account As our skews

as However well small to large complex and rates less for than continued accounts. middle although market rise insurance

reflecting losses both them the these that and moderate by measured Turning in challenging of remainder difference and of reinsurance, a the global This in half losses in elevated and property marks to continuation significant remains is China, flooding catastrophe another & the losses. persist risk and continuation around global level of addition parts market large individual year XXXX catastrophe in increases the Marsh witnessed inflation, helping Europe, in focused reinsurance concerns record Hurricane real moments catastrophes, capacity generated and clients Northeast. conditions of matter. a McLennan many offset adequate throughout XXXX material Southeast social of our could end losses the year first on of of rate in to Ida for the navigate in flood a world. the wildfire making losses. in

strong turn year XX% let is by Now rose ago year our underlying increased driven and terrific versus levels versus me an XX% line generated EPS revenue continued third financial quarter on basis. XX% up performance. to and Total of low ago a We growth $X.XX which of top a adjusted T&E.

Carpenter XX%, on in The in new XX% year-over-year. second underlying RIS over from grew in the growth in and and an points consecutive revenue operating expanded underlying decade. XX% grew quarter of basis quarter, adjusted strong Marsh Underlying third margin a record XX% XX% decades. quarter basis in second revenue XX%. revenue XX an basis adjusted of underlying benefited the renewal in Guy quarter Overall the grew XX% and saw on Mercer in the grew results. over business the and continuing grew growth. consulting. its underlying highest excellent quarter in growth operating X% of quarter underlying Oliver Wyman consecutive the excess of income our string two

our are track for excellent and performance year-to-date Given on quarter third terrific a year. we

in two the the decades XXth adjusted and EPS revenue year. growth generate to over consecutive for expand expect underlying We and best margins

With evident Our entire aligned more excellent on our to is turn that results. and review our over a is it this focused Mark foot, let for its me and detailed of in organization results. front

Thank morning. you good and Dan

a our increased EPS increased quarter adjusted per Our growth the growth, in to XX% in Growth and earnings share XX% quarter adjusted quarter in in the for and second Wyman. and increased underlying income and basis X% XX% of million and XX operating consecutive at quarter $X.XX quarter to XXX row. with our underlying underlying revenue, the million, Guy XX.X%. revenue Adjusted income GAAP points margin margin at EPS XX% growth second of consulting consecutive XX% Consolidated straight and third from quarter and quarter third in an to Marsh exceeded double-digit RIS Highlights at Oliver in third in of quarter reflecting quarter of billion increased adjusted increase of Mercer second XX%. $X.XX. underlying second with was to XX%. results was were included performance expansion, XXX outstanding the XX% XX% significant growth. the X.X with earnings XX% XX% Operating the Carpenter growth operating record

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

quarter X.X to increased income basis to an or Operating adjusted operating with and points XX% expanded ago the XX% our underlying risk million at Looking on year basis. operating up revenue margin insurance also XX% services, Adjusted XXX income million. was to third and billion XXX compared XX% increased XX XX.X%.

was nearly XX%. revenue XX% and quarter XX% the and basis. basis with was with delivered year, retention. Adjusted U.S. XXXX, billion X.X on another with of Canada ago. compared income margin broad exceptional nine Latin Pacific for in based the it’s nine first XX%. XX%, in of growth quarter At the points up business from growth underlying a months of was the was Marsh X%, quarter driven X%, up billion year ago months up Growth EMEA fourth America period an operating same XX X.X quarter new growth billion, best underlying and was solid increased For the revenue by international underlying or of grew revenue In the the a of year growth XX% with since first the X XX% up Asia was XX.X% X%. to year of and the growth underlying the

basis. income Mercer’s million. nine of months up For based Marsh's XX% of growth and GAAP revenue XXX continuing the X.X increased quarter on the underlying underlying margin for XX% ago Canada defined underlying global the highest underlying and adjusted XX% the the was months was over million grew basis Growth of geographies billion and XX%. to achieved in representing margin XXX X.X X%. strong underlying X% Guy year, revenue seven growth nine third year nine X% business underlying Guy XXXX. benefit. XX% XXXX on broad nine ago basis the operating has the specialties. across billion increased in underlying the underlying of confidence. points year X% last of operating XXX adjusted In Adjusted months modest an was X%. in XX% was rebound billion Guy line was Wealth in growth billion and quarters. basis. XXX the XX.X% basis million. growth first and on year was the with X.X income revenue revenue in an revenue investment generated in In on Career X.X nine quarter to the underlying on year an X.X operating the third X.X XX% to the of both growth with and reflecting the and months of Carpenter expanded compared first the of economy quarter U.S. result or income of margin from Consulting first a Adjusted was Carpenter for XX% up billion in billion up first the XX% Operating increased an was now up reflecting generated underlying consulting and increased quarter in to decade. XX.X%. Carpenter’s operating international in a with growth. growth or the higher the of basis, The the management segment XX% revenue

delegated XXX the and market increase underlying year-over-year This from XX% Wyman’s across billion by X% quarter in end quarter the more third assets on of million, XX% gains. the Our to the nearly up U.S. of the geographies demand management at grew consecutive under new growth practices. represents inflows Help the net an outside growth driven quarter revenue growth as XXX remains underlying benefiting XX% and quarter Oliver than revenue an in second basis. strong most was was of

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

a in had negligible earnings exchange Foreign impact on QX.

levels a quarter. at to rates headwind fourth FX exchange be the we remain in modest expect Assuming current

portfolio. was Interest XX quarter. to reflecting it debt million in on the will the on on the was the to net the other million million XXXX and basis basis quarter. this interest in quarter quarter XX and equity level expect we in benefit the lower third fourth XXX forecast the in third Based quarter expense in gains an in the compared was of remain Our adjusted expect credit current on amount levels we million our in and a private similar income GAAP be quarter our at XX XXX Investment mainly the with period. quarter third in reflects fourth expense million

quarter quarter third last third compared Our adjusted XX.X% the was in XX.X% effective the in year. with tax rate

quarter for rate adjusted excluding impacted tax with an compared tax and unusual by last between the XXXX adjusted was year, Based effective first year. which to quarter XX% in discrete from XX% the third the XXXX XX.X% GAAP down our rate third rate continue items. the some the environment items. effective nine tax XX.X% months of Our expect we XX.X% was in XX.X% of Through current was on

on are outstanding we performance year. year-to-date our for Given track an

Looking that fourth rebound given in challenging mind fourth at comparisons more the keep become the growth in the quarter in XXXX. of specifically quarter

to and for by We hiring. build long-term also continue the investing

have the continue excited consistently with we these so. ability will That benefit expect we to today for short-term. are investing we results in and while deliver, we they about do our costs said, future While the exceptional future demonstrated investments come will upfront deliver absorb the to

XX.X debt. of Turning our with to sheet. billion capital balance management ended quarter and total We the

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

in on deployed expect to be share will X acquisition, XXXX capital which repurchases least deploy to share across at billion at continue M&A the dividends, repurchases. The billion pipeline develops. depend of and of least We of X.X level will ultimate how

Our billion. XXX end quarter the and position XXX for cash quarter X.X million for dividends, the at million for in cash repurchases. XXX the XX share acquisitions, of was million third of Uses and included million totaled

for Dan. totaled in months the earnings million us cash million and happy million and positioning quarter nine For to acquisitions, X.X and million well repayment. of first share uses billion debt strong it both for XXX included adjusted to with XXX repurchases, dividends, for XXX XXX revenue XXXX turn third remarkable and a deliver I'm growth to had We in that back for

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

Instructions]. Thank you. [Operator

Greenspan Our line first Elyse Wells Fargo. question comes the of from with

goes Hi, seeing first color growth. hoping in to get good on the and to continued third done, the impact margin it have I you're hiring My line seems more guys to was morning. question back top that quarter. both you the

these come coming of given get hires from that that I potential the XXXX? to RFPs to some think renewals margin you coming side hoping alluded in and well as from growth on of I'm could potential on the as just hiring. a through expense But sense the [indiscernible]

We've it years things it leaves Yeah don't all Yeah, gardening XXX so the at long thanks we're much. been for haul. definitely that for us like bother in Elyse.

that and we've As head majority is XXXX in we Carpenter done growth the mentioned and roles. the growth up in hiring course in count is client the firm the across the highest script, far facing Guy year-to-date nearly of percentage of by our Marsh is and

are our year not engine other that, we business, our increased to a growth, and and generally will be like colleagues said revenue beyond. benefit than capability and are And But talent XXXX our so having grow of we undoubtedly in hire next hiring production. people short-term may direct and that rather firms we

know the in to Sometimes all very that. it takes an expensive. about that, of to of And factor we're bit a to are and pursue worry out and don't our producing base, integrated optimal the it's there's at anyone not But time hires capacity talent to of get business. is into hiring. fully a firm own want run it sophisticated comfortable levels all worth why terms with of we We course expense face And how their long-term with that's this I cost the we why shy but there it. level

Our basis and then I ratio on QX at and on a a four five go comp ben if locate basis rolling QX quarter look back four quarter identical. years and virtually rolling is

So, and we're time doing over doing the we're building organic company, it through it acquisition. through we're

Next question.

follow-up. my then and Thank

Elyse. ahead Go

Morgan. line question with Jimmy Bhullar Our J.P. next of comes the from

Thanks, go a and we ask Elyse Andrew not follow-up. her did back chance later because to maybe to she get

morning. Hi, good

in as could clients on had a rates about you of just sort and now? going now much primary seeing question then a have I facing So talk they're because on how well pricing commercial of up price are you going if that and what's for been price as pushback reinsurance a from while

That's a tough we very the there. a reinsurance. good address start John and afterwards primary to and we it don't is will markets And question Peter we'll market Jimmy. go out then with Why in

John? So

morning Jimmy. good Sure,

are public the getting globally noted although up the is being about United X when up but underwriting inflation it's our think pretty cat in The about quite financial market The pricing the in market inflation, quarter. remained it's for and an price wildfire XX flood challenging prices is lines the a comp rate up plus market. you difficult D&O attention as on double-digit in from market for for average our clients losses things cost versus exclude social up the points remain work still XX been of really underwriting from with pandemic. the in increase, secondary that particularly that I lowest quarter. related you second which excess conditions plus As closed the quarter, second XX% during on having last closer where about obviously were our in and average United market States, was was was pretty although community said the worried wind XX active in Cat -- lot quarter but courts the challenging the up and perils the the points reopened lost community quarter. moment market in to States of PNC is second most clients, It largely was that property the pricing the consistent increase remained The about competitive. versus the the here ten that X quarter market

So a see starting about market bit on is more wear as ransom sure well growth the Without settling with, driven familiar market than that to concerns material challenging at of I'm little that where up prices work. most moment events. the question average plans is XX% on as the were systemic you're in by cyber

remain We have what potentially that had about compared concerned a few modest to could that. happen underwriters events but maybe

frustrated there's about active asked risk, You for in that clients, a premium manage more by are and some we've certainly sure well. growth in been new as retaining and the creating captives it we pretty captives a

then to and also retain some risk. more is cases electing our are retain in more Some forcing the some risk clients of to course market of

So, it's exposure client exposure. and by client by

see add United the a it price globally, navigate working said on was one increase same States on was global you our look we The was are help -- at that although average basis. most exception great As the average I Dan the markets the did moderation. really to clients will aggressively market. when the

John. Peter? Thanks

reinsurance perspective. Thank my on from of a John insurance what you comments Jimmy, has said Dan. a reflect lot perspective

and global rate low inflation. and top XXXX. something facing approaching You we're dealing market losses capacity interest billion have social in $XXX real in of They're that on with with environment dealing of share had

last reinsurance affected because But influence to losses. $XXX a capacity say prospect been that billion So X/X/XX. will through that of property the I has there's safe it's lunges have at market five of years, you pricing think losses plus at market to look over property various the that by

has the and I look stabilized been If and reinsurance you significant the casualty has -- significantly. say casualty the rate so at market Property would reinsurance, lift cash improved market, stable. more contracts underlying

same is the element of and now reinsurance, if I would there right cyber. suggest, one it in says hard our true John As is market is

I they capacity property allocated cyber hit aggregate that capacity with at and catastrophe think amount same they looking way reinsurers certain that’s aggregate it. look the at once of are it

would and believe for or market X/X So, pricing you pricing of any as I we experience losses clients be don't own significant we as fact on and the challenging. say fifth had equilibrium reinsurers we finds quarter preparing the are its know is at that expect market what now to the a exposure opine result But our on year might property have they going that this the given certainly is based X/X.

Peter Thanks have Jimmy do follow-up. a you and

is your change else from to footprint long expenses near-term of provides ask or will a a that I going Maybe whatever term, about more just you term the but think going estate depressed one the there assuming benefit? resulting obviously and are longer on as that things expenses it's to you think real you're stay in I'm whether lower you T&E pandemic

when I at biggest most pandemic, one of look of of model. the impact scale Yeah, think sort I will is the organizations and -- hybrid adapt the size features our mean some will of that we

week most X X in the X, over for five days office X I think to companies. of a the or are to days

over And because established your you've we and the longer-term the impact time. want social so that sure we're in how It's will this distancing have a will got short-term some and develop office an in not leases impact.

that flexible. space our efforts be mean to is efficient in that a to going use view. on years over certainly bit I not going we're So many of quickly had continues. and accomplished become move to deliberate But our it. that and we've We're quite that and we've more

will look are And think quickly to level back the we will a we Marsh probably our think quite purpose, more various & know And with I going people not deliberate we we yes, in come view clients trips. travel on won’t will of and that markets is be where T&E We we I well. it reach their day and in may for But less also travel McLennan visit in expectation have with that our will more about that while. as to forward location. XXXX clients a

that long a ever. come anytime anywhere culture on back hop time So quite a probably if to plane takes

will so positive long-term. in things better efficiency is at and I that expense other of throughout firm shareholders And we're for us be the say And efficiency we both drive those seeking order working gains to have become would and implications gains constantly for the the thing in to are operations.

So, why it's don’t I the little turn the operation. it headcount And increase our efficiency area. in to we John for a -- significant in talk in some there in that some stages OPEX of can about its a count because was early pretty drive was effort second, head a growth within so Marsh in but bit to

you John So, talk second. about to want a that

Dan. Sure

in We worked engaged things our our aggressively investing and JLT. come the are the purpose But hard working we in team, been the talent colleagues ever will one well. largest I brought and the worked our with year ever bit history on hiring the facing are this a about in We and we organic the say have earlier. that excited teams operations has deeper together with with as and as we strong to client it's our it service culture and Dan -- focused. really team We on we're on highly touched market are began quite at starts of it. year been.

excellence capacity service to have for our to market outcomes called client improve a of OPEX, improve as short but operational efficiency, program to colleagues facing increase well. We the broad also

in in So of just we're the try supporting automate service and not processes. a our is and centers around with to more hiring amount technologies. that talent, fair more of talent of came course investments world it We

Thanks John.

Next question please.

And Wells we with Elyse from Greenspan question a have follow-up Fargo.

Hi, thanks me for back. taking

back Elyse. Welcome

shakes far You growth year, how guys see so reported QX XX% the out. we'll this organic

within to it'll So put been range to Obviously seems next be hiring a of double-digit incremental to like better year for guys that all as this have Typically, year. revenue X% the you we've talked year the X% this well. to view. you

So the thoughts about growth could an initial think fourth typically share but could till I organic we know us the with some us guys you initial just you you give that XXXX? quarter, view, for outlook when wait

OW Sure, of start idea X%, bit And a little quarter grew in was X% line last the X%. that Mercer top just Marsh down sure. grew I'll challenging, year, fourth X%, and the becomes Carpenter more quarter right. the with Because fourth grew

across got the good piece, but feel bit little and So in good this we've the year. tougher, business, a momentum about we

also next year, we and improving good been feel decade. We last after. I year the over the have mean, about fundamentally company the

breadth, to address in growth our on basis. of account stronger and areas account, on improved of what We have I are large those and and to you're a or believe mean, strategy, a strategic ability capabilities, I a here midsize dramatically have, the we the getting I happens the the we strategy I geographic that risk, mean markets, organizations people. care don't I mean, our have you culture our talking And are mean, companies organization really the is our advantages. of of you are suite it as think areas and serve. what quality all those well. and I risk incredibly C enduring size, without nothing advantages colleagues. relevant talents have we whether fundamental we to competitive global were those the our broad that to we all before, organization, address we footprint, as people. broadly enduring capabilities, are have, competitive the And

and in middle us the In particular, improve to which market improve acquire side. businesses acquire talent in market, capabilities. our and continue also brokerage We on the

touch to better continue middle upper market, still market large get in we're lower we're weighted account, then and lot opportunities, as growth gotten of middle expansion small into into mean broaden well the just and there's the mid commercial going we're consumer. So, to to market a continue to to on I and opportunities, going middle better, we've

see areas those us You'll in all of future. in the

business. climate. Now, like market how protection all terms from leveraging of a of areas We're never this on before, societies, out but inevitable those massive narrow healthy I of to one basis. going going in seeing strength change a the be not our them client’s just cyber gaps, to issues some enterprise it's of addressing on broad were we our is and with year organization next, to mean combined our in we areas one the as basis, not build

to And won't level. of exceeded out revenue in for opportunities broken the XXXX are that X% X%, a growth, X% I having you my not now but, right view so significant. I tremendously number for the think our but give only actually

can firm this think rather than McLennan. to then do like and will at think that real times I Marsh so say that a be it'll over and the & exciting opposite, company we be We I growth time. prove

Next question, please.

next question from Motemaden Evercore David line of ISI. the with comes Our

I'm still Hi, wondering, back I and the headcount then a XXXX did that just in on at adds thanks. that so of -- headcount on XXXX question come? looking just just XXXX. impact in or new first I the you any quarter the XXX the of half quarter the this and Good fourth had morning. added growth all have organic on is of

Yeah, it's negligible.

of last of year. from we've it's benefit end revenue and year on some done comp. seeing But at that are hiring the the into most this We

bit you get -- a be to revenue you later. away expenses get and the the right tends So

point, Got it, And that follow-up just last to thanks. on Dan.

hired if of any rule operating give to you Just big that quarter this quarter weighed maybe in or hiring me year-to-date, quarter, number the about think on new much there you've of XXXX sort XXXX, said sort really the sounds is I -- just how on can of and just this headcount, specifically? take like thumb that you it's margins any

a going now not result. the into I'm expense bearing we're as get that Yeah, to

I very well One, hiring one our anticipation, been the think growing twofold. market and is the also the that reasons opportunity. have line we pressing -- we of are on that on top and was

compared this pressed And so spurt choice this advantage and ultimately to we we through of in we going in view at driven pressing growth by levels but to dislocation new sales are expense us, much very forever, to of hiring. not and profitability high to -- that At much is and an of market an is compensation by sales of higher but compensation in and space, the compensation historical we benefit relatively saw higher in due variable our are factors expenses on moment business, our opportunity end, employer hard and for type The hiring but really time. the our other it's compensated last our essentially level. due levels growth are expense

driving ben levels out. revenue matching quarter comp But our itself So of of ease our current expense most growth it's and well of the sales, is in will with and growth. most

build firm the to this tremendously we So organic an within capabilities basis. time on opportune that feel was a

Got it, makes you. sense. Thank great,

question, please. Next

the line Shields next of Meyer Our from question comes with KBW.

could growth Two was EMEA Great, thanks. you hoping I markets? bit questions. We going an quick and individual fall-off And acceleration sort a of revenue of in organic in talk those what's Latin in about a saw in America. on

Sure Meyer, that. take John do you want

us a really We in but tougher weren't both in bit variation. you that in growth Hey that the to either. did quarter, expect Quarter-to-quarter, in non-recurring nothing continue of obviously, both forward. have any they perform some comps EMEA pleased and am extraordinary is to can I material and in I Meyer, regions see territories the going with the happened it all issues of region.

Okay, thanks. the wondering, that that a there wouldn't the like more era is post pandemic obviously, any And specific element growth to phenomenal. then I'm organic is growth recur? of broadly, is

We're a It's find out question. going over time. good to

world because higher, is There's issue risk that awareness higher. I one I think the is in the in to organizations, but and the just say it not is bear extent always which was companies such us which issues ESG, And opportunity and considered far people the to around as awareness is of is far today. is whole for nearly awareness higher. areas not, mind in by think others I categories

And growth you about what's world, so all when with new etc., going areas us. of climate these to on D&I, investing, responsible think are the in or just regard for

we is think things forward which a going by major a as our it one of us about basis. on climate, think You even firm XX ago like and considered probably opportunities growth was years not

I going ESG leader and developed public be market the It's to and enormous would being everywhere. now want all companies. world just the to so, kind at a it's in ESG we we of right And be say as addressable companies on look

market large significant the is will quite be standpoint, player addressable from it. going in so be And that a to and we

very you thank much. Okay,

please. Next question,

question with next the of comes line Our Mike Wolfe Zaremski from Research.

follow-up Hey a Elyse's, too. guess maybe to morning. I and great, question good Meyer’s

time, M&A -- -- sandboxes thinking you're we curious just new you've really or about kind should your talking of capabilities, Marsh's this into sandboxes over I'm So, been in about while this of kind just currently? technologies talking changes about you're broadening exciting, it a areas M&A is same or of what kind which views new categories if on be are

And us like with build business like us to fit recurring them. is sandbox sandbox areas of then them, we we firms firms. You strategy broad mean bit elements at also is you'd have what was I think, based lot and at. firms benefit on actually at. can that our some earlier, of with I that to of is look acquiring But the the acquisitions we M&A narrower criteria continue advisory to kinds that than our that a will Doesn't -- like have of and transactions. revenue, can We and the adjacencies of mean, we people are we've it's be enable areas surprised the that our we that's mentioning risk know, quite see we firms that all think capabilities broad, it. and if benefit, I where we I very actually executed the M&A even look to there, but a as see all maybe out would financial

at, like the don't money or we frankly, look figure we And the we and in say have generated liquidity -- some the can’t being available, and world look but XX things years and whether and and out amount to at we the that's not. interesting, we worked it just of it it's of company, boy,

a financially also us but build basis. acquire help only things our capabilities, we're incremental so an only want that on disciplined not we And and to acquirer as well, if even

probably execution I lot We X basis. and we very sandbox, XX So, we're things last continues a the a on has on over but have narrow that that level things of broad that say at execute we to. look and been our relatively years really or would committed of

expected guess hiring in my items are hiring margins too I you're we maybe, saying spurt continue on that thinking of of as I harp because results kind I be near the have influence, outer you we and guess, not that sounds maybe when that the impacted slows, Is should it main And much -- be and we term great. just new to comps but about the about? were there project your should so in guess, easier were follow-up by hires. -- should be other excellent and to Okay, years? thinking then excellent. it like some But, margins

Yeah, I wouldn't of Ultimately, fret the about about look you over mean, first we've times, all, in said many margins time. the expansion of stretches I to have quarter. margin longer

from have point for basis improvement. remarkable a consecutive and years our really are margins improved XX We the results

in and XXXX, bps that's on is XXX up margin and year-to-date Our XXX of bps XXXX. top XXX in bps

than next this year be outcome. operate the and our the we margins another role business, it to but way that's they would expect and margins going are are so better it's So that an our year, I in

we where how growth the we're and firm, table we drive going year the every Now, to going underlying to margin, how the certainly it consistently. that's firm drive don't to what done outcome think we focus revenue growth needs and we out of what not of the growth. run quarter is the exceed And out around sit we That's we're figuring and earnings. figure do how but we've margin every do expense we expansion is the

lot What is being where around earlier are. and a we're mentioned so, growth compensation thrilled about is we right profitability. around increased of the by expense that, now I driven And sales,

I really strong, and so be strong. very remarkably in earnings our And good place got is to growth

And so your I question. hope that answers

Next question, please.

line Our question the comes Meredith of next Brian UBS. with from

questions. Couple thanks. Hey,

see First, the XXXX? some that just growth simply we curious, that is free free flow, year-over-year, just earnings with good to production should cash right you're cash now having let's and hires start expect flow here, due down to

for hand it to am I going off to that. Mark Brian. Thanks,

XX% decade. Thank you us over on think if -- year. X% we look free free across back the growth you, Brian. we're we're statement up year. of have cash of Actually, Year-to-date, up double-digit flow. in that's free But for and over flow a been quarter generated are a and a even cash year, a to with time a growth growth happy that story great really happen We've has I cause flow long volatility lot careful. can There's cash period cash you and the be with flow go and this in last in year-to-date top cash you flow free

a above stair is up year growth last any think I So pretty big good.

our cash So I is that's strong what's and much enabling this so capital. overall, deploy think generation year to us

based just here, hot Great. obviously markets. inflation Dan been It's has question second helpful. question, a And more the across a topic, really just then broad

what's point? kind at when going on lines, on seeing us clients stuff of started give and pressures inflation market, it the not you as perspective relates this are inflationary insurance for some to of handle your kind you Just of and commercial with right or now any particularly claims

I'll what clients we're because work company inflation, to can the say, Why revenue then little better mean, hand historically done a expense that and react our to elements to Yeah. I in such are we're manage take from sometimes and and any tend just to and seeing base. and hearing some don't expense we I in managing still we've as periods. you higher inflation so Martine of markets. the base we our in inflationary insured with we've a base I our and that of way as bit runs revenue proven John conversations do and mean, values, inflation,

is the last is there about, risks economic mention also you of lot potential we've navigating on is of the environment, and environment, I'll reading mean, in that have office on all variants, all features that the coming inflation I months, the positive of the and going a not there's return are time real about chain But spending up, consumer positive. tremendously we're United get are so to lot a economic to tended what just sales or But particularly difficult years, say, up, So look a it is. bead the one forward, business I to issues them. supply a when States. is to confidence we've economic looked overall, well. And, to do inflation. over the XX probably around mean, the concerns and inflationary over periods we've the outperform back biggest four just be performance been quarters COVID so pretty

from and inflation, that forecast in starting not But that bad. most and you X% note clients of GDP year so go for John, what hearing to and with around then are do markets range, next I X% kind Although we'll Martine.

on am claim hearing cat Peter more I that maybe certainly were the mentioned billion side second. just concerns than multiple start on for a earlier $XXX the And losses. I'll levels,

supply further losses. Of the temporary challenges that But further, exacerbated issues course, in we're inflation, it's typically will, related kind accustomed of to demand surge are cat we're you around if markets. chain by those seeing

the really level in of States mean, around evidences So yet what itself. ultimately, couple is I pandemic, costs the reopen concern mentioned jurisdictions as of and the after and show around the other courts lost some claims seeing inflation particularly here liability impact although of evidence based it'll that, social we're cats. there's there a United of earlier, to broad in and of terms some

commercial important Of in and employment from around demand levels are and particular. a payrolls comp perspective course, insurance work

some And impact it talk about maybe our on I the And inflation so maybe the will clients that, business. you hand wage -- more Martine from there of with side the is concern about to costs to of growing there. benefits and

and help general times; costs. need we usually in really well wage clients increased managing these one, because inflation in these indeed, and in our do John thanks Yeah, inflation

looking care they to how clients of and funds business system, up tightly premium asset OCIO intended the thing do we on to manage before, is soon wage in that And terms So, and well, And which that. lastly, watch management seen bit as manage economy COVID. inflation have resume pyramid business, low investment pension pressures governance coming plans assignments spike of profiles of a address good our and a keep The there's our that's we same therefore, is will that our would side in at some usually inflation, through more movie program a which pension management back regular of medical to I mean believe now as with their workforce. federating to inflation the if transformation have solutions. not terms clients multi-year as in the their on in of adjustment we've years dramatic all ago. And from for helping the most of the during so

you. Thank

it. Thank you. Appreciate

please. question, Next

comes the from of with Michael Our next question Stanley. Morgan line Phillips

morning. good Thanks,

at First higher there it, a of question impact the as any timing deals or it's on M&A paid, all? changing have industry -- level level, you multiples pay seen any of the activities at reform impact either of M&A tax on

we has been there's several trying -- Yeah, than been the a impact And is to pretty There's last there there been sellers get what that would out years. over of level in environment, not on U.S. people have driving a ahead the but could edges. of seen. out It's consistent whatever of tax whether deals in some there's like of marginal the a it more lot significant happen there. lot be

there, out is strong, of what's I M&A valuations a lot as think capital the mainly probably to that there's pretty there's activity. because lot factor sellers a driving biggest out there, of are

a quick thanks. on couple just follow-up the last And on inflation. comments then Okay,

possible hiring But wage to You there, a your I have pretty specifically? impacts you margin current impacts lot about, any where on specifically talked guys you inflation, felt and impact of a you on guess there. seen expect margins in and your margins, on that questions and to you lot

fact, to around Nick in Martine closely, inflation. off firm obviously. very own client hand any in whether pressures watching they're base We're and the to our I'll in seeing just Yeah, to wage then it talk about and

wages of to employers and their seem and the what think and you're across attractiveness broadly, I also so right all we're that factors about environment to to we but key know, in employees in of with the operate, more dynamic work You terms now inflation only ability environment, many the not employees, the industries. how then general go see The and companies retain reading But quality are between charge and be start in Nick? in of people and high people. and don't ability seeing to we'll why etc., Martine attract benefits,

people there's seeing end of what of to where would pressure we're of we're view collar in of the hit is a At inflation Yeah, musical end wage professional, that the the to lot there's from market, that movement at say. bit have spectrum, been a hard what of pandemic. chair, the lower a a point attract wage during jobs, seeing there white I really higher is more the little

through this they to great that. as a it and I rather that now. client mean, has resignation, moved, and roles, These change help there's our at a get be element need careers. settle important right a we clients quite need to people spoken demand. skills there. have are And on Dan said trend seeing -- manage very So different Skills-Edge help over will clients for temporary will and people platform think these are there's I earlier looking migrate all pressures look itself focusing helped this see will earlier, we're of I our time. But techniques as transforming, about than we through that that the clients jobs

a I'm hand organic to to wage for seeing it bit because plus a So let from XX% of Nick looking with Wyman, you are shout bad, not with on me are the of clients two Oliver quarters well? later growth, as some today. not conversation a over forward finalizing bad, you inflations, hearing out row in Nick and you budget

well. Michael you, Thank the as for Dan. thanks question Yeah,

agree competitive I market is Martine our it talent. the think overall. that a have way with In this for Dan and I both businesses characterized

am in our worried constrained we fit I we it a our by a it. little have growth, particularly have been strong clients, see constraints our not in think ability of I business. when capacity there enormously our bit. I think times And couple with

but -- ever of musical we hired, last some We I before more which our five too. the see years. I'm over certainly finding hiring are chairs we are think, rapidly. we than maybe across Martine the hiring extremely described it But businesses

wages. power of is period there short, in yes, and So a employee rising

you. Thank

we I But two. have another please. think time next question or question, for

comes Our from Research. Tunis the line next Autonomous question of with Ryan

I in I a think personal industry the guess the I Hey I growth whether it's line PNC trying some secular had How the because it's I'm as dynamics ask outflow, the brokerage, of Dan, do in just there's pool talent brokerage, get about you to do thanks. just a whole Good you there kind of a sense…? guess morning. we where one. talent know of or is areas side consulting more

question a good it great No, no, a to but see very is our we see is it with talent. We ability question. problem no Ryan attract

have XXXX we to In are fact, people, interviewing place. when XX,XXX we interviews you understand XX,XXX hire to taking

talent Every we're numerous we seeking talent. time approach we how on applicants. have selective very are We

strategic so do. at not a an it And administrative I of We're people from We're think, standpoint, people is insurance heart an the a that we the we're business. not very we're business, business, work business. risk a

making that standpoint, And difference it points those their the a attractive. is so companies, and of the from organization I purpose think of very moments for in that inflection matter,

the subject in history but got risks take do. around, some we're where is And best not success. can so a And levels and base talent, you have, person have that see matter so the with the okay, of broad expert, when of world they how high for firms that we to you a let's able compete boy, they've

And so a little we bit can broader. go

particularly that none inflow folks talent. of in So terms in constraints industry of we see of the have the some insurance

you. Thank

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

very on much call & speaking you forward work next and all Thank look to In it for Thank particular, I dedication the quarter. you, commitment McLennan, for you our to you colleagues this Andrew. and everybody shows. want I And Marsh to to with their us thank thank XX,XXX joining hard morning.

today's call. you now Thank you participating may conference for concludes and disconnect. This