Marsh & McLennan Companies (MMC) 20 Oct 222022 Q3 Earnings call transcript

Welcome to Marsh McLennan's Earnings Conference Call. Today's call is being recorded. Fourth quarter 2022 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 factors, discussion all this including our detailed filings, McLennan recent more release for website. a please For on refer most our SEC of earnings quarter are those Form which

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

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

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

has After of the CEO, years end call Head Today XXth CEO. businesses morning and my President call the Joining Ferland as of Dewitt, been Also Nick Studer is me a this Marsh COO; year. CEOs Leading McLennan the with Relations. of South the Oliver CFO; of McLennan, Wyman. retiring Mercer; Sarah on and as decade XXth honor President Carpenter; over Martin is at and from of Klisura be past I and of the our will earnings Marsh Investor Mark the our John Dean XX Guy and us Doyle, at lifetime. Group is our of today McGivney, Martine firm Marsh; this of

of underscore deep succession January Executive I into we like Xst President and effective am leadership Chief the talent. trove how John continues jump say as I'd pleased results, our to industry-leading McLennan's I Doyle Before announced. of Marsh The appointment Officer, about to

executing of to our to related across business, in partner and well full in repurchases capabilities growth and other to any of talent our two in for of under for third drove Group and success and growth to continued me is business, accelerating shaping delivering our I of Marsh business line costs and CEO third Underlying and considerable performance growth am reflects XX% operating McLennan of clients, on Top colleagues building or million strategic quarter year line T&E, top extraordinary quarter XXXX. in Marsh outstanding clients despite decades. on represents bringing the completed of and finding history. strength. results We XX% We third repurchases the best million growth, year-to-date quarter, bottom the XX% quarter he During of is revenue generated knows across billion, than excellent, level strong It run underlying X% year-over-year that strength McLennan's momentum John sixth share in third quarter Committee X% income of growth. EPS consecutive organization. John top the over especially of investments, John's Adjusted a demonstrated shareholders. XXXX. earnings in of the our our X% as third record, will higher of line our our has COO, higher XX% our which quarter grew on repurchases XXX strength given Adjusted strategy. of is and growth growth confident ways and quarter harness rebound leadership. comparison. ago. indispensable Marsh, was exceptional of a difficult the the X.X year $XXX of the an He Executive our President in focused And and top extending communities. and as the across is President John's tenure new members on impact quarterly continue been results

the our economic turn the clients are uncertain, for that third unmatched record Marsh what we well of and performance geopolitical the have Overall, positioned. nature it let of John. cycles do expertise With highlights our of a through and of our is and over colleagues. quarter proven we being a backdrop strength resilient track to McLennan, While critical me

McLennan’s value strong and good to the in Dan Dan honored with trust to backdrop become possibilities morning growth serve to pleased I'm our exceptional I macro am me communities. Thanks everyone. with in results. that support more eager We have our third and company. a the colleagues and is this create President becoming confidence uncertain. placed despite delivered lead grateful and and CEO, work to Marsh shareholders, and for our realizing I'm new clients, our our next for Board quarter

are geopolitical, solutions navigate to clients volatile We landscape. economic, risk and delivering help

As growth, market are drives to GDP real flight we supportive aspects of insurance a current the remains boost that Higher interest discussed quality. the rising inflation quarter, environment there growth. and our our fiduciary of income, challenging offsets lower last rates,

take record of and damaging resilient impact had time. the people cycles, well Ian loss and and McLennan the discuss believe I in to track communities potential Florida. to in of perform. insured a history be have all success to moment would the second Ian, also costliest Hurricane has and on We a Florida's being insured event most the devastating a to like I is Marsh through positioned that’s

support. working has businesses. to much-needed our critical clients Insurance restoring receive play with help are We shuttered homes building in role insurers and a to

tremendous escalation of cost in the coastal effects moments Marsh be development, clients reinforces and damage. persistent slow work of property the X purpose McLennan's incredible Category our challenges. to which communities. Ian's supply chain matter the The by resulted and of exacerbated and inflation, values, general there for size, strength, is that Our pace in

be insured the loss strains. renewals, already property At impact is the ultimate mid-year some time, already stressed While known significant. be market won't will an for property market on reinsurance exhibiting

the Ian, a tighten even imbalance. is see further perhaps supply-demand cat property Following market to likely and significant

risk expertise, collective capabilities our navigate and to scale environment. bring this help our to harnessing are solutions We complex clients

performance, in result, seventh top Guy double-digit Mercer in revenue growth of especially its third Adjusted XX%, Oliver year EPS an quarter Consulting. considering consecutive the growth. generated is ago and X% on we increased quarter Marsh growth of a third quarter capital results. X% strong quarter, the quarter in XX%. financial string grew excellent is XX% Turning X% to headwinds, quarter RIS was a in despite underlying XXXX. had versus This Growth X% basis, strong underlying of Total of of of X% and market growth. business prior up $X.XX rose impressive terrific and is reflecting year with terrific continuing year and versus in ago, grew X% quarter. third which new our on the renewal an X% the [ph] grew results. the Carpenter Wyman a X%,

third quarter am operating year-over-year. adjusted our proud points third of demonstrates basis and Overall, of performance, The business. the growth XX% income and saw XXX our strength resilience I expanded which adjusted our margin quarter operating of

third strong on and outstanding our an we performance, for year. quarter track are year-to-date Given

We year. to underlying for growth revenue, high single-digit growth, expect consecutive and to generate solid report XXth expansion adjusted the margin EPS

results succeeding together, focused, aligned demonstrate. our and are as We

to I few Mark, about like words it Before a over turn to say I'd Dan.

Marsh of McLennan, at the company transformed. Dan's tenure the During has been helm

cap EPS than our nearly and Our has revenue tripled, our adjusted market doubled, more quadrupled. has has

and XXXX, grown and Dan revenue, launched largest and unmatched. just new integrity. protect with still $X.X has into in business deliver leadership and our the led has $X.X vision, community. clients, client the Marsh to acquisition, JLT also ensured the successfully importantly, billion our for in and Faced scale incomes, Dan segments were Agency, expansion the example an Our his decade. billion XXX led our over to acquisitions have significant led to history. capabilities broader our is to colleagues, bolster Most which the of been made with McLennan our pandemic, liquidity, at consequences a safeguard jobs inspiration closed enhanced, an and to the tough talent and decision growth. our were of company's courage His firm annual Dan produce choices that values-first colleagues

XXX sense culture than Dan doubling instilled leadership, only Dan's our Less but a are as the pride Under not stock with great even great S&P is the shareholder performance in financial of gratitude. Marsh total McLennan's that his speaks a visible for stewardship has return we significant Our firm. itself, during company. owe the the more and more him but CEO. We

our XX,XXX our of over outlook to and discussion behalf for results his the of with for that, detail I XXXX. a on thank financial And leadership. rest of the turn colleagues, further on our So Dan Mark call I'll for

you, and John good Thank morning.

X% to was John tough growth meaningful expense continued quarter adjusted third million. the billion saw our of reflected earnings of and and XXX strong our across and million, Operating was Dan despite operating quarter As income revenue business. performance momentum XXX Consolidated comparisons. increased in X%. revenue We underlying revenue growth, mentioned, another growth underlying $X.X reflects income

margin [ph] in operating GAAP increase XX.X%, X% the was yearly up adjusted adjusted We XXX The of a from last foreign generated was $X.XX by quarter, of EPS benefit and operating modest Our from leverage driven EPS year. $X.XX [ph]. basis up exchange. points

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

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

quarter nine XXXX. year for SPAC-related X%. result billion, nine revenue growth up XX% first M&A $X.X revenue an with X% growth a Canada Revenue a in retention billion, XX%, was from supported income [Technical For months Adjusted months from significant At Pacific underlying same in to the growth points first the the third on a of growth activity. and underlying period grew up included basis of XX.X%, XX% that X.X U.S. XX%, International Difficulty]. basis up of X% was margin Marsh, XX%. year, was the growth, billion, benefit XX%. was in strong solid $X.X had XX EMEA a the by was operating of X% XXXX and ago. quarter Latin of Asia the the underlying considering underlying increased and America

up X%, Marsh's solid quarters. million [ph], has third of in reflecting Guy now up nine Guy grew the and of on X% months underlying First quarter or achieved International growth six was XX%. underlying retention. Canada revenue higher revenue Carpenter's growth of and XXX was last seven an production revenue was underlying X%. X% the U.S. basis, of X.X Carpenter year, billion,

underlying investments. decreased an by X.X revenue segment, of for was solid was a market of XXX the one-time X%. first of In quarter basis, growth quarter growth Consulting reflecting Consulting income margin XX.X%, The X to XX.X%. XXXX. adjusted building a of third million, billion operating impact For to Adjusted sixth and XX% X of Operating first million, of XX% an on given X% versus underlying underlying third XX% ago Guy the grew year the X% third consecutive underlying or a the of was declines X% which of year the is earnings revenue year, income operating nine quarter the impressive was on billion, [ph]. to the income X% of revenue operating masked billion generated months an revenue basis where year our basis, Mercer's generated X.X XXX billion months ago. months margin basis, billion $X.X a increased to for noteworthy from quarter, in Adjusted XX% of of the to first from X% mid on adjusted the Partner growth. nine up on operating on high-teens the underlying a the drag in up flat Career nine XX points XXXX, XXXX. foreign exchange. expanded increased an growth benefit

as the excellent We both in continue in to an quarter, all Mercer's Health markets. also workforce strength geographies. for solutions as impact at strong growth well X% for reflecting demand to compensation in underlying basis declines was see headwind the across X% overall This on decreased income represented a XX% rewards. transformation and due and fixed growth Wealth quarter. equity underlying to market

solid benefits mitigate demand defined and [indiscernible]. helped However,

third and from assets last X% due was year, Our down third management and of the the the market billion declines foreign under to of entirely end sequentially at XX% quarter exchange. $XXX quarter,

top geographies at of the underlying revenue most year on underlying nine X% first billion, on of an comes the the Wyman's across $X growth. quarter For solutions. months XX% year, Oliver up strong XX% demand reflects of third growth. This $XXX strong third continued. against was million, Mercer last momentum Revenue was continued of quarter increase an and from in the

corporate at quarter. was of XX X year, XX Based was XX% our first on underlying fourth approximately nine of million on we the billion, expect Oliver revenue outlook, months increase quarter. For third current the the million the expense Adjusted growth. Wyman for in

an the in had you of immaterial exchange third effect Foreign our quarter, can assess headwind year-to-date, [ph]. X% EPS although on adjusted a

current rates be levels, fourth a headwind we FX of in $X.XX remain at Assuming to exchange quarter. expect the

net Our credit benefit other XX was billion.

the loss basis, current the our year of third fourth basis. expense forecast, in an expect third On of our had quarter XXX million on million million around interest in full to expect was Based quarter the benefit of million in be investment expense [ph]. XXX For we XXXX. compared in XXX We we net other XXXX, the of on million GAAP million XXX X quarter adjusted reported investment the quarter. income credit an third we Interest $X [ph]. a

tax the compared effective quarter items net of a was adjusted modest rate XX.X% [ph]. discrete benefit with in third included in last third of Our quarter year, the XX.X%

give tax full XXXX. effective an reasonable positive of When adjusted was on the for quarter. effective not rate, project around assume we our our year discrete items, environment, tax current XX% guidance rate is Based rate adjusted the forward items, discrete which Excluding negative. tax XX% for to or the

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

million debt scheduled maturity of notes. Our of with senior XXXX XXX next March

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

the dividends, for share billion, For X.X uses first nine XXX for included X.X million million acquisitions, billion totaled XXX months, cash repurchase. of of

on X repurchases. plus cap for XXXX. to share a in Overall, track acquisitions to and deploy approximately remain XXXX continue billion expect We of terrific dividends, we

in For to turn underlying and revenue, back. the XXth in with solid expect adjusted year, single-digit to full expansion for growth happy report margin growth to we And year. I'm generate high consecutive EPS, it that,

Thank you, Mark.

more difference in clients us, due I trust thrive crisis have small. innovated Before been great Q&A, we've am creative continued choosing believed the is it focused I the colleagues. pandemic. There has built work smart, demonstrated I the each better big no business side-by-side work want leadership, to dedicated we and in firm with global the in one with colleagues importantly a and privilege of to capabilities a our greatness We our relying for and are their for most lead how We ready begin firm face companies grown, important JLT, to emerged our to have and McLennan we of supporting open know our clients. With deliver our communities, expanded proud MMA, is make to is up call we continue built shareholders I immensely John's Under matter. persevered. and a like just the that, to launched this our what and I thank with combination achieved prosper, to do to Marsh we accomplished. stronger operator, we've moments as and with say other, values, the in our ahead. the that resilience for by will moments with have Q&A. together, and of people. their company and that in financial a the and All I'd we and efforts. always on confidence, and Together, staying on living our

line comes with our of from [Operator Instructions]. And Fargo. question Elyse Greenspan the Wells first

morning. Good thanks. Hi,

It's on your in that specific with point been My want upcoming did question working the out the retirement. through had we've going business? years. within First, slow Canada growth within and we've been trending. know guys great gone anything the you Was congrats The you and on my came some that to is quarters you U.S. quarter through to and there have out. in quarter. as pandemic on third I bad good Dan where first you RIS the from

I Elyse your Thanks, appreciate and comments.

much, very you thank I So you. with hope keep touch to in and

hand well, in been well. doing just as out. off me Martin done has second. I'll and let well So Obviously, a fantastically Canada U.S., to start has Marsh

comparable start Canada pretty XX% U.S., you I more in growth a just So the last that give would by in But saying at was color? do Martin, dig to bit tough year. want and little

Thank Yes. you, Dan.

the pleased very of Just prior quarter which growth organic start, quarter, X% the is top with on we XXXX. to in of in are XX% strong the

volatility XX% in U.S. doing last year, XXXX. we was the across X% up see activity, year-to-date was EMEA SPAC, extremely strong focused the as a so X% producers geographies. was of in at XX% investments markets the is don't the forward. positioned very M&A, you the XXXX. a is capital made whilst the in XX% half Pac, the full and X%, Overall, back and over When well, in of forward. recurring well growth LAC the QX last growth there markets -- in year-to-date Our XX%, in going U.S. up slowdown, the is good And of we and Asia we of X%. it fantastic X%, the performance year all feel that period, We U.S. U.S. U.S. was the repeating longer Canada and is and business, are that Canada growth of look the we're in in exceptional on year going noted year

overall. headwind activity So the repeating half in of particularly a so basically, is not lot back of M&A which year, and last a in year of a bit last that's

Do Elyse? have concerning. a you nothing So follow-up,

question for Carpenter. follow-up Guy on thanks. outlook the Yes, My is

really what potential we to Ian. market from catastrophe the Hurricane saw From reinsurance significantly has next it turn been hearing, mentioned the guys on year. loss we've You that the

So in hard you just Guy market seeing what how could you pretty Carpenter there XXXX? guys benefit and a about are can talk reinsurance from

with don't then to about the overall go But we just primary and market, John? little Dean. to start why John and we'll bit reinsurance, So talk a

Sure. Thanks, Dan.

my third second So in in the markets different matter. prepared was a Elyse, overall as for we more Reinsurance in renewal. the the headed likely -- tightening markets to Ian. challenging in clients. we're January particular property noted although from continued really cat challenging a then market slightly different remarks, though, reinsurance quarter, of quarter X advance And remained are a the insurance to in were where in moderating much our rise quarter. The I Prices

So to with that, the maybe the of on market jump ask in Dean in some of today. I'll what we're details seeing

Thanks, John.

reinsurance, but as around any systemic impact our cat around The record cat create in perils As the and and and accelerate a seeing Ian for of world our wildfire, clients the But is very January clients. value track to grow and positioned moving a flood, manage and Demand concern cat market strong for our including advice X market create storms Guy we're Carpenter, to and the emerging could growth John conditions volatility challenging be strong tightening forward. the market conditions. business continue remains in including expected convective we we of very will to certainly strong, to space. forward, demand at of our address feel tailwind property continue a have and noted, solutions cyber risk, change continue we're for look climate we properties, very well remain to clients as and impacts for

terms in that Terrific. on see talk in bit a just Martin, the to impact probably happening Ian the marketplace? operates the starting in, markets, we're little in maybe then -- property you Marsh if about pricing what's what of and of could

we from -- X%. showing X%. still area. SPACs rate X% a into down across Across Well, the strong to just though, -- mentioned, be in going of year. be that after show quarter for quarterly the at composite the our year, we're the the of some little clients is high X% I'll point in Yes. there's particularly give we've Casualty have back of D&O going the weeks' XXth that's would the X%, year lines increases true, announcing will in couple They clients, And Thanks, quarter. into the I be the started a rate is in on broken in will prior easing prior up the were in reverse to through still, this time. from some growth property as off. now is weighted cyber. No especially We'll cycle, such John. the [ph] Board. FinPro question, from of and strain you Board, rate prior -- those, a we end The from this rate in The have which a down have rate results very our survey increases so property and exposures. end rates, color consistent out by bit of in the for quarter, going John. bit increases down is the this consecutive see -- thought cyber be rate out XX%, -- at cat which market, property heavily It is that are to last I'll property, sadly, and quarter We year-to-date but for in breaking little is increases.

to the market. them of we a well. a we're course, bit. as little of driver plan worried our potential we've healthy to we're and seen slowing be some demand looking And clients. activity down see for But as is about said, a that solutions we there And going But it's as

question please. Next

you. Thank

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

first I morning. a Oliver on question had just good Wyman. Hey,

to organic for but results obviously vulnerable I slows quarters. a strong that you've had might think slower growth, very the last concerns if there's that several economy down, that's business the be

of the seeing pipeline So you're if expectations you are and in your for could what talk just about what business? terms

Sure.

their economic Mercer's performing long cycle, a business. have mentioned Career Wyman and and remarkably sensitive XX% are well And we we've has a to quarter been our mentioned over earlier, it about mean, Oliver is seven and Oliver had stretch Career probably sixth As in before, And both growth business growth in I the of a time. it's the Mercer's represents XX%, Wyman double-digit most double-digit of Mercer, row. up row. of as of quarters

somewhere Oliver future, seeing not on today. So us more if the right give Wyman? cloud in we're there Nick, want But are you them to

yes. you when not our that same is when reversal to at I our nuances. change, in true clients healthy. the continues any pipeline to we're need questions It economy market tends Jimmy, Thank is prosper will all the time, robust. say seeing the our But And be our business and

As the pro-cyclical M&A both seen less we immune Martin the mentioned, Dan than pace they that ago. the activity, and some our cycle. elements SPAC on I we on are won't have perhaps to years businesses But client the slower and of and were thrive in M&A tough five offerings be cycle, suspect

so have performance restructuring environment capability tough risk top it's in established add, actually of practice, a line of a lot effects we now I'd a incredibly management, serve for a We and been strong bottom the several in sectors We've line. improvement, quite the of -- and years with pandemic. work an in both the few

for So the remains pipeline now, strong.

Oliver a cycle. post other though Career lot the back are down Wyman it business Yes. about even that actually they sensitive, And more is the thing bounced and quicker a

with first. short a And with Jimmy? them. you long we're of have we're Do they overly businesses, So concerned time, they're leading over stretches great provide growth us we're and in glad follow-up, not overall,

Yes.

the was times year investment it I ago a income. almost around XX Just three quarter. It's think, sequential up, what on and times fiduciary

it quarter higher any up a the So end rates, the there should obviously, sort benefited rates interest gone discrete is? there that of assume that's all have XQ if even further was higher as there's And benefit since it but we the goes items of from or wondering that results?

nice do It it's talk XX very to from fiduciary a times. say want Mark, you started -- about it income? to Well, up was

in Jimmy, results. or there was one-time the nothing unusual

we're reflects for it you quarter, XX jurisdictions, day, so as And we XXX quarter on all balances $X and income. this of any just in of basis in billion a in XX a million global source Obviously, was so equals third So in moving generally just on rates million we rates, so got trend ago remember, and over over it balances of the a the year rise it's up. have upside points the different world, there's given noted, have dependent but XXX definitely fiduciary us. million third we've

and luck, congratulations. good And Noted.

Thank much, Jimmy. very you

Next question please.

our comes from line Thank Motemaden with ISI. you. the of And next question Evercore David

Hi, on thanks, retirement. Congrats. been quite a good It's ride. Dan, morning. And congrats the

Thanks, David.

that makes give a Just hires picking comp quarter activity how you've should on had from much head a strategic sense if side M&A some we question as just comment on maybe just U.S. that's ramp how wondering XXXX? us And just the the the I and of tough Obviously, on made benefited the tough in into of in the But much the been this could that a over see up. impact. last was hiring Marsh it year half, years? little to any two you

Yes.

John, with don't take maybe John, we'll why and But we start that? why So don't deeper. you go

Sure, pleased. David, very, very we're Dan.

strat that only hiring they as are case work and be of we Not just we with the make hiring well. but we as We absolutely are producing, cultural year. to that's did these folks they're did to last the proven fit, continue to lot a pleased be right sure a that

teams, world-class talent. nicely in and they've best at We think with serve, that serve and Carpenter, talent us to very and our very, the started we Martin, the the maybe -- Marsh clients could it. fit and productivity we did Guy We markets the some have well. these of better. folks made So of both of you just most we in talk did We as about But where the Mercer hiring in hires. the

the significant. cultural to happy a exactly to the as growth And the point that so the focus as see very revenue on would. know, new and plan, we're add wildfire. be we this ramping and been has In we you. very, it we was, we insights to these last investments, continuing to you actually it spread out up. We in recurring see our We of They've high the as capabilities. brought is thank out investments new yes, said, like as was thought there thought to areas made -- accretion heavily Couldn't penciling John, some you firm, continue with year. happier. where skills, areas, growth very us or we the revenue ahead Everything our question they've

the So be couldn't productive. two they we before more it's as fully are three with know, progress David, to years pleased you to But date.

is Hollywood the It's it creative and I agent, smart, people like attract business. dedicated, We're people. but don't want the sound talent. a about dedicated other people a creative to smart,

So we've and would talent a to a mountain within Do build continue have David? that. upon follow-up, we got the you of company,

yes. at primary. the on sounds property on that's that over bit happen? it like to or market spill I do, non-property into side, at all all you spilling seeing cat a starting reinsurance if I'm exposed cat just that the lines And to over into wondering you're if expect

I happen. I expect this at to point, not that and would say David, wouldn't

major, impact prepared and insurance so haven't us markets, even settle, are to in But to principally learn. major yet property. as for but noted a begun this so it in is will things there's comments, both and the a course, Of reinsurance loss, my -- lot I

you. thank Understood,

please. Next question

next our from line Kinar And you. Jefferies. with Thank the question comes Yaron of

to a reinsurance to act property the guess And Thank and and also more back going I dislocation John to market luck question, first you Dan Florida, well. luck and congratulate career, in good the everybody in Good as phenomenal very I in broadly maybe to we're seeing want on good morning follow. retirement. and much. cat. Tough

are experienced you colleagues your And could the next would I think dearth Carpenter. maybe of I markets time, of we're private about take the of public looking rate pulling have issue bucket, have that certainly of understand capital, hearing think on and I I to much of envisioning if you how the reinsurance also environment, maybe and growth real an but Guy market, supply lot at how will. market in never out the a related a that, So same a that on overall that some to guess, year? hard impact actually

are this you preparing them to how environment? new So address

supply. table your just been questions, how this environment. Yes, supply, demand, something that's already but that. certainly it's tough extent the adapt a in basic to good been and to It's markets an to think Demand and how do through market will at of you point outstripping serve before, of can the so yes. quickly about team us in clients supply we that's outstrip series We've Dean, it's as kind executive more? of give want

you give Thanks, Sure. more Maybe I'll little color. Dan. a

following to inflation Ian, seemed there noted increased earlier, on already from to property and we're to And could already clients noted, U.S., with tighten starting so in was there really Prior that in cat recent to marketplace. Ian's potential market impact stress. supply starting demand like John right, the absorb in the particularly significant. as be strapped market As and John the we're Ian, the losses feel one-one see property balances market,

terms, it's the capacity U.S. in retentions, in billion $XXX significantly more right. which As retrocession in you cat say reduced in exposed market. as players, losses the just impact rate row the it's individual well. potentially market, of Increased from going coverage also impacted the year for and be be a to more, know, clients, than from increases third I And would of changes could cat

and retrocession XX% January trapped Some the capital by for are and X. discussing not market, being replenished of the Ian

some got we've certainly, there. So stresses

and new we're in clients. on capital, incomes, players I our bring behalf world we're market months work for investigating market However, We've with around clients more closely with say working in to capacity to of expertise with into the our the our cat interest been clients, leveraging several the to successful the more working would marketplace. very closely deep deliver

absolutely. Yes,

the tough one those really, so very things, it's markets in it's ways, shines where some most. of McLennan period And Marsh the

four and will that actively our follow-up for have And be if asked Carpenter me solutions there's to do be but the there's so not Guy supply working Yaron, being willing pressures in ready. But found, able because line to another imbalances you of demand providers any one, one although business. write not we're questions. could short-term have will capital Any something clients where you area. a time in you about well and at placed, Give particular of enough

mentioned strong more, Cyber, one hopefully, shorter. have very increases. you rate I

-- of XXXX moderate. is starting of years increases rate experience and That as loss to envisioning rate you the far strong I demand, think my starting a that's couple is of that if a said, continuation How also to rate is improvement. XXXX are understanding as maybe increased are increases slower?

John?

the increases for moderating. are I'm forecast Yaron, going cyber. to Price environment Yes, pricing

Marsh, responded but not sure example. What of I improving lot well, rate. ransomware, some though, it a cyber, had of We've would been improving, is extent, lower through market. would in would think, -- Longer quarters. also rate an consider limits, difficult note at I about reflective for rate the a on near I not think our used you Underwriters have word in higher environment. also term, market recent reduction cyber ransomware clients It's to ransomware I'm the to retentions, maturity. the

to market, And so navigate marketplace. we of still the some to better digital market bring working cyber for an for growth a should capital we're insurance of as time economy. clients risks the our area the more solutions the be help us to But

Absolutely.

Next question please.

Thank KBW. our Shields Meyer of from with you. next And the line comes question

Marsh Thanks, you was I add my remember to when good board. morning, came I Dan. to on congratulations and first want where

done an You've phenomenal absolutely job.

there. November XXXX, That five from go about wrong? a what board A not headline your had my I statement, on could bulletin of years for question. else was

much brewing ESG, country decipher I'm I'm opposition Well demand for ESG-related yes. the how how some politics a Look, parts of real. trying consulting? to amount to impacting fair in of quick that's Anyhow, is But question. and wondering

to the the other that well. the to But reading don't that little ESG? Nick of And side are markets same We're go Martine? question. over and or hand Mercer reports. investment of about we areas business first great bit talk a in as to Studer Martine impacted, It's Mercer Why Sure. we'll a then

sure. And for Meyer, for thanks, question. the Yes,

actually, fronts; clients and transitions, the on Mercer philosophy in the at low-carbon governance, are For three social market and their [ph]. to of in investment. objectives of work their and us the investment economy, and environmental terms with rewards sustainable at best we they can all and risk look We help wherever clients

invest run, the about today, We at with and of ESG the looking climate the have elements clients don't see length their through And to Q&A of them. we I it's kind that they long demand talked risk. investment. necessity for at risk, and factors look at So that the look with example. for that our risk we're all mean,

to that factor world, clients risks when the pay benefit looking we for. all at So look in our we across returns Other course, get these figure they're of minimum -- investment elements, so social in we need of the standards CE&I, equity.

very clients We executive volatility navigate year with very that been with our to much Actually But it governance quite capital Whether diverse elements particular, workforces investment. clients been intense a we've the in way from are in headwinds the and on we've of help house, around that working been back coming market have goes they a and rough focused the on client year. this markets. govern busy of consulting the -- actually, that building investment, there side and lot new very and the it's capital it. to whole to their manage compensation, on work

Nick? Thanks.

be affordability, in especially and between Oliver some seeing sectors transition, But to the are I many climate I There the ultimately, and security -- a most expected one we've and years, there Yes. quite actions strike main on reverse Industrial Revolution of for take the places Wyman, climate years in fastest-growing sustainability in think greater the carbon over But not grow in backlash to you're focus of transition which while. which it affects would XX and Meyer, last of years, three engineer the something is in business, the that is trying our double resistance. around XXX overshoot, a mean, as since be and transition be continues when itself. four delicate reduction that or digits. three made will there'll actions it Wyman, seeing our practice Oliver investment is to any high of we've the We're demand. in very the areas balance

that seeing are getting are more... the questions We

Yes. Thank you. Any follow-up?

is this maybe talk was Mark. could cost the the a risk-free capital for reflected us hoping of I through brief capital just in Yes, is rate one, deployment plans rises? as you

well have Yes. in served Meyer, obviously, I interest our us as time. result, period even come and value cost a up a don't consistency long firm we weighted average capital up balance the approaches, has and tend and come of -- over for rates to the of though they've

return it our more in little economic So capital even we've it But think change the to enough though M&A, than average that. fundamental anything there's that. continue to capital things comes makes higher standards about on to isn't terms, structure, things I held current weighted cost much of basic us do we'll to that capital a ourselves views strategy. When our us allocation, have change expensive don't like gotten and environment our consistently, make

Thanks.

please. question next Okay,

Thank you.

question next of Cox Our comes Robert Goldman from line the Sachs. with

thanks for taking question. my Hey,

the that U.S., gains, strong. be wondering we and on relative is more -- great? driving that would little could to was what's anything have America on I share Latin any pricing, a been it Pacific if market inflation, color Asia color So get higher particularly higher

you mean, higher that levels of regular over, We'll the we've is a over I what have sometimes have second. last but Sure. Asia begin bit in in -- penetration. like more decades insurance really, not Martin America, and seen growth stretches of in a only places and with general, of also in long increased Latin inflation you time couple

underpinning develops do us want insurance that the for has to economy As becomes a been give as development, to so well. you always benefit and us the more? Martin,

things and has overall the our international best to pleased And last we That's really years portfolio, been Yes. so strong so than with for slightly seen balance weaker as balance business. in Thank look, in well, you've few rebounding, we're the the U.S. you. our

XX%. As Dan very growth said, Pacific, strong for of Asia

the Pacific, there. in terrific have markets well positions in We pretty almost Asia franchise all a unrivaled

the what for time and community, Asia, giving the you and Southeast of our and us in that's long and protection buy for indigenous not with maturities period It's So a that mixture in strength building in having there see Asia Japan, across been benefits of such and carriers business we doing that gap same have a could trust the business. local the us Latin it's across share, America. market. It's more the you

unbelievable strength great a geographies There's question but in getting markets and the terrific relatively all an a in just there, strength franchise really for big of the been have big leadership all and a very We it's businesses some strong share there, It's market Latin while. America. in modest team.

Dan, made And that regions in JLT would both I us Absolutely. as stronger add well.

follow-up, Any Robert?

I And a had Thanks, on very just Yes. Career. helpful. follow-up that's

dynamics unemployment the been in couple rises given that is see of those are still Career optimistic? some in underlying of or changes, the market. those by changing labor growth points, a too if some driven sustainable there's you could strong So trends favorable trends How

Martine?

There's question, the doubt of completely the for you no But that a and has has world changed, question. good Robert. that Thank way that out, look you currently help emerging whether gravitate it's the out No, driven playing Yes. shortage, labor clients coming of new reorganizing skills high it's work pandemic, work. at to all it's you have it's inflation, that the that's to demand. we

and have half about also space. in Product Career about of business, past more talked that There's recessions. So Product has impact the in business. before And Career the actually Career revenue through Services, resilient the we Services needing Career help that carry and on the is recession had fundamentals but economic see really the to are a given rebound we'll we've we quickly, We're we not immune the any changes. to see the in we change of market -- pace, navigate through. that Clients today, currently all don't in slowdown. half

so So, good. far, so

you. Thank

Next question please.

next comes from of our And Brian you. Thank UBS. line question the with Meredith

Meyer's challenging, like also I look of you you look And lead echo that does you comments. better cooling quickly? decade. seeing are congratulate pipeline particularly, a first, kind What becoming may we be organization with at here? the pipeline right equity this pleasure more here private wants JLT an I'm M&A bit little you here, a want for to want a to outdo on to John Yes, for little pretty and to the as assuming last here off thanks. Dan, And Question It's just M&A. watching now absolute and

Yes.

as less a relationships we've saying, in a we're people. the Looking We the at over call cultivate good. chops we stretches No, going banker there. said past, inviting -- the XX something's to interested of few hey, over long M&A We're his is market, from time. pipeline in before times

and how regular core want business. us, review participate? talk potential team the executive to the and the development we for a as prospects a a cadence You part meeting in about of on And go pipeline to just so future, to pipeline that's

we As year of comes less business in have share repurchase, have when sort is they you know, share we'd we M&A, When repurchase year we first of a have favor go but like year dividend building a we'll our acquisition this repurchase in through have our sort tandem. because over in lighter share -- is M&A, more heavy sacrosanct. and

So when we look good. is at the pipeline the pipeline,

and [ph] you partly of next its likely kind about it's to continue. acquisitions, when year the capital, a know, JLT, until of that's utilization And door. we've a the this partly thinking transaction regardless billion But goes much it's thinking mentioned which pretty close we've averaged BT you year when in next we've We won't of out we're still our of well, that $X about you Westpac that before sort year. we're cash and average, to exclude the as of if on year sort have

pension from in for follow-up what then could Makes sense. we've quick given -- any initial rates? here the like seen And on Mark, Mark. interest benefit the thoughts a Thanks. kind of rise big XXXX, net look

tell. the credit. really so we just really formulate a much of returns really to see, our Mercer's expected and help, the for on we that. great other not benefit into that It's year-end net calculation with view There's too that early outlook goes until course, of that valuation that it's Brian,

when in January, then. I a So I'll we think have back were perspective together

Great, you. thank

care. take you, Thank

please. Next question

from Stanley. comes you. the Thank Morgan Phillips And question our with Michael next line of

Thanks, good morning.

get is year? property business of at the placed cat been real simply not is question of the on of going risk could material it then some how that still to And guys. First back reinsurance, How theme just has a much beginning the that be?

you want that? with John, start to do

and reinsurers planning capital early, are to on insurers and most going back quite in Again, trying so decide still deploy happy best to Mike, this. and to think it's Yes, forward. jump I how

we're well. the we, our facilities. all leader our cases, But entire market. behalf a new an our and we're have discussed, expect And going more may And managing Dan clients Dean on market. solutions it's of clients using to the captives we to global capabilities so investors, of and As Data in and example. also I challenging but level to retail both disruption. of some mean the it firm bring analytics, be It's again, new risk, some insurers in and clients, retaining as

themselves to just of what by Now more pricing, some risk. clients to some given do market our may that, and elevated choose may be elect may retain pushed more be the might

work So to our we're to goals. help with all of risk management going clients accomplish them their

pick, you. hardening of Okay, And hearing said, as well certainly a that such you single then is as thank number, outside that would don't strict we're the we a The before just in question double-digit, the XX%, of number care now hearing, -- Florida or market do you are low levels Ian, Florida pick massive XX%, see world? I'm XX%, increases. sorry, digits -- but around we're is was strictly those you I the property pretty here bit levels cat I that but kind is, think were

have the over estimates. years exceeded several you've I last seen Mike, modeled cat think what Well, losses is

that broadly the time, right. insurers of market and So underpriced over is period have the underpriced, reinsurers risk

look can course, time and, You period different an of at get of outcomes. extended

So to is reacting that. market the

markets values inflation, escalation then speaking, broadly happened you've as of an also well. challenges. And had in that's So many some cat-exposed creating

to remarks, over rate inflation and elevated I last plus cover So several the just prepared meaningful prior my Ian in the change in to events as against years. noted weather-related to the heading XX%, XX% of range we're

likely of it's than to, Now course, that. higher be

is that talking they're to their clients. And to what today they're about the again, for forward. reserve to it and in thinking how in make best saying best And insurers ultimately capital. they They're about, deploy about risks their to these going and taking want where so will reinsurers business capital best deploy choices of

them they reinsurance mean other support clients lines that casualty might side, the also an as that example. and On in

And so thinking a interesting an about market. Marsh for it's second,

to personal have. and a as impact more our and inside of really net much be and of us. accounts personal support as so important is a This high worth going to small M&A, business business We it other line loss, loss won't have lines events major

thank color. for appreciate the Okay, it. I you

you. Thank

Tunis Research. And of you. line Ryan question from Thank our Autonomous the next with comes

guys, Hey morning. good

Just a follow-up on the fiduciary investment income.

am separate So margin margin top margin potentially expansion on had really kind of investment past or this a right it distinct type where the be we've thinking number a should and role this that of of some I that years tailwind seen that investment a Is a of hasn't is strong income? we've at right, played expansion all. about the against decade over of of that there

line. the income, in that it mean, bottom A we you're lot to I of have. -- basically right is didn't fiduciary drops

will profit, is future. it of the help and that in margins lot a So

Perfect. a you Martine, over And for then that's just impact there way follow-up, rolling the -- guess, in with having of quantify is I any is can organic growth? there wealth, on type markets

Please.

a OCIO can has on call under it's point but paid It imagine, as business volatility has very an short-term been it of assets Ryan. We No, Yes. and from thanks, rapidly, what capital been we in to commented markets. this us. good exposed it, growing where the impact. our It's It you QX, management. in market to reference, our is we to QX, are script. in markets two a the we continue [Multiple Mercer, about points quarter, drag Speakers]. do I the points that expect we we at margin on alluded In think at a the us Wealth. fourth see based and And four of value this cost of end on our that has from to capital as business

X, X. instead have been not So Mercer X more would a like a of

impact we DB and Yes. XX% in this where help there's we capital up. consulting on with rounding health, And market. it the And [ph] in side us does consult such client XX% the when Career also, on had

[Technical that also Our diversified, coming -- great portfolio is had to our a funds, will net which helps. We so Difficulty].

Okay.

it's Ryan. So terrific business, a

about basis. on As But delegated delegated that, the number assets are management assets having XX% CAGR is the on year-over-year. a -- a noted, you decade look a XX% over about down we decade, management if the said CAGR under under over

the We're short business. great in it. obviously, it's the Hopefully, term. a it's So But in we're short term. a in glad headwind

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

and us and on dedication our has thank bottom the of call XX,XXX for morning. you. put And their the the have you, been trust in joining you Thank colleagues Marsh work, heart, as you Marsh commitment, from for McLennan. want thank thank I Thank to this to me. of an McLennan you Serving hard honor. my CEO for

Ladies disconnect. conference and participating, for you you and call. concludes gentlemen, this today's may now Thank