Marsh & McLennan Companies (MMC) 26 Jan 232022 Q4 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 on and most the are Form recent in website. factors, discussion XX-K, this including our detailed filings, Marsh most more release for McLennan a please For available refer our our SEC all earnings quarter which those recent of

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

to Instructions] the refer measures closely a comparable in please these For reconciliation measures, most to today's GAAP of earnings schedule the release. [Operator

I'll John of CEO this now Marsh turn over Doyle, President to McLennan. and

of Good us earlier Marsh to morning results joining Doyle, reported you today. quarter and for discuss I'm our CEO the McLennan. thank fourth John and President

Joining Mercer; McGivney, of call of Nick CEOs Relations. of me and the Martin Mark of Head of our Klisura Oliver Marsh; is Also Dean us today Investor Ferland CFO; and is of Martine this our businesses, morning South with Sarah Studer Dewitt, Wyman. Carpenter; the Guy on

am areas people. address this greatest unique for environments. in as challenges critical find first time as company strategy risk, Marsh call and clients an capabilities to leading CEO. I the President with McLennan possibilities new they the today We is be help and of excited outstanding dynamic and their navigate

solutions track record a financial range of and We of have wide talent, exceptional in performance. a execution

efficiently capabilities capital delivering shareholders. full client on is of McLennan and experience, leadership Our improving focused growth value and clients, managing the the to Marsh team and colleague driving for our continuously

value relationships. impact These reinforce proposition our businesses strength am we in confident have about together we exchange and and highly colleagues has ahead. enable succeeding are my conviction we client results with years aligned, scale, unique brands together for their how as that I positioned right success. clients. of valued meeting to insights The by conversations meaningful been I've well year, and past the intersections at our strong we our where deep the the accelerate can clients and our opportunity the Today, businesses, focused, and of data, solutions are ideas that with us are for demonstrate. Over clients

year an growth, X% best more for than generated results. underlying of outstanding decades of delivering McLennan. revenue growth was period continuing our strong Marsh We two our with each XXXX businesses in

revenue adjusted operating for billion income XX% total Our in XX% on was of XXth We expansion year. adjusted XXXX. surpassed and billion. $X.X consecutive to top grew margin reported $XX This growth the

costs was our billion with EPS this of particularly XX%. results continued strategic significant on normalization These amount and the XX% delivered as annual share I pleased $X.X top results growth to Adjusted our our in growth investments performance talent T&E. came by am return included in of related in also we capital XXXX, to completing largest dividend XX% our raising of the repurchases history. shareholders and and

in XXXX. this We XXX inception expanded to also MMA has XXX organically specialty and in Westpac its Oliver through transactions our capabilities in MENA top Avascent acquisitions. talent Wyman Mercer XXXX acquired two now and acquisitions acquisitions since surpassed first and Booz capabilities, both in Australia agencies and and the the Hamilton's attractive in added its its from to geographic of half practice, reach close expects with consultant of Allen year.

through and at Carpenter. exchange engagement. amid seamless generate Marsh a client and these capital results growth I'm and these headwinds transitions foreign execution, We market leadership year Guy particularly achievements of proud exceptional overcame of significant to

clients, Our communities. underpin matter purpose Marsh makes that McLennan performance. the our our colleagues, and a our strategy in moments difference and for

ourselves client our geographies and and on focuses attractive capabilities talent investing attracts value become promoting in inorganically, our culture retains top and into our delivering data core strengthen to business, positioning a practice segments Marsh elements, strategy McLennan's more new purpose to Turning enable several organically that insights find full leveraging with proposition opportunities, help to resilient and success. fundamentals, and clients in and

facing capital revenue and term. faster approach management. in expansion colleague manage with to with our on strategy balance long annual which to growing and for and EPS focus expense growth, client We our than to near-term allocation contributes investing adjusted capital the and complement the we We margin expenses, performance

and are We business our growth collaboration drive greater efficiency. accelerating to across

impact. implementing operate, new and are We to complexity reduce for ways organize

in on regard, million this resulted rationalized million fourth evolving to to with our in accelerate our Based Together, needs, quarter be efficient approximately estate these we reinvest and In footprint. opportunity they $XXX of the impact outlook Overall, skillsets an connected. million $XXX charges. align in our our today, we $XXX of and real workforce in took drive an clients, technology, actions actions to to more and reflect capabilities, expect savings for and they XXXX. will reduced

seeing The conditions. than points proved Now reinsurance in cat and demand pricing imbalances. U.S. property reflecting several challenging Global nearly rate an me renewals expected decades. XX% to higher significantly, on reinsurance with pricing. let most increases insurance of highest of increasing the in supply be market January and two range The and P&C property property XX% years a provide to from factors, attachment the to cat with generally and impacted reinsurance reinsurance in XX% years, stressed X cat market increases loss ranged macroeconomic cat XX%. was In XX update higher clients reinsurance losses, rate were often the

lines average that rise to retentions tempered across is continues ceded in higher many It premiums most by P&C commercial note cases. geographies. Meanwhile, to were pricing and important on insurance

the increases insurance reinsurance knock effects, particularly quarters, after While rising on consecutive moderate continued price rates. for pace market to tight XX property have could for of the

insurance the We are our focused on navigate landscape. and markets these difficult helping clients evolving risk and reinsurance

On of generated exchange. an to foreign ago fourth Marsh revenue X% our operating Carpenter underlying Mercer which or X%, basis of Guy our X% income the XX%, turn saw and Oliver basis, expanded impact Overall a X%. and points EPS grew grew me XXX X%. versus financial margin revenue quarter the up grew We let $X.XX X%. grew excluding X% quarter adjusted RIS and is adjusted growth fourth grew Now, Wyman performance. year-over-year. grew adjusted X%. in of year XX%, Underlying operating in consulting.

we mixed ahead As XXXX, economic to see picture. we a look

there for is a that risk economies, While factors are of major business. also believe recession there growth for supportive many of we remain our

insurance elevated and social as reinsurance higher risks Softer drives inflation real rising to is and severity of by insured losses, higher increase which growth offset P&C insurers continue the costs. account loss and frequency GDP for catastrophe values of rates costs. inflation,

healthcare and continues short-term market in the with the for rises. due rates U.S. are the environments to since financial and remain labor our labor of shortages highest past sector. jobs crisis wages unfilled The Healthcare costs continue X.X% to rise to among century typically million employment volatile higher half unemployment $XX the at and increasing our services fiduciary uncertain, over is level world interest the the demand income. and When tightest

risks living report meet others, which collaboration top erosion cost report, Economic our This World clients opportunities. resilience identified over risks published the extreme the climate crises, In to just the natural these Forum concerns. confronting insurance are risks beyond near-term cybercrime adapt to that year's challenges, among of to with the facing in new mitigate and and geo-economic weather, crisis, and clients cycle failure The we highlights and we economic the well social global change, and decade. working of these capture and society with confrontation build many resource next cohesion, areas extend

in critical difference and the moments are on work to make matter. inspired by a these colleagues Our issues the opportunity to that

forward, XXXX we well and for Looking are positioned beyond.

in growth in another better We year adjusted revenue strong expect mid-single-digit expansion or and of margin XXXX, underlying EPS. growth

outlook could materially than assumes exists assumptions. uncertainty meaningful our current the but economic Our persist, macro backdrop different conditions be and

have resilience record across track we a of However, cycles. economic

XXXX strong revenues all our year one repurchases. an of for strategy record Marsh was earnings, and summary, execute and continued benefit our the in record McLennan, recent to performance. investments In saw share growth, delivered We acquisition made outstanding businesses in of on which generated

the the are a our forward and XXXX. year determination focus shareholders. year of and note on value and to high colleagues the to We of in We performance strong our clients closed they deliver of proud another and look

detailed to results. our me more With that, of let a for turn Mark it over review

Thank you, morning. good John, and

strong pleased delivered which results, and position from year. took These investments inorganically. performance We with financial us strength we perspective in quarter, a with fourth year quarter We on and capped combined invest another actions well good organically another terrific XXXX. in the strength our are to fourth for the continued

to billion. $X in Consolidated revenue decreased fourth the quarter X%

year a Marsh the last gain India. quarter to related fourth included a As reminder, large

meaningful growth. GAAP to exchange headwind also Foreign was a revenue

XX% fourth to However, in revenue quarter X%. on increased underlying an income adjusted was income operating Operating billion. $X increased the $XXX million and basis,

$X.XX was increased and EPS margin basis XXX operating XX%. adjusted to was points EPS GAAP $X.XX. adjusted Our

of marking the XXth our billion year, dividend to Moody's deployed enhanced capital income our $X.X a XX% full XX and of EPS short-term over rating income our and adjusted outstanding. saw management. to Our for expanded an our grew We billion lift points were year of positive. $X.X raised basis strong Operating consecutive XXXX results margin for increase XXXX. was $X.XX margin our was outlook reported year expansion. XX% operating Adjusted operating XX% capital, XXXX also adjusted was $X.X liquidity, and year billion,

the in macro $XXX headwinds an India momentum adjusted operating in fourth XX.X%. income points million. in million economic $X.X Looking quarter X% RIS that the and operating XX% reflecting at uncertainty. XXX services, to where revenue comparisons. is On our fourth margin in result was insurance gain risk increased expanded X%, underlying face to increased the basis, resilience our our RIS revenue income $XXX the quarter. the Adjusted in decreased basis revenue to affected Note RIS and of billion. on business and The Marsh specifically strong

For XXX quarter on the and strong impressive of the up of was decreased increase related Adjusted XX%, year M&A activity. with year, XX.X%. RIS revenue growth X%. on the our billion, income X% and growth top comes $X.X revenue This margin quarter in tough for last which basis. basis comparison $XX.X to was X% points underlying X% adjusted billion to underlying in at operating At a increased the in year, SPAC operating Marsh of but an of fourth to was saw RIS

$XX.X X% X% or on For at increase was revenue of an underlying an Marsh the billion, full basis. year

from and lower given markets Canada, and headwind result quarter, M&A capital U.S. underlying activity. In solid the the was for X% a growth

to normalize headwind this expect but quarter. second persist as the first the into we We enter quarter,

U.S. underlying For X%. and the excellent Canada full was at year growth in

with growth was quarter underlying Asian X% America Latin up international, up Pacific the In XX%, EMEA up in and X%. X%,

international was year the $XXX at strong million, growth Guy basis. For X% underlying in on up XX%. was underlying an Carpenter's full revenue

a or current Carpenter's tightening reinsurance $X Based expect basis. underlying an revenue an on our growth was For from the Guy to year in on XXXX billion, we X% of market. increase benefit X% outlook,

fourth In in reflecting adjusted decrease segment, was quarter, was The the X% $XXX flat Consulting was million, income down million, prior basis. X% markets an versus margin XX% XX quarter a operating continued year. income Revenue grew was Consulting the the on headwinds. operating adjusted billion basis and $X.X revenue capital fourth of and underlying exchange foreign $XXX points. operating

year to adjusted $X.X billion, $X.X increase operating X% full an an XX XX.X%. to Adjusted the billion, decreased year income was for while basis. our of margin Consulting X% For underlying operating the basis revenue points on increased

and declines Mercer's basis. impact quarter, flat business. a in underlying investments capital the on of on income an good equity basis the considering our revenue was year-over-year was in is an on up both This billion $X.X markets. markets Wealth due X% result fixed to underlying

Solid helped in drop growth the defined benefits investments. in mitigate

Our at than foreign fourth on of the strength in XX% last year grew sequentially, exchange, from billion end management flows. of revenue XX% continued and the X% market Health were due revenue more X% basis, offset fourth an rewards, Career the and the in quarter, underlying quarter, government momentum fourth and to declines transformation. all $XXX down basis strong reflecting across net underlying workforce on employer demand in positive in regions. up quarter which an segments under reflecting strategy, assets talent increased but

since underlying basis, the Mercer increase year an highest an result X% revenue XXXX. $X.X the at of billion, For was on

quarter an on X% underlying fourth of tough a Oliver was comparison Wyman's a basis, of fourth revenue considering $XXX the the increase million, XXXX. XX% in to quarter growth solid an result in

the full building underlying the increase billion, revenue an XXXX. on Wyman's in Oliver was growth of on For $X.X year, basis, XX% XX% an

growth Oliver As expect rising slow we we at given to look uncertainty. Wyman economic XXXX, to

expense corporate Adjusted quarter. in million $XX was the

headwind $X.XX and a the a Foreign for exchange year was fourth quarter, was headwind. in $X.XX the full

to $X.XX to a quarter rates modest quarter, and levels, expect with exchange at in Assuming headwind remain first the in the $X.XX current we $X.XX second in be second FX tailwind the reversing half. XXXX a in

noteworthy majority the largest to exit of initiated in spend which we want on quarter, in real The year, as last items to which estate focused to of I relating a our well overall the $XXX noteworthy on actions of headquarters was the are million as rationalizing in activities actions, final restructuring workforce footprint. related reducing of the items London. JLT's minute $XXX category the quarter technology, million and

charges as actions. to well headcount reductions, The severance real with provisions estate included associated related as

XXXX expect reinvestment we some the flow million could further million. Based through this actions the and possibly these $XXX $XXX XXXX into majority Although actions, program, from to of which on in anticipate under we XXXX. benefit our earnings. be savings will today, to to outlook continue the earnings expect will We

XXXX. or this the in don't XXXX XXXX point, are of additional We in refining still exceeding at opportunities, but taken charges we amounts see estimates future

As on global retirement fourth give we our quarter on brief our do calls, will typically plans. update a

net $XX other quarter and was credit million benefit full in the the million for Our $XXX year.

in on expectations, net based anticipate $XXX defined plans our our XXXX, global our other million were XXXX. benefit benefit current we to will Cash about million. For $XXX contributions be credit

be contributions roughly XXXX. in cash will expect million We $XXX

loss equity quarter fourth million our an Investment portfolio. $X a reflects GAAP on private in the income of in basis, was loss basis mainly and of losses a adjusted $X million and a on

million. reflects commercial we forecast, XXXX expect Given market for on million. of use interest quarter XXXX the full of quarter an investment This Based conditions, investment anticipate working of income long-term XXXX. the expense efficient year approximately paper, $XXX million in was $XX income in compares basis. our in on This to adjusted we for and debt negligible increase [ph] the first current $XXX Interest which current capital quarter fourth the interest expense of of first we an rates management. in on higher

benefited This in items. fourth rate discrete Both quarter last tax effective was the from with quarter adjusted year. in Our periods fourth XX.X%. XX.X% compares the favorable

the adjusted full year XX.X% effective compared in tax XXXX with For our was rate XXXX. XX.X%

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

includes senior balance offering our $XX.X issued of Turning redeem with we ended of million October. to used capital the senior we XXXX. that mature proceeds debt in billion of were $X the a in We to in notes year management sheet, scheduled of total the billion. to notes This March, portion this from $XXX

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

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

for sherry totaled cash billion $X.X for year million and $X.X dividends, uses billion purchases. of $X.X the included $XXX For billion acquisitions, for and

capital over investing the a solid attractive in We We for and the balanced company consistent performance our growth both in better for and for they focus repurchases strategy the delivering over organic over acquisitions. supports business, creator favor the share reinvestment near-term are on that long-term. long-term. As reminder, and a investments the while shareholders believe value acquisitions prioritize the we management sustained have

meaningful over reducing our generates However, raising share and capital recognize year time, we our each target we to returns shareholders and returning that also for count. investors dividend

Looking ultimate outlook M&A how share dividends, ahead $X we across depend level billion based pipeline approximately will acquisitions, and purchase of expect of capital purchases. to XXXX, our develops. the The on deploy to share today, on

the global economy. uncertainty As significant John in there the outlook noted, for is

about uncertainty, digit good despite supportive feel the adjusted we expansion, position, there for factors XXXX, we business. momentum revenue margin better of growth our are underlying in and growth and mid-single our remain today outlook and Based that our However, or growth, in EPS. expect strong on

back And John. with to turn I'm it to happy that,

we are Andrew, Thank Q&A. you, to Mark. begin ready

our And first of Motemaden line Evercore with David ISI. Instructions] from comes [Operator the Certainly. question

efficiency a Hi, just yet, in you and of just back question results a, ask, a revenue just offer you're sort your instituting is the first playbook based sort a but shown improving from that an restructuring downturn step something take is or wanted hanging and is some on I move throughout you just good a the and that to the seeing should in think morning. on had as environment this it just of up more that see organization? that of seeing something move, are just defensive I picking actions up hasn't this fruit of offensive low you this are

morning, right? our our steps There's workforce the clients. move, evolving with took needs nothing Good the align and David. defensive to skill about sets We of

when the client in together. rationalized report, opportunities we've those more our I real technology, some You are evolving reduced know, global to constantly businesses. highlights of the some as footprint. some and closely some I and noted, opportunities our We're We've greater working across estate challenges risk efficiencies outlined of identified dynamic create also

not So it's an is. of think the what economic we outlook indication

workforce. if And of, Got of could estate, talk drivers thanks. spoke Any then three it, and I it you that just real technology just about you was maybe guess the some way actions from each and of we those buckets should that is some think the to about which, you benefit size that be much future of might how taking? coming how of

different fairly further and It's some mix. between as areas. the you a we And doing opportunities. noted, still see Mark it's work some three know, balanced Yes, we're

and together, ourselves way. matching way to we than challenging in at efficient further here. in we're and it talent, that I we've a in a needs quarter comes looking different more against ourselves the it's operate evolving likely less then the that charges But pushing where fourth again marketplace However, think would took how be what got

you. Thank Great.

next question? Operator, David. Thanks,

next line comes our And Jimmy you. from with JP Bhullar Morgan. question Thank of the

Hey, in a or the the and Carpenter? in you bit higher more market retention you're good talk market a changes bit little also you your whether rates Hey, both just if client seeing, Jimmy. morning, about behavior, reinsurance Marsh seeing any mentioned self-insurance lines. more in firm you're sort of Guy at commercial on so little Can John, hard comments in what and

Sure, thanks Jimmy for the question.

I Xst comments, challenging a as in very my know, January noted it property renewal. cat was You

it. challenging course We be renewal then Ian to Ian, a to it exacerbated season expected and prior of

the comments primarily I know, of were reinsurance retentions. insurance. mention by You there not a about and My some that higher did bit offset costs higher are

But ask well. have but inflation what a market lot I'll to a capital, to of mark FX cat cat on commented the losses big would Martin bit Dean some years. second, challenges now on of higher a created losses their cost higher as just programs I and to other sheet, Reinsurers course of and comment the say in side FX last over several the reinsurers a the the States well, balance a number asset as United I in

pricing of capital So, first you'll, and to factors some you give from maybe reevaluation deployment just go the a number bigger capacity a can and But Dean, providers. of different of led really an overview.

Thanks sure. Yes, John.

geographies renewals. were I I that cat terms I many in only our not you mean, think but attachment X the right? in patterns, of in up points mean, points. with of driven, buying was reinsured client retentions, increased at reinsurance, States, January January all United X substantially clients, for Attachment in mentioned

more to clients take volatility sheets. balance our forced So their risk, more were on

limit, cat, of demand inflation of the our limit bought up think Maybe additional clients patterns, on limit, didn't more, bought end conditions. cat talked increases about and many that given eliminated that for in limit was buying maybe amount but So last terms of clients incrementally, cat clients that put driven the year. for cost-prohibitive terms mostly bottom of everybody I a at that global that in buying they programs very it In some Clients made challenging really programs, was outlined same But materialize. John bit terms all the of up. right? around top more, property was terms fall rate bought little of of

pricing, really conditions. terms hand and know, reinsurers in had around attachment the challenging point upper very this and You marketplace

Thanks, Dean. the want Martin, observations market? share some do to about you insurance

in is impact John measuring the to property of thanks is rate increase, off X for the tough Yes, we've and reinsurance cat absorb going of and they which the anticipate leveling We thank quarter. years high of going that and for back saw increases Casualties about you I'll at softened which little of number as going that rate X%, that next been trend our accelerated a in the We're the was described. of that the and their XXst losses, positive last Dean. cost on there. clients, behaviors. through to Dean we still course a quarter X% just slightly on to which bit QX costs continue that's year and quarter. D&O going comment

The overall down rates D&O were X%.

of one carriers SPAC which to in saw their to As they And some deployed which that rate opportunities continued although a the accelerate a saw new rates the globally tended we less actually and activity in our the XX%. deceleration to limits that market. combination last is XX%, capital, at marketplace new increase entrants things, increase market, that about quarter cyber in take XX of The be enabled the came clients into rated. higher into

behavior, optimization their of our In are at of clients terms the programs. looking constantly

propositions quarter wide nearly our in to risks more Our of captive retained their they have as management the and digits year and help range risk manage. for business and of clients the clients double value grew for a retain some the which we they

we changing growth. to feel bullish that so market our dampen not the is And going

and So a remains core clients. dynamic Jimmy, social of risks market losses, inflation. challenging inflation, for Higher it our cat

speaking market. a you have follow discipline underwriting across Do observe up? broadly So we continue to the

regions expect time? flattish in over to and Mark what XX% -- seen fiduciary obviously up investment rates sequentially the we the XQ. Because past XQ is over for several from you a up income, that months. Do are recently even actually over and in some just of gone it's should on we've Yes, lot further a expect increase

happened rates portfolio is a higher? more what's effect lag investment the income sort or reset of there So fiduciary of in mostly has of with

we morning. year Good fiduciary upside as you though half back look Jimmy. really move till to in And like this even Rates as know. to year. Thanks We of income didn't slowdown places, lot is not average of over and peaked. rates also course that's even have the an moved fourth a the in of of even rates expectation the quarter the And certainly start for in a it continued remember rate the seems quarter. bit see little the the quarter,

something to So to year. we that benefit into it is expect continue give this us

Thank you.

Thanks we please? can next the Andrew, Jimmy. have question

our next Certainly. from comes Wells line Fargo. Elyse of And the question Greenspan with

in Hi, Good the income expense investment combines of fiduciary first your thanks. question I morning. comments. some My guess program

So the in margins then I income would comments. get incremental it your point like investment Mark's tailwind XX XXXX. basis assume around would uplift And be expense from could fiduciary program seems per to you rising prior

your XXXX margin So about improvement? tailwind to those good a think components we we of when is, think pretty margin two should

to businesses, on I'm we're, while we to increase years to revenue had strong guidance, thanks course, year the question. expect that both margins well we're expect I for outstanding out to many there, We're discipline we year. the that Elyse, macro call, and the I talent. line give we EPS discipline, expect growth terrific expect maintain that's Yes, uncertainty, in to think we've year. year. over not and But shared for this Again, from expand some flow And growth we margin what positioned. this bottom bit, there's and the margin that strong just of and our the program adjusted going a Mark your to and have to of financial this course

pretty on, the And I Are Thanks. making guys my about pretty strong say changes your we've you right, never you on over mean, How that face does rate growth triangulate Carpenter? pricing? changes we Have just Mark structure haven't an environment, to the that some seen that in January robust commission see price any help strong Guy And the in then you reinsurance given Carpenter of XX% growth increases question clients you second guys with into pricing? talked heard, did year. X. then been would at Guy any plus within coming organic that guys, increases. your

a that We XX been environment before. to but been have operated of environment. been that long years since around We've kind close time, in in we've it's

at revenue good Guy Carpenter. a expect We year growth of

course, won't I our prepared company our ceded attached noted rate premiums in a right? that clients compensation. with we Guy commission As of cat good we about We're they're expect some very In insurance more higher our cases, that. with to increase, transparent level. be that to their or manage for have at track remarks with my cap agreements work a retained risk clients, our, clients, it our Carpenter. As programs but We again, have year

And any change in the commission structure?

with our As we clients. that through work I said,

how Thank and we're you. with We them very a about dialogue remunerated. transparent have agreements

Thank you.

question next please? Andrew,

question Citi. with next Mike comes of from our And line Ward the

exposures if today? was be much that tail could Thanks, left guys. see from as I morning. maybe give Good sit of end how could more of you wondering a we or sense here can a you inflation

the Thanks Mike question. for

my risk macro in one of economy, real to of Marsh that the those remarks, some are not there of support inflation while course, areas. side noted is McLennan. & prepared growth business we're immune I of As In factors our the

losses So, higher inflation, inflation core higher in and leads environment. and to pricing of more whether it's discipline inflation, course wage the

supportive issues right? by though, are growth. It's outcome of All a client those client of

economy, course and of distinctions in in our in of losers stark like are might those be more some economy and an any winners clients, there today. Some we're of

defensive. to And so some are be will operating more from a course, position others of strength of need and

of GDP, GDP. through So and inflation that and them, speaking, than client nominal but services broadly work with our we revenue client, for more demand our by is indicative real

Awesome, thank you.

Do a followup, you have Mike?

slowdown on but consulting be may a Oliver the pipeline and or seeing possible Wyman, can you're whether career, about in know and of reducing talk appetite? Mercer anticipating slow Actually that their you Yes. you Wyman businesses kind I down mentioned just

Sure, Mike.

differentiate for company. proposition of a Wyman clients us had start year Wyman on and critical day help on businesses. We growth that part So and saying our of of our other than higher we part really of growth an me growth just our important critical C-suite of XXXX by is out Oliver advise XX% the just top in the in XXXX expect value our value outstanding proposition. the really Oliver midterm, our issues They the a medium let and of term, over

that, do some of having growth. So moderation said we expect

So outlook to you share an maybe Mike. Nick, ask I'll with

thank John you, Mike. and Yes, thanks

let me year John with started second put of growth. Wyman consecutive very As happy do, to just double Oliver a We're digit context. into

XX we're think well added in we've and this across share was very that that since in balanced. our pretty we fragmented growth of all a across confident most years practices market gained I XXXX. third industries And grew capability to all a our We of across that. is We've it's that achieved and regions, time, what market. our in over

of single the remain pause having to growth we things. optimistic I've in a there that, X% a and below this we in likely longer-term underlying growth years. reflect We're our years, we'll growth a the the term that plans. but time, pretty and clients, expectations said several was reported in revenue lapping turbulent call, and pretty does two mid-to-high on the surge cycle. digit That double medium closer through We Yes, my certainly major the quarter, quarter. heavy digest our after slowing last two but is revert same one But it's see as in the first pipeline and high the seventh at something digit did

Excellent in as color? best Thanks, since comment little but health, Mercer about terrific could bit well feel Nick. XXXX, growth point and you we career, Mike, maybe year absolutely maybe it. had would Martine out its to in Martine Mercer I excellent a on share growth growth of so I'll ask Career, more

Yes, no, question. for has is and thanks Yes, the as Mike say Career our discretionary and John business to well that right the one that of you're projects. course most

added We've looking change at had to was to a whole here in of in The what that of in related we XX% want really all inflation. say high was here cautionary of years wage way. world XXXX the growth. in The I So XX% Career. in work. But XXXX demand course a QX tremendous is to growth. we've indicators a is, are two

the have shortages We issue. labor

skills. analytics, So workforce work looking engagement, agenda. our of at skills, reward gap, all on talent top client's strategies, we're assessment of It's future of

conditions people momentum, our elevated this given entered very strong sentiment client the point, point now an macroeconomic And that monitoring such So stays But course, strong. are that strong remains and what pipeline. that that right solid XXXX agenda we've is for we the seeing the overall confident as in we're are are growth sales clients with pipeline on stays question at demand foreseen. of sales, development we this year,

Terrific. Martine. Thank you, we please? our question can Thanks have Mike. Andrew, next

with Sachs. the our Robert Cox And question of from Certainly. next Goldman line comes

taking thanks Hey, my for question.

to not maybe previously, X% think about X% talked growth organic outlook a while, I for longer-term. had a you guys but

Just curious if your has all? view on changed that at

know, you Well, or growth underlying for mid-single-digits sharing. that's guidance as better year, this shared I revenue the we're we expect

in that positioned well talent an well. in we're culture choice Robert outstanding As businesses, prepared us we're in terrific I my employer just as those of have businesses, makes a and noted remarks,

growth the about near-term. prospects So feel for we good our

the just a year-over-year, of up, big how segment I in susceptible so today an it. wage maybe just yes, into wondering follow business how big pressures saw perhaps little deal consulting Got margins to a bit is and of is? that impact XXXX, and And think that we more are a the decline

you it's sure. manageable for Yes, know, for us been

markets As the that employer we on we said our and worked operate of becoming hard culture we in in. really, an really choice

impact. as think outstanding privilege the attract people very, talented very we best that and I client want you they earlier talent it. work brands, that's collaborative a when of be career tackle who of their said culture, to issues really to to strategy to are risk And because areas about We're the devote we really because that their trying do it strength And people it work do, talented environment, with so individuals here. in the it's a day. of the focused how do the on we think enables the some who and I of of

excuse our engagement, high. client our remains And very, engagement, colleague me, very

So that I was but think turnover year, in elevated the second the of year, the voluntary we half saw that in from really part that back elevated but turnover well perspective. has being of bounce very, a those pressure been early pools, the We're moderated wage talent a But merit how turnover. voluntary and manageable low we us. abnormally feel pools allocate positioned very we very for about from some thoughtful

next Andrew, Robert. you, Thank question please?

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

Thanks. Good morning. A couple of quick questions.

when into higher latitude more investments? does First, income, longer-term anticipate that John, can translate you for strategically, fiduciary

in think to and growth know, in But I client macro that balance, took trying a near-term or not quarter forward. fourth capacity we're see. to part know, connected and may The we steps in income the to or other you make that quarter, be the obviously, the stronger demand investments mid-term. to factors. fiduciary create took fourth It's for become going to opportunities correlated we obviously that may business the the actions of the us we You

Okay, that's helpful.

we've stressful mean, a season, incurs? about actually impact. impact financial comments a that of obviously renewal accurate the does very that but clearly when Guy heard Second the period, question, difficult I expenses Carpenter about I'm lot reinsurance wondering the

It stressful period. was a

well. attested is were for way. say growth no, was Carpenter. difficult of mitigate doesn't the a I outlook colleagues company market clients. Again, any want as expected And, I don't base Guy challenging on we a a it I good our It But Our would environment said, overall to our impact meaningful insurance as and in cost supportive outcome. impact the

Andrew, Meyer. you thank please? Okay, question next

Andrew you. Thank comes of next from our the with question Credit line Kligerman Suisse. And

morning. good Hey,

around underlying growth. is revenue Marsh is X%, Guy up question First up Carpenter X%.

out, increases, be Given you strong if exposure negative? growth the the that would netted growth, underlying rate the strong

It would strong it question. and was I note a Marsh would and not growth Carpenter. would Guy for very very be Andrew, you quarter. it very, not small but, Carpenter No. of at at year a thank your negative both is be, Guy

we're Carpenter well Marsh, At number strong with growth. was as pleased for XXXX. revenue it morning, And the good growth I've this said of in again, quite very is positioned so Guy a times And an outstanding year.

the You know, quarter. year, the X% for X% in

markets, we a of mentioned this Martin had fewer mean, Marsh related ask activity, We I'll right? impact U.S. in So, to with know, on Martin some capital and had less pricing. You M&A as the M&A second. activity. earlier the I in the to less headwinds noted, ITO comment

pointed out it there, Martin pricing a impact but was issue. an as more that of volume on So

We your first into bit color expected provide the XXXX. growth entering at on headwind to into more Martin, for well. a fourth good year we maybe the that little and our could But quarter. as XXXX a quarter It's end expect thoughts share XXXX. also in you growth of the us a

Yes, the was XXXX. of quarter. delighted X%, It said, as Well, you X%. of the course growth of the course, of EMEA had to, thank International top XX%, quarter across X% in grew Strong at in the prior on X%, we balance in you. growth X% America of portfolio. Latin at APAC the at

Canada and U.S. and mentioned that Canada say headwinds actually business. You U.S. impacted in our X%. was I'd the at by

of in prior elevated So and XXXX. markets we activity SPAC in M&A had tough activity half comps the from capital and back the year

growth would as have the uptick. growth for normalizes that, of been in that the strong next year, a the America which X% and for representation much posting APAC see first XX%, very Latin year of U.S. they're to bullish underlying better there what XX%, going to. The we likely was in that but think is results full we're international quarter an of Canada, feel We we so and region XX%,

are America, transition construction was driven than percent smallest double rather look of quarter. This the when up is credit energy was and trade a X% international power a EMEA grow better the we at year what you look likely part and Latin And just up the the as we digits. double-digit indicative in so up to X%. the and what's U.S. the business growth up and double think discreet Canada full at future then should growth dealing with of

advisory double in clients year. digits throughout which Our mitigate the business, our changes helps risk grew

our So the good value in we we're geographies how about growth. proposition that about the feel very about about positioned we're in good and position feeling

again in Do a as XXXX So way about terrific feel markets, the some Andrew, working XXXX our well. through and headwinds growth believe we're you the in up? capital positioned have we well in we're follow but

one I cost follow quarter, integration that what the $XX Yes, deal quick I was XXXX, was was? given of curious that it's JLT curious been, think up, the in about just just the million just so

maybe you share Mark, can XXXX. was with It Andrew.

stages shutting able consolidate to of integration of as basically were Tower their final at headquarters an abandoning action early And related Tower the headcount the down was headcount. long just all Andrew in step finally that accommodate very is into JLT it location with our the Place It of and pretty refit all Place. to much that planned was for into That our to provisions and integration. that us the the to the took we London

Got it. Thanks so much.

our Thank you. next Andrew, for we're question. ready

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

Good morning.

and the First maybe question, you then environment. changes talked [indiscernible] structure potential about compensation had some for

previous been in changes rate that some played maybe give markets? compensation this how out before, commission hard ideas of market in or reflections hard this in some or Given us you markets? can you've that How much

a fairly You been of constant have number Yaron levels know years. for commission our

we've for larger that been of years. agreements at As I in said, clients some had many have Guy our Carpenter, with capped commission place

work those course the clients with for to over work we year. of remunerated fairly so be the do the we And that

And through have we healthy way good, so, with them. those and relationships clients work our

more don't than think there's share So really that. anything I to

that And to restructuring, any is Okay. action XXXX? of my hires that or you so identified, other back the regards with question in implicate the workforce that the you does impact had

expect returns last year drive to well. of XXXX years. into as and amount about have the feel well. last we of over We and we on those of strategic XXXX growth the in course in that as meaningful we the organization driving couple been brought for investments our in terrific it The the us invested No. terrific absolutely growth talent a talent

we I it that aligning skillsets with connected part said, and ourselves in our we bringing actions about more more simply businesses to operate our as evolving needs. efficiently, workforce So with closer and together. also challenged the And is some more how were took

and ahead. nice Thanks year

question Andrew, it. appreciate I Yaron. Thanks please? next

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

you. for them of Two thanks. and Yes

deployment expectations expected billion had Because of when year, $X kind necessarily, free the that your of of you you to curious, does that billion on capital $X deploy of are flow? last just planned relate cash how I'm Mark, does I actually one kind to First how this capital think year? what

of largest Sure. capital. of cash will that we The deploy flow $X we free do so Brian, source about capital generate. be billion deployment that to plan to expect

We cash of balance raise did late from we entered also you last a sheet, our year. bit the if the with entered, little debt saw year we

as additional well. some So, capital that provide will

flat But my guess I point do you? expect don't is, year-over-year, be free you will cash

as well is of growth. a free long has be flow tends time our flow pretty earnings track cash can a earnings over our But to and story know, And volatile. for with you time us period over cash for strong Well, great been outlook solid growth.

generate. So we I But generally the our free away biggest from precision. as with is cash stay underpinning of be source projected said, flow we to free cash capital flow going predicting the deployment

Maybe what's XXXX. effect. that us with like in lag remember a big tightening as just appreciate now of And I kind preparation looking of business right there? slowdown corporations some there what always I'm strong for activity a the you are see helpful. effect a just revenues John, that's out then in I your you can XXXX. remind still lag vis-à-vis pretty Great, there's And challenging belts you're curious lot see a out they good for

real has nominal risks than the maybe meaningful lag again, out successfully Well, our there. geopolitical related the comments reopening environment. in impact for economy of indicative so how Having and demand my it's you more about an I us And about more that, It's environment carry risks at broader day. with really is to strong when far the it's on But earlier yes, hard modestly any the and Europe positive talk China think precision. for least GDP about in mean, said uncertain remains us, still managed the GDP businesses. there's Europe. and energy

expect including how challenging strong I as remain Wyman, we difficult, get know if businesses for Guy of a a perform overall And we bit prospects at healthy. quite to Oliver our more broadly environment. of speaking, things demand but growth said, So, Carpenter moderation a more in

comes resilient a playbook we'll and have navigate to execute us. the so we're and that playbook. We in front business on whatever ready of We're

Great, thanks for answer. the

Thanks Brian. Andrew?

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

Hey, good morning.

investment guess First comp not hiring contributor, a and income big like, fiduciary margins looked this expansion, to it. me the actually that ratio was question, year quarter, at with XQ given a pretty a much so XXXX. it was surprised I much margin in just looking just with the relatively looked ago the revenue flat bit, attached there to

the the fourth how yes, the lack I thinking about, or on leverage be guess So that quarter? thereof operating should that we cooperation in

the thanks question. for Ryan Yes,

last be that the light in our said we talent. start particularly consecutive margin year in As year we've of I improvement, margin and year. XXXX XXth expansion, made XXth to the of was investments expect with consecutive I pleased

again, ratio. earnings modest So, it slight here business business our as is improvement, in sense, We're improvement the to growing for our where time, and But invest improvement to and free then the the on we change makes on and we client cash where a accelerate excellent of and impact. is financial us same think what's going comp make we're to the us. growing not going think focused a an margin outcome continuous commitment at stronger But focus can it performance. it's

in days curious but Got where spending the a up, on time? it. early you've what just or just seat, And your follow guess focusing obviously been you're then I John, new

been in strategy has seven years voice for now. our My nearly Sure.

get fit I on our change to market work leading to in I well organized. neatly As real We're ways, against into folks those just here. talent. a to a brands. focus It's see some talked performance dynamic we're not the needs that on again into be we're with Having and going got get chart. to all our needs our are in with certain to the company. We've in anyway, We necessarily improvement them right outstanding fit organized of work businesses. don't Client our positioned, said opportunities fit I don't to intersections I real need don't said, are remarks, day. the We're big commitment not as and continuous excellent neatly said boxes at org financial about, but businesses. as privilege we the how my every And of that, those prepared needs

behalf accelerate so enable colleagues the more and to work And we are they a where we about where where unique and going of is impact sense We're collaborate. makes got client think do success. our it it client be we market we're success We've can deliberate about clients. makes go to that capabilities. passionate our to how together of sense on client and going collection And

excited So to We're to drive work they're excited going about closely the possibilities. possibilities. across the together I'm more also some efficiencies our business. about

of lot think I and days businesses terrific and the here a excited I'm ahead. Again, So in I terrific team opportunity. we're about a see

you, Andrew was now. Ryan. Thank wrap it up last that the question, we'll

of now would I and call the turn McLennan for remarks. to like back to any Marsh John President over closing Doyle, CEO

clients to forward hard confidence you to And And thank speaking In us to for I I thank want closing, Thank very look I Andrew. Thanks, also in next call this their work for joining in the quarter. and and their thank morning. our dedication Marsh all a colleagues McLennan. much you you with want continued XX,XXX on year. our over all for challenging

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