MARSH & MCLENNAN COMPANIES, INC. – 10-Q – Management's Discussion and Analysis of Financial Condition and Results of Operations.

General

Marsh & McLennan Companies, Inc. and its consolidated subsidiaries (the
"Company" or "Marsh McLennan") is a global professional services firm offering
clients advice in the areas of risk, strategy and people. The Company's 81,000
colleagues advise clients in 130 countries. With annual revenue over $19
billion, the Company helps clients navigate an increasingly dynamic and complex
environment through four market-leading businesses. Marsh advises individual and
commercial clients of all sizes on insurance broking and innovative risk
management solutions. Guy Carpenter develops advanced risk, reinsurance and
capital strategies that help clients grow profitably and pursue emerging
opportunities. Mercer delivers advice and technology-driven solutions that help
organizations redefine the world of work, reshape retirement and investment
outcomes, and unlock health and well being for a changing workforce. Oliver
Wyman Group serves as a critical strategic, economic and brand advisor to
private sector and governmental clients.
The Company conducts business through two segments:
•Risk and Insurance Services includes risk management activities (risk advice,
risk transfer and risk control and mitigation solutions) as well as insurance
and reinsurance broking and services. The Company conducts business in this
segment through Marsh and Guy Carpenter.
•Consulting includes health, wealth and career consulting services and products,
and specialized management, economic and brand consulting services. The Company
conducts business in this segment through Mercer and Oliver Wyman Group.
A reconciliation of segment operating income to total operating income is
included in Note 18 to the consolidated financial statements included in Part I
Item 1 in this report. The accounting policies used for each segment are the
same as those used for the consolidated financial statements.
For information on the three and nine months ended September 30, 2020 results
and similar comparisons, see "Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations" of our Form 10-Q for the quarter
ended September 30, 2020.
Business Update Related To COVID-19
The World Health Organization declared COVID-19 a pandemic in March 2020. The
pandemic has impacted businesses globally including virtually every geography in
which the Company operates. Governments continue to ease restrictions or fully
reopen their economies, as the various vaccines are effective in mitigating the
effects of the virus. Our businesses have been resilient throughout the pandemic
and demand for our advice and services remains strong as the global economic
conditions improve.
Although the vast majority of colleagues continue to work in a remote
environment, the Company has provided guidelines on a gradual and phased return
to the office depending on the level of virus containment and local health and
safety regulations in each geography. The safety and well-being of our
colleagues is paramount and the Company expects to continue to service clients
effectively in the current remote environment and as colleagues gradually return
to the office.
The Company had strong revenue growth through the first nine months of 2021 and
benefited from the continued recovery of the global economy. However,
uncertainty remains in the economic outlook and the ultimate extent of COVID-19
impact to the Company will depend on future developments that it is unable to
predict, including new "waves" of infection from emerging variants of the virus,
potential renewed restrictions and mandates by various governments or agencies,
and the distribution and uptake of vaccines.
Factors that could adversely affect the Company's financial statements related
to the financial and operational impact of COVID-19 are outlined in "Item 1A -
Risk Factors" in the Company's Form 10-K for the year ended December 31, 2020.
Acquisitions and dispositions impacting the Risk and Insurance Services and
Consulting segments are discussed in Note 8 to the consolidated financial
statements.
This Management's Discussion & Analysis ("MD&A") contains forward-looking
statements as that term is defined in the Private Securities Litigation Reform
Act of 1995. See "Information Concerning Forward-Looking Statements" at the
outset of this report.



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