Financial Analysis

"Claims, Lawsuits and Other Contingencies Nature of Contingencies The Company and its subsidiaries are subject to a significant number of claims, lawsuits and proceedings in the course of our business. Such claims and lawsuits consist principally of alleged errors and omissions in connection with the performance of professional services, including the placement of insurance, the provision of actuarial services for corporate and public sector clients, the provision of investment advice and investment management services to pension plans, the provision of advice relating to pension buy-out transactions and the provision of consulting services relating to the drafting and interpretation of trust deeds and other documentation governing pension plans. These claims often seek damages, including punitive and treble damages, in amounts that could be significant. In establishing liabilities for errors and omissions claims, the Company utilizes case level reviews by inside and outside counsel, and internal actuarial analysis by Marsh Management Consulting, a subsidiary of the Company, and other methods to estimate potential losses. A liability is established when a loss is both probable and reasonably estimable. The liability is reviewed quarterly and adjusted as developments warrant. In many cases, the Company has not recorded a liability, other than for legal fees to defend the claim, because we are unable, at the present time, to make a determination that a loss is both probable and …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt The Companys outstanding debt is as follows: December 31, (In millions) 2025 2024 Short-term: Current portion of long-term debt $ 1,267 $ 519 $ 1,267 $ 519 Long-term: Senior notes 3.500% due 2025 $ $ 500 Senior notes 1.349% due 2026 647 579 Senior notes 3.750% due 2026 600 599 Senior notes 4.550% due 2027 946 945 Senior notes Floating due 2027 299 299 Senior notes 4.375% due 2029 1,499 1,499 Senior notes 1.979% due 2030 646 566 Senior notes 2.250% due 2030 744 742 Senior notes 4.650% due 2030 992 991 Senior notes 2.375% due 2031 398 397 Senior notes 4.850% due 2031 992 992 Senior notes 5.750% due 2032 494 494 Senior notes 5.875% due 2033 298 299 Senior notes 5.400% due 2033 594 593 Senior notes 5.150% due 2034 496 495 Senior notes 5.000% due 2035 1,983 1,982 Senior notes 4.750% due 2039 496 496 Senior notes 5.350% due 2044 495 495 Senior notes 4.350% due 2047 494 494 Senior notes 4.200% due 2048 594 593 Senior notes 4.900% due 2049 1,240 1,239 Senior notes 2.900% due 2051 346 346 Senior notes 6.250% due 2052 492 491 Senior notes 5.450% due 2053 591 591 Senior notes 5.700% due 2053 989 989 Senior notes 5.450% due 2054 493 493 Senior notes 5.400% due 2055 1,479 1,479 Mortgage 5.701% due 2035 249 267 Other 1 2 19,587 19,947 Less: current portion 1,267 519 $ 18,320 $ 19,428 The senior notes in the table are registered by the Company with the Securities and Exchange Commission and are not guaranteed. The Company has a $3.5 billion short-term debt financing program through th …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates various components of the Company's revenue: For the Years Ended December 31, (In millions) 2025 2024 2023 Marsh Risk: EMEA $ 3,812 $ 3,530 $ 3,262 Asia Pacific 1,460 1,414 1,295 Latin America 571 575 559 Total International 5,843 5,519 5,116 U.S./Canada 8,523 7,017 6,262 Total Marsh Risk 14,366 12,536 11,378 Guy Carpenter 2,496 2,362 2,258 Subtotal 16,862 14,898 13,636 Fiduciary interest income 403 497 453 Total Risk and Insurance Services $ 17,265 $ 15,395 $ 14,089 Mercer: Wealth (a) $ 2,819 $ 2,584 $ 2,507 Health (a) 2,284 2,100 2,061 Career 1,087 1,059 1,019 Total Mercer 6,190 5,743 5,587 Marsh Management Consulting (b) 3,604 3,390 3,122 Total Consulting $ 9,794 $ 9,133 $ 8,709 Total Segments $ 27,059 $ 24,528 $ 22,798 Corporate/Eliminations (78) (70) (62) Total $ 26,981 $ 24,458 $ 22,736 (a) Revenue in 2024 includes a net gain of $35 million from the sale of the U.K. pension administration and U.S.health and benefits administration businesses, that comprised of a $70 million gain in Wealth, offset by a $35 million loss in Health. (b) Revenue in 2024 includes a gain of $20 million from the sale of a business in Marsh Management Consulting.

DisaggregationOfRevenueTableTextBlock

"Stock Benefit Plans The Company maintains multiple stock-based payment arrangements under which employees may be awarded restricted stock units, stock options and other forms of stock-based benefits. Marsh & McLennan Companies, Inc. Incentive and Stock Award Plans On May 15, 2025, the Amended and Restated 2020 Incentive and Stock Award Plan (the ""2020 Plan"") was approved by the Company's stockholders and replaced the Marsh & McLennan Companies, Inc. 2020 Incentive and Stock Award Plan. The types of awards permitted under the 2020 Plan include stock options, restricted stock units payable in Company common stock or cash, and other stock-based awards. Performance-based restricted stock units are referred to as performance stock units. The 2020 Plan contains a provision which, in the event of a change in control of the Company, may accelerate the vesting of awards. This provision requires both a change in control of the Company and a subsequent specified termination of employment for vesting to be accelerated. There are 29 million shares approved for issuance under the 2020 Plan. The Company's current practice is to grant non-qualified stock options, restricted stock units (""RSUs"") and/or performance stock units (""PSUs"") on an annual basis to certain employees as part of their annual total compensation. Senior executives are granted options and PSU awards. In addition, a small group of other employees are granted options, PSU and RSU awards and a larger group of o …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Fair Value Hierarchy The Company has categorized its assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy, for disclosure purposes, is determined based on the lowest level input that is significant to the fair value measurement. Assets and liabilities recorded in the consolidated balance sheets at fair value are categorized based on the inputs in the valuation techniques as follows: Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market (examples include active exchange-traded equity securities and exchange-traded money market mutual funds). Assets and liabilities measured using Level 1 inputs include exchange-traded equity securities, exchange-traded mutual funds and money market funds. Level 2. Assets and liabilities whose values are based on the following: a) quoted prices for similar assets or liabilities in active markets; b) quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangibles The Company is required to assess goodwill and any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate an impairment may have occurred. The Company performs the annual impairment assessment for each of its reporting units during the third quarter of each year. The reporting unit level is defined at the same level as the Company's operating segments. A company can assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. Alternatively, a company may elect to proceed directly to the quantitative goodwill impairment test. In the third quarter of 2025, the Company completed a qualitative impairment assessment, updated for significant considerations at year-end, and concluded that goodwill was not impaired. As part of its assessment, the Company considered numerous factors, including: that the fair value of each reporting unit exceeds its carrying value by a substantial margin based on its most recent quantitative assessment in 2023; whether significant acquisitions or dispositions occurred which might alter the fair value of its reporting units; macroeconomic conditions and their potential impact on reporting unit fair values; actual performance compared with budget and prior projections used in its estimation of reporting unit fair values; industry and market conditions; and the year-over-year change in the Companys share price. Othe r int …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Income Taxes For financial reporting purposes, income before income taxes includes the following components: For the Years Ended December 31, (In millions) 2025 2024 2023 Income before income taxes: U.S. $ 1,986 $ 1,894 $ 1,823 Foreign 3,553 3,586 3,203 $ 5,539 $ 5,480 $ 5,026 The expense (benefit) for income taxes is comprised of: Current U.S. federal $ 203 $ 247 $ 273 U.S. state and local 131 123 142 Foreign 848 836 838 1,182 1,206 1,253 Deferred U.S. federal 73 53 29 U.S. state and local 16 20 15 Foreign 34 84 (73) 123 157 (29) Total income taxes $ 1,305 $ 1,363 $ 1,224 The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows: December 31, (In millions) 2025 2024 Deferred tax assets: Accrued expenses not currently deductible $ 745 $ 713 Differences related to non-U.S. operations (a) 286 282 Accrued U.S. retirement benefits 131 149 Net operating losses (b) 346 312 Income currently recognized for tax 39 40 Other 49 40 $ 1,596 $ 1,536 Deferred tax liabilities: Differences related to non-U.S. operations $ 590 $ 588 Depreciation and amortization 699 616 Accrued retirement & post-retirement benefits non-U.S. operations 440 374 Capitalized expenses currently recognized for tax 144 133 Other 48 42 $ 1,921 $ 1,753 (a) Net of valuation allowances of $96 million in 2025 and $75 million in 2024. (b) Net of valuation allowances of $62 million in 2025 and $69 million in 2024. December 31, (In millions) 2025 2024 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 10 and 25 years. The Company utilizes these leased office facilities for use by its employees in countries in which the Company conducts its business. The Companys leases have no restrictions on the payment of dividends, the acquisition of debt or additional lease obligations, or entering into additional lease obligations. The leases also do not contain significant purchase options. Operating leases are recognized on the consolidated balance sheets as ROU assets and operating lease liabilities based on the present value of the remaining future minimum payments over the lease term at the commencement date of the lease. On November 15, 2024, the Company recorded approximately $76 million of ROU assets and lease liabilities from the McGriff acquisition. In 2025 and 2024, the Company determined that a total of $11 million and $15 million, respectively, of the ROU assets were impaired and recorded a charge to the consolidated statements of income with an offsetting reduction to the ROU assets. The following table provides additional information about the Companys property leases: For the Years Ended December 31, (In millions, except weighted average data) 2025 2024 Lease Cost: Operating lease cost (a) $ 351 $ 331 Short-term lease cost 5 6 Variable lease cost 134 116 Sub-lease income (22) (15) Net lease cost $ 468 $ 438 Other information: Operating cash outflows fr …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"New Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted: In December 2025, the Financial Accounting Standards Board (""FASB"") issued an accounting standard update to improve the guidance for interim reporting, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The update also provides additional guidance on what disclosures should be provided in interim reporting periods. The new guidance adds a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The new guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The update can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the guidance and its impact on results of operations, cash flows, or financial condition. In September 2025, the FASB issued an accounting standard update which amends certain aspects of the accounting for and disclosure for internal-use software costs. The new guidance removes references to software development project stages so that it is neutral to different software development methods, including methods that entities may use to develop software in the future. The new guidance requires an entity to capitalize software costs …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Retirement Benefits The Company maintains qualified and non-qualified defined benefit pension plans for its U.S. and non-U.S. eligible employees. Combined U.S. and Non-U.S. Plans The weighted average actuarial assumptions utilized for the U.S. and significant non-U.S. defined benefit plans and post-retirement benefit plans are as follows: Pension Benefits Post-retirement Benefits 2025 2024 2025 2024 Weighted average assumptions: Discount rate (for expense) 5.36 % 4.95 % 5.07 % 5.26 % Expected return on plan assets 5.43 % 5.44 % Rate of compensation increase (for expense) * 3.22 % 3.16 % Discount rate (for benefit obligation) 5.39 % 5.36 % 5.18 % 5.07 % Rate of compensation increase (for benefit obligation) * 3.12 % 3.22 % (*) There are no rate of compensation increase assumptions included for the primary U.S. defined benefi t plans since all future benefit accruals were discontinued for those plans after December 31, 2016 and earned benefits are not subject to final salary level adjustments. The target asset allocation for the U.S. plans is 50% equities and equity alternatives and 50% fixed income. At December 31, 2025, the actual allocation for the U.S. plans was 50% equities and equity alternatives and 50% fixed income. The target asset allocation for the U.K. plans, which comprise approximately 78% of non-U.S. plan assets, is 7% equities and equity alternatives and 93% fixed income. At December 31, 2025, the actual allocation for the U.K. plans was 8% equities and equity …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Restructuring Costs The Company incurred a total of $222 million for restructuring costs in 2025, compared to $276 million in 2024. In the third quarter of 2025, the Company launched a three-year program, Thrive (the ""Program""), which focuses on brand strategy, delivering greater value to clients, accelerating growth and improving efficiency. Based on current Program estimates, the Company expects to incur approximately $500 million of cost over the three years. Costs will primarily relate to severance, technology and outside services. The Company expects charges incurred to be evenly distributed over the Program period. In 2025, costs incurred in connection with the Program were $150 million, primarily related to severance. The Company continues to refine its detailed plans for the Program which may change the timing, expected costs, and related savings. In 2024, the Company incurred $221 million of restructuring costs, primarily severance and lease exit charges, related to the Company initiated activities in the fourth quarter of 2022 focused on workforce actions, rationalization of technology and functional services, and reductions in real estate that were completed at the end of 2024. The Company incurred restructuring costs in 2025 and 2024, as follows: For the Years Ended December 31, (In millions) 2025 2024 Risk and Insurance Services $ 134 $ 148 Consulting 64 79 Corporate 24 49 Total $ 222 $ 276 Details of the restructuring activity from January 1, 2024 through Dec …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Revenue The core principle of the revenue recognition guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, the entity applies the following steps: identify the contract(s) with the customer, identify the performance obligations in the contract(s), determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. In accordance with the accounting guidance, a performance obligation is satisfied either at a ""point in time"" or ""over time"", depending on the nature of the product or service provided, and the specific terms of the contract with customers. Other revenue included in the consolidated statements of income that is not from contracts with customers is less than 1% of total revenue and is not present ed as a separate line item. Risk and Insurance Services Risk and Insurance Services revenue reflects compensation for brokerage and consulting services through commissions and fees. Commission rates and fees vary in amount and can depend on a number of factors, including the type of insurance or reinsurance coverage provided, the particular insurer or reinsurer selected, and the capacity in which the broker acts and negotiates wit …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Information The Company is organized based on the types of services provided. Under this structure, the Companys operating segments are: Marsh Risk, Guy Carpenter, Mercer and Marsh Management Consulting. The four segments are aggregated into two operating and reporting segments as follows: Risk and Insurance Services , comprising Marsh Risk (insurance services) and Guy Carpenter (reinsurance services); and Consulting , comprising Mercer and Marsh Management Consulting. The accounting policies of the segments are the same as those used for the consolidated financial statements described in Note 1, Summary of Significant Accounting Policies. Revenues are attributed to geographic areas based on location out of which the services are performed. The Chief Executive Officer, as the Company's Chief Operating Decision Maker (""CODM""), evaluates segment performance and allocates resources based on segment operating income, which includes directly related expenses, and charges or credits related to restructuring but not the Company's corporate level expenses. Segment operating income is also used to monitor budget versus actual results. Selected information about the Companys segments and geographic areas of operation are as follows: For the Years Ended December 31, (In millions) Revenue Compensation and benefits Depreciation and amortization expense Identified intangible amortization expense Other segment items Operating Income (Loss) 2025 Risk and Insurance Services $ 17,26 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Common Stock The Company has a share repurchase program authorized by the Board of Directors. In November 2025, the Board of Directors of the Company authorized the Company to repurchase up to $6 billion of the Companys common stock, which superseded any prior authorizations. In 2025, the Company repurchased 10.1 million shares of its common stock for $2.0 billion. At December 31, 2025, the Company remained authorized to repurchase up to approximately $5.7 billion in shares of its common stock. There is no time limit on the authorization. In 2024, the Company repurchased 4.3 million shares of its common stock for $900 million. The Company issued approximately 3.5 million and 3.7 million shares related to stock compensation and employee stock purchase plans for the years ended December 31, 2025 and 2024, respectively. In January 2026, the Board of Directors of the Company declared a quarterly dividend of $0.900 per share on outstanding common stock, payable in February 2026. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"Claims, Lawsuits and Other Contingencies Nature of Contingencies The Company and its subsidiaries are subject to a significant number of claims, lawsuits and proceedings in the course of our business. Such claims and lawsuits consist principally of alleged errors and omissions in connection with the performance of professional services, including the placement of insurance, the provision of actuarial services for corporate and public sector clients, the provision of investment advice and investment management services to pension plans, the provision of advice relating to pension buy-out transactions and the provision of consulting services relating to the drafting and interpretation of trust deeds and other documentation governing pension plans. These claims often seek damages, including punitive and treble damages, in amounts that could be significant. In establishing liabilities for errors and omissions claims, the Company utilizes case level reviews by inside and outside counsel, internal actuarial analysis by Marsh Management Consulting, a subsidiary of the Company, and other methods to estimate potential losses. A liability is established when a loss is both probable and reasonably estimable. The liability is reviewed quarterly and adjusted as developments warrant. In many cases, the Company has not recorded a liability, other than for legal fees to defend the claim, because we are unable, at the present time, to make a determination that a loss is both probable and rea …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt The Companys outstanding debt is as follows: (In millions) June 30, 2026 December 31, 2025 Short-term: Commercial paper $ 1,024 $ Current portion of long-term debt 646 1,267 $ 1,670 $ 1,267 Long-term: Senior notes 1.349% due 2026 $ 626 $ 647 Senior notes 3.750% due 2026 600 Senior notes 4.550% due 2027 947 946 Senior notes Floating due 2027 (a) 299 299 Senior notes 4.375% due 2029 1,500 1,499 Senior notes 1.979% due 2030 625 646 Senior notes 2.250% due 2030 744 744 Senior notes 4.650% due 2030 993 992 Senior notes 2.375% due 2031 398 398 Senior notes 4.850% due 2031 993 992 Senior notes 5.750% due 2032 495 494 Senior notes 5.875% due 2033 299 298 Senior notes 5.400% due 2033 594 594 Senior notes 5.150% due 2034 496 496 Senior notes 5.000% due 2035 1,983 1,983 Senior notes 4.950% due 2036 595 Senior notes 4.750% due 2039 496 496 Senior notes 5.350% due 2044 495 495 Senior notes 4.350% due 2047 494 494 Senior notes 4.200% due 2048 594 594 Senior notes 4.900% due 2049 1,240 1,240 Senior notes 2.900% due 2051 346 346 Senior notes 6.250% due 2052 492 492 Senior notes 5.450% due 2053 591 591 Senior notes 5.700% due 2053 989 989 Senior notes 5.450% due 2054 494 493 Senior notes 5.400% due 2055 1,479 1,479 Mortgage 5.701% due 2035 239 249 Other 1 1 19,537 19,587 Less: current portion 646 1,267 $ 18,891 $ 18,320 (a) For the Floating Notes, interest is calculated based on a compounded SOFR benchmark rate plus 0.700%. The senior notes in the table above are registered by the Compa …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates various components of the Company's revenue: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Marsh Risk: EMEA $ 1,063 $ 1,006 $ 2,271 $ 2,065 Asia Pacific 439 409 808 744 Latin America 153 132 289 256 Total International 1,655 1,547 3,368 3,065 U.S./Canada 2,416 2,302 4,429 4,237 Total Marsh Risk 4,071 3,849 7,797 7,302 Guy Carpenter 664 677 1,904 1,883 Subtotal 4,735 4,526 9,701 9,185 Fiduciary interest income 88 99 173 202 Total Risk and Insurance Services $ 4,823 $ 4,625 $ 9,874 $ 9,387 Mercer: Wealth $ 740 $ 685 $ 1,492 $ 1,355 Health 611 594 1,272 1,202 Career 247 219 495 437 Total Mercer 1,598 1,498 3,259 2,994 Marsh Management Consulting 1,004 873 1,901 1,691 Total Consulting $ 2,602 $ 2,371 $ 5,160 $ 4,685 Total Segments $ 7,425 $ 6,996 $ 15,034 $ 14,072 Corporate/Eliminations (21) (22) (33) (37) Total $ 7,404 $ 6,974 $ 15,001 $ 14,035

DisaggregationOfRevenueTableTextBlock

Fair Value Measurements Fair Value Hierarchy The Company has categorized its assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy, for disclosure purposes, is determined based on the lowest level input that is significant to the fair value measurement. Assets and liabilities recorded in the consolidated balance sheets at fair value are categorized based on the inputs in the valuation techniques as follows: Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market (examples include active exchange-traded equity securities and exchange-traded money market mutual funds). Assets and liabilities measured using Level 1 inputs include exchange-traded equity securities, exchange-traded mutual funds and money market funds. Level 2. Assets and liabilities whose values are based on the following: a) quoted prices for similar assets or liabilities in active markets; b) quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangibles The Company is required to assess goodwill and any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate an impairment may have occurred. The Company performs the annual impairment assessment for each of its reporting units during the third quarter of each year. The reporting unit level is defined at the same level as the Company's operating segments. A company can assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. Alternatively, a company may elect to proceed directly to the quantitative goodwill impairment test. In the third quarter of 2025, the Company completed a qualitative impairment assessment and concluded that goodwill was not impaired. As part of its assessment, the Company considered numerous factors, including: that the fair value of each reporting unit exceeds its carrying value by a substantial margin based on its most recent quantitative assessment in 2023; whether significant acquisitions or dispositions occurred which might alter the fair value of its reporting units; macroeconomic conditions and their potential impact on reporting unit fair values; actual performance compared with budget and prior projections used in its estimation of reporting unit fair values; industry and market conditions; and the year-over-year change in the Companys share price. Other intangible assets that are not deemed to have an indefini …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 10 and 25 years. The Company utilizes these leased office facilities for use by its employees in countries in which the Company conducts its business. The Companys leases have no restrictions on the payment of dividends, the acquisition of debt or additional lease obligations, or entering into additional lease obligations. The leases also do not contain significant purchase options. Operating leases are recognized on the consolidated balance sheets as ROU assets and operating lease liabilities based on the present value of the remaining future minimum payments over the lease term at commencement date of the lease. The Company determined that $5 million and $8 million of ROU assets were impaired for the three and six months ended June 30, 2026, and $1 million and $5 million for the three and six months ended June 30, 2025, respectively, and recorded a charge to the consolidated statements of income with an offsetting reduction to ROU assets. The following table provides additional information about the Companys property leases: Three Months Ended June 30, Six Months Ended June 30, (In millions, except weighted average data) 2026 2025 2026 2025 Lease Cost: Operating lease cost (a) $ 88 $ 88 $ 178 $ 174 Short-term lease cost 1 1 2 3 Variable lease cost 34 34 68 66 Sublease income (6) (6) (12) (10) Net lease cost $ 117 $ 117 $ 236 $ 233 Other information: Operati …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"New Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted: In May 2026, the FASB issued an accounting standard update to establish guidance on the recognition, measurement, presentation, and disclosure of environmental credits and environmental credit obligations. Under the new guidance, an entity will recognize and measure environmental credit assets based on their intended use (e.g., compliance environmental credits, noncompliance environmental credits, voluntary credits) as well as how the credits are obtained (e.g., acquired, internally generated). Environmental credit obligations will be recognized and measured depending on whether an entity holds and expects to use compliance environmental credits to settle that obligation. The new guidance is effective for public business entities in annual periods beginning after December 15, 2027, including interim periods within those years. Early adoption permitted as of the beginning of an annual reporting period. Entities are required to adopt the guidance on a retrospective basis by recognizing a cumulative effect adjustment to retained earnings at the date of initial application (i.e., prior reporting periods will not be recast). The Company is currently evaluating the guidance and its impact on results of operations, cash flows, or financial condition. In December 2025, the FASB issued an accounting standard update to improve the guidance for interim reporting, by improving the navigability of th …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Retirement Benefits The Company maintains qualified and non-qualified defined benefit pension plans for its U.S. and non-U.S. eligible employees. The Companys policy for funding its tax-qualified defined benefit retirement plans is to contribute amounts at least sufficient to meet the funding requirements set forth by U.S. law and the laws of the non-U.S. jurisdictions in which the Company offers defined benefit plans. The weighted average actuarial assumptions utilized to calculate the net periodic benefit cost or credit for the U.S. and significant non-U.S. defined benefit plans are as follows: Combined U.S. and significant non-U.S. Plans Pension Benefits June 30, 2026 2025 Weighted average assumptions: Discount rate 5.39 % 5.36 % Expected return on plan assets 5.94 % 5.43 % Rate of compensation increase* 3.12 % 3.16 % (*) There are no rate of compensation increase assumptions for the primary U.S. defined benefit plans since future benefit accruals were discontinued for those plans after December 31, 2016 and earned benefits are not subject to final salary level adjustments. The target asset allocation for the U.S. plans at June 30, 2026 is 50% equities and equity alternatives and 50% fixed income. At June 30, 2026, the actual allocation for the U.S. plans was 50% equities and equity alternatives and 50% fixed income. The target allocation for the U.K. plans at June 30, 2026 is 7% equities and equity alternatives and 93% fixed income. At June 30, 2026, the actual allocatio …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Restructuring Costs The Company incurred a total of $58 million and $103 million for restructuring costs for the three and six months ended June 30, 2026. In the third quarter of 2025, the Company launched a three-year program, Thrive (the ""Program""), which focuses on brand strategy, delivering greater value to clients, accelerating growth and improving efficiency. Based on current Program estimates, the Company expects to incur approximately $500 million of cost over the three years. Costs will primarily relate to severance, technology and outside services. The Company expects charges incurred to be evenly distributed over the Program period. The Company incurred $239 million of restructuring costs in connection with the Program through June 30, 2026, primarily severance, of which $52 million and $89 million were for the three and six months ended June 30, 2026. The Company continues to refine its detailed plans for the Program which may change the timing and estimates of expected costs. For the three and six months ended June 30, 2025, the Company incurred a total of $18 million and $50 million for restructuring activities related primarily to severance and lease exit charges. The Company incurred restructuring costs as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Risk and Insurance Services $ 39 $ 8 $ 66 $ 31 Consulting 8 6 21 14 Corporate 11 4 16 5 Total $ 58 $ 18 $ 103 $ 50 Details of the restructuring activity from …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Revenue The core principle of the revenue recognition guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, the entity applies the following steps: identify the contract(s) with the customer, identify the performance obligations in the contract(s), determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the entity satisfies a performance obligation. In accordance with the accounting guidance, a performance obligation is satisfied either at a ""point in time"" or ""over time"", depending on the nature of the product or service provided, and the specific terms of the contract with customers. Other revenue included in the consolidated statements of income that is not from contracts with customers is less than 1% of total revenue and is not presented as a separate line item. The Company's revenue policies are provided in more detail in Note 2, Revenue, in the 2025 Form 10-K. The following table disaggregates various components of the Company's revenue: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Marsh Risk: EMEA $ 1,063 $ 1,006 $ 2,271 $ 2,065 Asia Pacific 439 409 808 744 Latin America 153 132 289 256 Total International 1,655 1,5 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Information The Company is organized based on the types of services provided. Under this structure, the Companys operating segments are: Marsh Risk, Guy Carpenter, Mercer, and Marsh Management Consulting. The four segments are aggregated into two operating and reporting segments as follows: Risk and Insurance Services , comprising Marsh Risk (insurance services) and Guy Carpenter (reinsurance services); and Consulting , comprising Mercer and Marsh Management Consulting. The accounting policies of the segments are the same as those used for the consolidated financial statements described in Note 1, Summary of Significant Accounting Policies, in the Company's 2025 Form 10-K. Revenues are attributed to geographic areas based on the location out of which the services are performed. The Chief Executive Officer, as the Company's Chief Operating Decision Maker (""CODM""), evaluates segment performance and allocates resources based on segment operating income, which includes directly related expenses and charges or credits related to restructuring but not the Company's corporate level expenses. Segment operating income is also used to monitor budget versus actual results. Selected information about the Companys segments is as follows: Three Months Ended June 30, (In millions) Revenue Compensation and benefits Depreciation and amortization expense Identified intangible amortization expense Other segment items Operating Income (Loss) 2026 Risk and Insurance Services $ 4,823 (a …

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Common Stock The Company has a share repurchase program authorized by the Board of Directors. In November 2025, the Board of Directors authorized the Company to repurchase up to $6 billion of the Companys common stock, which superseded any prior authorizations. For the six months ended June 30, 2026, the Company repurchased 8.7 million shares of its common stock for $1.5 billion. At June 30, 2026, the Company remained authorized by the Board of Directors to repurchase up to approximately $4.2 billion in shares of its common stock. There is no time limit on the authorization. For the six months ended June 30, 2025, the Company repurchased 2.7 million shares of its common stock for $600 million. The Company issued approximately 1.8 million and 2.9 million shares related to stock compensation and employee stock purchase plans for the six months ended June 30, 2026 and 2025, respectively. In January and February 2026, the Board of Directors of the Company declared quarterly dividends of $0.900 per share on outstanding common stock, which were paid in February and May 2026, respectively. In July 2026, the Board of Directors of the Company declared a quarterly dividend of $0.990 per share on outstanding common stock, payable in August 2026. …

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