Segment Information

3 Months Ended

Mar. 31, 2013

Segment Information [Abstract]

Segment Information

Segment Information

The Company is organized based on the types of services provided. Under this organizational structure, the Company’s business segments are:

▪ Risk and Insurance Services, comprising insurance services (Marsh) and reinsurance services (Guy Carpenter); and

▪ Consulting, comprising Mercer and Oliver Wyman Group

The accounting policies of the segments are the same as those used for the consolidated financial statements described in Note 1 to the Company’s 2012 10-K. Segment performance is evaluated based on segment operating income, which includes directly related expenses, and charges or credits related to integration and restructuring but not the Company’s corporate-level expenses. Revenues are attributed to geographic areas on the basis of where the services are performed.

Effective January 1, 2013, the Corporate Benefits and Association businesses, previously part of Marsh's U.S. Consumer operations, were transferred to Mercer. The segment data presented below reflects the reclassification of prior year segment data to conform with the current year presentations.

Selected information about the Company’s operating segments for the three-month periods ended March 31, 2013 and 2012 are as follows:

	Three Months Ended March 31,
(In millions of dollars)	Revenue				Operating Income (Loss)
2013 –
Risk and Insurance Services	$	1,771		(a)	$	468
Consulting	1,362			(b)	187
Total Operating Segments	3,133				655
Corporate / Eliminations	(7		)		(48		)
Total Consolidated	$	3,126			$	607
2012–
Risk and Insurance Services	$	1,689		(a)	$	412
Consulting	1,371			(b)	164
Total Operating Segments	3,060				576
Corporate / Eliminations	(9		)		(49		)
Total Consolidated	$	3,051			$	527

^(a)  Includes inter-segment revenue of $1 millionin 2012, interest income on fiduciary funds of $8 million and $11 million in 2013 and 2012, respectively, and equity method income of $1 million in both 2013 and 2012, respectively.

^(b)  Includes inter-segment revenue of $7 million and $8 million in 2013 and 2012, respectively, and interest income on fiduciary funds of $1 million in both 2013 and 2012 respectively.

Details of operating segment revenue for the three-month periods ended March 31, 2013 and 2012 are as follows:

	Three Months Ended March 31,
(In millions of dollars)	2013			2012
Risk and Insurance Services
Marsh	$	1,395		$	1,330
Guy Carpenter	376			359
Total Risk and Insurance Services	1,771			1,689
Consulting
Mercer	1,041			1,015
Oliver Wyman Group	321			356
Total Consulting	1,362			1,371
Total Operating Segments	3,133			3,060
Corporate/ Eliminations	(7		)	(9		)
Total	$	3,126		$	3,051

The following reflects the impact of the transfer discussed above on prior years' segment information:

	Three Months Ended March 31, 2012
(In millions of dollars)	As Reported			Reclassification			Current Presentation
Revenue
Risk and Insurance Services
Marsh	$	1,388		$	(58	)	$	1,330
Guy Carpenter	359			—			359
Total Risk and Insurance Services	1,747			(58		)	1,689
Consulting
Mercer	957			58			1,015
Oliver Wyman Group	356			—			356
Total Consulting	1,313			58			1,371
Total Operating Segments	3,060			—			3,060
Corporate Eliminations	(9		)	—			(9		)
Total Revenue	$	3,051		$	—		$	3,051
Operating Income
Risk and Insurance Services	417			(5		)	412
Consulting	159			5			164
Total Operating Segments	576			—			576
Corporate Eliminations	(49		)	—			(49		)
Total Consolidated	$	527		$	—		$	527

The following tables reflect the results for revenue and operating income by segment after the transfer of the Consumer operations business:

	First Quarter 2012			Second Quarter 2012			Third Quarter 2012			Fourth Quarter 2012			Full Year 2012
Risk and Insurance Services
Marsh	$	1,330		$	1,364		$	1,201		$	1,370		$	5,265
Guy Carpenter	359			277			250			199			1,085
Total Risk and Insurance Services	1,689			1,641			1,451			1,569			6,350
Consulting
Mercer	1,015			1,017			1,054			1,061			4,147
Oliver Wyman Group	356			381			351			378			1,466
Total Consulting	1,371			1,398			1,405			1,439			5,613
Total operating segments	3,060			3,039			2,856			3,008			11,963
Corporate Eliminations	(9		)	(13		)	(11		)	(6		)	(39		)
Total Revenue	$	3,051		$	3,026		$	2,845		$	3,002		$	11,924

	First Quarter 2012		Second Quarter 2012		Third Quarter 2012		Fourth Quarter 2012		Full Year 2012
Operating Income
Risk and Insurance Services	412		390		222		310		1,334
Consulting	164		183		205		140		692
Total operating segments	576		573		427		450		2,026
Corporate	(49	)	(55	)	(49	)	(44	)	(197	)
Total Operating Income	527		518		378		406		1,829