Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [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-and nine-month periods ended September 30, 2013 and 2012 are as follows:

	Three Months Ended September 30,							Nine Months Ended September 30,
(In millions of dollars)	Revenue				Operating Income (Loss)			Revenue				Operating Income (Loss)
2013 –
Risk and Insurance Services	$	1,504		(a)	$	222		$	4,963		(c)	$	1,111
Consulting	1,437			(b)	232			4,209			(d)	624
Total Operating Segments	2,941				454			9,172				1,735
Corporate / Eliminations	(9		)		(50		)	(26		)		(147		)
Total Consolidated	$	2,932			$	404		$	9,146			$	1,588
2012–
Risk and Insurance Services	$	1,451		(a)	$	222		$	4,781		(c)	$	1,024
Consulting	1,405			(b)	205			4,174			(d)	552
Total Operating Segments	2,856				427			8,955				1,576
Corporate / Eliminations	(11		)		(49		)	(33		)		(153		)
Total Consolidated	$	2,845			$	378		$	8,922			$	1,423

^(a)  Includes inter-segment revenue of $1 million in both 2013 and 2012, interest income on fiduciary funds of $7 million and $10 million in 2013 and 2012, respectively, and equity method income of $2 million in 2013.

^(b)  Includes inter-segment revenue of $8 million and $10 million in 2013 and 2012, respectively, and interest income on fiduciary funds of $1 million in both 2013 and 2012.

^(c)  Includes inter-segment revenue of $4 million in both 2013 and 2012, interest income on fiduciary funds of $21 million and $31 million in 2013 and 2012, respectively, and equity method income of $10 million in both 2013 and 2012.

^(d)  Includes inter-segment revenue of $22 million and $29 million in 2013 and 2012, respectively, and interest income on fiduciary funds of $3 million and $2 million in 2013 and 2012, respectively.

Details of operating segment revenue for the three and nine-month periods ended September 30, 2013 and 2012 are as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions of dollars)	2013			2012			2013			2012
Risk and Insurance Services
Marsh	$	1,241		$	1,201		$	4,038		$	3,895
Guy Carpenter	263			250			925			886
Total Risk and Insurance Services	1,504			1,451			4,963			4,781
Consulting
Mercer	1,072			1,054			3,157			3,086
Oliver Wyman Group	365			351			1,052			1,088
Total Consulting	1,437			1,405			4,209			4,174
Total Operating Segments	2,941			2,856			9,172			8,955
Corporate/ Eliminations	(9		)	(11		)	(26		)	(33		)
Total	$	2,932		$	2,845		$	9,146		$	8,922

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

	Three Months Ended September 30, 2012									Nine Months Ended September 30, 2012
(In millions of dollars)	As Reported			Reclassification			Current Presentation			As Reported			Reclassification			Current Presentation
Revenue
Risk and Insurance Services
Marsh	$	1,260		$	(59	)	$	1,201		$	4,069		$	(174	)	$	3,895
Guy Carpenter	250			—			250			886			—			886
Total Risk and Insurance Services	1,510			(59		)	1,451			4,955			(174		)	4,781
Consulting
Mercer	995			59			1,054			2,912			174			3,086
Oliver Wyman Group	351			—			351			1,088			—			1,088
Total Consulting	1,346			59			1,405			4,000			174			4,174
Total Operating Segments	2,856			—			2,856			8,955			—			8,955
Corporate Eliminations	(11		)	—			(11		)	(33		)	—			(33		)
Total Revenue	$	2,845		$	—		$	2,845		$	8,922		$	—		$	8,922
Operating Income
Risk and Insurance Services	$	234		$	(12	)	$	222		$	1,052		$	(28	)	$	1,024
Consulting	193			12			205			524			28			552
Total Operating Segments	427			—			427			1,576			—			1,576
Corporate Eliminations	(49		)	—			(49		)	(153		)	—			(153		)
Total Consolidated	$	378		$	—		$	378		$	1,423		$	—		$	1,423