Segment Information

6 Months Ended

Jun. 30, 2019

The Company is organized based on the types of services provided. Under this structure, the Company’s 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 2018 Form 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.

Prior to being acquired by the Company, JLT operated in three segments: Specialty, Reinsurance and Employee Benefits. JLT operated in 41 countries, with significant revenue in the United Kingdom, Pacific, Asia and the United States. As of April 1, 2019, the historical JLT businesses were combined into MMC operations as follows: JLT Specialty was included by geography within Marsh, JLT Reinsurance was included in Guy Carpenter and the majority of JLT's Employee Benefits business was included in Mercer Health and Wealth.

Selected information about the Company’s operating segments for the three and six-month periods ended June 30, 2019 and 2018 are as follows:



	Three Months Ended June 30,							Six Months Ended June 30,
(In millions)	Revenue				Operating Income (Loss)			Revenue				Operating Income (Loss)
2019–
Risk and Insurance Services	$	2,574		^(a)	$	517		$	4,997		^(c)	$	1,250
Consulting	1,800			^(b)	278			3,473			^(d)	557
Total Operating Segments	4,374				795			8,470				1,807
Corporate/Eliminations	(25		)		(115		)	(50		)		(189		)
Total Consolidated	$	4,349			$	680		$	8,420			$	1,618
2018–
Risk and Insurance Services	$	2,096		^(a)	$	472		$	4,440		^(c)	$	1,188
Consulting	1,650			^(b)	267			3,318			^(d)	514
Total Operating Segments	3,746				739			7,758				1,702
Corporate/Eliminations	(12		)		(48		)	(24		)		(103		)
Total Consolidated	$	3,734			$	691		$	7,734			$	1,599

^(a) Includes inter-segment revenue of $3 million in 2019, respectively, interest income on fiduciary funds of $26 million and $15 million in 2019 and 2018, respectively, and equity method income of $4 million and $7 million in 2019 and 2018, respectively.

^(b) Includes inter-segment revenue of $22 million and $12 million in 2019 and 2018, respectively, interest income on fiduciary funds of $1 million in 2019 and 2018, respectively, and equity method income of $5 million in both 2019 and in 2018.

^(c) Includes inter-segment revenue of $4 million and $1 million in 2019 and 2018, respectively, interest income on fiduciary funds of $49 million and $28 million in 2019 and 2018, respectively, and equity method income of $6 million in both 2019 and 2018.

^(d) Includes inter-segment revenue of $46 million and $23 million in 2019 and 2018, respectively, interest income on fiduciary funds of $2 million in both 2019 and 2018, and equity method income of $10 million and $8 million in 2019 and in 2018, respectively.

Details of operating segment revenue for the three and six-month periods ended June 30, 2019 and 2018 are as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2019			2018			2019			2018
Risk and Insurance Services
Marsh	$	2,174		$	1,760		$	3,927		$	3,463
Guy Carpenter	400			336			1,070			977
Total Risk and Insurance Services	2,574			2,096			4,997			4,440
Consulting
Mercer	1,260			1,158			2,415			2,329
Oliver Wyman Group	540			492			1,058			989
Total Consulting	1,800			1,650			3,473			3,318
Total Operating Segments	4,374			3,746			8,470			7,758
Corporate/Eliminations	(25		)	(12		)	(50		)	(24		)
Total	$	4,349		$	3,734		$	8,420		$	7,734