Segment Information

9 Months Ended

Sep. 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 is included by geography within Marsh, JLT Reinsurance is 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 nine-month periods ended September 30, 2019 and 2018 are as follows:



	Three Months Ended September 30,							Nine Months Ended September 30,
(In millions)	Revenue				Operating Income (Loss)			Revenue				Operating Income (Loss)
2019–
Risk and Insurance Services	$	2,206		^(a)	$	218		$	7,203		^(c)	$	1,468
Consulting	1,785			^(b)	317			5,258			^(d)	874
Total Operating Segments	3,991				535			12,461				2,342
Corporate/Eliminations	(23		)		(68		)	(73		)		(257		)
Total Consolidated	$	3,968			$	467		$	12,388			$	2,085
2018–
Risk and Insurance Services	$	1,863		^(a)	$	293		$	6,303		^(c)	$	1,481
Consulting	1,656			^(b)	291			4,974			^(d)	805
Total Operating Segments	3,519				584			11,277				2,286
Corporate/Eliminations	(15		)		(43		)	(39		)		(146		)
Total Consolidated	$	3,504			$	541		$	11,238			$	2,140

^(a) Includes inter-segment revenue of $3 million and $4 million in 2019 and 2018, respectively, interest income on fiduciary funds of $31 million and $18 million in 2019 and 2018, respectively, and equity method income of $10 million and $4 million in 2019 and 2018, respectively and $51 million related to the sale of business in 2018.

^(b) Includes inter-segment revenue of $20 million and $11 million in 2019 and 2018, respectively, interest income on fiduciary funds of $1 million in 2018, and equity method income of $4 million in 2018.

^(c) Includes inter-segment revenue of $7 million and $5 million in 2019 and 2018, respectively, interest income on fiduciary funds of $80 million and $46 million in 2019 and 2018, respectively, and equity method income of $16 million and $10 million in 2019 and 2018, respectively and $51 million related to the sale of business in 2018.

^(d) Includes inter-segment revenue of $66 million and $34 million in 2019 and 2018, respectively, interest income on fiduciary funds of $2 million and $3 million in 2019 and 2018, respectively and equity method income of $10 million and $12 million in 2019 and in 2018, respectively.

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



	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2019			2018			2019			2018
Risk and Insurance Services
Marsh	$	1,923		$	1,643		$	5,850		$	5,106
Guy Carpenter	283			220			1,353			1,197
Total Risk and Insurance Services	2,206			1,863			7,203			6,303
Consulting
Mercer	1,280			1,175			3,695			3,504
Oliver Wyman Group	505			481			1,563			1,470
Total Consulting	1,785			1,656			5,258			4,974
Total Operating Segments	3,991			3,519			12,461			11,277
Corporate/Eliminations	(23		)	(15		)	(73		)	(39		)
Total	$	3,968		$	3,504		$	12,388		$	11,238