Segment Information

3 Months Ended

Mar. 31, 2020

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 2019 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-month periods ended March 31, 2020 and 2019 are as follows:



	Three Months Ended March 31,
(In millions)	Revenue				Operating Income (Loss)
2020–
Risk and Insurance Services	$	2,911		^(a)	$	854
Consulting	1,762			^(b)	282
Total Operating Segments	4,673				1,136
Corporate/Eliminations	(22		)		(66		)
Total Consolidated	$	4,651			$	1,070
2019–
Risk and Insurance Services	$	2,423		^(a)	$	733
Consulting	1,673			^(b)	279
Total Operating Segments	4,096				1,012
Corporate/Eliminations	(25		)		(74		)
Total Consolidated	$	4,071			$	938

^(a) Includes inter-segment revenue of $1 million in both 2020 and 2019, interest income on fiduciary funds of $23 million in both 2020 and 2019 and equity method loss of $1 million in 2020 and equity method income of $2 million in 2019.

^(b) Includes inter-segment revenue of $21 million and $24 million in 2020 and 2019, respectively, interest income on fiduciary funds of $1 million in both 2020 and 2019, and equity method income of $4 million and $5 million in 2020 and 2019, respectively.

Details of operating segment revenue for the three-month periods ended March 31, 2020 and 2019 are as follows:



	Three Months Ended March 31,
(In millions)	2020			2019
Risk and Insurance Services
Marsh	$	2,076		$	1,753
Guy Carpenter	835			670
Total Risk and Insurance Services	2,911			2,423
Consulting
Mercer	1,251			1,155
Oliver Wyman Group	511			518
Total Consulting	1,762			1,673
Total Operating Segments	4,673			4,096
Corporate/Eliminations	(22		)	(25		)
Total	$	4,651		$	4,071