Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

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 and six-month periods ended June 30, 2020 and 2019 are as follows:

	Three Months Ended June 30,							Six Months Ended June 30,
(In millions)	Revenue				Operating Income (Loss)			Revenue				Operating Income (Loss)
2020–
Risk and Insurance Services	$	2,603		(a)	$	696		$	5,514		(c)	$	1,550
Consulting	1,616			(b)	255			3,378			(d)	537
Total Operating Segments	4,219				951			8,892				2,087
Corporate/Eliminations	(30		)		(66		)	(52		)		(132		)
Total Consolidated	$	4,189			$	885		$	8,840			$	1,955
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

^(a) Includes inter-segment revenue of $4 million and $3 million in 2020 and 2019, respectively, interest income on fiduciary funds of $9 million and $26 million in 2020 and 2019, respectively, and equity method income of $14 million and $4 million in 2020 and 2019, respectively.

^(b) Includes inter-segment revenue of $26 million and $22 million in 2020 and 2019, respectively, interest income on fiduciary funds of less than $1 million and $1 million in 2020 and 2019, respectively, and equity method income of $5 million in 2019.

^(c) Includes inter-segment revenue of $5 million and $4 million in 2020 and 2019, respectively, interest income on fiduciary funds of $32 million and $49 million in 2020 and 2019, respectively, and equity method income of $13 million and $6 million in 2020 and 2019, respectively.

^(d) Includes inter-segment revenue of $47 million and $46 million in 2020 and 2019, respectively, interest income on fiduciary funds of less than $1 million and $2 million in 2020 and 2019, respectively, and equity method income of $4 million and $10 million in 2020 and 2019, respectively.

Details of operating segment revenue for the three and six-month periods ended June 30, 2020 and 2019 are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2020			2019			2020			2019
Risk and Insurance Services
Marsh	$	2,168		$	2,174		$	4,244		$	3,927
Guy Carpenter	435			400			1,270			1,070
Total Risk and Insurance Services	2,603			2,574			5,514			4,997
Consulting
Mercer	1,149			1,260			2,400			2,415
Oliver Wyman Group	467			540			978			1,058
Total Consulting	1,616			1,800			3,378			3,473
Total Operating Segments	4,219			4,374			8,892			8,470
Corporate/Eliminations	(30		)	(25		)	(52		)	(50		)
Total	$	4,189		$	4,349		$	8,840		$	8,420