Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

17.    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

With the sale of Kroll in August 2010, along with previous divestiture transactions between 2008 and 2010, the Company has divested its entire Risk Consulting and Technology segment.

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 2010 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.

Selected information about the Company's operating segments for the three and six-month periods ended June 30, 2011 and 2010 are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions of dollars)	Revenue			Operating Income (Loss)			Revenue			Operating Income (Loss)
2011 –
Risk and Insurance Services		$1,620	(a)		$   356			$3,254	(c)		$   739
Consulting		1,319	(b)		152			2,580	(d)		280
Total Operating Segments		2,939			508			5,834			1,019
Corporate / Eliminations		(11	)		(43	)		(22	)		(82	)
Total Consolidated		$2,928			$   465			$5,812			$ 937
2010 –
Risk and Insurance Services		$1,459	(a)		$   258			$2,951	(c)		$   605
Consulting		1,168	(b)		(275	)		2,323	(d)		(159	)
Total Operating Segments		2,627			(17	)		5,274			446
Corporate / Eliminations		(21	)		(33	)		(33	)		(71	)
Total Consolidated		$2,606			$    (50	)		$5,241			$   375

^(a) Includes inter-segment revenue of $1 million in both 2011 and 2010, respectively, interest income on fiduciary funds of $10 million and $11 million in 2011 and 2010, respectively, and equity method income of $7 million in both 2011 and 2010.

^(b)  Includes inter-segment revenue of $10 million and $20 million in 2011 and 2010, respectively, and interest income on fiduciary funds of $1 million in both 2011 and 2010.

^(c) Includes inter-segment revenue of $2 in both 2011 and 2010, respectively, interest income on fiduciary funds of $22 million in both 2011 and 2010, respectively, and equity method income of $9 million and $8 million in 2011 and 2010, respectively.

^(d) Includes inter-segment revenue of $20 million and $31 million in 2011 and 2010, respectively, and interest income on fiduciary funds of $2 million in both 2011 and 2010.

Details of operating segment revenue for the three and six-month periods ended June 30, 2011 and 2010 is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions of dollars)	2011			2010			2011			2010
Risk and Insurance Services
Marsh		$1,362			$1,214			$2,654			$2,389
Guy Carpenter		258			245			600			562
Total Risk and Insurance Services		1,620			1,459			3,254			2,951
Consulting
Mercer		945			838			1,867			1,687
Oliver Wyman Group		374			330			713			636
Total Consulting		1,319			1,168			2,580			2,323
Total Operating Segments		2,939			2,627			5,834			5,274
Corporate/ Eliminations		(11	)		(21	)		(22	)		(33	)
Total		$2,928			$2,606			$5,812			$5,241