Marsh & McLennan Cos., Inc.

Strong Q2 and steady outlook (core results) - Revenue: $7.4B, +6% YoY; underlying growth 5% (accelerated vs prior quarter). - Profitability: Adjusted operating income +5%; adjusted operating margin 29.3%. - EPS: Adjusted EPS $2.96, +9% YoY (GAAP EPS $2.63). - Management guidance for 2026 (high level): expects underlying revenue growth similar to 2025, margin expansion, and solid adjusted EPS growth; assumes more margin expansion in Q4 > Q3. - Risk factors noted: guidance depends on the economic/geopolitical environment; demand and pricing conditions can change materially.

Segment mix: Marsh Risk resilient; Guy Carpenter pressured by cat pricing; Consulting/Mercer strong - RIS total: Q2 revenue $4.8B (+4% YoY / +3% underlying); adjusted operating margin 35.3%; adjusted operating income +3%. - Marsh Risk: revenue $4.1B; +6% reported / +4% underlying. - U.S./Canada: underlying growth accelerated to 4% (from 3% in Q1), driven by strong new business and hiring production talent. - International: +5% underlying (EMEA +5%, AsiaPac +5%, LatinAm +8%); mentioned strong U.K. growth and facultative reinsurance double-digit growth. - Guy Carpenter: revenue $664M (-2%), flat underlying for H1; headwind from falling property cat rates. - Management quantified a ~6 percentage point impact on underlying growth in the quarter from cat pricing declines. - Consulting (Mercer + MMC): strong momentum - Consulting revenue $2.6B (+10% reported / +8% underlying); adjusted operating income +11%; margin 20.5%. - Mercer: Q2 revenue $1.6B (+7% / +5% underlying); Wealth +8% (best quarter of growth since 2016 reporting); AUM $846B. - Marsh Management Consulting: Q2 revenue $1.0B (+15% reported / +13% underlying)—fastest quarter in 2+ years.

Market backdrop: soft insurance pricing but reinsurance benefiting from capacity; cat specifics matter - Insurance pricing (Marsh Global Insurance Market Index): primary commercial rates -6% in Q2 (after -5% in Q1). - U.S. commercial: -2%; Europe/Asia mid-single digits down; Canada/UK/LatAm high single digits down; Pacific double-digit decreases. - Global property rates: -12% YoY, an acceleration from the prior quarter. - Reinsurance market: still soft due to abundant capacity; described as favorable for insurers. - Florida cat renewals (June 1): rate reductions 15–20% (partially offset by modest demand increase). - Catastrophe bonds: $61B+ limit outstanding through first half 2026 (record-high issuance), indicating clients actively using alternative risk transfer/third-party capital.