AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 29/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Specialized reinsurance relationships, analytics and proprietary tools support differentiation. Higher new-business and renewal revenue provides operating corroboration, while the historical patented platform adds context. The evidence supports a narrow intangible advantage; comparative superiority, cost leadership and network effects remain unproven.
durability · 2/4 · Established market relationships and proprietary capabilities continue alongside underlying growth. However, professionals can take client relationships elsewhere, and clients have historically substituted internal resources. These constrain persistence; the passages establish neither contractual exclusivity nor exceptional protection against replication.
customer dependency · 2/4 · Higher renewal revenue and specialized reinsurance services indicate continuing usefulness indirectly. They do not establish hard dependency or a retention rate. Employee-related client mobility, historical insourcing and penalty-free consulting termination demonstrate limits to customer captivity.
erosion resilience · 2/4 · Renewal and new-business growth despite declining insurance premium rates, followed by 5% underlying growth in nine-month 2026 revenue, supports demand resilience. Operating income nevertheless declined year over year. AI competition is a disclosed threat, without evidence of realized displacement.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · The passages disclose negotiated commissions and fees but do not isolate changes in Marsh's realized rates. Higher renewal revenue combines multiple drivers, and declining insurance premiums concern the underlying insurance market. Neither establishes Marsh's own price realization after volume and mix.
retention · 2/4 · Higher renewal revenue supports repeat demand indirectly, without identifying renewal counts, retention rates or price contributions. Clients can follow departing professionals, and consulting clients can terminate without penalty. Repeat business is demonstrated, while strong contractual stickiness is not.
margin resilience · 2/4 · Third-quarter adjusted operating margin held at 22.7%, while GAAP margin declined to 17.7% from 18.4%; nine-month operating income also fell. Adjusted margins exclude specified items and use adjusted revenue. Litigation, integration costs and changed adjustment methodology limit interpretation as evidence of pricing strength.
contractual freedom · 1/4 · Commission rates and fees depend on coverage, insurer selection and negotiations with clients. Policy audits can reduce commissions, while consulting engagements may end without penalty. These are disclosed constraints on economic terms; broad unilateral fee-setting or durable contractual price protection is unestablished.
Predictability100
Financial-sector stability over 5 consecutive reported annual periods: equal weights for nondeclining revenue frequency, revenue-growth volatility (5–40pp), positive consolidated earnings frequency, and net-income/revenue margin volatility (3–20pp). Uses reported accounting scope; not industrial FCF or a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 2.26
- positiveEarningsShare
- 100.00
- netMarginStdDev
- 0.70
- observedAnnualPeriods
- 5.00
Financial strength50
Qualitative financial_services assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-services-1; not an industrial ratio score or credit rating.
capital adequacy · 2/4 · Positive consolidated equity and substantial earnings support a corporate buffer, alongside significant short- and long-term debt. Goodwill and intangible assets exceed accounting equity, limiting its interpretation as loss-absorbing capital. This is a mixed qualitative broker assessment; eligible regulatory capital and applicable headroom are unavailable.
liquidity funding · 2/4 · Positive operating cash generation and actual debt issuance and repayments demonstrate funding access. Corporate cash declined, some foreign cash is required for operations or collateral, and the parent relies on subsidiary payments. Fiduciary assets are unavailable; undrawn facility capacity and complete maturities are not supplied.
asset liability risk · 2/4 · Marsh is not principal to the underlying insurance contracts, limiting direct underwriting exposure. Corporate debt, lease commitments, errors-and-omissions liabilities and a realized litigation charge remain material exposures. Subsidiary funding constraints add complexity; the catalog does not establish complete contingent-loss coverage or regulatory headroom.
earnings resilience · 2/4 · Nine-month 2026 revenue increased to $21.864 billion, including 5% underlying growth, and attributable earnings remained $3.220 billion. Operating income and attributable earnings nevertheless declined year over year. Litigation charges and commission sensitivity to insurance adjustments temper otherwise substantial demonstrated profitability.
Capital allocation50
Qualitative financial_services assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-services-1; not an industrial ratio score or credit rating.
capital efficiency · 2/4 · Substantial positive consolidated earnings relative to the disclosed accounting equity base support productive capital use qualitatively. Earnings declined and goodwill and intangible assets dominate the equity comparison. No reported ROE, regulatory-capital return or acquisition-level return is supplied; no annualized return is inferred.
distributions and buffers · 2/4 · Nine-month dividends of $1.354 billion were below attributable earnings, but combined dividends and $2.016 billion of repurchases exceeded earnings and operating cash after capital expenditure. Corporate cash declined and debt increased. Actual distributions are demonstrated; ample regulatory or contractual headroom is not.
dilution and cost · 2/4 · Employee-related issuance fell to approximately 2.0 million shares, and nine-month diluted average shares declined to 482 million from 495 million. Share-based compensation rose to $329 million from $305 million, while repurchases consumed substantial cash amid borrowing. Net dilution containment does not establish attractive repurchase value.
investment discipline · 2/4 · Disclosed acquisition and investment spending contributed revenue, and contingent consideration generally uses multi-year EBITDA or revenue targets. Current acquisition cash spending and continuing McGriff integration costs demonstrate commitments. Management reports completed integration, but acquisition returns, realized synergies and purchase-price value creation remain unestablished.
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Annual operating cash generation improved in 2025, and acquisitions contributed disclosed revenue. In nine-month 2026, cash generation weakened while dividends and repurchases exceeded operating cash after capital expenditure and borrowing increased. Spending outcomes are mixed; revenue contribution alone does not demonstrate acquisition returns.
incentive alignment · 3/4 · Actual multi-year vesting, forfeiture provisions and executive ownership requirements support alignment. A realized 0.88x relative-TSR modifier reduced the disclosed PSU payout to 176% of target, demonstrating operation of the mechanism. Ownership compliance and exceptional compensation effectiveness remain unestablished.
execution · 2/4 · Underlying revenue growth and improved 2025 operating cash generation support execution through indirect operating evidence. Management reports completed McGriff integration, but related costs continued in 2026, cash generation weakened and nine-month operating income declined. Integration completion does not establish realized acquisition returns.
governance · 3/4 · An otherwise independent board, separated CEO and chair roles, shareholder special-meeting rights and an adopted conduct clawback provide strong disclosed safeguards. The realized litigation charge warrants scrutiny but does not establish an adjudicated oversight failure. Exceptional effectiveness of these governance structures remains unproven.
Evidence
Guy Carpenter creates and executes reinsurance and risk management solutions globally through risk assessment analytics, actuarial services and trading relationships with reinsurance markets.
2025 Form 10-K, business: reinsurance analytics and trading relationships · Filed 09/02/2026
•Career: advising on employee engagement, skill assessment, executive remuneration, HR effectiveness and M&A strategy utilizing proprietary data and tools.
2025 Form 10-K, business: Mercer proprietary data and tools · Filed 09/02/2026
Through Marsh's patented electronic platform, MarketConnect, and sophisticated data analysis, ICG provides insurers with individualized preference setting and risk identification capabilities, as well as detailed performance data and metrics.
2024 Form 10-K, business: historical MarketConnect platform disclosure · Filed 10/02/2025
In Risk and Insurance Services, underlying revenue growth in 2025 was driven by higher new business and renewal revenue at Marsh Risk and Guy Carpenter, partially offset by declining insurance and reinsurance premium rates.
2025 Form 10-K, operating results: new business, renewals and premium rates · Filed 09/02/2026
If a key employee were to join an existing competitor or form a competing company, some of our clients could choose to use the services of a competitor instead of our services.
2025 Form 10-K, risk: employee-related client mobility · Filed 09/02/2026
Many of our clients, including financial institutions, corporations, government entities and pension plans, have reduced expenses, including amounts spent on consulting services, and used internal resources instead of consultants during difficult economic periods.
2025 Form 10-K, risk: historical client insourcing · Filed 09/02/2026
•fluctuations in capacity and utilization rates and clients' ability to terminate engagements without penalty;
2025 Form 10-K, risk: consulting termination rights · Filed 09/02/2026
The consulting business faces competition from global, regional and local firms, including independent consulting, broking and outsourcing firms affiliated with accounting, technology and financial services and new entrants utilizing generative AI.
2025 Form 10-K, competition: consulting firms and generative AI entrants · Filed 09/02/2026
For the nine months ended September 30, 2026, consolidated revenue was $21.9 billion, an increase of 7%, or 5% on an underlying basis.
September 2026 Form 10-Q, nine-month consolidated revenue growth · Filed 15/10/2026
MARSH & McLENNAN COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(In millions, except per share data)
2026
2025
2026
2025
Revenue
$
6,863
$
6,351
$
21,864
$
20,386
Expense:
Compensation and benefits
4,078
3,894
12,349
11,639
Other operating expenses
1,570
1,287
4,647
3,743
Operating expenses
5,648
5,181
16,996
15,382
Operating income
1,215
1,170
4,868
5,004
Other net benefit credits
48
52
148
143
Interest income
10
10
29
34
Interest expense
(248)
(237)
(738)
(725)
Investment income
8
15
9
27
Income before income taxes
1,033
1,010
4,316
4,483
Income tax expense
221
253
1,027
1,083
Net income before non-controlling interests
812
757
3,289
3,400
Less: Net income attributable to non-controlling interests
4
10
69
61
Net income attributable to the Company
$
808
$
747
$
3,220
$
3,339
Net income per share attributable to the Company:
– Basic
$
1.70
$
1.52
$
6.71
$
6.79
– Diluted
$
1.69
$
1.51
$
6.68
$
6.75
Average number of shares outstanding:
– Basic
476
491
480
492
– Diluted
479
494
482
495
Shares outstanding at September 30,
475
490
475
490
September 2026 Form 10-Q, unaudited consolidated statements of income · Filed 15/10/2026
Commission rates and fees vary in amount and depend on coverage provided, the insurer or reinsurer selected, and the capacity in which the broker acts and negotiates with clients.
2025 Form 10-K, compensation: commission and fee negotiation · Filed 09/02/2026
Insurance exposures subject to variable factors are subject to mid-term and end of term adjustments, as well as policy audits, which may reduce premiums and corresponding commissions.
September 2026 Form 10-Q, revenue economics: premium and commission adjustments · Filed 15/10/2026
Risk & Insurance Services
Consulting
Corporate/
Eliminations
Total
Three Months Ended September 30, 2026
Operating income (loss)
$
745
$
563
$
(93)
$
1,215
Operating margin
17.8
%
21.0
%
N/A
17.7
%
Add (deduct) impact of noteworthy items:
Restructuring (a)
44
10
25
79
Changes in contingent and deferred consideration (b)
11
1
—
12
McGriff integration and retention related costs
33
—
2
35
Greensill litigation (c)
144
—
—
144
Legal matter (d)
30
—
—
30
Gain on consolidation of entity (e)
(126)
—
—
(126)
Acquisition and disposition related gains
(1)
(1)
(2)
(4)
Total noteworthy items
135
10
25
170
Identified intangible amortization expense
122
20
—
142
Operating income adjustments
257
30
25
312
Adjusted operating income (loss)
$
1,002
$
593
$
(68)
$
1,527
Adjusted operating margin
24.6
%
22.1
%
N/A
22.7
%
Three Months Ended September 30, 2025
Operating income (loss)
$
750
$
501
$
(81)
$
1,170
Operating margin
19.2
%
20.3
%
N/A
18.4
%
Add (deduct) impact of noteworthy items:
Restructuring (a)
20
18
8
46
Changes in contingent and deferred consideration (b)
32
2
—
34
McGriff integration and retention related costs
50
—
2
52
Acquisition related costs
—
7
—
7
Acquisition and disposition related gains
(3)
—
—
(3)
Total noteworthy items
99
27
10
136
Identified intangible amortization expense
116
17
—
133
Operating income adjustments
215
44
10
269
Adjusted operating income (loss)
$
965
$
545
$
(71)
$
1,439
Adjusted operating margin
24.7
%
22.1
%
N/A
22.7
%
(a)Primarily reflects costs related to the Company's three-year program, Thrive, which focuses on our brand strategy, delivering greater value to clients, accelerating growth and improving efficiency.
Third-quarter 2026 results, comparative operating-margin reconciliation · Filed 15/10/2026
For the three and nine months ended September 30, 2026 and 2025, adjusted operating margin is calculated by dividing the sum of adjusted operating income by consolidated or segment adjusted revenue.
Third-quarter 2026 results, adjusted operating-margin definition · Filed 15/10/2026
The Company's adjusted revenue used in the determination of adjusted operating margin is calculated by excluding the impact of certain noteworthy items from the Company's GAAP revenue.
Third-quarter 2026 results, adjusted revenue definition · Filed 15/10/2026
In the first quarter of 2025, the Company changed its methodology to report adjusted operating income (loss), adjusted income, net of tax and adjusted EPS to exclude the impact of intangible amortization and other net benefit credits.
2026 proxy, change in adjusted earnings methodology · Filed 31/03/2026
Operating Cash Flows
The Company provided $5.3 billion of cash from operations in 2025 compared to $4.3 billion in 2024.
2025 Form 10-K, annual operating cash flows · Filed 09/02/2026
Operating cash flows:
Net income before non-controlling interests
$
3,289
$
3,400
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization
685
682
Non-cash lease expense
223
219
Gain on consolidation of entity
(126)
(13)
Share-based compensation expense
329
305
Net (gain) on investments, disposition of assets and other
(52)
(26)
Changes in assets and liabilities:
Accrued compensation and employee benefits
(639)
(610)
Provision for taxes, net of payments and refunds
69
197
Net receivables
(872)
(388)
Other changes to assets and liabilities
(131)
(196)
Contributions to pension and other benefit plans in excess of current year credit
(210)
(190)
Operating lease liabilities
(252)
(249)
Net cash provided by (used for) operations
2,313
3,131
Financing cash flows:
Purchase of treasury shares
(2,016)
(1,002)
Net proceeds from issuance of commercial paper
1,623
—
Proceeds from issuance of debt
595
—
Repayments of debt
(1,247)
(514)
Payment to acquire non-controlling interest
(54)
—
Net issuance of common stock from treasury shares
(6)
64
Net distributions of non-controlling interests and deferred/contingent consideration
(174)
(110)
Dividends paid
(1,354)
(1,255)
Change in fiduciary liabilities
869
231
Net cash provided by (used for) financing activities
(1,764)
(2,586)
Investing cash flows:
Capital expenditures
(215)
(186)
Purchases of long-term investments and other
(34)
(23)
Sales of long-term investments
3
96
Dispositions
Third-quarter 2026 results, nine-month operating and financing cash-flow rows · Filed 15/10/2026
Consolidated Statements of Cash Flows
(Millions) (Unaudited)
Nine Months Ended
September 30,
2026
2025
Operating cash flows:
Net income before non-controlling interests
$
3,289
$
3,400
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization
685
682
Non-cash lease expense
223
219
Gain on consolidation of entity
(126)
(13)
Share-based compensation expense
329
305
Net (gain) on investments, disposition of assets and other
(52)
(26)
Changes in assets and liabilities:
Accrued compensation and employee benefits
(639)
(610)
Provision for taxes, net of payments and refunds
69
197
Net receivables
Third-quarter 2026 results, cash-flow table units, periods and compensation expense · Filed 15/10/2026
Capital expenditures
(215)
(186)
Purchases of long-term investments and other
(34)
(23)
Sales of long-term investments
3
96
Dispositions
16
15
Acquisitions, net of cash and cash held in a fiduciary capacity acquired
(263)
(224)
Net cash provided by (used for) investing activities
(493)
(322)
Effect of exchange rate changes on cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity
(101)
615
Increase (Decrease) in cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity
(45)
838
Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at beginning of period
14,160
13,674
Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at end of period
$
14,115
$
14,512
Reconciliation of cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity to the Consolidated Balance Sheets
Balance at September 30,
2026
2025
(In millions)
Cash and cash equivalents
$
1,842
$
2,511
Cash and cash equivalents held in a fiduciary capacity
12,273
12,001
Total cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity
$
14,115
$
14,512
13
Marsh & McLennan Companies, Inc.
Third-quarter 2026 results, investing cash flows and cash reconciliation · Filed 15/10/2026
(Unaudited)
September 30,
2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
1,842
$
2,687
Cash and cash equivalents held in a fiduciary capacity
12,273
11,473
Net receivables
8,548
7,670
Other current assets
1,444
1,370
Total current assets
24,107
23,200
Goodwill and intangible assets
29,117
29,083
Fixed assets, net
815
829
Pension related assets
2,301
2,140
Right of use assets
1,414
1,460
Deferred tax assets
195
212
Other assets
1,857
1,786
TOTAL ASSETS
$
59,806
$
58,710
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt
$
1,644
$
1,267
Accounts payable and accrued liabilities
3,583
3,652
Accrued compensation and employee benefits
3,329
3,962
Current lease liabilities
324
333
Accrued income taxes
485
373
Dividends payable
471
—
Fiduciary liabilities
12,273
11,473
Total current liabilities
22,109
21,060
Long-term debt
18,889
18,320
Pension, post-retirement and post-employment benefits
693
786
Long-term lease liabilities
1,475
1,529
Liabilities for errors and omissions
281
288
Other liabilities
1,449
1,412
Total equity
14,910
15,315
TOTAL LIABILITIES AND EQUITY
$
59,806
$
58,710
Third-quarter 2026 results, September 30 consolidated balance sheet · Filed 15/10/2026
out of annual earnings. At September 30, 2026, the Company had approximately $1.7 billion of cash and cash equivalents in its foreign operations, which includes $572 million of operating funds required to be maintained for regulatory requirements or as collateral under certain captive insurance arrangements.
September 2026 Form 10-Q, foreign cash and required operating or collateral funds · Filed 15/10/2026
As the Company does not have significant operations of its own, the Company is dependent upon dividends and other payments from its operating subsidiaries to pay principal and interest on its outstanding debt obligations, pay dividends to stockholders, repurchase its shares and pay corporate expenses.
September 2026 Form 10-Q, parent reliance on subsidiary payments · Filed 15/10/2026
Fiduciary assets cannot be used for general corporate purposes, and should not be considered as a source of liquidity for the Company.
September 2026 Form 10-Q, fiduciary assets unavailable for corporate purposes · Filed 15/10/2026
The Company is not a principal to the contracts under which the right to receive premiums or the right to receive reimbursement of insured losses arises.
September 2026 Form 10-Q, insurance-contract principal status · Filed 15/10/2026
Operating income fell 12% to $1.8 billion and included a $425 million charge related to the Greensill litigation.
First-quarter 2026 results, operating income and Greensill litigation charge · Filed 16/04/2026
◾ We deployed approximately $850 million of capital over 20 acquisitions and investments, which contributed $255 million in revenue.
2026 proxy, acquisition and investment spending and revenue contribution · Filed 31/03/2026
Contingent purchase consideration arrangements are generally based primarily on EBITDA or revenue targets over a period of 2 to 4 years.
September 2026 Form 10-Q, contingent acquisition consideration terms · Filed 15/10/2026
These costs included approximately $35 million and $124 million of integration and retention related costs in connection with the acquisition of McGriff Insurance Services for the three and nine months ended September 30, 2026, and $52 million and $166 million, respectively, for the corresponding periods in the prior year.
September 2026 Form 10-Q, McGriff integration and retention costs · Filed 15/10/2026
We completed the integration of MMA’s acquisition of McGriff Insurance Services.
2026 proxy, management report of McGriff integration completion · Filed 31/03/2026
Executive Stock Ownership Guidelines
Our senior executives are required to acquire and hold shares or stock units (excluding PSUs) of our common stock with an aggregate value at least equal to a specified multiple of their base salary.
2026 proxy, executive stock ownership requirements · Filed 31/03/2026
All equity-based awards are subject to multi-year vesting requirements or performance periods with complete forfeiture of unvested awards upon a voluntary termination of employment by a senior executive (other than by reason of retirement) or termination of employment for cause.
2026 proxy, multi-year vesting and forfeiture terms · Filed 31/03/2026
However, our three-year TSR was at the 38th percentile versus S&P 500 constituents*, which resulted in a 0.88x relative TSR modifier and a payout of 176% of target.
2026 proxy, realized relative-TSR modifier and PSU payout · Filed 31/03/2026
The PSU awards granted in February 2023 vested on February 28, 2026, and PSU awards granted in February 2024 and February 2025 will vest on February 28, 2027 and February 28, 2028, respectively, and will be paid in a number of shares of the Company’s common stock determined based on actual performance over the applicable three-year performance period.
2026 proxy, actual 2023 PSU vesting and subsequent award schedules · Filed 31/03/2026
All of the Company’s directors are independent, with the exception of our CEO, who is the only member of management serving on the Board.
2026 proxy, board independence · Filed 31/03/2026
•
Independent Chair.
The Company maintains separate roles of chief executive officer and Board chair as a matter of policy.
2026 proxy, separation of CEO and board chair · Filed 31/03/2026
ü Our bylaws allow holders of at least 20% of the voting power of the Company’s outstanding common stock to call a special meeting.
2026 proxy, shareholder special-meeting rights · Filed 31/03/2026
The Compensation Committee adopted an additional clawback policy for senior executives that provides recoupment of certain incentive compensation in the event a senior executive engages in specified detrimental conduct.
2026 proxy, adopted detrimental-conduct clawback · Filed 31/03/2026
The Company issued approximately 2.0 million and 3.2 million shares related to stock compensation and employee stock purchase plans for the nine months ended September 30, 2026 and 2025, respectively.
September 2026 Form 10-Q, employee-related share issuance · Filed 15/10/2026
