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Published: 2022-04-21 00:00:00 ET
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marshmclennanlogo.jpg
Marsh McLennan
1166 Avenue of the Americas
New York, New York 10036-2774
212 345 5000
www.marshmclennan.com

NEWS RELEASE
Exhibit 99.1

MARSH McLENNAN REPORTS FIRST QUARTER 2022 RESULTS
GAAP Revenue Increases 9%; Underlying Revenue Rises 10%
First Quarter GAAP EPS Rises 10% to $2.10 and Adjusted EPS Increases 16% to $2.30
Growth in GAAP Operating Income of 6% and Adjusted Operating Income of 12%

NEW YORK, April 21, 2022 – Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, today reported financial results for the first quarter ended March 31, 2022.
Dan Glaser, President and CEO, said: "Marsh McLennan started 2022 with an excellent first quarter. We generated underlying revenue growth of 10%, adjusted operating income growth of 12%, and adjusted EPS growth of 16%. We are well-positioned for another solid year."
"The current war in Ukraine has reminded us that risk and uncertainty are constants, and I am proud of the work our colleagues are doing to help one another and our clients navigate the widespread challenges created by this horrific situation."
Consolidated Results
Consolidated revenue in the first quarter of 2022 was $5.5 billion, an increase of 9% compared with the first quarter of 2021. On an underlying basis, revenue increased 10%. Operating income was $1.4 billion, an increase of 6% from the prior year. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 12% to $1.6 billion.
Net income attributable to the Company was $1.1 billion, or $2.10 per diluted share, compared with $1.91 in the first quarter of 2021. Adjusted earnings per share rose 16% to $2.30 per diluted share compared with $1.99 a year ago.
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Risk & Insurance Services
Risk & Insurance Services revenue was $3.5 billion in the first quarter of 2022, an increase of 10%, or 11% on an underlying basis. Operating income rose 6% to $1.1 billion, and adjusted operating income was $1.2 billion, an increase of 12% versus a year ago.
Marsh's revenue in the first quarter was $2.5 billion, an increase of 11% on an underlying basis. In U.S./Canada, underlying revenue rose 10%. International operations produced underlying revenue growth of 11%, reflecting 17% growth in Asia Pacific, 16% growth in Latin America, and 9% growth in EMEA.
Guy Carpenter's revenue in the first quarter was $999 million, an increase of 11% on an underlying basis.
Consulting
Consulting revenue was $2.0 billion in the first quarter of 2022, an increase of 7%, or 10% on an underlying basis. Operating income increased 8% to $392 million, and adjusted operating income increased 9% to $402 million.
Mercer's revenue in the first quarter was $1.3 billion, an increase of 6% on an underlying basis. Career revenue of $202 million was up 16% on an underlying basis. Health revenue of $524 million increased 9% on an underlying basis, and Wealth revenue of $617 million increased 2% on an underlying basis.
Oliver Wyman’s revenue in the first quarter was $667 million, an increase of 17% on an underlying basis.
Other Items
The Company repurchased 3.2 million shares of stock for $500 million in the first quarter.
In March, Marsh McLennan announced it would exit all of its businesses in Russia and transfer ownership of its Russian business to local management who will operate independently in the Russian market.
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Conference Call
A conference call to discuss first quarter 2022 results will be held today at 8:30 a.m. Eastern time. To participate in the teleconference, please dial +1 866 437 7574. Callers from outside the United States should dial +1 409 220 9376. The access code for both numbers is 3058039. The live audio webcast may be accessed at marshmclennan.com. A replay of the webcast will be available approximately two hours after the event.
About Marsh McLennan
Marsh McLennan (NYSE: MMC) is the world’s leading professional services firm in the areas of risk, strategy and people. The Company’s 83,000 colleagues advise clients in 130 countries. With annual revenue of approximately $20 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses. Marsh provides data-driven risk advisory services and insurance solutions to commercial and consumer clients. Guy Carpenter develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities. Mercer delivers advice and technology-driven solutions that help organizations redefine the world of work, reshape retirement and investment outcomes, and unlock health and well being for a changing workforce. Oliver Wyman serves as a critical strategic, economic and brand advisor to private sector and governmental clients. For more information, visit marshmclennan.com, follow us on LinkedIn and Twitter or subscribe to BRINK.
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INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future events or results, use words like "anticipate," "assume," "believe," "continue," "estimate," "expect," "intend," "plan," "project" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would".
Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. Factors that could materially affect our future results include, among other things:
•the impact of geopolitical or macroeconomic conditions on us, our clients and the countries and industries in which we operate, including from conflicts such as the war in Ukraine, capital markets volatility and inflation;
•the increasing prevalence of ransomware, supply chain and other forms of cyber attacks, and their potential to disrupt our operations and result in the disclosure of confidential client or company information;
•the impact from lawsuits or investigations arising from errors and omissions, breaches of fiduciary duty or other claims against us in our capacity as a broker or investment advisor, including claims related to our investment business’ ability to execute timely trades in light of increased trading volume;
•the financial and operational impact of complying with laws and regulations, including domestic and international sanctions regimes, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act, U.K. Anti Bribery Act and cybersecurity and data privacy regulations;
•our ability to attract, retain and develop industry leading talent;
•our ability to compete effectively and adapt to competitive pressures in each of our businesses, including from disintermediation as well as technological change, digital disruption and other types of innovation;
•our ability to manage potential conflicts of interest that may arise across our businesses given our expanding client base, the broad scope of our work and the significant volume of our engagements;
•the impact of changes in tax laws, guidance and interpretations, or disagreements with tax authorities; and
•the regulatory, contractual and reputational risks that arise based on insurance placement activities and insurer revenue streams.
The factors identified above are not exhaustive. Marsh McLennan and its subsidiaries (collectively, the "Company") operate in a dynamic business environment in which new risks emerge frequently. Accordingly, we caution readers not to place undue reliance on any forward-looking statements, which are based only on information currently available to us and speak only as of the dates on which they are made. The Company undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made.
Further information concerning Marsh McLennan and its businesses, including information about factors that could materially affect our results of operations and financial condition, is contained in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section and the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section of our most recently filed Annual Report on Form 10-K.

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Marsh & McLennan Companies, Inc.
Consolidated Statements of Income
(In millions, except per share data)
(Unaudited) 
 Three Months Ended
March 31,
 20222021
Revenue$5,549 $5,083 
Expense: 
Compensation and benefits3,100 2,807 
Other operating expenses1,004 918 
     Operating expenses
4,104 3,725 
Operating income1,445 1,358 
Other net benefit credits 62 71 
Interest income1 — 
Interest expense(110)(118)
Investment income 26 11 
Income before income taxes1,424 1,322 
Income tax expense338 324 
Net income before non-controlling interests1,086 998 
Less: Net income attributable to non-controlling interests15 15 
Net income attributable to the Company$1,071 $983 
Net income per share attributable to the Company:
- Basic$2.13 $1.93 
- Diluted$2.10 $1.91 
Average number of shares outstanding:
- Basic503 509 
- Diluted509 514 
Shares outstanding at March 31502 509 
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Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Three Months Ended March 31
(Millions) (Unaudited)
The Company conducts business in 130 countries. As a result, foreign exchange rate movements may impact period-to-period comparisons of revenue. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period-to-period comparisons of revenue. Underlying revenue measures the change in revenue from one period to the next by isolating these impacts.
   Components of Revenue Change*
 Three Months Ended
March 31,		% Change GAAP RevenueCurrency ImpactAcquisitions/
Dispositions/ Other Impact		Underlying Revenue
 20222021
Risk and Insurance Services     
Marsh$2,546 $2,325 10 %(2)%1 %11 %
Guy Carpenter999 895 12 %(1)%2 %11 %
     Subtotal3,545 3,220 10 %(2)%1 %11 %
Fiduciary interest income4 5 
     Total Risk and Insurance Services3,549 3,225 10 %(2)%1 %11 %
Consulting 
Mercer1,343 1,288 4 %(2)%—6 %
Oliver Wyman Group667 585 14 %(2)%(1)%17 %
     Total Consulting2,010 1,873 7 %(2)%—10 %
Corporate Eliminations(10)(15)
     Total Revenue$5,549 $5,083 9 %(2)%1 %10 %


Revenue Details
The following table provides more detailed revenue information for certain of the components presented above:
   Components of Revenue Change*
 Three Months Ended
March 31,		% Change
GAAP Revenue		Currency ImpactAcquisitions/
Dispositions/ Other Impact		Underlying Revenue
 20222021
Marsh:     
EMEA$842 $837 1 %(4)%(4)%9 %
Asia Pacific321 274 17 %(4)%5 %17 %
Latin America104 90 15 %(1)%— 16 %
     Total International1,267 1,201 6 %(4)%(2)%11 %
U.S./Canada1,279 1,124 14 %— 4 %10 %
     Total Marsh$2,546 $2,325 10 %(2)%1 %11 %
Mercer: 
Wealth$617 $623 (1)%(3)%— 2 %
Health524 487 8 %(2)%1 %9 %
Career202 178 13 %(3)%— 16 %
     Total Mercer$1,343 $1,288 4 %(2)%— 6 %
 
* Components of revenue change may not add due to rounding.
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Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Three Months Ended March 31
(Millions) (Unaudited)
Overview
The Company reports its financial results in accordance with accounting principles generally accepted in the United States (referred to in this release as in accordance with "GAAP" or "reported" results). The Company also refers to and presents certain additional non-GAAP financial measures, within the meaning of Regulation G in accordance with the Securities Exchange Act of 1934. These measures are: adjusted operating income (loss), adjusted operating margin, adjusted income, net of tax and adjusted earnings per share (EPS). The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP in the following tables.
The Company believes these non-GAAP financial measures provide useful supplemental information that enables investors to better compare the Company’s performance across periods. Management also uses these measures internally to assess the operating performance of its businesses, to assess performance for employee compensation, and to decide how to allocate resources. However, investors should not consider these non-GAAP measures in isolation from, or as a substitute for, the financial information that the Company reports in accordance with GAAP. The Company's non-GAAP measures include adjustments that reflect how management views its businesses, and may differ from similarly titled non-GAAP measures presented by other companies.
Adjusted Operating Income (Loss) and Adjusted Operating Margin
Adjusted operating income (loss) is calculated by excluding the impact of certain noteworthy items from the Company's GAAP operating income (loss). The following tables identify these noteworthy items and reconcile adjusted operating income (loss) to GAAP operating income (loss), on a consolidated and reportable segment basis, for the three months ended March 31, 2022 and 2021. The following tables also present adjusted operating margin. For the three months ended March 31, 2022 and 2021, adjusted operating margin is calculated by dividing the sum of adjusted operating income and identified intangible asset amortization by consolidated or segment adjusted revenue.
Risk & Insurance ServicesConsultingCorporate/
Eliminations		Total
Three Months Ended March 31, 2022    
Operating income (loss)$1,121 $392$(68)$1,445
Operating margin31.6 %19.5 %N/A26.0 %
Add (deduct) impact of noteworthy items:
Restructuring (a)1578 30
Changes in contingent consideration (b)10—— 10
JLT acquisition-related costs and other (c)121— 13
JLT legacy E&O provision (d)
—(10)— (10)
Legal claims (e)
30—— 30
Deconsolidation of Russian businesses and other related charges (f)4012— 52
Operating income adjustments107108 125
Adjusted operating income (loss)$1,228$402$(60)$1,570
Total identified intangible amortization expense$78$13$— $91
Adjusted operating margin36.5 %20.6 %N/A29.7 %
    
Three Months Ended March 31, 2021
Operating income (loss)$1,060$361$(63)$1,358
Operating margin32.9%19.3%N/A26.7 %
Add (deduct) impact of noteworthy items:
Restructuring (a)17116 34
Changes in contingent consideration (b)6(6)— —
JLT acquisition-related costs (c)111— 12
Other(2)3— 1
Operating income adjustments3296 47
Adjusted operating income (loss)$1,092$370$(57)$1,405
Total identified intangible amortization expense$86$14$— $100
Adjusted operating margin36.6 %20.5 %N/A29.6 %
(a)Restructuring activities reflect costs related to the Company's global information technology and HR functions, JLT integration costs, Marsh (RIS) operational excellence and adjustments to restructuring liabilities for future rent under non-cancellable leases.
(b)Primarily includes the change in fair value of contingent consideration related to acquisitions and dispositions as measured each quarter.
(c)Includes retention costs and legal charges related to the acquisition of JLT.
(d)Reflects recoveries under indemnities for a legacy JLT E&O matter relating to suitability of advice provided to individuals for defined benefit pension transfers in the U.K.
(e)Settlement charges and legal costs related to strategic recruiting.
(f)Loss on deconsolidation of Russian businesses and other related charges. The loss on deconsolidation is included in revenue and excluded from underlying revenue calculations and adjusted operating margin.
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Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Three Months Ended March 31
(In millions, except per share data)
(Unaudited)
Adjusted income, net of tax is calculated as the Company's GAAP income from continuing operations, adjusted to reflect the after tax impact of the operating income adjustments in the preceding tables and the additional items listed below. Adjusted EPS is calculated by dividing the Company’s adjusted income, net of tax, by average number of shares outstanding-diluted for the relevant period. The following tables reconcile adjusted income, net of tax to GAAP income from continuing operations and adjusted EPS to GAAP EPS for the three month periods ended March 31, 2022 and 2021.

Three Months Ended March 31, 2022Three Months Ended March 31, 2021
AmountAdjusted EPSAmountAdjusted EPS
Net income before non-controlling interests, as reported$1,086 $998 
Less: Non-controlling interest, net of tax15 15 
Subtotal$1,071 $2.10 $983 $1.91 
Operating income adjustments$125 $47 
Investments adjustment (a)(9)— 
Income tax effect of adjustments (b)(18)(9)
98 0.20 38 0.08 
Adjusted income, net of tax$1,169 $2.30 $1,021 $1.99 
(a) Represents mark-to-market gains primarily related to the Company’s investment in Alexander Forbes ("AF").
(b) For items with an income tax impact, the tax effect was calculated using an effective tax rate based on the tax jurisdiction for each item.
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Marsh & McLennan Companies, Inc.
Supplemental Information
Three Months Ended March 31
(Millions) (Unaudited)
Three Months Ended
March 31,
 20222021
Consolidated
Compensation and benefits$3,100 $2,807 
Other operating expenses1,004 918 
Total expenses$4,104 $3,725 
Depreciation and amortization expense$89 $97 
Identified intangible amortization expense91 100 
Total $180 $197 
Stock option expense $5 $21 
Risk and Insurance Services
Compensation and benefits$1,801 $1,610 
Other operating expenses627 555 
Total expenses$2,428 $2,165 
Depreciation and amortization expense$43 $50 
Identified intangible amortization expense78 86 
Total$121 $136 
 
Consulting
Compensation and benefits$1,164 $1,074 
Other operating expenses454 438 
Total expenses$1,618 $1,512 
Depreciation and amortization expense$26 $29 
Identified intangible amortization expense13 14 
Total$39 $43 



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Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets
(Millions)
(Unaudited)
March 31,
2022		December 31, 2021
ASSETS  
Current assets:  
Cash and cash equivalents$772 $1,752 
Net receivables5,963 5,586 
Other current assets1,053 926 
Total current assets7,788 8,264 
Goodwill and intangible assets18,974 19,127 
Fixed assets, net865 847 
Pension related assets2,246 2,270 
Right of use assets1,825 1,868 
Deferred tax assets530 551 
Other assets1,460 1,461 
TOTAL ASSETS$33,688 $34,388 
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt$1,191 $17 
Accounts payable and accrued liabilities3,084 3,165 
Accrued compensation and employee benefits1,400 2,942 
Current lease liabilities331 332 
Accrued income taxes308 198 
Dividends payable273 — 
Total current liabilities6,587 6,654 
Fiduciary liabilities10,461 9,622 
Less - cash and cash equivalents held in a fiduciary capacity(10,461)(9,622)
 — — 
Long-term debt10,552 10,933 
Pension, post-retirement and post-employment benefits1,515 1,632 
Long-term lease liabilities1,831 1,880 
Liabilities for errors and omissions352 355 
Other liabilities1,695 1,712 
Total equity11,156 11,222 
TOTAL LIABILITIES AND EQUITY$33,688 $34,388 

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Marsh & McLennan Companies, Inc.
Consolidated Statements of Cash Flows
(Millions) (Unaudited)

Three Months Ended
March 31,
20222021
Operating cash flows:
Net income before non-controlling interests$1,086 $998 
Adjustments to reconcile net income to cash used for operations:
Depreciation and amortization180 197 
Non cash lease expense77 79 
Deconsolidation of Russian businesses39 — 
Share-based compensation expense105 78 
Net (gain) loss on investments, disposition of assets and other(17)(9)
Changes in assets and liabilities:
Accrued compensation and employee benefits(1,528)(1,167)
Net receivables(429)(404)
Other changes to assets and liabilities(6)4 
Contributions to pension and other benefit plans in excess of current year credit(125)(102)
Operating lease liabilities(84)(82)
Net cash used for operations(702)(408)
Financing cash flows:
Purchase of treasury shares(500)(112)
Net proceeds from issuance of commercial paper825 — 
Repayments of debt(4)(4)
Net issuance of common stock from treasury shares(100)(58)
Net distributions of non-controlling interests and deferred/contingent consideration(20)(40)
Dividends paid(272)(237)
Increase in fiduciary liabilities 926 190 
Net cash provided by (used for) financing activities855 (261)
Investing cash flows:
Capital expenditures(122)(69)
Net (purchase) sale of long-term investments and other(9)2 
Dispositions (4)— 
Acquisitions(24)— 
Net cash used for investing activities(159)(67)
Effect of exchange rate changes on cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity(136)(36)
Decrease in cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity(142)(772)
Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at beginning of period11,375 10,674 
Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at end of period$11,233 $9,902 

Reconciliation of cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity to the Consolidated Balance Sheets
Three Months Ended March 31,20222021
(In millions)
Cash and cash equivalents$772 $1,120 
Cash and cash equivalents held in a fiduciary capacity 10,461 8,782 
Total cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity$11,233 $9,902 
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