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    MRSH
    Earnings call· Mar 2026(Q1 FY26)

    MARSH & MCLENNAN COMPANIES Q1 FY26 earnings call MRSH

    Apr 16, 2026 Source

    Executive summary

    Marsh & McLennan Companies, Inc. Q1 FY26 — Solid Start Amidst Challenging Market Conditions and AI Investments

    Marsh & McLennan delivered a solid Q1 FY26, navigating competitive insurance markets and lower interest rates with 4% underlying revenue growth and 8% adjusted EPS growth. The company is actively investing in AI across growth, productivity, and efficiency pillars, leveraging its scale and data to enhance client value and drive future margin expansion. Capital deployment remains balanced, with significant share repurchases and a strong M&A pipeline.

    Highlights

    5

    • Consolidated revenue grew 8% to $7.6 billion, with underlying revenue up 4%.

    • Adjusted operating income increased 8% and adjusted EPS grew 8% to $3.29.

    • Marsh Risk saw sequential improvement in underlying growth to 4%, with strong sales.

    • Guy Carpenter achieved 2% underlying growth despite a challenging reinsurance market, driven by strong new business and record cat bond issuance.

    • The company repurchased $750 million of stock in Q1 and expects to deploy $5 billion in capital for 2026.

    Concerns

    4

    • Lower fiduciary interest income, down $18 million year-over-year.

    • Continued downward pricing pressure in insurance and reinsurance, with primary commercial rates decreasing 5% in Q1.

    • A $425 million charge related to litigation stemming from the collapse of Greenfield Capital in 2021.

    • Softness in project-related work in Mercer's Career business, down 2%.

    Guidance & targets

    10
    CategoryTargetConfidence
    Underlying revenue growth
    similar to last year
    high materiality
    High
    Margin expansion
    continued margin expansion
    high materiality
    High
    Adjusted EPS growth
    solid adjusted EPS growth
    high materiality
    High
    Fiduciary interest income
    approximately $80 million
    medium materiality
    High
    Adjusted effective tax rate
    between 24.5% and 25.5%
    medium materiality
    High
    Corporate expense (adjusted)
    approximately $90 million
    medium materiality
    High
    Total capital deployment
    approximately $5 billion
    high materiality
    High
    Thrive program total savings
    $400 million
    high materiality
    High
    Thrive program total charges
    approximately $500 million
    high materiality
    High
    Margin expansion timing
    more margin expansion in the second half of this year than in the first half
    medium materiality
    High

    Segment performance

    12
    SegmentRevenueYoYQoQMargin
    Consolidated
    Solid start to the year despite challenging environment, reflecting strong execution.
    Underlying revenue growth: 4%Adjusted operating margin: 31.8% (unchanged)
    		$7.6 billion8%—$2.4 billion adjusted operating income
    Risk & Insurance Services (RIS)
    Growth increased sequentially despite more challenging market conditions, reflecting solid performances in the U.S., including MMA and across international.
    Underlying revenue growth: 3%Adjusted operating margin: 38.3% (up 10 bps)
    		$5.1 billion6%—$1.9 billion adjusted operating income
    Marsh Risk
    Strong sales across the business, with sequential improvement in growth.
    Underlying revenue growth: 4%
    		$3.7 billion8%——
    Marsh Risk - U.S. and Canada
    Solid performance contributing to overall Marsh Risk growth.
    Underlying growth: 3%
    		————
    Marsh Risk - International
    Strong performance across international regions.
    Underlying growth: 5%EMEA underlying growth: 6%Asia Pacific underlying growth: 5%Latin America underlying growth: 2%
    		————
    Guy Carpenter
    Good result considering the current pricing environment, impacted by softer reinsurance market conditions and tough prior-year comparison, but drove strong new business.
    Underlying revenue growth: 2%
    		$1.2 billion3%——
    Consulting
    Strong growth driven by Mercer and Marsh Management Consulting.
    Underlying revenue growth: 5%Operating income: $525 millionAdjusted operating margin: 21.6% (up 40 bps)
    		$2.6 billion11%—$552 million adjusted operating income
    Mercer
    Growth led by Health and Wealth segments.
    Underlying revenue growth: 5%
    		$1.7 billion11%——
    Mercer - Health
    Continued growth across regions, especially international.
    		—6%——
    Mercer - Wealth
    Led by investments business, with year-over-year growth driven by new wins, capital markets impact, and acquisitions.
    Assets under management (end Q1): $727 billion (up 5% sequentially, up 19% YoY)
    		—5%——
    Mercer - Career
    Reflecting continued softness in project-related work in the U.S., partially offset by sustained demand in International.
    		—-2%——
    Marsh Management Consulting
    Reflecting solid demand across most regions and sectors.
    Underlying revenue growth: 6%
    		$897 million10%——

    Operational metrics

    31
    GAAP EPS
    $2.36
    Q1 FY26

    Reported GAAP EPS for the first quarter.

    Adjusted EPS
    $3.29up 8% YoY
    Q1 FY26

    Reported adjusted EPS for the first quarter.

    Adjusted Operating Margin (Consolidated)
    31.8%unchanged YoY
    Q1 FY26

    Consolidated adjusted operating margin.

    FX Benefit
    $0.11
    Q1 FY26

    Benefit to EPS from foreign exchange in the first quarter.

    Corporate Expense (adjusted)
    $74 millionvs $81 million in Q4 FY25
    Q1 FY26

    Adjusted corporate expense for the first quarter.

    Thrive Program Costs Incurred
    $37 million
    Q1 FY26

    Costs associated with the Thrive program incurred in the first quarter.

    Litigation Charge (Greenfield Capital)
    $425 million
    Q1 FY26

    Charge relating to litigation stemming from the collapse of Greenfield Capital in 2021.

    Interest Expense
    $240 million
    Q1 FY26

    Interest expense for the first quarter.

    Total Debt
    $20.6 billion
    end Q1 FY26

    Total debt balance at the end of the first quarter.

    Debt Maturity
    $550 million
    Q3 FY26

    Next scheduled debt maturity in the third quarter.

    Cash Position
    $1.6 billion
    end Q1 FY26

    Cash position at the end of the first quarter.

    Uses of Cash
    $1.3 billion
    Q1 FY26

    Total uses of cash in the first quarter.

    Dividends Paid
    $440 million
    Q1 FY26

    Amount paid for dividends in the first quarter.

    Acquisitions Spend
    $89 million
    Q1 FY26

    Amount spent on acquisitions in the first quarter.

    Share Repurchases
    $750 million
    Q1 FY26

    Amount spent on share repurchases in the first quarter.

    M&A Capital Deployed (last year)
    $850 million
    FY25

    Capital deployed to M&A in the prior fiscal year.

    Share Repurchases (Q4 last year)
    $1 billion
    Q4 FY25

    Share repurchases executed in the fourth quarter of the prior fiscal year.

    Assets Under Management (Mercer)
    $727 billionup 5% sequentially, up 19% YoY
    end Q1 FY26

    Assets under management for Mercer at the end of the first quarter.

    Assets Advised (Mercer)
    $17 trillion
    current

    Total assets advised by Mercer globally, including pension and retirement markets.

    Data Center Deals Pipeline Capital
    $7.5 billion
    current

    Capital being sought for data center deals in the marketplace.

    Cat Bonds Issued (Guy Carpenter)
    7record
    Q1 FY26

    Number of cat bonds issued by Guy Carpenter in the first quarter.

    New Third-Party Capital Flow (ILS market)
    $2 billion
    Q1 FY26

    New third-party capital flowing into the ILS market.

    Global Insurance Market Index (Primary Commercial Rates)
    -5%down from -4% in Q4 FY25
    Q1 FY26

    Decrease in primary commercial insurance rates according to Marsh Global Insurance Market Index.

    Global Property Rates
    -9%same pace as last quarter
    Q1 FY26

    Decrease in global property rates year-over-year.

    Global Financial and Professional Liability Rates
    -5%
    Q1 FY26

    Decrease in global Financial and Professional liability rates.

    Cyber Rates
    -5%
    Q1 FY26

    Decrease in cyber rates.

    Global Casualty Rates
    3%
    Q1 FY26

    Increase in global casualty rates.

    U.S. Excess Casualty Rates
    18%
    Q1 FY26

    Increase in U.S. excess casualty rates, reflecting ongoing pressure in the liability market.

    Workers' Compensation Rates
    -1%
    Q1 FY26

    Decrease in workers' compensation rates.

    Non-loss Impacted Property Cat Reinsurance Rates (April 1 renewals)
    -15% to -20%slight acceleration from January 1 renewal season
    April 1 renewals

    Rate reductions for non-loss impacted accounts in U.S. property cat reinsurance.

    Japan Property Cat Rates (April 1 renewals)
    -15% to -20%
    April 1 renewals

    Overall rate reductions for Japan property cat reinsurance.

    Industry KPIs

    5
    MetricValueDetails
    Capital returns$750 millionUSD
    Net investment income$85 millionUSD
    Retention persistencystrong
    Renewal rate change pricing-5%%
    Broker specific when present4%%

    Product announcements

    4
    ProductTypeDetails
    Marsh Risk Companion (including Renewal Companion, Captives Companion)launch
    GC Quoteboxlaunch
    Mercer Fiberlaunch
    Oliver Wyman's AI Quotientmilestone

    Deals & partnerships

    2
    AltamarCAMacquisition

    Acquisition of a private market asset manager, pending regulatory approval. It will allow Marsh to offer more comprehensive multi-asset private market solutions to clients.

    Undiscloseddivestiture

    Sale of an admin business in the Pacific region.

    Risks & headwinds

    6
    Lower fiduciary interest incomeQ1 FY26 and ongoing

    down $18 million in Q1 FY26 compared to Q1 FY25

    Mitigation: Not explicitly stated, but implies focus on other growth drivers.

    Declining P&C RatesQ1 FY26 and near-term

    Primary commercial insurance rates decreased 5% in Q1 FY26 (following 4% decline in Q4 FY25). Property rates down 9%, Financial and Professional liability down 5%, Cyber down 5%. Non-loss impacted property cat reinsurance rates down 15-20% at April 1 renewals.

    Mitigation: Strong new business, diverse opportunities, and focus on value-added services; clients benefiting from current market conditions.

    Challenging Reinsurance MarketQ1 FY26 and near-term

    Guy Carpenter's underlying growth impacted, 2% in Q1 FY26.

    Mitigation: Strong new business, record cat bond issuance, diverse new business opportunities (capital and advisory, M&A mandates, data centers).

    Litigation Charge (Greenfield Capital)Q1 FY26

    $425 million charge in Q1 FY26.

    Mitigation: Represents best estimate of liability after court-sponsored mediation; litigation is ongoing.

    Softness in Mercer's Career BusinessQ1 FY26

    Down 2% in Q1 FY26.

    Mitigation: Partially offset by sustained demand in International.

    Middle East ConflictOngoing

    Impact on business and broader insurance industry has been limited.

    Mitigation: Advising clients on resilience, supply chain, cyber, investment decisions, and managing insurable risks (marine, aviation, energy). Engaging with governments to minimize economic disruption.

    Q&A highlights

    8

    How will Marsh achieve future margin expansion, especially with high current margins, and what are the risks of AI disintermediation across its businesses?

    John Doyle affirmed the expectation of a 19th year of margin expansion, driven by the Thrive program and traditional digitization efforts alongside AI. He emphasized Marsh's unique position as an "AI winner" due to its scale, data, trusted client relationships, and complex ecosystem involvement, differentiating it from tech-enabled startups or direct insurers.

    “When I think about all the attributes that we have and what our ability is to be an AI winner, I can't think of a better place to be -- to start and to begin the early days of what's possible around AI than here.”

    asked by Greg Peters · answered by John Doyle

    2 min read6 chapters

    Detailed Narrative

    01

    AI Strategy and Impact

    Marsh & McLennan is pursuing an AI strategy focused on growth, productivity, and efficiency. This includes building AI-enabled applications like ADA, Centrus, UCLI, and GC Quotebox, enhancing client management tools, and automating back-office operations through its Business and Client Services (BCS) unit. Oliver Wyman's AI Quotient team is its fastest-growing practice, advising clients on AI deployment and workforce transformation, having already advised on over $50 billion of capital investment in AI deployment.

    02

    Leadership Changes

    The company announced several executive committee changes, including Mark McGivney as COO in addition to CFO, Nick Studer as CEO of Marsh Risk, Martin South as Chief Client Officer, and Ted Moynihan as CEO of Marsh Management Consulting. These changes are aimed at driving growth, enhancing client experience, and accelerating the benefits of the Thrive program, leveraging proven leadership across the organization.

    03

    Market Conditions and Pricing Trends

    The insurance and reinsurance markets remain competitive, with primary commercial insurance rates decreasing 5% in Q1, following a 4% decline in Q4 2025. Property rates were down 9%, Financial and Professional liability down 5%, and Cyber down 5%. Global Casualty rates increased 3%, with U.S. excess casualty up 18%. Reinsurance markets show substantial capacity, leading to rate reductions, particularly for non-loss impacted accounts (down 15-20% at April 1 renewals), benefiting clients.

    04

    Thrive Program Progress

    The Thrive program is on track to generate $400 million in total savings, with approximately $500 million in associated charges. In Q1, $37 million of costs were incurred for Thrive. The program aims to drive growth through talent and AI investments, strengthen the brand, and generate greater efficiency, contributing to continued margin improvement, with more expansion expected in the second half of the year.

    05

    Capital Management & M&A Activity

    The company maintains a balanced approach to capital management, prioritizing investments in the business (organic and inorganic) and annual dividend increases. Share repurchases are flexible, depending on M&A pipeline development. In Q1, $750 million in share repurchases were executed. The acquisition of AltamarCAM, a private market asset manager with $20 billion AUM, is pending regulatory approval and expected to close later in the year, enhancing private markets capabilities.

    06

    Greenfield Capital Litigation

    Marsh incurred a $425 million charge in Q1 related to litigation stemming from its role as insurance broker for Greenfield Capital, which collapsed in 2021. This charge represents the best estimate of the liability following court-sponsored mediation, with further details available in the 10-Q filing. The litigation is ongoing, and the company is limited in further commentary at this time.

    AI-generated summary of the company’s earnings call. Not investment advice.