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    MRSH
    Earnings call· Jun 2026(Q2 FY26)

    MARSH & MCLENNAN COMPANIES, INC. MRSH

    Jul 21, 2026 Source

    Executive summary

    Marsh & McLennan Q2 FY26 — Solid Performance Driven by Underlying Growth and Strategic Investments

    Marsh & McLennan delivered solid Q2 FY26 results, with underlying revenue growth accelerating to 5% driven by strong performances in Marsh Risk and Marsh Management Consulting, despite headwinds from declining insurance rates and lower fiduciary income. The company is actively investing in its Thrive program, brand unification, sales capacity, and AI initiatives to drive future growth and efficiency, while also increasing its capital deployment outlook for the year.

    Highlights

    5

    • Overall revenue grew 6% (5% underlying) in Q2 FY26.

    • Adjusted EPS increased 9% to $2.96 in Q2 FY26.

    • Total capital deployment for FY26 increased to $5.5 billion, up from $5 billion previously.

    • Marsh Management Consulting revenue grew 13% underlying, the fastest growth in over 2 years.

    • Mercer's Wealth business grew 8%, its best quarter of growth since 2016, with AUM up 26% YoY to $846 billion.

    Concerns

    3

    • Guy Carpenter's revenue declined 2% underlying in Q2 FY26, impacted by a tough comparison and continued declines in reinsurance rates (property cat rates down 16% at midyear).

    • Fiduciary interest income decreased $11 million YoY to $88 million in Q2 FY26 due to lower interest rates.

    • Primary commercial insurance rates decreased 6% in Q2 FY26 according to the Marsh Global Insurance Market Index.

    Guidance & targets

    11
    CategoryTargetConfidence
    Underlying revenue growth
    Similar to last year
    high materiality
    High
    Adjusted operating margin
    Another year of margin expansion
    high materiality
    High
    Adjusted EPS growth
    Solid adjusted EPS growth
    high materiality
    High
    Marsh Management Consulting underlying growth
    Mid- to high single digits
    medium materiality
    Medium
    Fiduciary interest income
    Approximately $95 million
    medium materiality
    High
    FX impact on earnings
    Immaterial impact
    low materiality
    High
    Adjusted corporate expense
    Approximately $75 million
    medium materiality
    High
    Adjusted effective tax rate
    Between 24.5% and 25.5%
    medium materiality
    High
    Interest expense
    Similar level
    low materiality
    High
    Total capital deployment
    Approximately $5.5 billion
    high materiality
    High
    Margin expansion timing
    More margin expansion in the fourth quarter than in the third quarter
    medium materiality
    High

    Segment performance

    6
    SegmentRevenueYoYQoQMargin
    Risk and Insurance Services
    Strong execution despite headwinds from fiduciary interest income and P&C pricing.
    H1 FY26 Revenue: $9.9 billionH1 FY26 Underlying Growth: 3%H1 FY26 Adjusted Operating Income: $3.6 billionH1 FY26 Adjusted Operating Margin: 36.8%
    		$4.8 billion3% underlying—35.3% adjusted operating margin
    Marsh Risk
    Solid performance with accelerated growth in U.S. and Canada driven by strong new business and hiring. International growth was solid across regions.
    H1 FY26 Revenue: $7.8 billionH1 FY26 Underlying Growth: 4%U.S. and Canada Underlying Growth (Q2 FY26): 4% (up from 3% in Q1)International Underlying Growth (Q2 FY26): 5% (EMEA 5%, Asia Pacific 5%, Latin America 8%)International GAAP Revenue Growth (Q2 FY26): 7%New Business Growth (U.S. & Canada): High single-digit (double-digit in Marsh Risk)Specialties Double-Digit Growth (Q2 FY26): Marine, Transactional Risk, Construction, Aviation, Energy & Power, Cyber
    		$4.1 billion4% underlying——
    Guy Carpenter
    Growth impacted by tough comparison and significant declines in property cat reinsurance rates. Strong execution with record new business and high client retention.
    H1 FY26 Revenue: $1.9 billionH1 FY26 Underlying Growth: FlatImpact of rate declines on underlying growth (Q2 FY26): ~6 percentage pointsProperty Cat Rate Online Index (midyear): Down 16%New Business Growth (H1 FY26): Record double-digitClient Retention (H1 FY26): High 90sInternational Facultative Business Growth: Double-digitCasualty Business Growth: Mid-single digitsCapital and Advisory Business Growth: Double-digit
    		$664 million-2% underlying——
    Consulting
    Strong demand and delivery across the business, with growth in all regions and most business lines.
    H1 FY26 Revenue: $5.2 billionH1 FY26 Underlying Growth: 7%H1 FY26 Adjusted Operating Income: $1.1 billionH1 FY26 Adjusted Operating Margin: 21%
    		$2.6 billion8% underlying—20.5% adjusted operating margin
    Mercer
    Strong performance in Wealth, driven by new business and capital markets. Health growth decelerated but remains positive.
    H1 FY26 Revenue: $3.3 billionH1 FY26 Underlying Growth: 5%Health Underlying Growth (Q2 FY26): 3%Wealth Underlying Growth (Q2 FY26): 8% (best quarter since 2016)Career Underlying Growth (Q2 FY26): 2%Assets Under Management (Q2 FY26): $846 billionAUM Growth (YoY): 26%Assets Under Advisement (Q2 FY26): $16 trillion
    		$1.6 billion5% underlying——
    Marsh Management Consulting
    Fastest growth in over two years, reflecting strong demand and delivery, particularly in AI strategic advisory and efficiency-related work.
    H1 FY26 Revenue: $1.9 billionH1 FY26 Underlying Growth: 10%Growth (Q2 FY26): Fastest in over 2 yearsStrongest Growth by Service Offering: Quotient (AI strategic advisory team)Strongest Growth by Region: Europe, AsiaStrongest Growth by Industry: Energy, Insurance, Telco, Transportation
    		$1 billion13% underlying——

    Operational metrics

    18
    Adjusted Operating Income
    $2.2 billionup 5%
    Q2 FY26

    Company-wide adjusted operating income.

    Adjusted Operating Margin
    29.3%
    Q2 FY26

    Company-wide adjusted operating margin.

    Adjusted EPS
    $2.96up 9% YoY
    Q2 FY26

    Company-wide adjusted earnings per share.

    Adjusted Operating Income
    $4.6 billionup 7%
    H1 FY26

    Company-wide adjusted operating income for the first six months.

    Adjusted Operating Margin
    30.5%
    H1 FY26

    Company-wide adjusted operating margin for the first six months.

    Adjusted EPS
    $6.25up 8%
    H1 FY26

    Company-wide adjusted earnings per share for the first six months.

    Fiduciary Interest Income
    $88 milliondown $11 million YoY
    Q2 FY26

    Impacted by lower interest rates.

    FX Impact on Earnings
    $0.02 benefit
    Q2 FY26

    Foreign exchange benefit.

    Adjusted Corporate Expense
    $67 millionvs $66 million a year ago
    Q2 FY26

    Company-wide adjusted corporate expense.

    Adjusted Effective Tax Rate
    24.4%vs 25.3% in Q2 FY25
    Q2 FY26

    Benefited modestly from discrete items.

    Total Capital Deployment
    $1.4 billion
    Q2 FY26

    Uses of cash in the quarter.

    Total Capital Deployment
    $2.7 billion
    H1 FY26

    Uses of cash for the first six months.

    Catastrophe Bond Issuance
    $61 billionrecord high
    H1 FY26

    Reflects clients exploring alternative options to complement traditional strategies.

    Thrive Program Savings Target
    $400 million
    Total

    Remains on track to deliver total savings.

    Thrive Program Charges
    $500 million
    Total

    Expected to incur approximately $500 million of charges to generate the savings.

    Noteworthy Items
    $130 million
    Q2 FY26

    Total noteworthy items in the second quarter.

    Cash Position
    $1.7 billion
    Q2 FY26

    Cash balance at the end of the second quarter.

    Quarterly Dividend Increase
    10%
    Q2 FY26

    Reflects solid earnings growth and confidence in outlook.

    Industry KPIs

    5
    MetricValueDetails
    Capital returns$1.5 billionUSD
    Catastrophe losses15% to 20%%
    Retention persistencyHigh 90s%
    Renewal rate change pricing-6%%
    Broker specific when present5%%

    Product announcements

    5
    ProductTypeDetails
    Marsh Risk Companionlaunch
    Coverage Engine Platformlaunch
    Atlaslaunch
    Claims IQlaunch
    LenWorklaunch

    Deals & partnerships

    3
    Amazon Web Services (AWS)Partnership between BCS and Oliver Wyman to reimagine mid- and back-office processes using AI.

    Project initially focused on pilots to reengineer claim services and the issuance of reinsurance treaties.

    Baltimore CamAcquisition of an alt manager to add to Mercer's Investments business.

    Previously announced acquisition.

    Asterra businessAcquisition of remaining stake in a business in Spain where MRSH previously held a minority stake.

    Closed on July 1.

    Risks & headwinds

    7
    Declining Primary Commercial Insurance RatesQ2 FY26

    Decreased 6% in Q2 FY26 (accelerating from 5% in Q1 FY26). Global property rates down 12% YoY.

    Mitigation: Focus on innovation, efficiency, and execution; leveraging capabilities to solve complex client challenges.

    Soft Reinsurance Market ConditionsQ2 FY26

    Property cat rates down 16% at midyear (steepest YoY decline in 25 years). Rate reductions of 15-20% in June 1 Florida cat renewals.

    Mitigation: Strong execution, record new business growth, high client retention, diversification into casualty, M&A advisory, and alternative capital solutions.

    Fiduciary Interest Income HeadwindQ2 FY26

    Down $11 million YoY to $88 million in Q2 FY26.

    Mitigation: Not explicitly stated as a risk to be mitigated, rather a market condition impacting results.

    Geopolitical and Economic Environment VolatilityOngoing

    Not quantified, but noted as potentially changing assumptions.

    Mitigation: Diversification of portfolio, leading market position, strong execution.

    Market Consolidation (M&A)Q2 FY26

    wasn't helpful to us in the quarter (Guy Carpenter)

    Mitigation: Focus on strong execution, new business, and diversified offerings.

    Litigation Environment and Liability in U.S.Q2 FY26

    U.S. excess casualty up 15% (reflecting continued elevated loss experience).

    Mitigation: Not explicitly stated, but implies continued focus on risk advisory and financing solutions for clients.

    Rising AI Token CostsOngoing

    Not quantified, but acknowledged as a challenge.

    Mitigation: Development of in-house LLM (LenWork) for cost-efficient enterprise usage, supplementing with third-party models for specific needs.

    What to watch in Q3 FY26

    5

    Marsh Management Consulting underlying growth

    Q3 FY26
    Current13% underlying in Q2 FY26
    TargetMid- to high single digits

    Why it matters

    This segment showed the fastest growth in over two years, and its Q3 performance will indicate if this strong momentum can be sustained or if it's normalizing.

    Looking ahead to the third quarter, we expect underlying growth for Marsh Management Consulting will likely be in the mid- to high single digits.

    Q&A highlights

    6

    How does MRSH reconcile pricing drag with new hires and new business wins to achieve its organic revenue guidance?

    Management acknowledged pricing headwinds, especially in Guy Carpenter, but highlighted strong execution, new business growth (double-digit in Marsh Risk U.S. & Canada, record in Guy Carpenter H1), and successful talent acquisition. They also noted market consolidation impacting Guy Carpenter.

    “Some unsurprising headwinds for us from a pricing point of view, but execution is strong, and we feel good about our growth prospects.”

    asked by Greg Peters · answered by John Doyle

    2 min read5 chapters

    Detailed Narrative

    01

    Thrive Program and Brand Unification

    Marsh & McLennan's Thrive program aims to accelerate growth by investing in the Marsh brand, expanding capabilities, and leveraging scale in operations and technology. The company is accelerating the transition of Guy Carpenter and Mercer to the unified Marsh brand in September, aiming to signal integrated value delivery to clients. This includes an official risk partnership with Formula 1 to increase visibility among C-suite leaders.

    02

    AI Strategy and Implementation

    The company is well-positioned to be an AI winner due to its large proprietary data sets and client relationships. Its AI strategy focuses on growth, productivity, and efficiency. New AI-enabled platforms include Marsh Risk Companion for client analytics, a coverage engine for middle-market producers, and Atlas for reinsurance strategy insights. Internally, Claims IQ and LenWork (an in-house generative assistant) are enhancing colleague productivity and efficiency.

    03

    Market Conditions and Pricing Trends

    The Marsh Global Insurance Market Index showed primary commercial insurance rates decreased 6% in Q2 FY26, accelerating from a 5% decline in Q1. Global property rates decreased 12% YoY, while Financial and Professional liability rates were down 3%, and cyber decreased 4%. Global Casualty rates increased 2%, with U.S. excess casualty up 15% due to elevated loss experience.

    04

    Reinsurance Market Dynamics

    Soft market conditions persist in reinsurance due to abundant capacity and growing reinsurer appetite. The June 1 Florida cat renewals saw rate reductions in the 15% to 20% range. Catastrophe bond issuance reached a record $61 billion outstanding through H1 2026, as clients explore alternative capital solutions. Guy Carpenter achieved double-digit new business growth and high client retention despite these challenging market conditions.

    05

    Talent and Colleague Value Proposition

    Marsh & McLennan emphasizes its strong brand for attracting and retaining talent, noting a good first half for adding production talent in key markets. The company highlights its colleague value proposition, focusing on culture, work, learning and development, mobility, and rewards, aiming for colleagues to 'be their best at Marsh.' Management views the talent market as competitive but manageable, distinguishing it from 'talent wars' driven by unethical conduct.

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