Marsh & McLennan Companies, Inc. and Subsidiaries ("the Company") is a global
professional services firm providing advice and solutions principally in the
areas of risk, strategy, and human capital. It is the parent company of a number
of the world's leading risk experts and specialty consultants, including: Marsh,
the insurance broker, intermediary and risk advisor; Guy Carpenter, the risk and
reinsurance specialist; Mercer, the provider of HR and related financial advice
and services; and Oliver Wyman Group, the management, economic and brand
consultancy. With approximately 55,000 employees worldwide and annual revenue of
more than $12 billion, the Company provides analysis, advice and transactional
capabilities to clients in over 130 countries.
The Company conducts business through two segments:
• Risk and Insurance Services includes risk management activities (risk
advice, risk transfer and risk control and mitigation solutions) as well
as insurance and reinsurance broking and services. We conduct business in
this segment through Marsh and Guy Carpenter.
• Consulting includes Health, Retirement, Talent and Investments consulting
and services and products, and specialized management and economic
consulting services. We conduct business in this segment through Mercer
and Oliver Wyman Group.
The Company completed six acquisitions during the first three months of 2014.
In January 2014
, Marsh & Mclennan Agency
("MMA") acquired Barney & Barney
, a San
-based insurance broking firm that provides insurance, risk management, and
employee benefits solutions to businesses and individuals throughout the U.S.
and abroad. Also in January, Marsh acquired Central Insurance Services
independent insurance broker in Scotland
that provides insurance broking and
risk advisory services to companies of all sizes across industry sectors. In
, MMA acquired Great Lakes Employee Benefits Services, Inc.
employee group benefits consulting and brokerage firm based in Michigan
Bond Network, Inc.
, a leading surety bonding agency based in North Carolina
, MMA acquired Capstone Insurance Services, LLC
, an agency that
provides property/casualty insurance and risk management solutions to businesses
and individuals throughout South Carolina
, and Mercer acquired Transition
Assist, a retiree exchange specializing in helping retirees in
employer-sponsored plans select Medicare
supplemental health care insurance.
We describe the primary sources of revenue and categories of expense for each
segment below, in our discussion of segment financial results. A reconciliation
of segment operating income to total operating income is included in Note 16 to
the consolidated financial statements included in Part I Item 1 in this report.
The accounting policies used for each segment are the same as those used for the
consolidated financial statements.
This Management's Discussion & Analysis ("MD&A") contains forward-looking
statements as that term is defined in the Private Securities Litigation Reform
Act of 1995. See "Information Concerning Forward-Looking Statements" at the
outset of this report.