Q4 2024 Marsh & McLennan Co Inc Earnings Call
Speaker Change: Song composed by Mark McGivney Watch a music video for this song
Speaker Change: Variety of factors may cause actual results to differ materially from those contemplated by such statements.
Speaker Change: For a more detailed discussion of those factors. Please refer to our earnings release for this quarter into our most recent SEC filings, including our most recent Form 10-K, all of which are available on the Marsh Mclennan website.
Speaker Change: During the call today, we may also discuss certain non-GAAP financial measures for a reconciliation of these measures to the most closely comparable GAAP measures. Please refer to the schedule in today's earnings release.
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Speaker Change: I'll now turn this over to John Doyle, President and CEO of Marsh <unk> Mclennan.
Speaker Change: Good morning, and thank you for joining us to discuss our fourth quarter and full year results reported earlier today I'm, John Doyle, President and CEO of Marsh Mclennan.
Speaker Change: On the call with me is Mark Mcgivney, our CFO and the Ceos of our businesses Martin South Marsh team conserve Guy Carpenter that Tomlinson of Mercer and Nick Studer of Oliver Wyman.
Speaker Change: Also with US. This morning is Jay Gelb, who recently joined Marsh Mclennan as our new head of Investor Relations. Many of you know Jay from his time as an equity analyst covering the insurance industry.
Speaker Change: Before I discuss our results I want to take a moment to comment on the California wildfires.
Speaker Change: These events represent a profound human tragedy lives have been lost and tens of thousands of people had been left homeless and hurting.
Speaker Change: Among those affected our marsh mclennan colleagues and clients in the Los Angeles area and our company is committed to doing everything we can to support them. During this challenging time.
Speaker Change: With regard to the wildfires impact on the insurance industry.
Speaker Change: Insured losses are expected to be to exceed $30 billion. This means the L. A wildfires will be among the top 10 largest natural disasters in history in terms of insured losses.
Speaker Change: The increasing frequency and severity of natural disasters, along with rising property values and continued development and catastrophe prone areas underscore the need for greater resilience and risk mitigation planning.
Speaker Change: Marsh Mclennan will continue to bring together stakeholders, including individuals' businesses, the insurance industry and governments.
Speaker Change: To build the resilience to mitigate the devastating impact from these catastrophic events and to accelerate recovery.
Speaker Change: Turning to our results 2024 was a milestone year for Marsh <unk> Mclennan, we executed against our strategic objectives generated excellent financial performance and had the largest year of acquisitions in our history.
Speaker Change: Total revenue grew 8% to $24 $5 billion.
Speaker Change: We generated 7% underlying revenue growth.
Speaker Change: Continuing our best stretch up growth and more than two decades, with both risk and insurance services and consulting delivering strong results.
Speaker Change: Our adjusted operating income grew 11% to $6 $2 billion. This was on top of 17% growth in 2023.
Speaker Change: Our adjusted operating margin increased 80 basis points, marking the 17th consecutive year of reported margin expansion and adjusted EPS grew 10%.
Speaker Change: Okay.
Speaker Change: In addition to another year of excellent financial performance, we continued to execute on our key priorities.
Speaker Change: We had a record year of M&A by investing nine $4 billion in acquisitions, including our $775 billion acquisition of Mcgrath.
Speaker Change: We also delivered significant capital return to shareholders raise.
Speaker Change: Raising our dividend by 15% and completing $900 million of share repurchases.
Speaker Change: And we successfully completed our restructuring program.
Speaker Change: Achieving the goals, we set two years ago.
Speaker Change: Accelerating client impact reinvesting in our capabilities.
Speaker Change: Boosting efficiency and increasing collaboration across the firm.
Speaker Change: Okay.
Speaker Change: Let me touch briefly on our acquisition of a graph, which closed on November 15th.
Speaker Change: Mcgriff has great momentum and I couldnt be more excited to have them join Marsh Mclennan agency.
Speaker Change: Our integration is proceeding according to plan and although it's early days our fundamental outlook remains the same.
Speaker Change: As I said, when we announced the transaction, it's a business with excellent leadership outstanding talent and our record of strong growth.
Speaker Change: The addition of Mcgriff also extends our presence and capabilities and the growing middle market.
Speaker Change: It's worth noting that MMA, we'd be the fifth largest broker in the United States on a standalone basis.
Speaker Change: In addition to Mcgriff, we completed several other notable acquisitions, including two top 100 agencies in MMA as.
Speaker Change: As well as vanguard, so CIO business in card auto and Mercer.
Speaker Change: As we start the new year I want to take a moment to give you an update on our strategy first.
Speaker Change: First and foremost we are a growth company that is well positioned globally and market leading businesses with significant opportunities.
Speaker Change: We strive for outstanding near term results, while also investing to sustain our strong performance over the long term.
Speaker Change: We consistently reinvest a significant portion of our cash flow into organic investments, particularly in talent technology and capabilities.
Speaker Change: Innovations like centrist Blue I learn AI and other digital tools are examples of how we're delivering value for our colleagues and clients.
Speaker Change: Investing in data and insights enables us to work smarter on behalf of our clients, helping them gain the perspective needed to pursue their ambitions.
Speaker Change: We also maintain a balanced approach to capital management.
We look to maintain financial flexibility as we manage the efficiency of our capital structure.
Speaker Change: We have a bias to reinvest the capital we generate into high quality acquisitions. However.
Speaker Change: However, we also recognize that returning capital to shareholders delivers meaningful value over time.
Speaker Change: And each year, we target raising our dividend and repurchasing enough stock to reduce our share count.
Speaker Change: Our focus on high quality acquisitions is also an important part of our growth strategy.
Speaker Change: Over the past decade, we've invested approximately $24 billion in M&A across more than 200 transactions that have accelerated our growth at attractive returns.
Speaker Change: These acquisitions extend our reach and enhance our capabilities and boost our scale.
Speaker Change: Okay.
Speaker Change: The growth plans of our businesses remain at the core of our strategy at the same time, we're working together better than ever to capture opportunities at the intersections of our businesses.
Speaker Change: And we constantly challenge ourselves to operate more efficiently.
Speaker Change: We've expanded our operating margin by over 900 basis points in the past decade, and we've improved our margin by nearly 500 basis points in the last five years alone.
Speaker Change: This has been achieved primarily through increasing efficiencies and other operating expenses, while continuing to grow our talent base.
Speaker Change: Despite these gains we still see opportunities for further improvement.
Speaker Change: While the core tenants of growth disciplined and balanced investment will continue to underpin our strategy, we are constantly evolving to deliver greater value to our clients and all of our stakeholders.
Speaker Change: Okay.
Speaker Change: Turning to insurance market conditions, the global insurance and reinsurance market remains dynamic.
Speaker Change: And nearly $130 billion 2024 was the fifth consecutive year of more than $100 billion of insured natural catastrophe losses.
Speaker Change: Buddy and elevated risk landscape.
Speaker Change: The Marsh global insurance market index decreased by 2% in the fourth quarter compared to a 1% decline in the third quarter as a reminder, our index skews to large account business.
Speaker Change: Overall rates in the U S were flat.
Speaker Change: Latin America was up low single digits, Europe U K and Asia were down low to mid single digits and Pacific was down high single digits.
Speaker Change: Global property rates declined 3% compared to down 2% in the third quarter.
Speaker Change: Global casualty rates increased 4% with U S excess casualty up approximately 15% in the quarter.
Speaker Change: Workers' compensation decreased mid single digits.
Speaker Change: Global financial and professional liability rates were down 6%.
Speaker Change: While cyber decreased 7%.
Speaker Change: In reinsurance underwriting discipline persisted, particularly on program Retentions.
Speaker Change: <unk> increased at a more significant pace and client demand.
Speaker Change: And global property cat reinsurance accounts not impacted by loss, so our risk adjusted rates down 5% to 15%.
Speaker Change: While risk adjusted rates for loss impacted accounts were flat to up 30%.
Speaker Change: Casualty renewals were completed with varying outcomes excess of loss placements continue to face pressure on treaty terms.
Speaker Change: Quota shares were more stable with sufficient capacity, while ceding commissions were flat to slightly down.
Speaker Change: Turning to health trends are.
Speaker Change: Our surveys indicate medical costs are expected to increase 11% on a global basis in 2025.
Speaker Change: This would be the fifth consecutive year of at least a 10% increase on.
Speaker Change: On a regional basis, the pace of anticipated increases, 8% in North America, 9% in the Pacific region.
Speaker Change: 10% in both Europe, and Latin America.
Speaker Change: 11% in the Middle East and Africa, and 13% in Asia for.
Speaker Change: For employee sponsored health plans in the U S.
Speaker Change: Total health benefit cost per employee is expected to rise five 8% on average in 2025 after accounting for planned cost reduction measures. This would be the third consecutive year of cost growth around 5%.
Speaker Change: As always our focus on helping our clients navigate these dynamic market conditions.
Speaker Change: Now, let me turn to our fourth quarter financial performance, which Mark will cover in more detail.
Speaker Change: We are pleased with our fourth quarter performance, where growth remains strong and solid earnings capped another terrific year revenue grew 7% on an underlying basis with 8% growth in RIS and 6% and consulting.
Speaker Change: We had adjusted operating income up 9%.
Speaker Change: And we generated adjusted EPS in the quarter of $1 87, which is up 11% from a year ago.
Speaker Change: Okay.
Speaker Change: Turning to our outlook for 2025, we are well positioned for another strong year. We currently expect mid single digit underlying revenue growth, including an anticipated headwind from fiduciary income.
Speaker Change: Along with continued margin expansion and solid adjusted EPS growth.
Speaker Change: Our outlook assumes current macro conditions persist however, the environment remains uncertain and the economic backdrop could be materially different than our assumptions.
Speaker Change: In summary, we are pleased with our performance in 2024, we executed against our strategic objectives and continued our track record of delivering strong results with that let me turn it over to Mark for a more detailed review of our results.
Mark: Thank you John and good morning.
Mark: Our solid fourth quarter results reflected continued momentum in capped an excellent year with strong underlying revenue growth double digit growth in adjusted EPS.
Mark: Our consolidated revenue increased 9% in the fourth quarter to $6 1 billion with underlying growth of 7%.
Mark: Operating income was $1 1 billion and adjusted operating income was $1 3 billion up 9%.
Mark: Our adjusted operating margin was 23, 3%.
Mark: GAAP EPS was $1 59.
Mark: Adjusted EPS increased 11% to $1 87.
Mark: And included a <unk> <unk> benefit from favorable discrete tax items, and a <unk> <unk> headwind from foreign exchange.
Mark: For the full year underlying revenue growth was 7%.
Adjusted operating income grew 11% to $6 2 billion adjusted EPS grew 10% to $8 80.
Mark: Our adjusted operating margin expanded 80 basis points to 26, 8%, marking our 17th consecutive year of reported margin expansion.
Mark: 2024 was also a record year for capital deployment, we invested $9 4 billion in acquisitions, the largest year in our history.
Mark: We also raised our quarterly dividend, 15% and bought back $900 million of our stock.
Mark: Looking at risk and insurance services fourth quarter revenue was $3 6 billion up 11% or 8% on an underlying basis.
Mark: Operating income in RIS increased 2% to 770 million.
Mark: Adjusted operating income increased 13%.
Mark: $893 million and our adjusted operating adjusted margin was 27%.
Mark: For the full year revenue in RIS was $15 4 billion with underlying growth of 8%.
Mark: Adjusted operating income increased 13% to $4 6 billion and our adjusted operating margin increased 70 basis points to 32%.
Mark: At Marsh revenue in the quarter was $3 3 billion up 15% from a year ago or 8% on an underlying basis, reflecting continued growth across our regions as well as a rebound in transaction risk products and claims activity in our current flood business.
Mark: This result marks the 16th consecutive quarter of 6% or higher underlying growth at March.
Mark: In U S and Canada underlying growth was 8% for the quarter.
Mark: In international underlying growth was 9%.
Mark: Latin America up, 13%, EMEA up, 9% and Asia Pacific 6%.
Mark: For the full year Marsh's revenue was $12 5 billion with underlying growth of 7%.
U S and Canada was up 7% and international grew 8%.
Mark: Guy Carpenter's revenue in the quarter was $201 million up 7% on an underlying basis driven by growth across our regions and global specialties.
Mark: For the year revenue was $2 4 billion, representing 8% underlying growth Guy Carpenter's fourth consecutive year of 8% or higher underlying growth.
Mark: In the consulting segment fourth quarter revenue was $2 4 billion up 6% on both a GAAP and underlying basis.
Mark: Consulting operating income was $466 million and adjusted operating income was $484 million up 1%.
Mark: Our adjusted operating margin in consulting was 27% compared to 21, 3% a year ago, reflecting seasonality and the impact of acquisitions and dispositions.
Mark: For the full year consulting revenue was $9 1 billion with underlying growth of 6%.
Mark: Adjusted operating income increased 6% to $1 8 billion and our adjusted operating margin increased 30 basis points to 27%.
Mark: Okay.
Mark: <unk> revenue was $1 5 billion in the quarter up 5% on an underlying basis. This was mercer 15th consecutive quarter of 5% or higher underlying growth and continues the best run of growth in over 15 years.
Mark: Health underlying growth was 5% in the quarter, reflecting growth across all regions.
Mark: <unk> was up 4% led by growth in investment management.
Mark: Our assets under management were 617 billion at the end of the fourth quarter up 13% sequentially and up 47% compared to the fourth quarter of last year.
Mark: Year over year growth was driven by our transactions with car Dano and vanguard.
Mark: Positive net flows and the impact of capital markets.
Mark: <unk> increased 7% driven by growth in talent and rewards surveys and products.
Mark: For the year revenue at Mercer was $5 7 billion, an increase of 5% on an underlying basis, the fourth straight year of 5% or higher underlying growth.
Mark: Oliver Wyman revenue in the fourth quarter was $954 million increase of 7% on an underlying basis.
Mark: This reflects growth across all regions and businesses and was achieved despite a tough comparison to 9% growth in the fourth quarter of last year.
Mark: For the full year, Oliver Wyman revenue was $3 $4 billion, reflecting underlying growth of 6%.
Mark: Okay.
Mark: Okay.
Mark: Fiduciary income was $112 million in the quarter, a decline of $26 million from the third quarter, reflecting lower interest rates.
Mark: Looking ahead to the first quarter of 2025, we expect fiduciary income will be approximately $100 million.
Mark: Okay.
Mark: Foreign exchange was a <unk> <unk> headwind in the fourth quarter and a <unk> <unk> headwind for the full year.
Mark: Assuming exchange rates remain at current levels, we expect FX will be a headwind of four cents in the first quarter and nine for all of 2025.
Mark: Okay.
Mark: Turning to our Mcgriff transaction, we closed the deal in mid November and as John mentioned, the integration is going well, but <unk> is a terrific business and we're excited about what they bring to M&A.
Mark: In November we issued 725 billion of senior notes to fund the transaction.
Mark: The first quarter as Madrid seasonally smallest from a revenue perspective. So for Q1, we expect mcgriff will be modestly dilutive to adjusted EPS.
Mark: However, I want to emphasize that we continue to expect mcgriff will be modestly accretive to adjusted EPS for full year 2025, becoming more meaningfully accretive in 2026 and beyond.
Mark: We expect noteworthy charges associated with mcgriff of approximately $450 to $500 million in total over the next three years with the vast majority of these costs associated with retention incentives a significant portion of which was put in place by the seller.
Mark: These costs flow through our financial statements, but were funded by the sellers through a purchase price adjustment.
Mark: Also note that we will exclude mcgriff from our underlying growth calculations for the first year as is our convention.
Mark: Total noteworthy items in the quarter were $154 million, including 136 million of restructuring costs, primarily related to the program. We began in the fourth quarter of 2022.
Mark: Okay.
Mark: Interest expense in the fourth quarter was $231 million up from $151 million in the fourth quarter of 2023.
Mark: This increase reflects higher levels of debt as well as $26 million of bridge financing fees associated with the mcgriff transaction.
Mark: Yeah.
Mark: Based on our current forecast, we expect interest expense in the first quarter of 2025 of approximately $246 million.
Mark: Our adjusted effective tax rate in the fourth quarter was 21, 1%.
Mark: Compares with 25, 5% in the fourth quarter last year.
Mark: For the full year 2024, our adjusted effective tax rate was 24, 5% compared with 24% in 2023.
Mark: Excluding discrete items, our adjusted effective tax rate in 2024 was 25, 8% compared with 25% in 2023.
Mark: Okay.
Mark: When we give forward guidance around our tax rate, we do not project discrete items, which can be positive or negative.
Mark: Based on the current environment, we expect an adjusted effective tax rate of between 25% and 26% in 2025.
Mark: Turning to capital management, our balance sheet, we ended the year with total debt of $19 9 billion.
Mark: Our next scheduled debt maturity is in the first quarter of $2025 $500 million of senior notes mature.
Mark: Our cash position at the end of the fourth quarter was $2 4 billion.
Mark: Uses of cash in the quarter totaled $8 5 billion and included $403 million for dividends and $8 1 billion for acquisitions, including the grid.
Mark: For the year uses of cash totaled 11 8 billion included $1 5 billion for dividends $9 4 billion for acquisitions and 900 million for share repurchase.
Mark: Looking to 2025 based on our outlook today, we expect to deploy approximately $4 5 billion of capital across dividends acquisitions and share repurchases.
Mark: The ultimate level of share repurchase will depend on how the M&A pipeline develops.
Mark: As we discussed last quarter beginning in the first quarter of 2025, we will exclude the impact of acquisition related intangible amortization and other net benefit credit from adjusted EPS.
Mark: We provided tables in our fourth quarter earnings release, and recast adjusted operating income and adjusted EPS for the past eight quarters on this space.
Mark: Turning to 2025 as John noted, we remain positive in our outlook for growth.
John Doyle: For 2025, we currently expect mid single digit underlying revenue growth margin expansion and solid growth in adjusted EPS.
John Doyle: This outlook contemplates anticipated headwinds from short term interest rate declines foreign exchange and favorable discrete tax items in 2024.
John Doyle: Yeah.
John Doyle: We expect these headwinds will have a more significant impact in the first quarter, which will also reflected difficult revenue growth comparison versus a year ago.
John Doyle: Overall, we are pleased with our performance in 2024.
Speaker Change: We have momentum across our business and are well positioned for another strong year in 2025, and with that I'm happy to turn it back to John.
Speaker Change: Thank you Mark Andrew we are ready to begin Q&A.
Speaker Change: Certainly.
Speaker Change: We will now begin the question and answer session. If you have a question. Please press star one on your Touchtone phone.
Speaker Change: If you wish to be removed from the queue. Please press star one again.
Speaker Change: We're using a speakerphone you may need to pick up the handset before pressing the numbers.
Speaker Change: Once again, if you have a question. Please press star one one on your Touchtone phone.
Speaker Change: And in the interest of addressing questions from as many participants as possible. We ask that participants limit themselves to one question and one follow up one moment. Please.
Speaker Change: And our first question comes from the line of Elyse Greenspan with Wells Fargo.
Elyse Greenspan: Hi, Thanks. Good morning, My first question is.
Speaker Change: He is on margin.
Elyse Greenspan: So the margin.
Elyse Greenspan: With flat overall right in the fourth quarter.
Speaker Change: Earlier in the year, you guys had pointed to second half margin improvement being greater than the first half, which did it didn't transpire. So I'm just trying to get a sense of.
Elyse Greenspan: What went on.
Speaker Change: With the margins in the second half.
Speaker Change: Relative to prior expectations and also specifically in the fourth quarter, yes.
Elyse Greenspan: Yes, good morning Elyse.
Speaker Change: Pleased with our margin expansion for the year 80 bps.
Elyse Greenspan: Margin expansion, our 17th consecutive year.
Speaker Change: As we've talked about in the past from quarter to quarter.
Elyse Greenspan: It will be different outcomes and really.
Speaker Change: <unk> <unk>.
Speaker Change: 17 consecutive years, just says it's a reflection of our disciplined approach to the way we the way we run our business.
Speaker Change: It's not our primary objective margins are an outcome of the way we run the business and we're going to continue to make attractive investments.
Speaker Change: They're going to drive medium to longer term growth in the company as well in the fourth quarter was impacted by FX was also impacted by acquisitions and divestitures, but it wasn't a disappointment. It was a good strong year of margin expansion and as we guided to for 2025, we expect it to be our 18th consecutive year margin.
Speaker Change: Expansion, we've got opportunities to.
Speaker Change: Continue to focus on the shared infrastructure across the company with some opportunities in operations.
Speaker Change: We've got important workflow optimization efforts happening, yet marsh Mercer and Guy Carpenter and of course automation is an important lever for us too and as we learn and continue to test and experiment around AI and we see possibilities there as well so.
Speaker Change: So we're quite optimistic about the possibilities looking forward and we're pleased with the outcome in 2024.
Speaker Change: Do you have a follow up yes.
Speaker Change: Yes. My second question is on free cash flow and you guys typically haven't provided annual guidance, but to go out there with 4% in 'twenty four I think when I look at the CAGR right over the past three years. It was around 7%. So both below double digits I'm not sure if there was any.
Speaker Change: And 24 that was impacted by Mcgrath, but anything you can provide just in terms of what impacted free cash flow in 'twenty, four and how we should think about gross headwind and tailwind.
Speaker Change: And free cash flow in 2025.
Speaker Change: Yeah, I don't have a three year CAGR in front of me, but I know, we had north of 20% free cash flow growth in 2003.
Speaker Change: And 4% I believe.
Speaker Change: In 2024, it's obviously not going to track.
Speaker Change: As a straight line, whereas consistently with earnings growth, but over time. It will mark do you have anything to add there, yes at least free cash flow. We were we were really pleased with the 4% as John mentioned, we were up 28% last year, so kind of holding that growing a little bit is not bad and if you look over the last five years, we've doubled free cash.
Speaker Change: Since 2019, so that has been a very good story for us.
Speaker Change: Given the nature of our business as we've talked about you would expect free cash flow would track our earnings growth over time and it certainly has over a long stretch we've had double digit growth in free cash flow in.
Speaker Change: As you pointed out we don't typically give guidance because it can be volatile.
Speaker Change: Period to period year to year, but.
Speaker Change: But over time it.
Speaker Change: We will track and should track in line with our earnings growth and as our guidance suggests we have an outlook for earnings growth into the future.
Speaker Change: Thank you Elise Andrew next question. Please certainly our next question comes from the line of Jimmy Mueller with JP Morgan.
Jimmy Mueller: Hey, Good morning, first just a question for Mark I think you mentioned you expect organic growth of mid single digits. In 2025, I think previously you had been saying mid to high mid single digits or better. So I'm not sure if I'm reading too much into your comments or is there a change that youre seeing.
Speaker Change: Any aspect of their business that's making.
Jimmy Mueller: Just your language slightly.
John Doyle: Hey, Jimmy it's John let me.
Speaker Change: Jump in front of Mark.
Speaker Change: First of all I just wanted to talk about our strong finish to the year, 7% in the fourth quarter underlying revenue growth.
Speaker Change: Terrific full year revenue growth as well.
Speaker Change: And then the strength was really broad based in the quarter Marsh, 8% Guy Carpenter is a seasonally small quarter, but.
Speaker Change: Really good finish to what was an excellent year at Guy Carpenter Mercer above 5% underlying growth again at a better finishing career, where as you know gross spend a bit soft over the course of the last year or so and Oliver Wyman had a strong finish to where we're starting to see some demand.
Speaker Change: Pick up the macros remain largely supportive of growth.
Speaker Change: Fiduciary income as we mentioned is the one real exception to it but economic growth.
Speaker Change: In most major markets remains resilient strong labor markets and.
Speaker Change: And most of the economies that we're exposed to and of course, there are a lot of risks out there big geopolitical risks uncertainty around tariffs and potential trade wars.
Speaker Change: As I talked about the frequency of extreme weather impacts economies around the world as well and then risks around technology and other areas, but those are areas that we help our clients.
Speaker Change: And give them advice, so that they can invest with a level of confidence.
Speaker Change: So so we are optimistic about growth for 2025, I wouldn't read much into it we feel like we're well positioned we continue to.
Speaker Change: Invest in shape, the mix of our business mcgriff coming in and then.
Speaker Change: Admin businesses that Mercer going out in 2024 would be a good example of our of our focus there and so our team is highly engaged in.
Speaker Change: We're executing well so we.
Speaker Change: We feel good entering 2025.
Speaker Change: And just on Mcgriff should we assume that it actually is a positive for your.
Speaker Change: Organic growth beyond 25, just given their market focus and the fact that they'll be.
Speaker Change: Part of a larger platform. So maybe they could do a little bit better than they might have done in the past or should we not expect much of an impact on there or your growth as a result.
Speaker Change: We're excited about mcgriff as Mark noted from an earnings point of view it will be slightly dilutive to us are modestly dilutive to us early in the year, but.
Speaker Change: But but accretive over the full year and more so in 2006.
Speaker Change: And beyond.
Speaker Change: I talked about it so far so good in terms of the integration.
Speaker Change: Culturally things seem to be going well, but grips of business that we've admired for a long time.
Speaker Change: As a competitor we knew there were going to be a few big assets in the market in 2024, and Mcgriff was the business that we wanted.
Speaker Change: And it doesn't just make us bigger they make us better they've got terrific talent and leadership as I talked about they've got some real specialty capabilities.
Speaker Change: It extends our reach into the middle market, where we're quite focused on bringing scale benefits to that segment of the market. So we're excited about Obama grip.
Speaker Change: Thank you. Thank you Jimmy Andrew next question. Please our next question comes from the line of Alex Scott with Barclays.
Speaker Change: Hey, good morning.
Alex Scott: First one I have is on.
Speaker Change: Mark.
Speaker Change: I just wanted to see if you could help us unpack the strong organic growth I mean, just with rates in the U S being more flattish.
Speaker Change: I'm guessing most of that came from growth in the book.
Speaker Change: If you had any comments on new business.
Speaker Change: First retention.
Speaker Change: Maybe just help us understand the underlying dynamics for.
Speaker Change: Youre winning.
Alex Scott: Sure Alex.
Speaker Change: And a really strong finish.
Ask Martin to comment in a second here.
Speaker Change: Really well positioned in terms of rates.
Speaker Change: I would say, we're most exposed to pricing through commission in the middle market. So it's a subset of our business overall, so it's an impact that does have an impact of course pricing does but.
Speaker Change: We have a lot of fee based business as well.
Speaker Change: Mark commented on a notable pickup in M&A activity in the quarter.
Speaker Change: That certainly.
Speaker Change: Helped with with growth in the quarter and we see a more positive environment, there going forward as well, but mark maybe you could share a little bit more color of the broad based growth that we had at marsh in the quarter Coosa until assets yes.
Speaker Change: So we had a great year in that 27% on top of 8%.
Speaker Change: In 2003, good balance of growth throughout the globe with international at eight in the U S and Canada seven.
Speaker Change: Looking at Q4 revenue was eight and.
Speaker Change: So is the Reacceleration from Q3, and signifies the 16th consecutive quarters of 6% or better underlying growth.
Speaker Change: U S and Canada had a very good year.
Speaker Change: With growth of 7% consistent with our full year underlying growth for 'twenty, two and 'twenty three.
Speaker Change: Close to 8%, which is supported by improvement in retention at lost as well as a better balance of recurring business.
Speaker Change: The U S business also beginning to see some green shoots from deal activity from capital markets.
Speaker Change: However, we continue to see rate pressure on financial lines.
Offset that.
Speaker Change: International headed terrific.
Speaker Change: Here underlying growth of 8%, 4% in the in the quarter and consistently strong growth for EMEA.
Speaker Change: Latin America.
Speaker Change: The full year in the quarter APAC continues to show some signs of moderation with solid growth at 5%.
Speaker Change: We've got great talent in the markets, we've been investing well extremely well positioned for the future. So we feel very good about that.
Speaker Change: So yes perfect. Thank you.
Speaker Change: Strong finish Alex do you have a follow up.
Speaker Change: Yes, I do.
Speaker Change: The other question I wanted to ask you all is on <unk>.
Speaker Change: Potential for M&A, Ipos et cetera.
Speaker Change: Or has the environment improve more activity.
Speaker Change: As I think across your businesses could you help us think through the different ways that that benefits you and is there any way you can help us frame the kind of impact that would have on organic growth. If we do have a return of that kind of activity.
Speaker Change: Yes, we're not going to report out separately around M&A or IPO activity, but we have important capabilities across the firm.
Speaker Change: At Marsh Mercer and Oliver Wyman in particular of course Guy Carpenter's almost entirely focused on on the insurance industry, but.
Speaker Change: But we help with different levels of due diligence.
We have a suite of <unk>.
Speaker Change: Products that can help.
Speaker Change: Facilitate transactions win.
Speaker Change: There might be 70.
Speaker Change: Terms that need to be settled between buyer and seller. So it's an important it's an important capability set that we bring to our clients.
Speaker Change: It's obviously an important moment wind.
Speaker Change: Company selling itself or divesting of a business in and of course on the buy side.
Speaker Change: Full investment and so those are important moments, where we can really distinguish ourselves.
Speaker Change: And show the overall strength of our company. So it's an important capability and as we noted we saw a pickup in M&A activity of in the fourth quarter, we'll see what 2025 brings.
Speaker Change: A couple of Ipos have been out in the market.
Speaker Change: We're ready to declare some giant IPO year.
Speaker Change: In 2025.
Speaker Change: But we'll see.
Speaker Change: And it's an important capability.
Speaker Change: We distribute through a range of investors, we stay close to our corporate clients of course.
Speaker Change: And spent a lot of time with law firms as well again to support our clients efforts to invest.
Alex Scott: Thank you Alex.
Speaker Change: Andrew.
Speaker Change: Next question. Please our next question comes from the line of David motivated with Evercore ISI.
David: Hey, Thanks, good morning.
Speaker Change: I had a just a question.
Speaker Change: More prospectively just on the market.
Speaker Change: And obviously the wildfires still very early days.
Speaker Change: But I'm wondering if you guys are seeing any impact on both the primary and reinsurance property markets and what your outlook is there.
Speaker Change: Even in over $30 billion insured loss.
Speaker Change: Yeah, Thanks, David maybe I'll make a couple of comments and then.
Dean Martin: As Dean Martin to talk about what Theyre seeing.
Speaker Change: A market, which.
I think the highlight is not a lot in terms of market impact at this point, but as I noted in my prepared remarks, it's just absolutely devastating events in southern California, and our focus is on helping our colleagues and our clients recover it's going to be a long road back and we're going to support them along the way.
Speaker Change: <unk> with relocation of families beginning to think about.
Speaker Change: Claims prep and filing claims with insurers.
Speaker Change: The rebuilding effort.
Speaker Change: I would say that our exposure as a business is primarily as an advisor to high net worth homeowners. So.
Speaker Change: A limited view in that perspective, and not overall that impactful to marsh mclennan from a financial perspective, but.
Speaker Change: As a major risk advisor, we certainly have something to say about.
Speaker Change: About the future and efforts to build backwards with greater resilience in wood.
Speaker Change: I would say.
Speaker Change: Reading lots of comments about.
Speaker Change: How to how to support the fair plan or how to create subsidies.
Speaker Change: Insurance candidly, it's the wrong conversation the conversation, where you should be having really is about building greater resilience of into these communities rather than.
Speaker Change: Trying to find ways to subsidize of insurance that will.
Speaker Change: Lead to happier homeowners and residents of southern California, and other cat prone areas of overtime and of course that conversation isn't limited to southern California. So.
Speaker Change: So important steps need to be taken so that we're not in the same place.
Speaker Change: This sad and devastating place again sometime soon but with that maybe you could talk about what youre seeing so far in the reinsurance market and then we'll have Martin comment on on the insurance market. Yeah. Thanks, Shannon David from a reinsurance perspective as John noted, we are first and foremost committed to supporting our clients as they.
Speaker Change: The complexity of this loss.
Speaker Change: Guy Carpenter has formed a dedicated wildfire task force.
Speaker Change: Comprised of our best Meteorologists Cat Modelers analytics claims colleagues brokers.
Speaker Change: We're fully engaged with our clients to give them insights. So they can better assess the magnitude of the loss. It's clear that many of our reinsurance clients will have losses, resulting in claims to the reinsurance programs.
Speaker Change: As John noted, we have seen industry estimates expect the loss to exceed $30 billion, although we saw bigger numbers than that in the market yesterday being reported.
Speaker Change: The impact on the reinsurance market is uncertain at this time and we will certainly depend on the ultimate magnitude of the reinsurance loss, but I would say David at this stage.
Speaker Change: The risk adjusted rate reductions that we witnessed in January one.
Speaker Change: Certainly be temporary moving forward as we go into the April one renewal season.
Steve Martin: Thanks, Steve Martin any thoughts yes.
Speaker Change: Overall rates came down.
Steve Martin: 2% in the fourth quarter.
Steve Martin: You have to put that in context, it's focused on the large account segment and it's kind of one five times since 2012, we did see some rate decreases in property book.
Steve Martin: In the last quarter and slow down across the world.
Steve Martin: It's really too early to say.
Speaker Change: <unk> is going to have it's not a big commercial event.
Steve Martin: For our clients.
Steve Martin: I think we kind of have to wait and see and I'll focus is really on making sure that our colleagues our clients.
Steve Martin: Of that and we're providing the right advice for our high net worth.
Steve Martin: Clients as they as they think about resilience and building good so.
Steve Martin: Market hysteria, that's for sure David as you know the California market was on homeowners market was under real stress before these events and so again it just underscores the.
Speaker Change: Just the critical need to build better resilience into these communities. So do you have a follow up.
Speaker Change: I do yeah, and thanks for that answer so just switching gears to.
Speaker Change: Consulting in the health business within Mercy Mercer.
Speaker Change: Could you help me think through the underlying growth deceleration.
Speaker Change: I know the comp got a little bit more difficult, but I was surprised to see the 5% growth I think that's the lowest it's been since 2021 and I know John you mentioned <unk>.
Speaker Change: <unk> costs still increasing I think it was 11% was the expectation in 'twenty five.
Speaker Change: So could you help me think through.
Speaker Change: That deceleration there and how you guys are thinking about growth.
Speaker Change: As we go into 'twenty five.
Speaker Change: Sure David I'll ask Pat to comment in a second I would say.
Speaker Change: All right.
Speaker Change: We're not necessarily exposed directly to those cost increases that I.
Speaker Change: That I spoke about in my prepared remarks, I was mostly.
Speaker Change: Raising those issues just around the critical nature of the advice that we provide to <unk>.
Speaker Change: Players, where you have employer sponsored care or maybe supplemental care and other markets around the world outside of the United States. So.
Speaker Change: Obviously inflation and broader cost increases are real.
Speaker Change: <unk>.
Speaker Change: Source of stress for for employers around the world.
Speaker Change: And for economies as well so again it just underscores the critical nature of the advice, we provide so Pat maybe you can talk about.
Speaker Change: The results in 'twenty, four and a little bit of our outlook and help sure.
Speaker Change: Thanks for the question listen overall for Mercer just want to start that we're pleased with our Q4 underlying growth of 5% it's.
Speaker Change: It's our 15th consecutive quarter with 5% or more growth and also really pleased that all of the practices.
Speaker Change: Contributing to that growth full.
Speaker Change: <unk> full year results of 5% I think highlights the resilience and the consistency of our business during uncertain and volatile times and really underscores the continued relevance that we have in our solutions and helping our clients now.
Speaker Change: Now specifically on the health.
Health grew 5% in the fourth quarter as you highlight 8% for the full year.
Speaker Change: The performance was broad based across regions.
Speaker Change: And it comes from a few different things.
Speaker Change: Continued hiring of new talent.
Speaker Change: Our focus on thought leadership, John highlighted a few of the pieces during his opening around our National survey of employer sponsored health plans. Our 2025 health trends report our people Rich survey. We've also been expanding the digital tools. We're now in a 102 countries with those digital tools.
Speaker Change: And we've got a real focus on client segmentation to go ahead and make sure that we can match client health care needs with innovative.
Speaker Change: Innovative and tailored solutions, we have based on large market mid market global multinationals.
Speaker Change: If you think we see continue to see some tailwind from continued high.
Speaker Change: Employment rates.
Speaker Change: <unk>, sorry changes and then obviously medical cost inflation, all of which drives.
Speaker Change: Client focus on affordability and access to quality healthcare for consumers and I think collaboration as we've talked about before across the firm continues to support our growth momentum now from the quarter I would say, we can have some variability in any given quarter, including one offs in timing, but we believe our full year growth is much more.
Speaker Change: Reflective of our performance right, which was which was the <unk>.
Speaker Change: Percent that I that I talked about I think we maintain a positive outlook and anticipate our growth momentum will continue.
Due to the strong value proposition, we offer clients and that we have the thought leadership the strong ongoing demand.
John Doyle: John mentioned.
John Doyle: The various different pieces of our business and as Tee up just now.
John Doyle: Higher medical inflation drives upheld and benefit costs for employers so absolutely.
John Doyle: Players are facing elevated prices combined with structural industry obstacles like labor shortages like health system consolidation and we definitely see continued demand for health expertise.
John Doyle: But globally, our health revenue does have a balance.
Speaker Change: Our fixed fee and commission work. So I would say generally speaking we don't we don't directly see the full impact of inflation in that medical inflation that John was talking about on our revenue either when it's in periods of high like it has been in the last couple of years or in periods of low.
Speaker Change: But at the same point, while not necessarily directly through higher commissions higher medical costs and higher medical inflation.
Speaker Change: Absolutely drives client demand.
Speaker Change: As we think about how we have to do fee based plan design work and projects to try and help clients mitigate.
Speaker Change: That cost escalation and the impact on their clients and on their colleagues.
Speaker Change: Thanks, Pat and I would note that Oliver Wyman does a lot of important work in the industry as well so.
Speaker Change: Thank you David for the questions. Andrew next question. Please.
Our next question comes from the line of Greg Peters with Raymond James.
Speaker Change: Yeah.
Greg Peters: Good morning, everyone.
Greg Peters: Can I go back to the comments on.
Greg Peters: Mcgrath.
Speaker Change: You mentioned $450 to $500 million in total retention incentives.
Greg Peters: We're going to be somehow falling through our recaptured.
Greg Peters: I guess the reason why I'm triggered by this as I look at your <unk>.
Greg Peters: Income statement I see the $60 million of acquisition and retention related costs that go into the adjustment. So just trying to map out what I should think about in terms of the adjustments as I think about 25%.
Speaker Change: Yes, sure Greg I'll ask Mark to jump in for a second but of course retention is a critical part of any acquisitions, we do and we have.
Speaker Change: Meaningful seller funded retention plan that was put in place to to help our transaction work here, but mark maybe you could talk on the costs yes.
Speaker Change: So as I said, we expect $450 million to $500 million of noteworthy charges in total over the next three years.
Speaker Change: Even though retention isn't it's not solely retention that'll be the biggest chunk of it.
Speaker Change: What youre seeing come through in the fourth quarter is actually.
Speaker Change: <unk> heard me mentioned $26 million just bridge financing cost.
Speaker Change: And then the beginnings of starting to amortize that.
Speaker Change: Those those retentions and it is important too.
Speaker Change: To recognize that a healthy amount of that retention was put in place by the seller and was funded through a purchase price adjustment, but it has to be amortized and flow through our financial statements by we'll consider it.
Speaker Change: Thanks, Mark Greg do you have a follow up.
Greg Peters: Just keeping on the adjustment category.
Greg Peters: For the full year, I think you recorded $148 million of restructuring charges.
Speaker Change: I was just at risk and insurance totaled 276.
Greg Peters: Wow.
Greg Peters: Is the restructuring charges that we think about for 25 years it can be.
Speaker Change: Exclusive of our independent of what's going on in Mcgriff, and what kind of what are you. What are you expecting in terms of restructuring charges in 2005.
Speaker Change: Sure. Yes, 24 was as Mark noted, we wrapped up our restructuring program I talked about it a bit as well, but mark maybe you could.
Speaker Change: Outlook in 'twenty five so as we said, we're really happy with the execution of the restructuring program. We started back in 2022, and that's a big driver of the margin expansion that that debt.
Speaker Change: We've seen and definitely a contributor to our earnings growth, but what it is that program is a sexually closed at this point. So the remaining charges were in in the fourth quarter. So as you look forward the largest.
Speaker Change: Our expectation at this point is the largest piece of noteworthy items coming through will be related to the Griffith from time to time, we'll have things like true ups to earn outs and some other stuff that will go through there, but in terms of major programs.
Speaker Change: It's really mcgriff at this point thank.
Thank you thanks, Greg I appreciate the questions Andrew.
Speaker Change: We're ready for our next question please.
Speaker Change: Our next question comes from the line of Michael <unk> with BMO capital markets.
Michael: Hi, good morning.
Speaker Change: Going back to the.
Speaker Change: Organic or just mid single digit.
Speaker Change: Growth commentary.
Speaker Change: John in the prepared remarks, I know I heard your answer to a.
Speaker Change: Jimmy lets don't read into it but.
Speaker Change: Yes, I guess.
Speaker Change: Analysts were going to try to read into it scaled the last few years.
Speaker Change: That mid single digit or greater so is it.
Speaker Change: Is that something maybe changed in the planning process for 25 that was seen a proxy or I guess just also like.
Speaker Change: Can you tell us the marsh.
Speaker Change: Index pricing indexes down too.
Speaker Change: In sum Im assuming there is some sensitivity yes.
Speaker Change: Revenues from it being kind of a softer market for a while and the large account mark marketplace. So maybe that's kind of playing into that into.
Speaker Change: In your prepared remarks.
Speaker Change: No no. Thanks, Mike I appreciate the question look I think.
Speaker Change: Where we're most exposed to P&C pricing is in the middle market and middle market pricing tends to be more stable.
Speaker Change: Certainly.
Speaker Change: Your attempt to read into that I would.
Speaker Change: I don't think Thats, a major factor in the primary issue is fit right and so it's an uncertain outlook.
Speaker Change: Marc shared some insights on what we thought the first quarter.
Speaker Change: Headwinds would be like we will see from from here obviously.
Speaker Change: Inflation has remained.
Speaker Change: Stickier then.
Speaker Change: Most central banks would like certainly here in the United States, but.
Speaker Change: I think there is.
Speaker Change: Some volatility.
Speaker Change: Potential volatility from some of the steps that the new administration is taking around trade and tariffs.
Speaker Change: We'll see what that means right and so.
Speaker Change: But but fit really is that the primary driver.
Speaker Change: Got it quick follow up.
Speaker Change: Also on.
Speaker Change: Probably for Mark on capital study $4 5 billion.
Deploy guide for 'twenty, five and no change year over year.
Speaker Change: I'm, assuming most of that is just due to charges.
Speaker Change: To integrate Mcgrath or are there other material moving pieces, we should be thinking about.
Speaker Change: So the outlook for capital deployment I think is what you are asking about at $4 5 billion, we're really happy with that outlook. If you think back to last year, we spent close to $12 billion.
Speaker Change: We've built up a significant amount of flexibility in that.
Speaker Change: It was certainly a lot more than we had planned coming into the year, but to be looking at a year, having having done all of that and be looking at year end 2025.
Speaker Change: Normal year of capital deployment and have still a lot of flexibility to do M&A.
Speaker Change: Pay dividends and buyback stock is just a great position to be in sales.
Speaker Change: So we feel really good about where we are largest deal in our history and mcgriff two top 100 agencies kardono.
Speaker Change: Vanguard <unk> business, and we've got $4 5 billion to deploy.
Speaker Change: So yes, I mean, it speaks to the cash flow generation of the company and the strength of our franchise.
Speaker Change: I would add.
Speaker Change: We are.
Speaker Change: We're quite active in the market to the M&A market I mean, we have a great brand and reputation in that market and thats important and people businesses of course, we do have the ability to do bigger deals.
Speaker Change: If the right deal presents itself I think.
Speaker Change: We're more likely to continue our string of pearls strategy that has served us so well and we're likely to bring our leverage back down but.
Speaker Change: But mark and I, both talked about we want to retain the flexibility to strike when it makes sense.
Mike: Thank you Mike.
Speaker Change: Andrew next.
Speaker Change: Next question. Please comes from the line of Mayor Shields with K B W.
Mayor Shields: Great. Thanks, and good morning, John I wanted to follow up on the point that you just made does the effort required to integrate mcgriff impede the ability to do big deals in the United States, either overall or within MMA.
Mayor Shields: I'm not sure I understand the impede for what reason.
Mayor Shields: Just management effort in the <unk>.
Mayor Shields: Look.
Mayor Shields: Again these are people businesses right. So there's no question.
Mayor Shields: Social issues are important and that's why I highlighted are our reputation of.
Mayor Shields: Really doing what we say, we're going to do when we're getting snow businesses and talking about what the possibilities are when we come together as an organization. So.
Mayor Shields: There's always going to be.
Mayor Shields: Capacity some level of capacity constraint around management time and attention and of course, we want to make any big mistakes either we've been very very successful.
Mayor Shields: And I have been a consolidator for much of our 150 year plus history and so.
Mayor Shields: But but again.
Mayor Shields: Again, we're more likely to continue our string of pearls strategy mayor, but.
Mayor Shields: But we do have the ability to do something bigger.
Mayor Shields: There's no question at MMA.
Speaker Change: Dave and his team.
Speaker Change: We have obviously a lot of experience in doing this and.
Speaker Change: And I would also note.
Speaker Change: We're not meeting.
Speaker Change: These target firms for the first time, when we are welcome them welcoming them to the family so.
Speaker Change: We work on many of these deals for many many years.
Speaker Change: Yes, if all our marathon.
Speaker Change: Just a quick one.
Speaker Change: Mark mentioned that there were.
Speaker Change: The difficult organic growth comp coming up.
Speaker Change: Digging a little bit I know other brokers are talking about that as well was there something in last year's first quarter revenues that are less.
Speaker Change: Recurring than the typical book.
Speaker Change: No no not at all we just we have some unusual headwinds in the first quarter aggregate FX.
Speaker Change: FX tax we've got some of the seasonality that Mark mentioned around.
Speaker Change: The group's revenue.
Speaker Change: In the in the first quarter being a bit seasonally light, we do have some headwinds as well, but we're.
Speaker Change: We're planning on that.
Speaker Change: Persist throughout the full year so.
Speaker Change: So anyway, no nothing nothing unusual about prior year's first quarter, all those things in a bit of a tougher comp in the first quarter.
Speaker Change: Okay perfect. Thank you.
Speaker Change: Thank you Mary.
Speaker Change: Andrew Another question please.
Speaker Change: Certainly our next question comes from the line of Rob Cox with Goldman Sachs.
Rob Cox: Hey, Thanks, good morning.
Speaker Change: My first question was a bit of a bigger picture question for you John.
Speaker Change: A large insurer recently highlighted.
Speaker Change: Secular shift in the small and middle market, where more premiums are flowing to a smaller number of middle market insurers kind of based on their scale and data and analytics advantages.
Speaker Change: I'm curious if you agree with that trend and if you could talk about what that trend means for marsh growth opportunities.
I'm not sure I'm familiar with those comments, so I want to be careful.
Speaker Change: I'd be careful about about commenting on.
Speaker Change: What somebody else might say about the middle market.
Speaker Change: Do I think scale matters, yes, I think scale matters in our business I think it matters.
Speaker Change: To intermediaries and I think it matters to two underwriters there is no question.
Speaker Change: Data matters, the ability to develop broader insights.
Speaker Change: And then of course.
Speaker Change: Having.
Speaker Change: Diversification of risk on both the asset.
Speaker Change: Liability side of our balance sheet all of those things matter. So we do we are through margin.
Speaker Change: I guess if your question was about the middle market, maybe in the United States, we originate more risk than just about anybody.
Speaker Change: Certainly on a global basis, and as we talked about in the middle market MMA will be on a standalone basis, the fifth largest broker out there.
Speaker Change: Our ability to trade with some of the larger insurers there yeah, I mean, we have terrific relationships.
Speaker Change: And they bring innovative solutions to to the middle market.
Speaker Change: I commented really in the context of mcgriff.
Speaker Change: One of the things that we find so attractive about the middle market is our ability to bring scale benefits.
Speaker Change: To that segment of the market.
Speaker Change: And that matters to that to that customer base and so to the extent it insurer can bring similar scale benefits, yes. It matters.
Speaker Change: Yes.
Speaker Change: Got it.
Speaker Change: Yeah, and just for clarification I mean, I think the comments were meant to imply that more market share is going to larger insurers and I would think that that might be a benefit.
Speaker Change: Marsh is you.
Speaker Change: Have relationships with those larger insurers.
Speaker Change: Got it got it thank you.
Brian: Do you have a follow up Brian.
Brian: The follow up I appreciate no specific guidance on mcgriff margins, but I was hoping you could give us some rough insight into whether you expect the acquisition to be directionally additive or dilutive to margins in 2025, and if you think there's an above average opportunity.
Brian: To expand those mcgriff margins overtime.
Brian: Yes.
Brian: We mentioned this on in last quarter Mcgriff really was a carve out of a carve out so the.
Brian: The possibilities around mcgriff not built around.
Brian: <unk> meaningful expense synergies just to be clear.
Brian: But as I mentioned.
Brian: Earlier scale scale matters, not just to our to.
Brian: Our our clients it matters for our colleagues because we can give them tools.
Brian: And data and insights and technology that others can't.
Brian: And it matters to our shareholders as well so we expect to bring.
Brian: Scale benefits to all three and we're excited about.
Brian: What mcgriff will mean to adjusted EPS later in 'twenty, five and into 'twenty six 'twenty seven.
Speaker Change: So thank you Rob with that Andrew we've got to wrap up we're past the bottom of the hour. Thank you I want to thank everyone for joining us on the call. This morning.
Speaker Change: I also want to thank our colleagues for their hard work and their dedication I also want to thank all of our clients for their continued support and confidence in Marsh Mcclennan and thanks again to everyone and we look forward to speaking with you all again next quarter. Thank you Andrew.
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