Q2 2026 Marsh & McLennan Companies Inc Earnings Call

July 21, 2026

Speaker #2: Welcome to Marsh's Earnings Conference Call. Today's call is being recorded. Second quarter 2026 financial results and supplemental information were issued earlier this morning. They are available on the company's website at corporate.marsh.com.

Operator: Welcome to Marsh's earnings conference call. Today's call is being recorded. Q2 2026 financial results and supplemental information were issued earlier this morning. They are available on the company's website at corporate.marsh.com. Please note that remarks made today may include forward-looking statements. Forward-looking statements are subject to risks and uncertainties, and a variety of factors may cause actual results to differ materially from those contemplated by such statements. For more detailed discussion of those factors, please refer to our earnings release for this quarter and to our most recent SEC filings, including our most recent Form 10-K, all of which are available on the Marsh website. 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.

Speaker #2: Please note that remarks made today may include forward-looking statements. Forward-looking statements are subject to risks and uncertainties, and a variety of factors may cause actual results to differ materially from those contemplated by such statements.

Speaker #2: For more detailed discussion of those factors, please refer to our earnings release for this quarter and to our most recent SEC filings, including our most recent Form 10-K, all of which are available on the MARSH website.

Speaker #2: 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.

Speaker #2: If you have a question, please press *11 on your touch-tone phone. If you wish to be removed from the queue, please press *11 again.

Operator: If you have a question, please press star one one on your touchtone phone. If you wish to be removed from the queue, please press star one one again. If you're using a speakerphone, you may need to pick up the handset before pressing the numbers. Once again, if you have a question, please press star one one on your touchtone phone. I'll now turn this over to John Doyle, President and CEO of Marsh.

Speaker #2: If you're using a speakerphone, you may need to pick up the handset before pressing the numbers. Once again, if you have a question, please press star 11 on your touch-tone phone.

Speaker #2: I'll now turn this over to John Doyle, President and CEO of Marsh.

Speaker #3: Thanks, Andrew. Good morning, and thank you for joining us today to discuss our second quarter results. I'm John Doyle, President and CEO of MARSH.

John Q. Doyle: Thanks, Andrew. Good morning, and thank you for joining us today to discuss our Q2 results. I'm John Doyle, President and CEO of Marsh. On the call with me is Mark McGivney, our COO and CFO, and the CEOs of our businesses, Nick Studer of Marsh Risk, Dean Klisura of Guy Carpenter, Pat Tomlinson of Mercer, and Ted Moynihan of Oliver Wyman. Also with us this morning is Jay Gelb, Head of Investor Relations. To start, I'd like to acknowledge the United States 250th anniversary commemorated earlier this month. Marsh is proud to be a US-based company and of the ideals embodied in our nation's founding.

John Doyle: Thanks, Andrew. Good morning, and thank you for joining us today to discuss our Q2 results. I'm John Doyle, President and CEO of Marsh. On the call with me is Mark McGivney, our COO and CFO, and the CEOs of our businesses, Nick Studer of Marsh Risk, Dean Klisura of Guy Carpenter, Pat Tomlinson of Mercer, and Ted Moynihan of Oliver Wyman. Also with us this morning is Jay Gelb, Head of Investor Relations. To start, I'd like to acknowledge the United States 250th anniversary commemorated earlier this month. Marsh is proud to be a US-based company and of the ideals embodied in our nation's founding.

Speaker #3: On the call with me is Mark McGivney, our COO and CFO, and the CEOs of our businesses. Nick Studer of MARSH Risk, Dean Klisura of Guy Carpenter, Pat Tomlinson of Mercer, and Ted Moynihan of MARSH Management Consulting.

Speaker #3: Also with us this morning is Jay Gelb, Head of Investor Relations. To start, I'd like to acknowledge the United States' 250th anniversary, commemorated earlier this month.

Speaker #3: MARSH is proud to be a US-based company and of the ideals embodied in our nation's founding. We are also proud of the contributions MARSH has made to the US economy and society, supporting growth since our founding in Chicago 155 years ago.

John Q. Doyle: We are also proud of the contributions Marsh has made to the US economy and society, supporting growth since our founding in Chicago 155 years ago. We are grateful to our clients for the trust that lets us do the same today all around the world. I would also like to extend our sympathies and concern for the people of Venezuela. We recently celebrated our 70th anniversary in Venezuela, and we have 100 colleagues in the country. We are grateful that they're all safe, and we will continue to support them and our clients with their recovery. Turning to results, we had a solid Q2 as demand for our advice and capabilities remained strong. Overall, revenue grew 6% in the quarter. Underlying revenue growth accelerated to 5% from 4% in the prior quarter. Adjusted operating income grew 5%, adjusted EPS grew 9%.

John Doyle: We are also proud of the contributions Marsh has made to the US economy and society, supporting growth since our founding in Chicago 155 years ago. We are grateful to our clients for the trust that lets us do the same today all around the world. I would also like to extend our sympathies and concern for the people of Venezuela. We recently celebrated our 70th anniversary in Venezuela, and we have 100 colleagues in the country. We are grateful that they're all safe, and we will continue to support them and our clients with their recovery. Turning to results, we had a solid Q2 as demand for our advice and capabilities remained strong. Overall, revenue grew 6% in the quarter. Underlying revenue growth accelerated to 5% from 4% in the prior quarter. Adjusted operating income grew 5%, adjusted EPS grew 9%.

Speaker #3: And we are grateful to our clients for their trust that lets us do the same today all around the world. I would also like to extend our sympathies and concern for the people of Venezuela.

Speaker #3: We recently celebrated our 70th anniversary in Venezuela, and we have 100 colleagues in the country. We're grateful that they're all safe, and we will continue to support them and our clients with their recovery.

Speaker #3: Turning to results, we had a solid second quarter, as demand for our advice and capabilities remained strong. Overall, revenue grew 6% in the quarter.

Speaker #3: Underlying revenue growth accelerated to 5% from 4% in the prior quarter. Adjusted operating income grew 5%, and adjusted EPS grew 9%. We also repurchased stock in the quarter, now totaling $1.5 billion for the first half of 2026.

John Q. Doyle: We also repurchased $300 million of stock in the quarter, now totaling $1.5 billion for the H1 of 2026. I want to spend a moment on our Thrive program, an important part of our strategy. We aspire to be the most impactful professional services firm in the world. We have the talent, capabilities, and market position to achieve this. We are leaders in most markets in which we operate and have a truly unique set of capabilities across risk, strategy, people, and investments that differentiates us and drives value for clients. We're focused on allocating capital and resources to strategic priorities where we see significant growth potential. We remain disciplined in our approach to delivering in the near term while investing for the future.

John Doyle: We also repurchased $300 million of stock in the quarter, now totaling $1.5 billion for the H1 of 2026. I want to spend a moment on our Thrive program, an important part of our strategy. We aspire to be the most impactful professional services firm in the world. We have the talent, capabilities, and market position to achieve this. We are leaders in most markets in which we operate and have a truly unique set of capabilities across risk, strategy, people, and investments that differentiates us and drives value for clients. We're focused on allocating capital and resources to strategic priorities where we see significant growth potential. We remain disciplined in our approach to delivering in the near term while investing for the future.

Speaker #3: I want to spend a moment on our Thrive program, an important part of our strategy. We aspire to be the most impactful professional services firm in the world, and we have the talent, capabilities, and market position to achieve this.

Speaker #3: We are leaders in most markets in which we operate, and have a truly unique set of capabilities across risk, strategy, people, and investments that differentiates us and drives value for clients.

Speaker #3: We're focused on allocating capital and resources to strategic priorities where we see significant growth potential. We remain disciplined in our approach to delivering in the near term while investing for the future.

John Q. Doyle: Thrive is designed to accelerate growth by creating the capacity to invest in the Marsh brand, expanding our capabilities and sales capacity, and leveraging the benefits of our scale in operations and technology through our Business and Client Services team. We've seen a strong positive response to the new Marsh brand. As a result, we're accelerating the transition of Guy Carpenter and Mercer to Marsh in September. A unified brand strategy signals the value we can deliver together to clients across a range of industries, segments, and geographies. Its efficiency has allowed us to increase our brand reach, improve marketing ROI, and become the official risk partner of Formula 1. F1 increases our visibility among its over 800 million global fans, importantly, its high concentration of C-suite leaders and decision-makers.

John Doyle: Thrive is designed to accelerate growth by creating the capacity to invest in the Marsh brand, expanding our capabilities and sales capacity, and leveraging the benefits of our scale in operations and technology through our Business and Client Services team. We've seen a strong positive response to the new Marsh brand. As a result, we're accelerating the transition of Guy Carpenter and Mercer to Marsh in September. A unified brand strategy signals the value we can deliver together to clients across a range of industries, segments, and geographies. Its efficiency has allowed us to increase our brand reach, improve marketing ROI, and become the official risk partner of Formula 1. F1 increases our visibility among its over 800 million global fans, importantly, its high concentration of C-suite leaders and decision-makers.

Speaker #3: Thrive is designed to accelerate growth by creating the capacity to invest in the MARSH brand, expanding our capabilities and sales capacity, and leveraging the benefits of our scale in operations and technology through our business and client services team.

Speaker #3: We've seen a strong, positive response to the new MARSH brand. As a result, we're accelerating the transition of Guy Carpenter and Mercer to MARSH in September.

Speaker #3: A unified brand strategy signals the value we can deliver together to clients across a range of industry segments and geographies. Its efficiency has allowed us to increase our brand reach, improve marketing ROI, and become the official risk partner of Formula One.

Speaker #3: F1 increases our visibility among its over 800 million global fans and, importantly, its high concentration of C-suite leaders and decision makers. The precision, data-driven approach to risk, and relentless pursuit of excellence are what align Marsh and F1's cultures, and I'm excited for the growth possibilities from the partnership.

John Q. Doyle: The precision, data-driven approach to risk, and relentless pursuit of excellence is what aligns Marsh and F1's cultures. I'm excited for the growth possibilities from the partnership. We're also accelerating our investment in sales capacity through Thrive. We're building new capabilities and adding client-facing talent in sectors where we see meaningful growth opportunity. One example is our work with energy clients in the digital infrastructure ecosystem, where we are creating multi-billion dollar insurance solutions for counterparty credit exposures. These programs integrate traditional insurance and reinsurance sidecars backed by third-party capital, which we source for the client. It's the combination of our capabilities in insurance, consulting, and investments, as well as deep client relationships and an expertise across sectors, which enables Marsh to design and deliver these solutions for clients. Our AI plans are also benefiting from Thrive. As I've stated before, Marsh is well-positioned to be an AI winner.

John Doyle: The precision, data-driven approach to risk, and relentless pursuit of excellence is what aligns Marsh and F1's cultures. I'm excited for the growth possibilities from the partnership. We're also accelerating our investment in sales capacity through Thrive. We're building new capabilities and adding client-facing talent in sectors where we see meaningful growth opportunity. One example is our work with energy clients in the digital infrastructure ecosystem, where we are creating multi-billion dollar insurance solutions for counterparty credit exposures. These programs integrate traditional insurance and reinsurance sidecars backed by third-party capital, which we source for the client. It's the combination of our capabilities in insurance, consulting, and investments, as well as deep client relationships and an expertise across sectors, which enables Marsh to design and deliver these solutions for clients. Our AI plans are also benefiting from Thrive. As I've stated before, Marsh is well-positioned to be an AI winner.

Speaker #3: We're also accelerating our investment in sales capacity through Thrive. We're building new capabilities and adding client-facing talent in sectors where we see meaningful growth opportunity.

Speaker #3: One example is our work with Energy clients in the digital infrastructure ecosystem, where we are creating multi-billion dollar insurance solutions for counterparty credit exposures.

Speaker #3: These programs integrate traditional insurance and reinsurance sidecars backed by third-party capital, which we source for the client. It's the combination of our capabilities in insurance, consulting, and investments, as well as deep client relationships and expertise across sectors, which enables Marsh to design and deliver these solutions for clients.

Speaker #3: Our AI plans are also benefiting from Thrive. As I've stated before, Marsh is well-positioned to be an AI winner. It's clear that our large proprietary datasets in risk, health and benefits, talent, and investments, as well as our long-standing client relationships, are a significant advantage.

John Q. Doyle: It's clear that our large proprietary data sets in risk, health and benefits, talent, and investments, as well as our long-standing client relationships are a significant advantage. Our strategy is to drive AI development in three areas: growth, productivity, and efficiency. Related to growth, we recently introduced Marsh Risk Companion at the RIMS Conference in Philadelphia. This new client platform has market-leading analytics, insights, and capabilities in one AI-enabled application. It will enhance our ability to analyze their risks and develop optimal solutions. We're excited about our Coverage Intelligence platform, which gives producers serving the middle market the ability to model risk and evaluate coverage options at the point of sale. The AI-driven platform can quickly find coverage gaps and analyze and compare quotes for clients, a significant advantage for our producers in the marketplace.

John Doyle: It's clear that our large proprietary data sets in risk, health and benefits, talent, and investments, as well as our long-standing client relationships are a significant advantage. Our strategy is to drive AI development in three areas: growth, productivity, and efficiency. Related to growth, we recently introduced Marsh Risk Companion at the RIMS Conference in Philadelphia. This new client platform has market-leading analytics, insights, and capabilities in one AI-enabled application. It will enhance our ability to analyze their risks and develop optimal solutions. We're excited about our Coverage Intelligence platform, which gives producers serving the middle market the ability to model risk and evaluate coverage options at the point of sale. The AI-driven platform can quickly find coverage gaps and analyze and compare quotes for clients, a significant advantage for our producers in the marketplace.

Speaker #3: Our strategy is to drive AI development in three areas: growth, productivity, and efficiency. Related to growth, we recently introduced MARSH Risk Companion at the RIMS conference in Philadelphia.

Speaker #3: This new client platform has market-leading analytics, insights, and capabilities in one AI-enabled application. It will enhance our ability to analyze their risks and develop optimal solutions.

Speaker #3: And we're excited about our coverage intelligence platform, which gives producers serving the middle market the ability to model risk and evaluate coverage options at the point of sale.

Speaker #3: The AI-driven platform can quickly find coverage gaps and analyze and compare quotes for clients, a significant advantage for our producers in the marketplace. We also introduced Atlas, an AI-enabled platform that delivers real-time insights to support development of client reinsurance strategies.

John Q. Doyle: We also introduced Atlas, an AI-enabled platform that delivers real-time insights to support development of client reinsurance strategies. Atlas curates and expedites information, including hazard scores, litigation risk, market pricing, economic indicators, and other financial data for clients. Finally, our Quotient team is doing extensive work advising clients on AI strategy and transformation. For example, in the last quarter, we launched the build of several new AI-native banks in different regions around the world. We are also introducing AI tools that increase our colleagues' productivity and enhance our colleague value proposition. For example, we rolled out Claims IQ to our 3,000 claim professionals. The tool draws anonymized data on millions of claims to help us manage the claims life cycle and deliver insights to improve client outcomes. Colleagues also now have access to Lenwork, an agentic assistant that builds on our LenAI suite.

John Doyle: We also introduced Atlas, an AI-enabled platform that delivers real-time insights to support development of client reinsurance strategies. Atlas curates and expedites information, including hazard scores, litigation risk, market pricing, economic indicators, and other financial data for clients. Finally, our Quotient team is doing extensive work advising clients on AI strategy and transformation. For example, in the last quarter, we launched the build of several new AI-native banks in different regions around the world. We are also introducing AI tools that increase our colleagues' productivity and enhance our colleague value proposition. For example, we rolled out Claims IQ to our 3,000 claim professionals. The tool draws anonymized data on millions of claims to help us manage the claims life cycle and deliver insights to improve client outcomes. Colleagues also now have access to Lenwork, an agentic assistant that builds on our LenAI suite.

Speaker #3: Atlas curates and expedites information including hazard scores, litigation risk, market pricing, economic indicators, and other financial data for clients. And finally, our Quotient team is doing extensive work advising clients on AI strategy and transformation.

Speaker #3: For example, in the last quarter, we launched the build of several new AI-native banks in different regions around the world. We are also introducing AI tools that increase our colleagues' productivity and enhance our colleague value proposition.

Speaker #3: For example, we rolled out Claims IQ to our 3,000 claim professionals. The tool draws on anonymized data from millions of claims to help us manage the claims lifecycle and deliver insights to improve client outcomes.

Speaker #3: Colleagues also now have access to Lendwork, an agentic assistant that builds on our Lend AI suite. Lendwork helps colleagues develop new product ideas, create sales strategies, and respond to RFPs among other use cases.

John Q. Doyle: Lenwork helps colleagues develop new product ideas, create sales strategies, and respond to RFPs, among other use cases. It leverages Frontier models while being purpose-built for our ecosystem. As a result, Lenwork delivers a more secure, relevant, and agile experience, and amid rising token costs, a more cost-efficient approach to enterprise LLM usage. One of the more exciting AI programs of work launched in the quarter is BCS and Oliver Wyman's partnership with Amazon Web Services to reimagine our mid- and back-office processes. We have already introduced AI into our operations, but this work will push the boundaries to redesign how work is executed to improve efficiency and service. The project is initially focused on pilots to re-engineer claim services and the issuance of reinsurance treaties.

John Doyle: Lenwork helps colleagues develop new product ideas, create sales strategies, and respond to RFPs, among other use cases. It leverages Frontier models while being purpose-built for our ecosystem. As a result, Lenwork delivers a more secure, relevant, and agile experience, and amid rising token costs, a more cost-efficient approach to enterprise LLM usage. One of the more exciting AI programs of work launched in the quarter is BCS and Oliver Wyman's partnership with Amazon Web Services to reimagine our mid- and back-office processes. We have already introduced AI into our operations, but this work will push the boundaries to redesign how work is executed to improve efficiency and service. The project is initially focused on pilots to re-engineer claim services and the issuance of reinsurance treaties.

Speaker #3: It leverages frontier models while being purpose-built for our ecosystem. As a result, Lendwork delivers a more secure, relevant, and agile experience, and—amid rising token costs—a more cost-efficient approach to enterprise LLM usage.

Speaker #3: One of the more exciting AI programs of work launched in the quarter is BCS and Oliver Wyman's partnership with Amazon Web Services to reimagine our mid- and back-office processes.

Speaker #3: We have already introduced AI into our operations but this work will push the boundaries to redesign how work is executed to improve efficiency and service.

Speaker #3: The project is initially focused on pilots to re-engineer claim services and the issuance of reinsurance treaties. We expect our Thrive investments in brand, sales capacity and capabilities, and new AI tools will support growth and continuous operational efficiency in the years ahead.

John Q. Doyle: We expect our Thrive investments in brand, sales capacity and capabilities, and new AI tools will support growth and continuous operational efficiency in the years ahead. Now, turning to market conditions. According to the Marsh Global Insurance Market Index, primary commercial insurance rates decreased 6% in Q2. This follows a 5% decline in Q1 of 2026. As a reminder, our index skews to large accounts. Rates in the US decreased 2%. Europe and Asia declined mid-single digits. Canada, the UK, and Latin America were down high single digits, and the Pacific region had double-digit decreases. Global property rates decreased 12% year-over-year, which was an acceleration from the prior quarter. Global financial and professional liability rates were down 3%, while cyber decreased 4%. Global casualty rates increased 2%, with US excess casualty up 15%, reflecting continued elevated loss experience, and workers' compensation decreased 4%.

John Doyle: We expect our Thrive investments in brand, sales capacity and capabilities, and new AI tools will support growth and continuous operational efficiency in the years ahead. Now, turning to market conditions. According to the Marsh Global Insurance Market Index, primary commercial insurance rates decreased 6% in Q2. This follows a 5% decline in Q1 of 2026. As a reminder, our index skews to large accounts. Rates in the US decreased 2%. Europe and Asia declined mid-single digits. Canada, the UK, and Latin America were down high single digits, and the Pacific region had double-digit decreases. Global property rates decreased 12% year-over-year, which was an acceleration from the prior quarter. Global financial and professional liability rates were down 3%, while cyber decreased 4%. Global casualty rates increased 2%, with US excess casualty up 15%, reflecting continued elevated loss experience, and workers' compensation decreased 4%.

Speaker #3: Now, turning to market conditions, according to the MARSH Global Insurance Market Index, primary commercial insurance rates decreased 6% in the second quarter. This follows a 5% decline in the first quarter of 2026.

Speaker #3: As a reminder, our index skews to large accounts. Rates in the US decreased 2%. Europe and Asia declined mid-single digits. Canada, the UK, and Latin America were down high single digits.

Speaker #3: And the Pacific region had double-digit decreases. Global property rates decreased 12% year over year, which was an acceleration from the prior quarter. Global financial and professional liability rates were down 3%, while cyber decreased 4%.

Speaker #3: Global casualty rates increased 2% with US excess casualty up 15% reflecting continued elevated loss experience. And workers' compensation decreased 4%. In reinsurance, persistent soft market conditions driven by abundant capacity and growing reinsurer appetite have led to a favorable market for insurers.

John Q. Doyle: In reinsurance, persistent soft market conditions driven by abundant capacity and growing reinsurer appetite have led to a favorable market for insurers. As expected, the outcome of the 1 June Florida cat renewals saw rate reductions in the 15% to 20% range from excess supply, partially offset by a modest increase in demand. In US casualty reinsurance, renewals reflected adequate capacity and differentiated pricing based on loss experience and portfolio quality. We continue to see record high catastrophe bond issuance with more than $61 billion of limit outstanding through H1 2026. Our clients are exploring alternative options to complement traditional strategies, including through the use of third-party capital solutions. Current market pricing remains favorable for our insurance and reinsurance clients, despite the rising cost of risk. We continue to help clients optimize their risk financing and build greater resilience in a more uncertain world.

John Doyle: In reinsurance, persistent soft market conditions driven by abundant capacity and growing reinsurer appetite have led to a favorable market for insurers. As expected, the outcome of the 1 June Florida cat renewals saw rate reductions in the 15% to 20% range from excess supply, partially offset by a modest increase in demand. In US casualty reinsurance, renewals reflected adequate capacity and differentiated pricing based on loss experience and portfolio quality. We continue to see record high catastrophe bond issuance with more than $61 billion of limit outstanding through H1 2026. Our clients are exploring alternative options to complement traditional strategies, including through the use of third-party capital solutions. Current market pricing remains favorable for our insurance and reinsurance clients, despite the rising cost of risk. We continue to help clients optimize their risk financing and build greater resilience in a more uncertain world.

Speaker #3: As expected, the outcome of the June 1 Florida CAT renewals saw rate reductions in the 15% to 20% range, from excess supply partially offset by a modest increase in demand.

Speaker #3: In US casualty reinsurance, renewals reflected adequate capacity and differentiated pricing based on loss experience and portfolio quality. We continue to see record high catastrophe bond issuance, with more than $61 billion of limit outstanding through the first half of 2026.

Speaker #3: Our clients are exploring alternative options to complement traditional strategies including through the use of third-party capital solutions. Current market pricing remains favorable for our insurance and reinsurance clients despite the rising cost of risk.

Speaker #3: We continue to help clients optimize their risk financing and build greater resilience in a more uncertain world. Now, let me turn to our second quarter financial performance and outlook, which Mark will cover in more detail.

John Q. Doyle: Let me turn to our Q2 financial performance and outlook, which Mark will cover in more detail. Consolidated revenue increased 6% to $7.4 billion, increasing to 5% on an underlying basis, with 3% growth in RIS and 8% in consulting. Marsh Risk was up 4%. Guy Carpenter declined 2%. Mercer increased 5%, and Marsh management consulting grew 13%. Adjusted operating income grew 5%, and adjusted EPS was $2.96, up 9% year-over-year. Looking ahead, we continue to expect a good year in 2026, with underlying revenue growth similar to last year. We also anticipate another year of margin expansion and solid adjusted EPS growth. Our outlook is based on current conditions, but the economic and geopolitical environment could change materially from our assumptions. In summary, I remain pleased with our performance in H1 2026.

John Doyle: Let me turn to our Q2 financial performance and outlook, which Mark will cover in more detail. Consolidated revenue increased 6% to $7.4 billion, increasing to 5% on an underlying basis, with 3% growth in RIS and 8% in consulting. Marsh Risk was up 4%. Guy Carpenter declined 2%. Mercer increased 5%, and Marsh management consulting grew 13%. Adjusted operating income grew 5%, and adjusted EPS was $2.96, up 9% year-over-year. Looking ahead, we continue to expect a good year in 2026, with underlying revenue growth similar to last year. We also anticipate another year of margin expansion and solid adjusted EPS growth. Our outlook is based on current conditions, but the economic and geopolitical environment could change materially from our assumptions. In summary, I remain pleased with our performance in H1 2026.

Speaker #3: Consolidated revenue increased 6% to $7.4 billion, increasing 5% on an underlying basis, with 3% growth in RIS and 8% in Consulting. Marsh Risk was up 4%.

Speaker #3: Guy Carpenter declined 2%. Mercer increased 5%, and Marsh Management Consulting grew 13%. Adjusted operating income grew 5%, and adjusted EPS was $2.96, up 9% year-over-year.

Speaker #3: Looking ahead, we continue to expect a good year in 2026 with underlying revenue growth similar to last year we also anticipate another year of margin expansion and solid adjusted EPS growth.

Speaker #3: Our outlook is based on current conditions but the economic and geopolitical environment could change materially from our assumptions. In summary, I remain pleased with our performance in the first half of 2026.

Speaker #3: We are focused on executing our strategy, putting our clients at the center of everything we do, and building on our momentum. With that, I'll turn the discussion to Mark for a more detailed review of our results.

John Q. Doyle: We are focused on executing our strategy, putting our clients at the center of everything we do, and building on our momentum. With that, I will turn the discussion to Mark for a more detailed review of our results.

John Doyle: We are focused on executing our strategy, putting our clients at the center of everything we do, and building on our momentum. With that, I will turn the discussion to Mark for a more detailed review of our results.

Speaker #2: Thank you, John. And good morning. We had a good second quarter reflecting the diversification of our portfolio, our leading position, and strong execution. Consolidated revenue increased 6% to 7.4 billion with underlying growth of 5% which we achieved despite continuing headwinds from fiduciary interest income and TNC pricing.

Mark McGivney: Thank you, John, good morning. We had a good Q2 reflecting the diversification of our portfolio, our leading position, and strong execution. Consolidated revenue increased 6% to $7.4 billion, with underlying growth of 5%, which we achieved despite continuing headwinds from fiduciary interest income and P&C pricing. Operating income was $1.9 billion, and adjusted operating income was $2.2 billion, up 5%. Our adjusted operating margin was 29.3%. GAAP EPS was $2.63, and adjusted EPS was $2.96, up 9% over last year. For H1 2026, underlying revenue growth was 4%. Adjusted operating income grew 7% to $4.6 billion. Our adjusted operating margin was 30.5%, and adjusted EPS increased 8% to $6.25. Looking at Risk and Insurance Services, Q2 revenue was $4.8 billion, up 4% from a year ago, or 3% on an underlying basis. Operating income in RIS was $1.5 billion.

Speaker #2: Operating income was $1.9 billion and adjusted operating income was $2.2 billion up 5%. Our adjusted operating margin was 29.3%. GAAP EPS was $2.63 and adjusted EPS was $2.96 up 9% over last year.

Speaker #2: For the first six months of 2026, underlying revenue growth was 4%. Adjusted operating income grew 7% to 4.6 billion our adjusted operating margin was 30.5% and adjusted EPS increased 8% to $6.25.

Speaker #2: Looking at Risk and Insurance Services, second quarter revenue was $4.8 billion, up 4% from a year ago, or 3% on an underlying basis. Operating income in RIS was $1.5 billion.

Mark McGivney: Adjusted operating income was $1.7 billion, up 3% over last year, and the adjusted operating margin was 35.3%. For H1, revenue in RIS was $9.9 billion, reflecting underlying growth of 3%. Adjusted operating income increased 5% to $3.6 billion, and the adjusted operating margin was 36.8%. At Marsh Risk, revenue in the quarter was $4.1 billion, up 6% from a year ago, or 4% on an underlying basis, reflecting solid performances in the US and across international. In US and Canada, underlying growth increased sequentially to 4%, up from 3% in Q1, reflecting strong new business. In international, underlying growth remained solid at 5%, with EMEA up 5%, Asia Pacific up 5%, and Latin America up 8%. For H1 of the year, Marsh Risk's revenue was $7.8 billion, with underlying growth of 4%.

Speaker #2: Adjusted operating income was $1.7 billion, up 3% over last year, and the adjusted operating margin was 35.3%. For the first six months, revenue in RIS was $9.9 billion, reflecting underlying growth of 3%.

Speaker #2: Adjusted operating income increased 5% to $3.6 billion, and the adjusted operating margin was 36.8%. At Marsh Risk, revenue in the quarter was $4.1 billion, up 6% from a year ago, or 4% on an underlying basis, reflecting solid performances in the US and across international.

Speaker #2: In the US and Canada, underlying growth increased sequentially to 4%, up from 3% in the first quarter, reflecting strong new business. In International, underlying growth remained solid at 5%, with EMEA up 5%, Asia Pacific up 5%, and Latin America up 8%.

Speaker #2: For the first six months of the year, Marsh Risk's revenue was $7.8 billion, with underlying growth of 4%. US and Canada grew 4%, and International was up 5%.

Mark McGivney: US and Canada grew 4%, and international was up 5%. Guy Carpenter's revenue in the quarter was $664 million, down 2% on both a reported and underlying basis. Growth in Q2 was impacted by a tough comparison to 5% underlying growth last year and continued declines in reinsurance rates, especially in property lines. This headwind from rates had a roughly 6 percentage point impact on Guy Carpenter's underlying growth in the quarter. For H1 of the year, Guy Carpenter generated $1.9 billion of revenue, which was flat on an underlying basis. As a reminder, H1 of the year accounts for roughly three-quarters of Guy Carpenter's annual revenue. Despite the challenging market conditions, Guy Carpenter executed well and delivered double-digit new business growth in H1, as well as high 90s client retention.

Speaker #2: Guy Carpenter's revenue in the quarter was $664 million, down 2% on both a reported and underlying basis. Growth in the second quarter was impacted by a tough comparison to 5% underlying growth last year and continued declines in reinsurance rates, especially in property lines.

Speaker #2: This headwind from rates had a roughly 6-percentage-point impact on Guy Carpenter's underlying growth in the quarter. For the first six months of the year, Guy Carpenter generated $1.9 billion of revenue, which was flat on an underlying basis.

Speaker #2: As a reminder, the first half of the year accounts for roughly three quarters of Guy Carpenter's annual revenue. Despite the challenging market conditions, Guy Carpenter executed well and delivered double-digit new business growth in the first half as well as high 90s client retention.

Speaker #2: In the Consulting segment, second quarter revenue was $2.6 billion, up 10%, or 8% on an underlying basis. Consulting operating income was $502 million, and adjusted operating income was $533 million, up 11%.

Mark McGivney: In the consulting segment, Q2 revenue was $2.6 billion, up 10%, or 8% on an underlying basis. Consulting operating income was $502 million, and adjusted operating income was $533 million, up 11%. Our adjusted operating margin in consulting was 20.5%. For H1, consulting revenue was $5.2 billion, reflecting underlying growth of 7%. Adjusted operating income increased 12% to $1.1 billion, and the adjusted operating margin was 21%. Mercer's revenue was $1.6 billion in the quarter, up 7% or 5% on an underlying basis. Health grew 3%, reflecting continued growth across our regions, especially in international. Wealth was up 8%, led by our investments business. This was the best quarter of growth in Wealth since we started reporting on this basis in 2016.

Speaker #2: Our adjusted operating margin in consulting was 20.5%. For the first six months, consulting revenue was $5.2 billion reflecting underlying growth of 7%. Adjusted operating income increased 12% to $1.1 billion and the adjusted operating margin was 21%.

Speaker #2: Mercer's revenue was $1.6 billion in the quarter, up 7%, or 5% on an underlying basis. Health grew 3%, reflecting continued growth across our regions, especially in International.

Speaker #2: Wealth was up 8%, led by our investments business. This was started reporting on this basis in 2016. Our assets under management were $846 billion at the end of the second quarter, up 16% sequentially and up 26% compared to the second quarter of last year.

Mark McGivney: Our assets under management were $846 billion at the end of Q2, up 16% sequentially and up 26% compared to Q2 of last year. Year-over-year growth was driven by new business and the impact of capital markets. Career was up 2%, and was led by growth in international. For H1 of the year, revenue at Mercer was $3.3 billion with 5% underlying growth. Marsh Management Consulting generated revenue of $1 billion in Q2, up 15% or 13% on an underlying basis. This was the fastest quarter of growth in over two years, reflecting strong demand and delivery across the business. For H1 of the year, revenue at Marsh Management Consulting was $1.9 billion, an increase of 10% on an underlying basis.

Speaker #2: Year-over-year growth was driven by new business and the impact of capital markets. Career was up 2% and was led by growth in international. For the first six months of the year, revenue at Mercer was $3.3 billion with 5% underlying growth.

Speaker #2: MARSH Management Consulting generated revenue of $1 billion in the second quarter, up 15%, or 13% on an underlying basis. This was the fastest quarter of growth in over two years, reflecting strong demand and delivery across the business.

Speaker #2: For the first six months of the year, revenue at Marsh Management Consulting was $1.9 billion, an increase of 10% on an underlying basis. Looking ahead to the third quarter, we expect underlying growth for Marsh Management Consulting will likely be in the mid- to high-single digits.

Mark McGivney: Looking ahead to Q3, we expect underlying growth for Marsh management consulting will likely be in the mid to high single digits. Fiduciary interest income was $88 million in the quarter, down $11 million compared with Q2 of last year, reflecting lower interest rates. Looking ahead, we expect fiduciary interest income will be approximately $95 million in Q3. Foreign exchange was a $0.02 benefit in Q2. Based on current exchange rates, we expect FX will have an immaterial impact on earnings in Q3 and the rest of this year. Corporate expenses in Q2 were $67 million on an adjusted basis, compared to $66 million a year ago. Looking ahead to Q3, we expect adjusted corporate expense of approximately $75 million.

Speaker #2: Fiduciary interest income was $88 million in the quarter, down $11 million compared with the second quarter of last year, reflecting lower interest rates. Looking ahead, we expect fiduciary interest income will be approximately $95 million in the third quarter.

Speaker #2: Foreign exchange was a $0.02 benefit in the second quarter. Based on current exchange rates, we expect FX will have an immaterial impact on earnings in the third quarter and the rest of the year.

Speaker #2: Corporate expenses in the second quarter were $67 million on an adjusted basis compared to $66 million a year ago. Looking ahead to the third quarter, we expect adjusted corporate expense of approximately $75 million.

Speaker #2: We continue to execute well on our thrive program and remain on track to deliver 400 million of total savings a portion of which will be reinvested for growth.

Mark McGivney: We continue to execute well on our Thrive program and remain on track to deliver $400 million of total savings, a portion of which will be reinvested for growth. We continue to expect to incur approximately $500 million of charges to generate the savings. Total noteworthy items in Q2 were $130 million, including $52 million of costs associated with Thrive. Interest expense in Q2 was $250 million. Based on our current forecast, we expect a similar level of interest expense in Q3. Our adjusted effective tax rate in Q2 was 24.4% compared to 25.3% in Q2 last year, with both periods benefiting modestly from discrete items. When we give forward guidance around our tax rate, we do not project discrete items.

Speaker #2: We continue to expect to incur approximately $500 million of charges to generate the savings. Total noteworthy items in the second quarter were $130 million, including $52 million of costs associated with Thrive.

Speaker #2: Interest expense in the second quarter was $250 million. Based on our current forecast, we expect a similar level of interest expense in the third quarter.

Speaker #2: Our adjusted effective tax rate in the second quarter was 24.4% compared to 25.3% in the second quarter last year with both periods benefiting modestly from discrete items.

Speaker #2: When we give forward guidance around our tax rate, we do not project discrete items. Based on the current environment, we continue to expect an adjusted effective tax rate of between 24.5% and 25.5% in 2026.

Mark McGivney: Based on the current environment, we continue to expect an adjusted effective tax rate of between 24.5% and 25.5% in 2026. Turning to capital management, our balance sheet. We ended the quarter with total debt of $20.6 billion. Our next scheduled debt maturity is EUR 550 million of euro-denominated senior notes in Q3, which we anticipate refinancing with similar euro-denominated notes. Our cash position at the end of Q2 was $1.7 billion. Uses of cash in the quarter totaled $1.4 billion, included $438 million for dividends, $230 million for acquisitions, and $750 million for share repurchases. For H1, uses of cash totaled $2.7 billion and included $878 million for dividends, $319 million for acquisitions, and $1.5 billion for share repurchases. We now expect to deploy approximately $5.5 billion of capital in 2026 across dividends, acquisitions, and share repurchases, up from $5 billion previously.

Speaker #2: Turning to capital management and our balance sheet, we ended the quarter with total debt of $20.6 billion. Our next scheduled debt maturity is €550 million of euro-denominated senior notes in the third quarter, which we anticipate refinancing with similar euro-denominated notes.

Speaker #2: Our cash position at the end of the second quarter was $1.7 billion. Uses of cash in the quarter totaled $1.4 billion, including $438 million for dividends, $230 million for acquisitions, and $750 million for share repurchases.

Speaker #2: For the first six months, uses of cash totaled $2.7 billion and included $878 million for dividends, $319 million for acquisitions, and $1.5 billion for share repurchases.

Speaker #2: We now expect to deploy approximately $5.5 billion of capital in 2026 across dividends, acquisitions, and share repurchases up from $5 billion previously. The ultimate level of share repurchase will depend on how our M&A pipeline develops.

Mark McGivney: The ultimate level of share repurchase will depend on how our M&A pipeline develops. Earlier this month, we announced a 10% increase in our quarterly dividend, making this our 17th consecutive year of dividend increases, reflecting our solid earnings growth and confidence in our outlook. Turning to our outlook for 2026, we remain well-positioned for another solid year. We continue to expect underlying revenue growth will be similar to the levels we generated in 2025, along with another year of margin expansion and solid adjusted EPS growth. For modeling purposes, we expect more margin expansion in Q4 than in Q3. With that, I am happy to turn it back to John.

Speaker #2: Earlier this month, we announced a 10% increase in our quarterly dividend, making this our 17th consecutive year of dividend increases, reflecting our solid earnings growth and confidence in our outlook.

Speaker #2: Turning to our outlook for 2026, we remain well positioned for another solid year. We continue to expect underlying revenue growth will be similar to the levels we generated in 2025, along with another year of margin expansion and solid adjusted EPS growth.

Speaker #2: For modeling purposes, we expect more margin expansion in the fourth quarter than in the third quarter. With that, I'm happy to turn it back to John.

Speaker #1: Thank you, Mark. Andrew, we're ready to begin Q&A.

John Q. Doyle: Thank you, Mark. Andrew, we're ready to begin Q&A.

John Doyle: Thank you, Mark. Andrew, we're ready to begin Q&A.

Speaker #3: Certainly. We will now begin the question and answer session. If you have a question, please press *11 on your touch-tone phone. If you wish to be removed from the queue, please press *11 again.

Operator: Certainly. We will now begin the question and answer session. If you have a question, please press star 11 on your touchtone phone. If you wish to be removed from the queue, please press star 11 again. If you are using a speakerphone, you may need to pick up the handset before pressing the numbers. Once again, if you have a question, please press star 11 on your touchtone phone. 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 question. One moment please. Our first question comes from the line of Greg Peters with Raymond James.

Speaker #3: If you are using a speakerphone, you may need to pick up the handset before pressing the numbers. Once again, if you have a question, please press star 11 on your touchstone phone.

Speaker #3: 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 question.

Speaker #3: One moment, please. And our first question comes from the line of Greg Peters with Raymond James.

Greg Peters: Good morning, everyone. For the first question, I want to zero in on organic revenue growth at Risk and Insurance Services.

Speaker #4: Good morning, everyone. For the first question, I want to zero in on organic revenue growth at Risk and Insurance Services. I certainly appreciate your pricing commentary and, I guess, the impact on Guy Carpenter as we look forward.

Greg Peters: I certainly appreciate your pricing commentary and I guess the impact on Guy Carpenter. As we look forward, maybe you can help sort of reconcile how you're seeing the drag from pricing, presumably with offsets of new hires and new business wins that helps you get to your organic revenue guidance of similar to last year.

Speaker #4: Maybe you can help sort of reconcile how you're seeing the drag from pricing presumably with offsets of new hires and new business wins that helps you get to your organic revenue guidance of similar to last year.

John Q. Doyle: Greg, good morning. Thanks for the question. I'll share a couple of comments and then maybe I'll ask Nick and Dean to add some color. I thought it was a good solid H1 at Marsh Risk. It was a good quarter. We've seen some improvement in our growth in the United States, which we're excited about. It's been an area of focus for us where we've been hiring production talent there. It was a good H1 of the year for us in adding lateral talent in the United States and elsewhere. We're particularly focused there in the US, and it was a very strong new business quarter for us in the US. In reinsurance, of course, it's not the outcome we want. As Mark noted, our execution was really strong. Big pricing headwinds. Again, we're delivering for our clients. Retention is strong, very strong.

John Doyle: Greg, good morning. Thanks for the question. I'll share a couple of comments and then maybe I'll ask Nick and Dean to add some color. I thought it was a good solid H1 at Marsh Risk. It was a good quarter. We've seen some improvement in our growth in the United States, which we're excited about. It's been an area of focus for us where we've been hiring production talent there. It was a good H1 of the year for us in adding lateral talent in the United States and elsewhere. We're particularly focused there in the US, and it was a very strong new business quarter for us in the US. In reinsurance, of course, it's not the outcome we want. As Mark noted, our execution was really strong. Big pricing headwinds. Again, we're delivering for our clients. Retention is strong, very strong.

Speaker #1: Sure, Greg. And good morning. Thanks for the question. I'll share a couple of comments and then maybe I'll ask Nick and Dean to add some color.

Speaker #1: I thought it was a good, solid first half at Marsh Risk. It was a good quarter. We've seen some improvement in our growth in the United States, which we're excited about.

Speaker #1: It's been an area of focus for us, where we've been hiring production talent there. So it was a good first half of the year for us in adding lateral talent.

Speaker #1: In the United States and elsewhere, but we're particularly focused there in the U.S., and it was a very strong new business quarter for us in the U.S.

Speaker #1: Reinsurance, of course, it's not the outcome we want but as Mark noted, our execution was really strong. Big pricing headwinds. But again, we're delivering for our clients retention is strong, very strong, new business was excellent in the first half and it add that market consolidation, some M&A wasn't helpful to us in the quarter.

John Q. Doyle: New business was excellent in the H1. I'd add that market consolidation, some M&A, wasn't helpful to us in the quarter. We have the largest cat portfolio, cat property portfolio in the market. There's a lot of opportunities for us to grow in reinsurance, and Dean and the team are focused on that. We're excited about what's in front of us in the H2. With that, maybe Nick, you can talk a bit about the growth prospects at Marsh Risk.

John Doyle: New business was excellent in the H1. I'd add that market consolidation, some M&A, wasn't helpful to us in the quarter. We have the largest cat portfolio, cat property portfolio in the market. There's a lot of opportunities for us to grow in reinsurance, and Dean and the team are focused on that. We're excited about what's in front of us in the H2. With that, maybe Nick, you can talk a bit about the growth prospects at Marsh Risk.

Speaker #1: And we have the largest-cap property portfolio in the market. But there's a lot of opportunities for us to grow in reinsurance, and Dean and the team are focused on that.

Speaker #1: And so, we're excited about what's in front of us in the second half. So, with that, maybe Nick, you can talk a bit about the growth prospects at Marsh Risk.

Nick Studer: Greg, Thank you for the question. Very pleased with the performance in the face of those rate headwinds that you mentioned. The really solid organic growth represents a continued focus on innovation for clients as well as on efficiency and execution. If I sort of walk you around the business a little bit. In the US and Canada, accelerated growth. High single-digit new business growth, which John talked about. That was actually double digits in Marsh Risk, coming from a range of businesses, specialties. We had double-digit growth in marine, in transactional risk, in construction, in aviation, in energy and power. A very robust pipeline in digital infrastructure, which affects a number of those specialties. Which is beginning to make a meaningful contribution to growth.

Speaker #5: Greg, yeah, thank you for the question. Very pleased with the performance in the face of those rate headwinds. That growth represents a continued focus on innovation for clients as well as on efficiency and execution.

Speaker #5: If I sort of walk you around the business a little bit, in the US and Canada, accelerated growth, high single-digit new business growth, which John talked about, that was actually double digits in Coming from a range of businesses, specialties, we had double-digit growth in marine, in transactional risk, in construction, in aviation, in energy and power.

Speaker #5: A very robust pipeline in digital infrastructure, which affects a number of those specialties, is beginning to make a meaningful contribution to growth. But also, as you noted, there's continued growth in our sales capacity.

Nick Studer: Also, as you noted, continued growth in our sales capacity, strong hiring in the market, strong growth of sales leaders, a trend which we expect to continue into the H2. Really underpinning the fact that our growth is very broad-based. International GAAP revenue growth of 7%, underlying growth 5% on top of 7% a year ago, with strong growth in LAC, in Asia, and in EMEA, really driven by the UK, which has been growing strongly. The highlights in international, our facultative reinsurance alongside Marsh Re, double-digit growth. Specialties similar to the US and Canada. Double-digit growth in transactional risk in construction, marine, and cyber. Really strong new business growth in Pacific. Really beginning to leverage some of our wholesale capabilities and Marsh Risk capabilities like McGriff MMA in London. All of that makes us confident in our strategy.

Speaker #5: Strong hiring in the market, strong growth of sales leaders—a trend which we expect to continue into the second half. And then, really underpinning the fact that our growth is very broad-based internationally: gap revenue growth of 7%, underlying growth 5% on top of 7% a year ago.

Speaker #5: With strong growth in LAC, in Asia, and in EMEA—really driven by the UK, which has been growing strongly. And the highlights in International: our facultative reinsurance alongside Marsh Re saw double-digit growth; specialties, similar to the US and Canada, achieved double-digit growth in transactional risk and construction, marine, and cyber.

Speaker #5: And really strong new business growth in Pacific. And really beginning to leverage some of our wholesale capabilities and Marsh Risk capabilities like McGriff MMA in London.

Speaker #5: So all of that makes us confident in our strategy. While pricing is down, our clients see more risk, more uncertainty, and more volatility. They have more lumpy problems.

Nick Studer: While pricing is down, our clients see more risk, more uncertainty, and more volatility. They have more lumpy problems they need our help with. We're confident in our strategy in investing in our middle market business and building in fast-growing sectors like digital infrastructure. I could add defense and security and many others. Hiring and cultivating producer talent. Building our facilities, building FastTrack where utilization is progressing well. Really seeking to be both a game-changing risk advisor and an all-connected risk intermediary.

Speaker #5: They need our help with, and we're confident in our strategy and investing in our middle market business, and building in fast-growing sectors like digital infrastructure.

Speaker #5: But I could add defense and security and many others. Hiring and cultivating producer talent, building our facilities, building Fast Track, where utilization is progressing well.

Speaker #5: And really seeking to be both a game-changing risk advisor and an all-connected risk intermediary.

John Q. Doyle: There you go. Thank you, Nick. Dean?

John Doyle: There you go. Thank you, Nick. Dean?

Speaker #1: There you go. Thank you, Nick. Dean?

Speaker #6: Thanks, John. And Greg, maybe a little bit of context for you on Guy Carpenter's results and the reinsurance marketplace. Our negative growth in the quarter and our flat growth for the first half of the year, as John noted, were clearly driven by declining property cat pricing.

Dean Klisura: Thanks, John, and Greg, maybe a little bit of context for you on Guy Carpenter's results and the reinsurance marketplace. Our negative growth in the quarter and our flat growth for the H1 of the year, as John noted, were clearly driven by declining property cat pricing. Our property cat rate online index, which you see every quarter, was down 16% at mid-year, accelerating down from negative 12% at the 1 January renewal, and the steepest year-over-year decline we've observed since the index was created 25 years ago. As you know, as John noted, property is 50% of our global portfolio, and we have the largest property cat book in the global marketplace. We continue to deliver strong execution in a very challenging market. As John noted, despite pricing headwinds, we see strong opportunities to grow moving forward.

Speaker #6: Our property cap rate online index, which you see every quarter, was down 16% at mid-year—accelerating down from negative 12% at the January 1 renewal.

Speaker #6: And the steepest year-over-year decline we've observed since the index was created 25 years ago. And as you know, as John noted, property is 50% of our global portfolio.

Speaker #6: And we have the largest property cap book in the global marketplace. We continue to deliver strong execution in a very challenging market. And as John noted, despite pricing headwinds, we see strong opportunities to grow moving forward.

Speaker #6: We had record new business in the first half of the year—strong double-digit new business growth. Our RFP win rate has never been stronger.

Dean Klisura: We had record new business in the H1 of the year, strong double-digit new business growth. Our RFP win rate has never been stronger. Outside of property, we have a number of businesses that are performing very well. As Nick mentioned, our international facultative business is growing double-digit. Our casualty business continues to grow strong mid-single digits. Capital and advisory continues to deliver strong double-digit growth in M&A advisory, structured deals, sidecars, and other capital structures. We led 20 cat bond issuances in the H1 of the year, totaling $5 billion of limit, a record for Guy Carpenter. We continue to invest in top production talent around the world. We've grown our head count for five straight years, and demand for our advice and solutions from clients has never been stronger.

Speaker #6: And outside of property, we have a number of businesses that are performing very well. As Nick mentioned, our international facultative business is growing double digits.

Speaker #6: Our casually business continues to grow strong mid-single digits. Capital and advisory continues to deliver strong double-digit growth and M&A advisory, structured deals, sidecars, and other capital structures.

Speaker #6: And we led 20 cap bond issuances in the first half of the year totaling $5 billion of limit. A record for Guy Carpenter. We continue to invest in top production talent, around the world.

Speaker #6: We've grown our headcount for five straight years. And demand for our advice and solutions from clients has never been stronger. So what I would sum an upgrade by saying, despite our growth challenges in the first half, we feel great about our team, our talent, our platform, and our prospects for growth moving forward.

Dean Klisura: What I would sum it up, Greg, by saying, despite our growth challenges in the H1, we feel great about our team, our talent, our platform, and our prospects for growth moving forward.

Speaker #1: Thanks, Dean. So Greg, hopefully that was helpful. Some unsurprising headwinds for us from a pricing point of view, but execution is strong and we feel good about our growth prospects as we look ahead.

John Q. Doyle: Thanks, Dan. Greg, hopefully that was helpful. Some unsurprising headwinds for us from a pricing point of view, but execution is strong, and we feel good about our growth prospects as we look ahead. Do you have a follow-up?

John Doyle: Thanks, Dan. Greg, hopefully that was helpful. Some unsurprising headwinds for us from a pricing point of view, but execution is strong, and we feel good about our growth prospects as we look ahead. Do you have a follow-up?

Speaker #1: Do you have a follow-up?

Speaker #3: I do. Thanks. That was good detail. I noticed, John, in your comments, you mentioned token costs and you talked about AI driving growth, productivity, and efficiency.

Greg Peters: I do. Thanks. That was good detail. I noticed, John, in your comments, you mentioned token costs, and you talked about AI driving growth, productivity, and efficiency. I'm just curious how you're looking at the rising costs of technology infrastructure investment and how it might deliver on improving efficiency gains. It seems like from some of the headlines that we're reading, the rising costs might entirely offset the efficiency gains. What are you seeing at your company, please?

Speaker #3: I'm just curious, how you're looking at the rising costs of technologies infrastructure investment and how it might deliver on improving efficiency gains? It seems like from some of the headlines that we're reading, it might the rising costs might entirely offset the efficiency gains, but what are you seeing at your company, please?

Speaker #1: Yeah, thanks for the question. It's an important one. And again, I want to reiterate—obviously there's been lots of questions in the investor community about AI.

John Q. Doyle: Yeah. Thanks for the question. It's an important one. Again, I want to reiterate, obviously, there's been lots of questions in the investor community about AI. We're very excited about AI, the impact it can have on the value that we deliver for our colleagues, for our clients, and for shareholders. We think we're exceptionally well-positioned to be a winner, and I've talked quite a bit about why. We're an early mover, and our CIO, Paul Beswick, has done a terrific job really building the foundation for us to create the value that we talked about. We expected rising costs to become a challenge for us over time. It's why I talked about LenWork in my prepared remarks, which essentially it's an in-house model that's built on third-party LLMs. It's a couple of months behind frontier models in terms of its capabilities, but it's more than adequate.

John Doyle: Yeah. Thanks for the question. It's an important one. Again, I want to reiterate, obviously, there's been lots of questions in the investor community about AI. We're very excited about AI, the impact it can have on the value that we deliver for our colleagues, for our clients, and for shareholders. We think we're exceptionally well-positioned to be a winner, and I've talked quite a bit about why. We're an early mover, and our CIO, Paul Beswick, has done a terrific job really building the foundation for us to create the value that we talked about. We expected rising costs to become a challenge for us over time. It's why I talked about LenWork in my prepared remarks, which essentially it's an in-house model that's built on third-party LLMs. It's a couple of months behind frontier models in terms of its capabilities, but it's more than adequate.

Speaker #1: We're very excited about AI, the impact it can have on the value that we deliver for our colleagues, for our clients, and for shareholders.

Speaker #1: And we think we're exceptionally well-positioned to be a winner. And I've talked quite a bit about why. But and our we're an early mover.

Speaker #1: And our CIO, Paul Beswick, has done a terrific job really building the foundation for us to create the value that we talked about. We expected rising costs to become a challenge for us over time.

Speaker #1: That's why I talked about Lendwork in my prepared remarks, which is essentially an in-house model that's built on third-party LLMs. It's a couple of months behind frontier models in terms of its capabilities.

Speaker #1: But it's more than adequate. In fact, it's quite capable to do the overwhelming amount of work that our colleagues need from AI at the moment.

John Q. Doyle: It's quite capable to do the overwhelming amount of work that our colleagues need from AI at the moment. It's a low-cost, very efficient model for us, and we're quite excited about that. Now, of course, when we need to do other work that requires the most contemporary models in the marketplace, and that happens probably most inside of Oliver Wyman and at Mercer, we'll supplement our work by engaging with third-party models. We're excited about the path we're on. So far, the growth from AI has mostly come into Oliver Wyman. As Nick pointed out, we're starting to see more and more growth and opportunity in digital infrastructure, and that ecosystem is driving some good growth for us. We're also excited about the efficiency gains.

John Doyle: It's quite capable to do the overwhelming amount of work that our colleagues need from AI at the moment. It's a low-cost, very efficient model for us, and we're quite excited about that. Now, of course, when we need to do other work that requires the most contemporary models in the marketplace, and that happens probably most inside of Oliver Wyman and at Mercer, we'll supplement our work by engaging with third-party models. We're excited about the path we're on. So far, the growth from AI has mostly come into Oliver Wyman. As Nick pointed out, we're starting to see more and more growth and opportunity in digital infrastructure, and that ecosystem is driving some good growth for us. We're also excited about the efficiency gains.

Speaker #1: And so, it's a low-cost, very efficient model for us, and we're quite excited about that. Now, of course, when we need to do other work that requires the most contemporary models in the marketplace—and that happens probably most inside of Oliver Wyman and at Mercer—we'll supplement our work by engaging with third-party models.

Speaker #1: So we're excited about the path we're on. So far, the growth from AI is mostly come from or come into Oliver Wyman. As Nick pointed out, we're starting to see more and more growth and opportunity in digital infrastructure.

Speaker #1: And that ecosystem is driving some good growth for us. But we're also excited about the efficiency gains. I talked about the partnership between our team at OW and AWS to really attack some of the mid and back office work that we do.

John Q. Doyle: I talked about the partnership between our team at OW and AWS to really attack some of the mid- and back-office work that we do. It's early days on that front, but we're excited about it. Excuse me. Andrew, next question, please.

John Doyle: I talked about the partnership between our team at OW and AWS to really attack some of the mid- and back-office work that we do. It's early days on that front, but we're excited about it. Excuse me. Andrew, next question, please.

Speaker #1: And so it's early days on that front, but we're excited about it. Excuse me. Andrew, next question, please.

Speaker #5: Our next question comes from the line of Mike Zaremski with BMO Capital Markets.

Operator: Our next question comes from the line of Michael Zaremski with BMO Capital Markets.

Michael Zaremski: Hey. Great. Good morning. In terms of some of your comments today and earlier in the year about kind of reinvesting in growth, any texture you'd be willing to provide on kind of producer headcount growth? Are you targeting mid-single digits, high single digits? Do those producers, should we think about their contribution to organic kind of phasing in over the next one to two years, or is it more front-loaded, et cetera? Thanks.

Mike Zaremski: Hey. Great. Good morning. In terms of some of your comments today and earlier in the year about kind of reinvesting in growth, any texture you'd be willing to provide on kind of producer headcount growth? Are you targeting mid-single digits, high single digits? Do those producers, should we think about their contribution to organic kind of phasing in over the next one to two years, or is it more front-loaded, et cetera? Thanks.

Speaker #7: Hey, Greg. Good morning. In terms of some of your comments today and earlier in the year about kind of reinvesting in growth, any texture you'd be willing to provide on producer headcount growth?

Speaker #7: Are you targeting kind of mid-single digits, high-single digits, and should we think about those producers' contributions to organic—kind of phasing in over the next one to two years?

Speaker #7: Or is it more front and loaded, etc.? Thanks.

Speaker #1: Yeah, thanks, Mike, for the question. As I mentioned briefly in Greg's question, it was a good first half for us in attracting production talent in key markets.

John Q. Doyle: Yeah. Thanks, Mike, for the question. As I mentioned briefly in Greg's question, it was a good H1 for us in attracting production talent in key markets. Our brand for talent is excellent in the markets that we operate in and compete. We have the best talent here in our company, but we see the opportunity to get even stronger. I would point out our colleague retention is very strong. Our colleague engagement is excellent, and it's all anchored by a very strong, deliberate, and transparent colleague value proposition, a conversation that we have with our colleagues and with talent that's considering to work here. Our investments in AI are another example of how we can make it even more attractive to work at our company.

John Doyle: Yeah. Thanks, Mike, for the question. As I mentioned briefly in Greg's question, it was a good H1 for us in attracting production talent in key markets. Our brand for talent is excellent in the markets that we operate in and compete. We have the best talent here in our company, but we see the opportunity to get even stronger. I would point out our colleague retention is very strong. Our colleague engagement is excellent, and it's all anchored by a very strong, deliberate, and transparent colleague value proposition, a conversation that we have with our colleagues and with talent that's considering to work here. Our investments in AI are another example of how we can make it even more attractive to work at our company.

Speaker #1: Our brand for talent is excellent in the markets that we operate in and compete. We have the best talent here in our company. But we see the opportunity to get even stronger and I would point out our colleague retention is very strong.

Speaker #1: Our colleague engagement is excellent. And it's all anchored by a very strong and deliberate and transparent colleague value proposition of conversation that we have with our colleagues and with talent that's considering to work here.

Speaker #1: And our investments in AI are another example of how we can make it even more attractive to work at our company. As I said, I don't want to get into every quarter reporting on, kind of, how many people and all of that.

John Q. Doyle: As I said, I don't want to get into every quarter reporting on kind of how many people and all of that. It was a good H1, and we expect that to continue. Our pipeline for talent remains quite strong. We're going to continue to get at that. That's not the only source of improving the growth rate of the company, of course. We do other things that will drive growth, including expanding capabilities and including through M&A. It is an important source of growth for us, and we did have a good H1. Do you have a follow-up, Mike?

John Doyle: As I said, I don't want to get into every quarter reporting on kind of how many people and all of that. It was a good H1, and we expect that to continue. Our pipeline for talent remains quite strong. We're going to continue to get at that. That's not the only source of improving the growth rate of the company, of course. We do other things that will drive growth, including expanding capabilities and including through M&A. It is an important source of growth for us, and we did have a good H1. Do you have a follow-up, Mike?

Speaker #1: But it was a good first half, and we expect that to continue. Our pipeline for talent remains quite strong, so we're going to continue to get at that.

Speaker #1: That's not the only source of improving the growth rate of the company, of course. We do other things that will drive growth, including expanding capabilities and including through M&A, but it is an important source of growth for us.

Speaker #1: And we did have a good first half. Do you have a follow-up, Mike?

Speaker #7: Yes. Thanks, John. Also, in your prepared remarks, you continued to highlight some of the I think some risk manager-facing analytics capabilities you all are investing in.

Michael Zaremski: Yes. Thanks, John. Also, in your prepared remarks, you continued to highlight, I think, some risk manager-facing analytics capabilities you all are investing in. One of your direct competitors publicly talked about seeing a 40% higher sales win rate using their newer upgraded analyzers. That seemed like a big jump in RFP win rate. Just curious, are you all continuing to invest in your analytics and continuing to upgrade them to keep up with competitors? Do you feel like you're in a great spot? Just curious if there is any more texture there. Thanks.

Mike Zaremski: Yes. Thanks, John. Also, in your prepared remarks, you continued to highlight, I think, some risk manager-facing analytics capabilities you all are investing in. One of your direct competitors publicly talked about seeing a 40% higher sales win rate using their newer upgraded analyzers. That seemed like a big jump in RFP win rate. Just curious, are you all continuing to invest in your analytics and continuing to upgrade them to keep up with competitors? Do you feel like you're in a great spot? Just curious if there is any more texture there. Thanks.

Speaker #7: And one of your direct competitors publicly talked about seeing a 40% higher sales win rate using their newer, upgraded analyzers. That seemed like a big jump in RFP win rate.

Speaker #7: Just curious, are you all continuing to kind of invest in your analytics and continue to upgrade them to kind of keep up with competitors?

Speaker #7: Or do you feel like you're in a great spot? Just any curious of any more texture there. Thanks.

Speaker #1: Yeah. I haven't seen anybody in the market report 40% growth rates, so I'm a little bit skeptical there. But we're not trying to keep up with the market.

John Q. Doyle: Yeah. I haven't seen anybody in the market report 40% growth rates, I'm a little bit skeptical there. We're not trying to keep up with the market. We're leading the market and continuing to extend our leading spot in the market. I talked about the suite of analytics under the brand of Companion, the Marsh Risk Companion Suite, that we rolled out at RIMS, an AI-enabled application. I think another great example as why as an incumbent and a market leader, we're positioned to be an AI winner. The feedback we got from the rollout of that was tremendous. I was actually in our cafe at RIMS to witness it firsthand and to sit through some demos with some clients. We're continuing to invest in that.

John Doyle: Yeah. I haven't seen anybody in the market report 40% growth rates, I'm a little bit skeptical there. We're not trying to keep up with the market. We're leading the market and continuing to extend our leading spot in the market. I talked about the suite of analytics under the brand of Companion, the Marsh Risk Companion Suite, that we rolled out at RIMS, an AI-enabled application. I think another great example as why as an incumbent and a market leader, we're positioned to be an AI winner. The feedback we got from the rollout of that was tremendous. I was actually in our cafe at RIMS to witness it firsthand and to sit through some demos with some clients. We're continuing to invest in that.

Speaker #1: We're leading the market and continuing to extend our leading spot in the market. I talked about the suite of analytics. Under the brand of Companion, the MarshRisk Companion suite that we rolled out at Rims.

Speaker #1: And AI enabled applications. So I think another great example as why as an incumbent and a market leader, we're positioned to be an AI winner.

Speaker #1: The feedback we got from the rollout of that was tremendous. And I was actually in our cafe at Rims to witness it firsthand and to sit through some demos with some clients.

Speaker #1: So, we're continuing to invest in that. We have a big advantage in data, as I mentioned, and AI just creates new opportunities for us to help our clients understand their risks, model those risks, and benchmark those risks—compared to anonymized, of course—but compared to others in the industries that they compete with. Set their risk appetites, right?

John Q. Doyle: We have a big advantage in data, as I mentioned. AI just creates new opportunities for us to help our clients understand their risks, model those risks, benchmark those risks, anonymized, of course, but compared to others in the industries that they compete with, set their risk appetites, right. Then think about risk financing. When we finance risk, we do it through captives, we do it through traditional insurers, we do it through alternative capital. These are all the reasons why we're so well positioned to continue to deliver for our clients. Thanks, Mike. Next question, Andrew.

John Doyle: We have a big advantage in data, as I mentioned. AI just creates new opportunities for us to help our clients understand their risks, model those risks, benchmark those risks, anonymized, of course, but compared to others in the industries that they compete with, set their risk appetites, right. Then think about risk financing. When we finance risk, we do it through captives, we do it through traditional insurers, we do it through alternative capital. These are all the reasons why we're so well positioned to continue to deliver for our clients. Thanks, Mike. Next question, Andrew.

Speaker #1: And then think about risk financing. And then when we finance risk, we do it through captives. We do it through traditional insurers. We do it through we do it through alternative capital.

Speaker #1: And so these are all the reasons why we're so well-positioned to continue to deliver for our clients. Thanks, Mike. Next question, Andrew.

Operator: Our next question comes from the line of Brian Meredith with UBS.

Speaker #5: Our next question comes from the line of Brian Meredith with UBS.

Speaker #7: Yes, thanks. John, first question—I'm just curious, with respect to capital management here and investing capital: If I look at your M&A in the first half, it's been relatively modest, let's call it, versus the free cash flow.

Brian Meredith: Yeah, thanks, Tom. First question. I'm just curious, with respect to capital management here and investing capital, if I look at your M&A in H1, it's been relatively modest, let's call it, versus the free cash flow. As we look out H2 of the year, do you expect maybe a pickup here, maybe as bid-ask spreads, call it narrow? Was there anything in H1 that maybe caused M&A to be a little lighter than expected?

Speaker #7: As we look out second half of the year, do you expect maybe a pickup here, maybe a bit as spreads, call it narrow? Is there anything in the first half that maybe caused them maybe a little lighter than expected?

Speaker #1: I hope it asks narrow, but it has gaps narrow, but I'm not sure I'm ready to call that yet. In fact, I would say there's still a bit of a at least between what I think strategics might consider the right price and maybe some financial sponsors.

John Q. Doyle: I hope bid asks narrow, bid-ask gaps narrow, I'm not sure I'm ready to call that yet. In fact, I would say there's still a bit of a at least between what I think strategics might consider the right price and maybe some financial sponsors. We'll see. I would point out, we had previously announced AltamarCAM and Alts Manager that we're excited to add to our investments business at Mercer. That's expected to close in H2, subject to regulatory approval. On 1 July, we closed on Asterra, a business in Spain that we had a minority stake in previously. We're excited about both of those businesses. We're very active in the market. Aside from the gaps growing, we've even seen some assets just come off the market entirely.

John Doyle: I hope bid asks narrow, bid-ask gaps narrow, I'm not sure I'm ready to call that yet. In fact, I would say there's still a bit of a at least between what I think strategics might consider the right price and maybe some financial sponsors. We'll see. I would point out, we had previously announced AltamarCAM and Alts Manager that we're excited to add to our investments business at Mercer. That's expected to close in H2, subject to regulatory approval. On 1 July, we closed on Asterra, a business in Spain that we had a minority stake in previously. We're excited about both of those businesses. We're very active in the market. Aside from the gaps growing, we've even seen some assets just come off the market entirely.

Speaker #1: But we'll see. I would point out, I mean, we had previously announced AltaMarkham and Alts Manager that we're excited to add to our investments business at Mercer.

Speaker #1: That's expected to close in the second half, subject to regulatory approval. On July 1st, we closed on Astera, a business in Spain that we had a minority stake in previously.

Speaker #1: So we're excited about both of those businesses. We're very active in the market, but aside from the gaps growing, we've even seen some assets just come off the market entirely.

John Q. Doyle: Of course, we're going to remain as disciplined as we've always been. Our strategy is the same, right? We have a balanced approach. We do want to invest in our business. That's going to drive growth going forward. Obviously, we increased buybacks in H1. We also announced an increase in our dividend by 10%. As Mark noted in his prepared remarks, we expect to deploy now $5.5 billion of capital throughout the year. The strategy remains the same. Again, we're going to continue to be active in the market, but you're right, it was a bit slower in terms of what we were able to close on in H1.

Speaker #1: And of course, we're going to remain as disciplined as we've always been. Our strategy is the same, right? We have a balanced approach. We do want to invest in our business that's going to drive growth going forward.

John Doyle: Of course, we're going to remain as disciplined as we've always been. Our strategy is the same, right? We have a balanced approach. We do want to invest in our business. That's going to drive growth going forward. Obviously, we increased buybacks in H1. We also announced an increase in our dividend by 10%. As Mark noted in his prepared remarks, we expect to deploy now $5.5 billion of capital throughout the year. The strategy remains the same. Again, we're going to continue to be active in the market, but you're right, it was a bit slower in terms of what we were able to close on in H1.

Speaker #1: So, obviously, we increased buybacks in the first half. We also announced an increase in our dividend by 10%. As Mark noted in his prepared remarks, we expect to deploy now $5.5 billion of capital throughout the year.

Speaker #1: And so the strategy remains the same. We're again, we're going to continue to be active in the market, but you're right. It was a bit slower in terms of what we're able to close on in the first half.

Brian Meredith: Right.

John Q. Doyle: Do you have a follow-up, Brian?

John Doyle: Do you have a follow-up, Brian?

Speaker #1: Do you have a follow-up, Brian?

Brian Meredith: Yeah, absolutely. Marsh Management Consulting, thanks for the guidance on Q3, Mark, maybe a little more color on Q2. Were there any kind of big one-time success fees, or was this AI related? Was it the big organic revenue growth in the quarter?

Speaker #7: Yeah. Absolutely. Yeah. So Marsh Management Consulting, thanks for the guidance on third quarter. Mark, but maybe a little more color on second quarter. Were there any kind of one big one of a one-time success.

Speaker #7: Fees or is this AI-related the big organic revenue growth in the quarter?

Speaker #1: Yeah. I mean, Brian, we're very excited, obviously, about that growth. Ted and the team have been executing well. It's an incredibly complex environment that businesses are operating through.

John Q. Doyle: Yeah. Brian, we're very excited obviously about that growth. Ted and the team have been executing well. It's an incredibly complex environment that businesses are operating through. The opportunities for us to not only help clients understand the risks and manage those risks more effectively, but to capitalize on the opportunities amidst the complexity and all the change, that drives opportunity for us in our consulting businesses. We're doing quite well at it. Ted, maybe you can share a bit of color on what's driving demand.

John Doyle: Yeah. Brian, we're very excited obviously about that growth. Ted and the team have been executing well. It's an incredibly complex environment that businesses are operating through. The opportunities for us to not only help clients understand the risks and manage those risks more effectively, but to capitalize on the opportunities amidst the complexity and all the change, that drives opportunity for us in our consulting businesses. We're doing quite well at it. Ted, maybe you can share a bit of color on what's driving demand.

Speaker #1: So, the opportunities for us to not only help clients understand the risks and manage those risks more effectively, but to capitalize on the opportunities amidst the complexity and all the change—that drives opportunity for us in our consulting businesses.

Speaker #1: And we're doing quite well at that. But Ted, maybe you can share a bit of color on what's driving demand.

Speaker #3: Yeah. Sure. Hi, Brian. Look, in answer to your question, actually, it was pretty broad growth. We saw growth in all regions. We saw growth in most business lines.

Ted Moynihan: Yeah, sure. Hi, Brian. Look, in answer to your question, actually, it was pretty broad growth. We saw growth in all regions. We saw growth in most business lines. The strongest growth was in Europe and in Asia, by region, by industry and energy, insurance, telco, transportation. If you look at the kind of service offering side, for sure our strongest growth by some distance was in Quotient, which is in our AI strategic advisory team. We also saw a lot of activity in efficiency related work more broadly. Several deals in M&A where we're doing pre-deal work and post-merger integration. We saw significant growth in private equity, in capital deployment as well. Pretty broad base.

Speaker #3: The strongest growth was in Europe and in Asia. By region, by industry, and energy, insurance, telco, transportation. If you look at the kind of service offering side, for sure, our strongest growth by some distance was in quotient, which is in our AI strategic advisory team.

Speaker #3: But we also saw a lot of activity in efficiency-related work more broadly. Several deals in M&A where we're doing pre-deal work and post-merger integration.

Speaker #3: And we saw significant growth in private equity in capital deployment as well. So pretty broad-based.

Speaker #1: Thank you, Brian. Andrew, we have the next question, please.

John Q. Doyle: Thank you, Brian. Andrew, may I have the next question, please?

John Doyle: Thank you, Brian. Andrew, may I have the next question, please?

Operator: Yes. Our next question comes from the line of Rob Cox with Goldman Sachs.

Speaker #5: Yes. Our next question comes from the line of Rob Cox with Goldman Sachs.

Speaker #6: Hey. Thanks. Good morning. Yeah. Just wanted to ask about the strong growth in international within Marsh Risk. It's a positive mid-single digits. And I know Marsh is by no means a pricing index, but the pricing headwinds for at least the larger accounts in the international geographies seem to be a pretty strong headwind that you're growing strongly against.

Rob Cox: Hey, thanks. Good morning. Yeah, just wanted to ask about the

Rob Cox: the strong growth in international within Marsh Risk. It's positive mid-single digits. I know Marsh is by no means a pricing index, the pricing headwinds for at least the larger accounts in the international geographies seem to be a pretty strong headwind that you're growing strongly against. Is it fair to say the average client in your client base is seeing lower rate decreases than some of these numbers that you guys have quoted in indices? How should we think about organic growth resilience there?

Speaker #6: So is it fair to say the average client in your client base is seeing lower rate decreases than some of these numbers that you guys have quoted in the indicy?

Speaker #6: And how should we think about organic growth resilience there?

Speaker #1: Yeah. Thanks, Rob. Actually, the rate change is down more, or price change is down more in international, generally speaking. Obviously, it's not one market.

John Q. Doyle: Yeah. Thanks, Rob. Actually, the rate change is down more, or price change is down more in international, generally speaking. Obviously, it's not one market, it's a collection of markets by geography, by product, and there's a range of issues, of course, driving price competition. Broadly speaking, pricing in international is down more. Of course, in the US, I talked about excess casualty pricing still up in the mid-teens, which is really a reflection of the very challenging litigation environment and liability environment here in the US. Of course, there are bigger protection gaps in the US. We're attacking the middle market more in other parts of the world. All driving big opportunities for us to grow. We're excited about how we're positioned. Nick, I don't know if you have any more color you want to add to that.

John Doyle: Yeah. Thanks, Rob. Actually, the rate change is down more, or price change is down more in international, generally speaking. Obviously, it's not one market, it's a collection of markets by geography, by product, and there's a range of issues, of course, driving price competition. Broadly speaking, pricing in international is down more. Of course, in the US, I talked about excess casualty pricing still up in the mid-teens, which is really a reflection of the very challenging litigation environment and liability environment here in the US. Of course, there are bigger protection gaps in the US. We're attacking the middle market more in other parts of the world. All driving big opportunities for us to grow. We're excited about how we're positioned. Nick, I don't know if you have any more color you want to add to that.

Speaker #1: It's a collection of markets—by geography, by product, and a range of issues, of course, driving price competition. But broadly speaking, pricing in International is down more.

Speaker #1: Of course, in the US, I talked about excess casualty pricing still up in the mid-teens, which is really a reflection of the very challenging litigation and liability environment here in the US.

Speaker #1: Of course, there are bigger protection gaps in the U.S. We're attacking the middle market more in other parts of the world, all driving big opportunities for us to grow, and so we're excited about how we're positioned. Nick, I don't know if you have any more color you want to add to that.

Speaker #3: Yeah, Rob, I'd just say it's similar to my comments earlier on. Our clients face a really complicated world. So while pricing is down—and that's good for our clients after quite a few years previously of tougher market pricing—they have big, messy challenges. You take something like Pacific, where we saw very strong new business growth.

Nick Studer: Yeah. Rob, I'd just say it's similar to my comments earlier on. Our clients face a really complicated world. While pricing is down, and that's good for our clients after quite a few years previously of tougher market pricing, they have big, messy challenges. You take something like Pacific, where we saw very strong new business growth. As John alluded to, pricing headwinds were pretty high, led by property, but really across the board. There's no one more capable of solving large risk management and risk transfer type problems. Those are the things that are driving growth. I also think that we are just working more smartly across regions and across capabilities to make sure we're connecting our clients' risks to all the available sources of capital which we can connect them to. Dean and I both talked about fac.

Speaker #3: As John alluded to, pricing headwinds were pretty high—led by property, but really across the board. But there's no one more capable of solving large risk management and risk transfer type problems, and so those are the things that are driving growth.

Speaker #3: I also think that we are just working more smartly across regions and across capabilities to make sure we're connecting our clients' risks to all the available sources of capital which we can connect them to.

Speaker #3: So Dean and I both talked about FAC. We talked about I talked about some of the wholesale market activity which we've been seeking to channel to MMA McGriffin London and those kind of things.

Nick Studer: I talked about some of the wholesale market activity, which we've been seeking to channel to MMA in London and those kind of things. Just in general, we're working the system harder. Yeah, there's lots of risk out there. We're seeing growth, I listed it out earlier, but across a range of products and specialties.

Speaker #3: So just in general, we're working the system harder. But yeah, there's lots of risk out there, and we're seeing growth—I listed it out earlier—but across a range of products and specialties.

Speaker #1: Thanks, Nick. Rob, do you have a follow-up?

John Q. Doyle: Thanks, Nick. Rob, do you have a follow-up?

John Doyle: Thanks, Nick. Rob, do you have a follow-up?

Speaker #6: Yeah, that's very helpful. And if I could just follow up on international—I think last quarter you guys mentioned limited impact from the Middle East conflict overall, unresolved.

Rob Cox: Yeah, that's very helpful. If I could just follow up on international. I think last quarter you guys mentioned limited impact from the Middle East conflict overall on results. How did that trend this quarter, and if you have any expectations for H2 of the year?

Speaker #6: How did that trend this quarter, and do you have any expectations for the back half of the year?

Speaker #1: Yeah, thanks, Rob. I mean, first and foremost, I want to give a shout-out to our over 2,500 colleagues throughout the region. I mean, I can't be more proud of their resilience.

John Q. Doyle: Yeah. Thanks, Rob. First and foremost, I want to give a shout-out to our over 2,500 colleagues throughout the region. I can't be more proud of their resilience. I talked about the tragedy that unfolded in Venezuela more recently with the earthquakes. Our colleagues all throughout the Middle East have just been incredible, and they continue to deliver for our clients there. The mix of business for us is different in that region. Our consulting business is much larger than, or meaningfully larger anyway, than our risk business. Sales slowed a bit in Q2, and that fed a little bit into what we pointed to in terms of H2 growth in consulting. We're still working our way through what's quite a healthy backlog. The impact so far has been limited, and that continued through Q2.

John Doyle: Yeah. Thanks, Rob. First and foremost, I want to give a shout-out to our over 2,500 colleagues throughout the region. I can't be more proud of their resilience. I talked about the tragedy that unfolded in Venezuela more recently with the earthquakes. Our colleagues all throughout the Middle East have just been incredible, and they continue to deliver for our clients there. The mix of business for us is different in that region. Our consulting business is much larger than, or meaningfully larger anyway, than our risk business. Sales slowed a bit in Q2, and that fed a little bit into what we pointed to in terms of H2 growth in consulting. We're still working our way through what's quite a healthy backlog. The impact so far has been limited, and that continued through Q2.

Speaker #1: I talked about the tragedy that unfolded in Venezuela more recently with the earthquakes, but our colleagues all throughout the Middle East have just been incredible, and they continue to deliver for our clients there.

Speaker #1: The mix of business for us is different and in that region, our consulting business is much larger than or meaningfully larger anyway than our risk business.

Speaker #1: Sales slowed a bit in the second quarter, and that fed a little bit into what we pointed to in terms of second-half growth in consulting.

Speaker #1: But we're still working our way through what's quite a healthy backlog, and the impact so far has been limited, and that continued through the second quarter. But if current conditions persist for many months, that obviously could change over time. And what I was also saying, apart from our colleagues' resilience, is that our clients' resilience is remarkable too.

John Q. Doyle: If current conditions persist for many months, that obviously could change over time. What I would also say, apart from our colleagues' resilience, it's our clients' resilience is remarkable too. They're all doing the best they can to proceed as if business is as usual. Of course, it's not. It's really remarkable what we're seeing across the region. So far, so good. Again, we're incredibly well-positioned in that region, and we're excited about the growth from that region for our business over time. We'll see how it goes, but it's been quite manageable so far. Thank you, Rob. Andrew, next question, please.

John Doyle: If current conditions persist for many months, that obviously could change over time. What I would also say, apart from our colleagues' resilience, it's our clients' resilience is remarkable too. They're all doing the best they can to proceed as if business is as usual. Of course, it's not. It's really remarkable what we're seeing across the region. So far, so good. Again, we're incredibly well-positioned in that region, and we're excited about the growth from that region for our business over time. We'll see how it goes, but it's been quite manageable so far. Thank you, Rob. Andrew, next question, please.

Speaker #1: I mean, they're all doing the best they can to proceed as if business is as usual. Of course, it's not, but it's really remarkable what we're seeing across the region.

Speaker #1: So, so far so good. Again, we're incredibly well positioned in that region, and we're excited about the growth from that region for our business over time.

Speaker #1: And we'll see how it goes, but it's been quite manageable so far. Thank you, Rob. Andrew, next question, please.

Operator: Next question comes from the line of Meyer Shields with KBW.

Speaker #5: The next question comes from the line of Mayor Shields with KBW.

Speaker #6: Great. Thanks so much. Good morning.

Meyer Shields: Great. Thanks so much. Good morning. Mark, can we get a little color on what underlies that $500 million increase in deployable capital?

Speaker #4: Mark, can we get a little color on what underlies that $500 million increase in deployable capital?

Mark McGivney: Meyer, when we come into the year, there's a lot of uncertainty in the outlook. We start with a number we feel good about. As we've talked about through six months, our results are tracking really well with our expectations. We also came into the year with a little extra cash on our balance sheets. It's really as simple as that. We just got more conviction about our outlook for the year. At this point, we see more like $5.5 billion than the $5 billion we guided to earlier.

Speaker #7: Mark, when we come into the year, there's a lot of uncertainty in the outlook. So we start with a number we feel good about, and as we've talked about, through six months our results are tracking really well with our expectations.

Speaker #7: We also came into the year with a little extra cash on our balance sheet. It's really as simple as that. We've just got more conviction about our outlook for the year.

Speaker #7: And so at this point, we see more like 5.5 billion than the 5 billion we got it to earlier.

Speaker #4: Okay.

Meyer Shields: Okay.

John Q. Doyle: Yeah. Follow-up, Meyer? Yeah.

John Doyle: Yeah. Follow-up, Meyer? Yeah.

Speaker #1: No follow-up.

Speaker #4: Yeah. Just a quick one. I was hoping to get an update on the percentage of the Marsh book that's represented by the Marsh pricing index.

Meyer Shields: Yeah. Just a quick one.

John Q. Doyle: Yeah.

John Doyle: Yeah.

Meyer Shields: I was hoping to get an update on the percentage of the Marsh book that's represented by the Marsh Pricing Index.

Speaker #1: Well, it's effectively kind of XMMA, right? Now, I mean, we do have data into MMA, where, in the U.S., pricing is relatively stable. And at least historically, that market has operated within kind of a tighter band up and down from year to year.

John Q. Doyle: Well, it's effectively kind of ex MMA, right? Now, we do have data into MMA where in the US, pricing is relatively stable. At least historically, that market has operated within kind of a tighter band up and down from year to year. Effectively that's what's excluded from it. Thank you, Meyer. Andrew, next question. Andrew, are you there? Operator, are you there?

John Doyle: Well, it's effectively kind of ex MMA, right? Now, we do have data into MMA where in the US, pricing is relatively stable. At least historically, that market has operated within kind of a tighter band up and down from year to year. Effectively that's what's excluded from it. Thank you, Meyer. Andrew, next question. Andrew, are you there? Operator, are you there?

Speaker #1: And so effectively, that's what's excluded from it. Thank you, Mayor. Andrew, next question. Andrew, are you there? Operator, are you there?

Operator: Yes. Our next question comes from the line of Alex Scott with Barclays.

Speaker #5: Yes. Our next question comes from the line of Alex Scott with Mark, please.

Speaker #6: Hi, good morning. The first one I had for you is on the competition for talent. If you could provide commentary around the margin improvement expectations you have, and how much you're expecting from some of the efficiency initiatives that you've got going on versus maybe an offset from this war for talent that we've all been hearing about.

Alex Scott: Hi, good morning. First one I had for you is on the competition for talent, just if you could provide commentary around the margin improvement expectations you have and how much you're expecting from some of the efficiency initiatives that you've got going on, versus maybe an offset from this war for talent that we've all been hearing about.

John Q. Doyle: Yes. You're doing two for one here? I'll go. On the talent front, I'll start with that, I mentioned this earlier. We have the best team in the market, we're excited about that. We had a good H1 in terms of adding production talent in key markets, I love the fact that you all are asking about people because people do matter out there. That's what makes our company go. Our brand for talent and attracting talent in the market is excellent, we have a colleague value proposition that, again, leads to a very transparent dialogue. It's about our culture, it's about the work that we do, it's about the learning and development opportunities, mobility, of course, rewards, important part of why we all come here.

John Doyle: Yes. You're doing two for one here? I'll go. On the talent front, I'll start with that, I mentioned this earlier. We have the best team in the market, we're excited about that. We had a good H1 in terms of adding production talent in key markets, I love the fact that you all are asking about people because people do matter out there. That's what makes our company go. Our brand for talent and attracting talent in the market is excellent, we have a colleague value proposition that, again, leads to a very transparent dialogue. It's about our culture, it's about the work that we do, it's about the learning and development opportunities, mobility, of course, rewards, important part of why we all come here.

Speaker #1: Okay. So you want the you're doing two for one here. I'll go on the talent front, I'll start with that and I mentioned this earlier.

Speaker #1: We have the best team in the market, and we're excited about that. We had a good first half in terms of adding production talent in key markets, and I love the fact that you all are asking about people, because people do matter.

Speaker #1: That's what makes our company. That is what makes our company go. But our brand for talent and attracting talent in the market is excellent.

Speaker #1: And we have a colleague value proposition that, again, leads to a very transparent dialogue and it's about our culture. It's about the work that we do.

Speaker #1: It's about the learning and development opportunities, mobility, and, of course, rewards—an important part of why we all come here. And fundamentally, what we talk about is we want our colleagues to be their best at Marsh.

John Q. Doyle: Fundamentally, what we talk about is we want our colleagues to be their best at Marsh. That's what it's all about. Lots of headlines in trade press about talent wars. Our colleague retention data wouldn't support that there's something new from that would say that it's a war compared to other markets for talent. It's a competitive market for talent. That's good. I'm good with that. I like how we're positioned to compete in that respect. Of course, there's been team raids and unethical conduct in the market, which I think is probably what's really behind some of those headlines. We feel very good about how we're positioned and how we attract talent in the market. In terms of margin, Mark talked about it in his prepared remarks. We expect margin improvement for the year.

John Doyle: Fundamentally, what we talk about is we want our colleagues to be their best at Marsh. That's what it's all about. Lots of headlines in trade press about talent wars. Our colleague retention data wouldn't support that there's something new from that would say that it's a war compared to other markets for talent. It's a competitive market for talent. That's good. I'm good with that. I like how we're positioned to compete in that respect. Of course, there's been team raids and unethical conduct in the market, which I think is probably what's really behind some of those headlines. We feel very good about how we're positioned and how we attract talent in the market. In terms of margin, Mark talked about it in his prepared remarks. We expect margin improvement for the year.

Speaker #1: And so that's what it's all about. There are lots of headlines and trade press about talent wars. Our colleague retention data wouldn't support that—there's nothing new from that which would indicate it's a war compared to other markets for talent.

Speaker #1: It's a competitive market for talent. That's good. I'm good with that. I like how we're positioned to compete. In that respect, of course, there's been team raids and unethical conduct in the market, which I think is probably what's really behind some of those headlines.

Speaker #1: But we feel very good about how we're positioned and how we attract talent in the market. In terms of margin, Mark talked about it and is prepared.

Speaker #1: Mark, we expect margin improvement for the year. We've always cautioned in the past about over-indexing on any quarter's results. We had expected to make some investments in the first half of this year, and we did that, as I just talked about.

John Q. Doyle: We've always cautioned in the past about over-indexing on any quarter results. We had expected to make some investments in the H1 of this year, we did that, as I just talked about, talent investments primarily. We also expected the property market to be a bit challenging, property reinsurance market, I mean. Of course, that was the case. We've talked in the past about BCS, our shared ops and tech team that's really coming together under the leadership of Paul Beswick. The team there is doing a terrific job. We've been doing more right shoring, automation, in my prepared remarks, I talked about some of the productivity and efficiency gains from AI. We're excited about all that, we're going to obviously look to deliver here in the H2. Next question, Andrew.

John Doyle: We've always cautioned in the past about over-indexing on any quarter results. We had expected to make some investments in the H1 of this year, we did that, as I just talked about, talent investments primarily. We also expected the property market to be a bit challenging, property reinsurance market, I mean. Of course, that was the case. We've talked in the past about BCS, our shared ops and tech team that's really coming together under the leadership of Paul Beswick. The team there is doing a terrific job. We've been doing more right shoring, automation, in my prepared remarks, I talked about some of the productivity and efficiency gains from AI. We're excited about all that, we're going to obviously look to deliver here in the H2. Next question, Andrew.

Speaker #1: Talent investments primarily. And we also expect that the property market to be a bit challenging and property reinsurance market. I mean, and of course, that was the case, but we've talked in the past about BCS, our shared ops and tech team.

Speaker #1: That's really coming together under the leadership of Paul Beswick to the team there is doing a terrific job. So we've been doing more right shoring, automation, and in my prepared remarks, I talked about some of the productivity and efficiency gains from AI.

Speaker #1: And so we're excited about all that, and we're going to obviously look to deliver here in the second half. Next question, Andrew.

Speaker #5: Certainly. Our next question comes from the line of David Motomaton with Evercore ISI.

Operator: Certainly. Our next question comes from the line of David Motemaden with Evercore ISI.

Speaker #6: Hey, thanks. Good morning. John, I was hoping maybe you could just talk a little bit specifically about retention. Within Marsh Risk, US Canada, specifically.

David Motemaden: Hey, thanks. Good morning. John, I was hoping maybe you could just talk a little bit specifically about retention within Marsh Risk, US, Canada specifically. I think over the past few quarters and this quarter as well, you've talked about strong new business, but haven't heard much on the retention front. I was hoping you'd comment on that.

Speaker #6: I think over the past few quarters, and this quarter as well, you've talked about strong new business, but I haven't heard much on the retention front.

Speaker #6: So, I was hoping you could comment on that.

Speaker #1: Yeah. Retention has been solid. It's not been something to crow about. I think the bigger achievement has been for us in new business strength.

John Q. Doyle: Yeah. Retention's been solid. It's not been something to crow about. I think the bigger achievement has been for us in new business strength. Of course, it's a very active M&A market, not just in the insurance market, but in fact, it's much more active outside of insurance markets. That's created some retention challenges. Overall, retention remains quite solid in the US and outside of US, I would note. Do you have a follow-up, David?

John Doyle: Yeah. Retention's been solid. It's not been something to crow about. I think the bigger achievement has been for us in new business strength. Of course, it's a very active M&A market, not just in the insurance market, but in fact, it's much more active outside of insurance markets. That's created some retention challenges. Overall, retention remains quite solid in the US and outside of US, I would note. Do you have a follow-up, David?

Speaker #1: And so of course, it's a very active M&A market. Not just in the insurance market, but in fact, it's much more active outside of insurance markets.

Speaker #1: That's created some retention challenges, but overall retention remains quite solid—in the US and outside of the US, I would note. Do you have a follow-up, David?

Speaker #6: Yeah, thanks for that. And maybe just on the Health business within Mercer this quarter, I was surprised by the 3%—that's the first sub-4% growth quarter we've had in several years.

David Motemaden: Yeah. Thanks for that. Maybe just on the health business within Mercer this quarter.

John Q. Doyle: Yep.

John Doyle: Yep.

David Motemaden: I was surprised, the 3%, that's the first sub 4% growth quarter we've had in several years, and below the 6% where you guys have been running on an organic basis. I know you guys called out international as being strong, so that implies the US may have been a little weak. Just hoping to get some color around what specifically decelerated within the health business.

Speaker #6: And below the 6% where you guys have been running on an organic basis. So I know you guys called out international as being strong, so that implies the US may have been a little weak.

Speaker #6: But just hoping to get some color around what specifically decelerated within the health within the business.

John Q. Doyle: Sure. It's probably a good example of where new business has been quite strong, and retention has just been kind of more ordinary in a market where obviously medical inflation's creating lots of strain for employers. You're right, David, our growth in international was good. I'll ask Pat to talk a bit more about it.

John Doyle: Sure. It's probably a good example of where new business has been quite strong, and retention has just been kind of more ordinary in a market where obviously medical inflation's creating lots of strain for employers. You're right, David, our growth in international was good. I'll ask Pat to talk a bit more about it.

Speaker #1: Sure. Sure. It's probably a good example of where new business has been quite strong and retention is just been kind of more ordinary in a market where obviously medical inflation's creating lots of strain for employers.

Speaker #1: But you're right, David. Our growth in International is good. Let me—I'll ask Pat to talk a bit more about it.

Speaker #4: Sure. And thanks, David, for the question. So we've been pleased with the growth momentum that we've had in health over the last several years as you highlighted, right, with the we've actually had five plus percent growth over the last few years each quarter.

Pat Tomlinson: Sure. Thanks, David, for the question. Listen, we've been pleased with the growth momentum that we've had in health over the last several years, as you highlighted, right? We've actually had 5-plus % growth over the last few years each quarter. While this quarter did go to 3%, right, and it is below that, let me start by cautioning against extrapolating too much from any single quarter. We think that the 5% that we delivered in the H1 is probably a better reflection of the underlying growth profile of the overall business. Overall, from a strategy perspective, we're out there providing innovative and tailored solutions to our clients. There's a lot of demand for them. We're expanding the functionality of our digitally enabled tools. We're now live in over 100 countries.

Speaker #4: And while this quarter did go to three, right, and it is below that, let me start by cautioning against extrapolating too much from any single quarter.

Speaker #4: We think that the 5% that we delivered in the first half is probably a better reflection of the underlying growth profile of the overall business.

Speaker #4: Overall, from a strategy perspective, we're out there providing innovative intelligence solutions to our clients. There's a lot of demand for them, and we're expanding the functionality of our digitally enabled tools.

Speaker #4: We're now live in over 100 countries. You highlighted "international" as part of your question, and we've been very active in expanding our tools and our capabilities around the world.

Pat Tomlinson: You highlight international as part of your question, we have been very active in expanding our tools and our capabilities around the world, to enable the consultants to be able to drive this technical advice in real time with them, be able to sharpen their focus on the client segmentation in different areas around the world, both multinational, large, and mid-market. You highlighted international and US. I want to talk a second about multinationals, because we have an awful lot of US multinationals that we're spending a lot of time with driving growth, and winning global benefits management deals with. We built facilities around the world that are leveraging that large global broad network that we built, where we've got best-in-class brokerage locally in the countries.

Speaker #4: To enable the consultants to be able to drive this technical advice in real time, with them being able to sharpen their focus on client segmentation in different areas around the world, both multinational, large, and mid-market.

Speaker #4: You highlighted international and US. I want to talk a second about multinationals because we have an awful lot of US multinationals that we're spending a lot of time with driving growth and winning global benefits management deals with.

Speaker #4: We've built facilities around the world that are leveraging that large, global, broad network that we've built, where we've got best-in-class brokerage locally in the countries.

Speaker #4: I would say the solutions are really resonating with our larger global benefits management opportunities, both in continental Europe as well as in the US, with the large employers driving more value for those clients—bringing together the local and multinational advisory capabilities that we've built, combining brokerage and consulting.

Pat Tomlinson: I would say the solutions are really resonating with our larger global benefits management opportunities, both in continental Europe but as well as really in the US with the large employers, driving more value for those clients, bringing together the local and multinational advisory capabilities that we built, combination of brokerage and consulting to really help them navigate costs and then access to care around the world. I would say overall, we have a very positive outlook on the growth trajectory of the business. We expect the growth momentum to continue. We've got good strong macros and client demand supporting the value that we bring to clients.

Speaker #4: To really help them navigate costs and access to care around the world. So, I would say overall we have a very positive outlook on the growth trajectory of the business.

Speaker #4: We expect the growth momentum to continue. We've got good, strong macros and client demand, supporting the value that we bring to clients.

John Q. Doyle: Thanks, David, for that question. Our outlook remains positive in health. Andrew, next question, please.

Speaker #1: Yeah. Thanks, David, for that question. Our outlook remains positive in health. So Andrew, next question, please.

John Doyle: Thanks, David, for that question. Our outlook remains positive in health. Andrew, next question, please.

Speaker #5: Our next question comes from the line of Elise Greenspan with Wells Fargo.

Operator: Our next question comes from the line of Elyse Greenspan with Wells Fargo.

Elyse Greenspan: Hi, thanks. Good morning. My first question, just going back to Guy Carpenter. You guys were obviously unable to offset the rate headwind on that business like in prior quarters. Just given the current pricing environment, would you expect negative organic within that business for the foreseeable future?

Speaker #6: Hi. Thanks. Good morning. My first question just going back to Guy Carpenter. You guys were obviously unable to offset the rate headwind on that business in prior quarters.

Speaker #6: So just given the current pricing environment, would you expect negative organic within that business for the foreseeable future?

John Q. Doyle: Thanks, Elyse. As I mentioned, it wasn't just price, of course. We're impacted a bit by market consolidation, which wasn't helpful to us. Dean mentioned some of the opportunities for growth, not just in H2, but looking ahead and in fact, in casualty and M&A advisory, all the alternative capital work. We're excited about that. I wouldn't look too far forward in terms of what happened in Q2 and a flat H1. Even in H2, our mix of business is different than what it was. It's obviously a much smaller H2, but it's a different mix of business than H1. You have a follow-up, Elyse?

John Doyle: Thanks, Elyse. As I mentioned, it wasn't just price, of course. We're impacted a bit by market consolidation, which wasn't helpful to us. Dean mentioned some of the opportunities for growth, not just in H2, but looking ahead and in fact, in casualty and M&A advisory, all the alternative capital work. We're excited about that. I wouldn't look too far forward in terms of what happened in Q2 and a flat H1. Even in H2, our mix of business is different than what it was. It's obviously a much smaller H2, but it's a different mix of business than H1. You have a follow-up, Elyse?

Speaker #1: Thanks, Elise. As I mentioned, it wasn't just price, of course. We were impacted a bit by market consolidation, which wasn't helpful to us.

Speaker #1: But Dean mentioned some of the opportunities for growth, not just in the second half, but looking ahead—in fact, in casualty and M&A advisory, all the alternative capital work.

Speaker #1: And so we're excited about that. I wouldn't look too far forward in terms of what happened in the second quarter.

Speaker #1: It was a flat first half. And even in the second half, our mix of business is different than what it was. It's obviously a much smaller second half, but it's a different mix of business than the first half.

Speaker #1: Do you have a follow-up, Elise?

Speaker #6: Thanks. Yeah, thanks. And then my second question was on the US and Canada. We were just hoping to get a little bit more color on the contribution from data centers, as well as M&A and transactional-type business.

Elyse Greenspan: Yeah, thanks. My second question was on the US and Canada. Was just hoping to get a little bit more color on the contribution, just from data centers as well as M&A to transactional type business in Q2, and how you think about both of those contributions going forward.

Speaker #6: In the second quarter, and how you think about both of those contributions going forward.

Speaker #1: Yeah, both digital infrastructure and TR transaction risk were important drivers of growth for us in the first half and in the second quarter, so we feel good about it.

John Q. Doyle: Yeah. Both digital infrastructure and TR, transaction risk, were important drivers of growth for us in H1 and in Q2. We feel good about it. We've been in the TR business, obviously for many, many years. The growth and investment, obviously, in the digital infrastructure ecosystem is also an area that has been a focus of ours for some time. It's not just insurance, I would point out. Our consulting business, our investment operations, and Mercer Investments had an outstanding quarter. We're very excited about how that business is positioned. We have a unique capability set. Advising on contracts and SLAs between the various parties is an important part of it. Business interruption mapping and modeling is important work.

John Doyle: Yeah. Both digital infrastructure and TR, transaction risk, were important drivers of growth for us in H1 and in Q2. We feel good about it. We've been in the TR business, obviously for many, many years. The growth and investment, obviously, in the digital infrastructure ecosystem is also an area that has been a focus of ours for some time. It's not just insurance, I would point out. Our consulting business, our investment operations, and Mercer Investments had an outstanding quarter. We're very excited about how that business is positioned. We have a unique capability set. Advising on contracts and SLAs between the various parties is an important part of it. Business interruption mapping and modeling is important work.

Speaker #1: Digital infrastructure has been—we’ve been in the TR business, obviously, for many, many years. The growth and investment, obviously, in the digital infrastructure ecosystem is also an area that has been a focus of ours for some time.

Speaker #1: And it's not just insurance, I would point out. Our consulting business, our investment operations, and Mercer Investments had an outstanding quarter. We're very excited about how that business is positioned.

Speaker #1: But we have a unique capability set and so advising on contracts and SLAs between the various parties is an important part of it. Business interruption mapping and modeling is important work.

Speaker #1: I talked in my prepared remarks about some of the energy-related issues and the counterparty credit exposures that utilities have to some of these data center owners.

John Q. Doyle: I talked in my prepared remarks about some of the energy-related issues, and the counterparty credit exposures that utilities have to some of these data center owners. It was a good contribution in Q2, and we have, as Nick pointed out, a very robust pipeline going forward.

John Doyle: I talked in my prepared remarks about some of the energy-related issues, and the counterparty credit exposures that utilities have to some of these data center owners. It was a good contribution in Q2, and we have, as Nick pointed out, a very robust pipeline going forward.

Speaker #1: And so it was a good contribution in the second quarter. And we have a very, as Nick pointed out, a very robust pipeline going forward.

Speaker #5: Thank you.

John Q. Doyle: Thank you, Elyse.

John Doyle: Thank you, Elyse.

Speaker #1: Thank you, Elise. Andrew, one more.

John Q. Doyle: Andrew, one more?

John Doyle: Andrew, one more?

Operator: Certainly. Our next question comes from the line of Pablo Singzon with J.P. Morgan.

Speaker #5: Certainly. Our next question comes from the line of Pablo Singson with J.P. Morgan.

Pablo Singzon: Oh, hi. Thanks for squeezing me in. I wanted to follow up on one of your comments about leveraging more of your internal wholesaling capabilities, and I'm actually more interested in how your counterparties are acting as you're internalizing more of that function, right? Any commentary you can provide on the willingness of E&S insurers to deal with you directly rather than a wholesaler, and sort of how is your relationship with the wholesaling community evolving? Thanks.

Speaker #3: Oh, hi. Thanks for squeezing me in. I wanted to follow up on one of your comments about leveraging more of your internal tools and capabilities.

Speaker #3: And I'm actually more interested in how your counterparties are acting as your internalizing more of that function, right? So any commentary you can provide on the willingness of Enos Insurance to deal with you directly rather than a wholesaler and sort of how is your relationship with the wholesaling community evolving?

Speaker #3: Thanks.

Speaker #1: Yeah. I mean, of course, it's not a robust moment for the E&S market, as property pricing is under pressure and more business has migrated back to the admitted marketplace.

John Q. Doyle: Of course, it's not a robust moment for the E&S market as property pricing is under pressure and more business has migrated back to the admitted marketplace. I think Nick mentioned when he was talking about some of the growth opportunities for us. When we acquire agencies in the middle market here in the United States, we typically pick up a trail of third-party wholesale business, and some of those companies have chosen to compete with us in places. We created a desk for MMA and McGriff in the London market, which has been driving a bit of growth for us and enabled us to bring back some business from third parties in the London market.

John Doyle: Of course, it's not a robust moment for the E&S market as property pricing is under pressure and more business has migrated back to the admitted marketplace. I think Nick mentioned when he was talking about some of the growth opportunities for us. When we acquire agencies in the middle market here in the United States, we typically pick up a trail of third-party wholesale business, and some of those companies have chosen to compete with us in places. We created a desk for MMA and McGriff in the London market, which has been driving a bit of growth for us and enabled us to bring back some business from third parties in the London market.

Speaker #1: But I think Nick mentioned when he was talking about some of the growth opportunities for us. So when we acquire agencies in the middle market here in the United States, we typically pick up a trail of third-party wholesale business and some of those companies have chosen to compete with us in places.

Speaker #1: And so we created a desk for MMA and McGriff in the London market, which has been driving a bit of growth for us and enabled us to bring back some business from third parties in the London market.

Speaker #1: So, we're not looking to build a third-party wholesale business, but we have exceptional specialty talent. The third-party wholesalers do a nice job for us, but we want to use them when we need to use them.

John Q. Doyle: We're not looking to build a third-party wholesale business, and we have exceptionally specialty talent, and the third-party wholesalers do a nice job for us, but we want to use them when we need to use them. Do you have a follow-up, Pablo, before we wrap up?

John Doyle: We're not looking to build a third-party wholesale business, and we have exceptionally specialty talent, and the third-party wholesalers do a nice job for us, but we want to use them when we need to use them. Do you have a follow-up, Pablo, before we wrap up?

Speaker #1: Do you have a follow-up, Pablo, before we wrap up?

Speaker #3: Yeah. Just one quick one. On the wealth business, how much of the revenues there are tied to markets and just generic type fees that are maybe tied to cases or headcount?

Pablo Singzon: Just one quick one. On the wealth business, how much of the revenues there are tied to markets and just generic type fees that are maybe tied to cases or headcount? Thank you.

Speaker #3: Thank you.

John Q. Doyle: Thanks for that question. It was an excellent quarter, and obviously, markets were strong, but we had an excellent new business quarter. Pat, very briefly.

Speaker #1: Yeah, thanks for that question. It was an excellent quarter, and obviously markets were strong, but we had an excellent new business quarter. Pat, very briefly.

John Doyle: Thanks for that question. It was an excellent quarter, and obviously, markets were strong, but we had an excellent new business quarter. Pat, very briefly.

Speaker #4: Yeah. Listen, we're really pleased with where we are on the wealth business. We've been able to build on a lot of the recent acquisitions we've made to enhance our capabilities over the last couple of years.

Pat Tomlinson: Yeah. Listen, we're really pleased with where we were on the wealth business. We've been able to build on a lot of the recent acquisitions we've made to enhance our capabilities over the last couple of years. We've also done a great job increasing the partnership across the firm, working with Guy Carpenter, Marsh Risk, Marsh Management Consulting, to raise capital and develop different solutions. Mark mentioned the AUM growth. We're pleased with the AUM growth, up 26%, up to $846 billion. I will highlight, we also continue to see really strong growth in investment consulting, where assets under advisement, not paid-for basis points, more fees, is up to $16 trillion. Right? We are having big impact in the market.

Speaker #4: We've also done a great job increasing the partnership across the firm, working with Guy Carpenter, Marsh Risk, Marsh Management Consulting. To raise capital, and develop different solutions.

Speaker #4: Mark mentioned the AUM growth. We're pleased with the AUM growth, up 26% to $846 billion. But I will highlight we also continue to see really strong growth in investment consulting.

Speaker #4: We're assets under advisement, not paid firm basis points. More fees is up to $16 trillion, right? So we are having a big impact in the market.

Speaker #1: Thank you, Pat. Thank you, Pablo. Thank you all for joining us this morning. I want to thank our colleagues for their dedication to Marsh, and our clients for their continued support.

John Q. Doyle: Thank you, Pat, and thank you, Pablo. Thank you all for joining us this morning. I want to thank our colleagues for their dedication to Marsh and our clients for their continued support. We thank you all very much, and we look forward to speaking with you again next quarter. Andrew, back to you.

John Doyle: Thank you, Pat, and thank you, Pablo. Thank you all for joining us this morning. I want to thank our colleagues for their dedication to Marsh and our clients for their continued support. We thank you all very much, and we look forward to speaking with you again next quarter. Andrew, back to you.

Speaker #1: We thank you all very much, and we look forward to speaking with you again next quarter. Andrew, back to you.

Operator: Thank you. Ladies and gentlemen, this does conclude today's program. You may now disconnect.

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