The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 10 and 25 years. The Company utilizes these leased office facilities for use by its employees in countries in which the Company conducts its business. The Company’s leases have no restrictions on the payment of dividends, the acquisition of debt or additional lease obligations, or entering into additional lease obligations. The leases also do not contain significant purchase options.

Operating leases are recognized on the consolidated balance sheets as ROU assets and operating lease liabilities based on the present value of the remaining future minimum payments over the lease term at the commencement date of the lease. On November 15, 2024, the Company recorded approximately $76 million of ROU assets and lease liabilities from the McGriff acquisition.

In 2025 and 2024, the Company determined that a total of $11 million and $15 million, respectively, of the ROU assets were impaired and recorded a charge to the consolidated statements of income with an offsetting reduction to the ROU assets.


For the Years Ended December 31, (In millions, except weighted average data)	2025			2024
Lease Cost:
Operating lease cost (a)	$	351		$	331
Short-term lease cost	5			6
Variable lease cost	134			116
Sub-lease income	(22)			(15)
Net lease cost	$	468		$	438
Other information:
Operating cash outflows from operating leases	$	402		$	376
Right of use assets obtained in exchange for new operating lease liabilities	$	187		$	279
Weighted average remaining lease term – real estate	7.23 years			7.57 years

Weighted average discount rate – real estate leases	3.73		%	3.73		%


(In millions)	Real Estate Leases
2026	$	393
2027	359
2028	281
2029	233
2030	199
Subsequent years	653
Total future lease payments	2,118
Less: imputed interest	(256)
Total	$	1,862
Current lease liabilities	$	333
Long-term lease liabilities	1,529
Total lease liabilities	$	1,862

Note: The above table excludes obligations for leases with original terms of 12 months or less which have not been recognized as a ROU asset or liability in the consolidated balance sheets.

At December 31, 2025, the Company had additional operating leases that had not yet commenced of $36 million. These operating leases will commence over the next 12 months.