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Segment Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information

17.  Segment Information

We have three reportable segments: brokerage, risk management and corporate.  

The brokerage segment is primarily comprised of our retail and wholesale insurance brokerage operations.  The brokerage segment generates revenues through commissions paid by underwriting enterprises and through fees charged to our clients.  Our brokers, agents and administrators act as intermediaries between underwriting enterprises and our clients and we do not assume net underwriting risks.

The risk management segment provides contract claim settlement and administration services for enterprises and public entities that choose to self-insure some or all of their property/casualty coverages and for underwriting enterprises that choose to outsource some or all of their property/casualty claims departments. These operations also provide claims management, loss control consulting and insurance property appraisal services.  Revenues are principally generated on a negotiated per-claim or per-service fee basis.  Our risk management segment also provides risk management consulting services that are recognized as the services are delivered.

The corporate segment manages our clean energy and other investments.  In addition, the corporate segment reports the financial information related to our debt and other corporate costs, external acquisition-related expenses and the impact of foreign currency translation.  

Allocations of investment income and certain expenses are based on reasonable assumptions and estimates primarily using revenue, headcount and other information.  We allocate the provision for income taxes to the brokerage and risk management segments using the local country statutory rates.  Reported operating results by segment would change if different methods were applied.

Financial information relating to our segments for the three-month periods ended March 31, 2021 and 2020 is as follows (in millions):

 

 

Three-month period ended

March 31,

 

 

2021

 

 

2020

 

Brokerage

 

 

 

 

 

 

 

Total revenues

$

1,610.2

 

 

$

1,435.6

 

Earnings before income taxes

$

480.3

 

 

$

410.8

 

Identifiable assets at March 31, 2021 and 2020

$

21,242.3

 

 

$

18,115.1

 

Risk Management

 

 

 

 

 

 

 

Total revenues

$

252.7

 

 

$

249.5

 

Earnings before income taxes

$

24.1

 

 

$

25.6

 

Identifiable assets at March 31, 2021 and 2020

$

1,028.1

 

 

$

909.8

 

Corporate

 

 

 

 

 

 

 

Total revenues

$

302.1

 

 

$

181.8

 

Loss before income taxes

$

(96.0

)

 

$

(80.4

)

Identifiable assets at March 31, 2021 and 2020

$

2,144.1

 

 

$

1,811.6

 

Total

 

 

 

 

 

 

 

Total revenues

$

2,165.0

 

 

$

1,866.9

 

Earnings before income taxes

$

408.4

 

 

$

356.0

 

Identifiable assets at March 31, 2021 and 2020

$

24,414.5

 

 

$

20,836.5

 

 

Disaggregation of Revenue

We disaggregate our revenue from contracts with clients by type and geographic location for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

Revenues by type and segment for the three-month period ended March 31, 2021 are as follows (in millions):

 

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions

 

$

1,125.4

 

 

$

—

 

 

$

—

 

 

$

1,125.4

 

Fees

 

 

333.6

 

 

 

220.2

 

 

 

—

 

 

 

553.8

 

Supplemental revenues

 

 

66.8

 

 

 

—

 

 

 

—

 

 

 

66.8

 

Contingent revenues

 

 

63.3

 

 

 

—

 

 

 

—

 

 

 

63.3

 

Investment income

 

 

17.0

 

 

 

0.1

 

 

 

—

 

 

 

17.1

 

Net gains on divestitures

 

 

4.1

 

 

 

—

 

 

 

—

 

 

 

4.1

 

Revenues from clean coal activities

 

 

—

 

 

 

—

 

 

 

300.6

 

 

 

300.6

 

Other net revenues

 

 

—

 

 

 

—

 

 

 

1.5

 

 

 

1.5

 

Revenues before reimbursements

 

 

1,610.2

 

 

 

220.3

 

 

 

302.1

 

 

 

2,132.6

 

Reimbursements

 

 

—

 

 

 

32.4

 

 

 

—

 

 

 

32.4

 

Total revenues

 

$

1,610.2

 

 

$

252.7

 

 

$

302.1

 

 

$

2,165.0

 

 


 

Revenues by geographical location and segment for the three-month period ended March 31, 2021 are as follows (in millions):

 

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

1,106.6

 

 

$

207.5

 

 

$

302.1

 

 

$

1,616.2

 

United Kingdom

 

 

292.4

 

 

 

11.1

 

 

 

—

 

 

 

303.5

 

Australia

 

 

54.0

 

 

 

29.0

 

 

 

—

 

 

 

83.0

 

Canada

 

 

67.5

 

 

 

1.4

 

 

 

—

 

 

 

68.9

 

New Zealand

 

 

32.5

 

 

 

3.7

 

 

 

—

 

 

 

36.2

 

Other foreign

 

 

57.2

 

 

 

—

 

 

 

—

 

 

 

57.2

 

Total revenues

 

$

1,610.2

 

 

$

252.7

 

 

$

302.1

 

 

$

2,165.0

 

 

 

Revenues by type and segment for the three-month period ended March 31, 2020 are as follows (in millions):

 

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions

 

$

1,017.2

 

 

$

—

 

 

$

—

 

 

$

1,017.2

 

Fees

 

 

295.8

 

 

 

211.5

 

 

 

—

 

 

 

507.3

 

Supplemental revenues

 

 

59.0

 

 

 

—

 

 

 

—

 

 

 

59.0

 

Contingent revenues

 

 

45.1

 

 

 

—

 

 

 

—

 

 

 

45.1

 

Investment income

 

 

18.3

 

 

 

0.3

 

 

 

—

 

 

 

18.6

 

Net gains on divestitures

 

 

0.2

 

 

 

—

 

 

 

—

 

 

 

0.2

 

Revenues from clean coal activities

 

 

—

 

 

 

—

 

 

 

181.8

 

 

 

181.8

 

Revenues before reimbursements

 

 

1,435.6

 

 

 

211.8

 

 

 

181.8

 

 

 

1,829.2

 

Reimbursements

 

 

—

 

 

 

37.7

 

 

 

—

 

 

 

37.7

 

Total revenues

 

$

1,435.6

 

 

$

249.5

 

 

$

181.8

 

 

$

1,866.9

 

 

 

Revenues by geographical location and segment for the three-month period ended March 31, 2020 are as follows (in millions):

 

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

1,005.9

 

 

$

212.7

 

 

$

181.8

 

 

$

1,400.4

 

United Kingdom

 

 

254.5

 

 

 

11.4

 

 

 

—

 

 

 

265.9

 

Australia

 

 

43.1

 

 

 

21.6

 

 

 

—

 

 

 

64.7

 

Canada

 

 

56.2

 

 

 

1.0

 

 

 

—

 

 

 

57.2

 

New Zealand

 

 

28.0

 

 

 

2.8

 

 

 

—

 

 

 

30.8

 

Other foreign

 

 

47.9

 

 

 

—

 

 

 

—

 

 

 

47.9

 

Total revenues

 

$

1,435.6

 

 

$

249.5

 

 

$

181.8

 

 

$

1,866.9