XML 43 R30.htm IDEA: XBRL DOCUMENT v3.22.0.1
Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information

22.  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 (which comprises our retail P/C, wholesale, reinsurance, benefits and captive operations) 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 2021, 2020 and 2019 is as follows (in millions):

 

Year Ended December 31, 2021

 

Brokerage

 

 

Risk

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions

 

$

4,132.3

 

 

$

—

 

 

$

—

 

 

$

4,132.3

 

Fees

 

 

1,296.9

 

 

 

967.2

 

 

 

—

 

 

 

2,264.1

 

Supplemental revenues

 

 

248.7

 

 

 

—

 

 

 

—

 

 

 

248.7

 

Contingent revenues

 

 

188.0

 

 

 

—

 

 

 

—

 

 

 

188.0

 

Investment income

 

 

82.8

 

 

 

0.3

 

 

 

—

 

 

 

83.1

 

Net gains on divestitures

 

 

18.8

 

 

 

0.1

 

 

 

—

 

 

 

18.9

 

Revenue from clean coal activities

 

 

—

 

 

 

—

 

 

 

1,140.8

 

 

 

1,140.8

 

Other net revenues

 

 

—

 

 

 

—

 

 

 

0.5

 

 

 

0.5

 

Revenues before reimbursements

 

 

5,967.5

 

 

 

967.6

 

 

 

1,141.3

 

 

 

8,076.4

 

Reimbursements

 

 

—

 

 

 

133.0

 

 

 

—

 

 

 

133.0

 

Total revenues

 

 

5,967.5

 

 

 

1,100.6

 

 

 

1,141.3

 

 

 

8,209.4

 

Compensation

 

 

3,252.4

 

 

 

580.7

 

 

 

94.4

 

 

 

3,927.5

 

Operating

 

 

757.9

 

 

 

209.8

 

 

 

104.7

 

 

 

1,072.4

 

Reimbursements

 

 

—

 

 

 

133.0

 

 

 

—

 

 

 

133.0

 

Cost of revenues from clean coal activities

 

 

—

 

 

 

—

 

 

 

1,173.2

 

 

 

1,173.2

 

Interest

 

 

—

 

 

 

—

 

 

 

226.1

 

 

 

226.1

 

Loss on extinguishment of debt

 

 

—

 

 

 

—

 

 

 

16.2

 

 

 

16.2

 

Depreciation

 

 

87.8

 

 

 

46.2

 

 

 

17.2

 

 

 

151.2

 

Amortization

 

 

407.6

 

 

 

7.5

 

 

 

—

 

 

 

415.1

 

Change in estimated acquisition earnout payables

 

 

116.3

 

 

 

3.3

 

 

 

—

 

 

 

119.6

 

Total expenses

 

 

4,622.0

 

 

 

980.5

 

 

 

1,631.8

 

 

 

7,234.3

 

Earnings (loss) before income taxes

 

 

1,345.5

 

 

 

120.1

 

 

 

(490.5

)

 

 

975.1

 

Provision (benefit) for income taxes

 

 

328.9

 

 

 

30.6

 

 

 

(339.4

)

 

 

20.1

 

Net earnings (loss)

 

 

1,016.6

 

 

 

89.5

 

 

 

(151.1

)

 

 

955.0

 

Net earnings attributable to noncontrolling interests

 

 

8.4

 

 

 

—

 

 

 

39.8

 

 

 

48.2

 

Net earnings (loss) attributable to controlling interests

 

$

1,008.2

 

 

$

89.5

 

 

$

(190.9

)

 

$

906.8

 

Net foreign exchange loss

 

$

(1.7

)

 

$

—

 

 

$

(0.6

)

 

$

(2.3

)

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

3,804.8

 

 

$

910.7

 

 

$

1,141.3

 

 

$

5,856.8

 

United Kingdom

 

 

1,199.0

 

 

 

46.0

 

 

 

—

 

 

 

1,245.0

 

Australia

 

 

252.6

 

 

 

123.5

 

 

 

—

 

 

 

376.1

 

Canada

 

 

302.2

 

 

 

5.8

 

 

 

—

 

 

 

308.0

 

New Zealand

 

 

162.4

 

 

 

14.6

 

 

 

—

 

 

 

177.0

 

Other foreign

 

 

246.5

 

 

 

—

 

 

 

—

 

 

 

246.5

 

Total revenues

 

$

5,967.5

 

 

$

1,100.6

 

 

$

1,141.3

 

 

$

8,209.4

 

At December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identifiable assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

15,548.3

 

 

$

790.7

 

 

$

2,489.6

 

 

$

18,828.6

 

United Kingdom

 

 

8,251.3

 

 

 

134.1

 

 

 

—

 

 

 

8,385.4

 

Australia

 

 

1,684.2

 

 

 

84.7

 

 

 

—

 

 

 

1,768.9

 

Canada

 

 

1,436.1

 

 

 

4.4

 

 

 

—

 

 

 

1,440.5

 

New Zealand

 

 

754.5

 

 

 

20.5

 

 

 

—

 

 

 

775.0

 

Other foreign

 

 

2,146.6

 

 

 

—

 

 

 

—

 

 

 

2,146.6

 

Total identifiable assets

 

$

29,821.0

 

 

$

1,034.4

 

 

$

2,489.6

 

 

$

33,345.0

 

Goodwill - net

 

$

8,544.6

 

 

$

100.9

 

 

$

20.7

 

 

$

8,666.2

 

Amortizable intangible assets - net

 

 

3,906.1

 

 

 

47.9

 

 

 

—

 

 

 

3,954.0

 

 

 

Year Ended December 31, 2020

 

Brokerage

 

 

Risk

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions

 

$

3,591.9

 

 

$

—

 

 

$

—

 

 

$

3,591.9

 

Fees

 

 

1,136.9

 

 

 

821.0

 

 

 

—

 

 

 

1,957.9

 

Supplemental revenues

 

 

221.9

 

 

 

—

 

 

 

—

 

 

 

221.9

 

Contingent revenues

 

 

147.0

 

 

 

—

 

 

 

—

 

 

 

147.0

 

Investment income

 

 

75.2

 

 

 

0.7

 

 

 

—

 

 

 

75.9

 

Net losses on divestitures

 

 

(5.8

)

 

 

—

 

 

 

—

 

 

 

(5.8

)

Revenue from clean coal activities

 

 

—

 

 

 

—

 

 

 

863.5

 

 

 

863.5

 

Other net losses

 

 

—

 

 

 

—

 

 

 

(0.4

)

 

 

(0.4

)

Revenues before reimbursements

 

 

5,167.1

 

 

 

821.7

 

 

 

863.1

 

 

 

6,851.9

 

Reimbursements

 

 

—

 

 

 

151.7

 

 

 

—

 

 

 

151.7

 

Total revenues

 

 

5,167.1

 

 

 

973.4

 

 

 

863.1

 

 

 

7,003.6

 

Compensation

 

 

2,882.5

 

 

 

517.5

 

 

 

66.5

 

 

 

3,466.5

 

Operating

 

 

687.2

 

 

 

162.6

 

 

 

56.7

 

 

 

906.5

 

Reimbursements

 

 

—

 

 

 

151.7

 

 

 

—

 

 

 

151.7

 

Cost of revenues from clean coal activities

 

 

—

 

 

 

—

 

 

 

882.1

 

 

 

882.1

 

Interest

 

 

—

 

 

 

—

 

 

 

196.4

 

 

 

196.4

 

Depreciation

 

 

73.5

 

 

 

49.4

 

 

 

22.2

 

 

 

145.1

 

Amortization

 

 

411.3

 

 

 

6.0

 

 

 

—

 

 

 

417.3

 

Change in estimated acquisition earnout payables

 

 

(29.7

)

 

 

(3.2

)

 

 

—

 

 

 

(32.9

)

Total expenses

 

 

4,024.8

 

 

 

884.0

 

 

 

1,223.9

 

 

 

6,132.7

 

Earnings (loss) before income taxes

 

 

1,142.3

 

 

 

89.4

 

 

 

(360.8

)

 

 

870.9

 

Provision (benefit) for income taxes

 

 

276.3

 

 

 

22.5

 

 

 

(286.0

)

 

 

12.8

 

Net earnings (loss)

 

 

866.0

 

 

 

66.9

 

 

 

(74.8

)

 

 

858.1

 

Net earnings attributable to noncontrolling interests

 

 

4.9

 

 

 

—

 

 

 

34.4

 

 

 

39.3

 

Net earnings (loss) attributable to controlling interests

 

$

861.1

 

 

$

66.9

 

 

$

(109.2

)

 

$

818.8

 

Net foreign exchange loss

 

$

(2.6

)

 

$

(0.1

)

 

$

(0.2

)

 

$

(2.9

)

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

3,369.4

 

 

$

816.4

 

 

$

863.1

 

 

$

5,048.9

 

United Kingdom

 

 

993.7

 

 

 

40.7

 

 

 

—

 

 

 

1,034.4

 

Australia

 

 

216.1

 

 

 

98.4

 

 

 

—

 

 

 

314.5

 

Canada

 

 

243.8

 

 

 

5.3

 

 

 

—

 

 

 

249.1

 

New Zealand

 

 

141.8

 

 

 

12.6

 

 

 

—

 

 

 

154.4

 

Other foreign

 

 

202.3

 

 

 

—

 

 

 

—

 

 

 

202.3

 

Total revenues

 

$

5,167.1

 

 

$

973.4

 

 

$

863.1

 

 

$

7,003.6

 

At December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identifiable assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

8,897.9

 

 

$

716.2

 

 

$

2,172.2

 

 

$

11,786.3

 

United Kingdom

 

 

6,135.1

 

 

 

139.2

 

 

 

—

 

 

 

6,274.3

 

Australia

 

 

1,373.3

 

 

 

89.6

 

 

 

—

 

 

 

1,462.9

 

Canada

 

 

1,053.6

 

 

 

4.8

 

 

 

—

 

 

 

1,058.4

 

New Zealand

 

 

766.0

 

 

 

24.1

 

 

 

—

 

 

 

790.1

 

Other foreign

 

 

959.4

 

 

 

—

 

 

 

—

 

 

 

959.4

 

Total identifiable assets

 

$

19,185.3

 

 

$

973.9

 

 

$

2,172.2

 

 

$

22,331.4

 

Goodwill - net

 

$

6,053.6

 

 

$

70.5

 

 

$

2.9

 

 

$

6,127.0

 

Amortizable intangible assets - net

 

 

2,376.3

 

 

 

23.6

 

 

 

—

 

 

 

2,399.9

 

 

 

Year Ended December 31, 2019

 

Brokerage

 

 

Risk

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions

 

$

3,320.6

 

 

$

—

 

 

$

—

 

 

$

3,320.6

 

Fees

 

 

1,074.2

 

 

 

836.9

 

 

 

—

 

 

 

1,911.1

 

Supplemental revenues

 

 

210.5

 

 

 

—

 

 

 

—

 

 

 

210.5

 

Contingent revenues

 

 

135.6

 

 

 

—

 

 

 

—

 

 

 

135.6

 

Investment income

 

 

85.3

 

 

 

1.6

 

 

 

—

 

 

 

86.9

 

Net gains on divestitures

 

 

75.3

 

 

 

—

 

 

 

—

 

 

 

75.3

 

Revenue from clean coal activities

 

 

—

 

 

 

—

 

 

 

1,319.3

 

 

 

1,319.3

 

Other net losses

 

 

—

 

 

 

—

 

 

 

(2.9

)

 

 

(2.9

)

Revenues before reimbursements

 

 

4,901.5

 

 

 

838.5

 

 

 

1,316.4

 

 

 

7,056.4

 

Reimbursements

 

 

—

 

 

 

138.6

 

 

 

—

 

 

 

138.6

 

Total revenues

 

 

4,901.5

 

 

 

977.1

 

 

 

1,316.4

 

 

 

7,195.0

 

Compensation

 

 

2,745.9

 

 

 

515.7

 

 

 

77.9

 

 

 

3,339.5

 

Operating

 

 

796.5

 

 

 

184.9

 

 

 

87.1

 

 

 

1,068.5

 

Reimbursements

 

 

—

 

 

 

138.6

 

 

 

—

 

 

 

138.6

 

Cost of revenues from clean coal activities

 

 

—

 

 

 

—

 

 

 

1,352.8

 

 

 

1,352.8

 

Interest

 

 

—

 

 

 

—

 

 

 

179.8

 

 

 

179.8

 

Depreciation

 

 

66.6

 

 

 

46.2

 

 

 

27.6

 

 

 

140.4

 

Amortization

 

 

329.1

 

 

 

4.9

 

 

 

—

 

 

 

334.0

 

Change in estimated acquisition earnout payables

 

 

16.9

 

 

 

(1.6

)

 

 

—

 

 

 

15.3

 

Total expenses

 

 

3,955.0

 

 

 

888.7

 

 

 

1,725.2

 

 

 

6,568.9

 

Earnings (loss) before income taxes

 

 

946.5

 

 

 

88.4

 

 

 

(408.8

)

 

 

626.1

 

Provision (benefit) for income taxes

 

 

229.2

 

 

 

22.2

 

 

 

(341.1

)

 

 

(89.7

)

Net earnings (loss)

 

 

717.3

 

 

 

66.2

 

 

 

(67.7

)

 

 

715.8

 

Net earnings attributable to noncontrolling interests

 

 

17.2

 

 

 

—

 

 

 

29.8

 

 

 

47.0

 

Net earnings (loss) attributable to controlling interests

 

$

700.1

 

 

$

66.2

 

 

$

(97.5

)

 

$

668.8

 

Net foreign exchange loss

 

$

(1.0

)

 

$

(0.1

)

 

$

(5.6

)

 

$

(6.7

)

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

3,234.3

 

 

$

828.4

 

 

$

1,316.4

 

 

$

5,379.1

 

United Kingdom

 

 

921.8

 

 

 

41.6

 

 

 

—

 

 

 

963.4

 

Australia

 

 

211.3

 

 

 

87.3

 

 

 

—

 

 

 

298.6

 

Canada

 

 

221.4

 

 

 

4.6

 

 

 

—

 

 

 

226.0

 

New Zealand

 

 

145.6

 

 

 

15.2

 

 

 

—

 

 

 

160.8

 

Other foreign

 

 

167.1

 

 

 

—

 

 

 

—

 

 

 

167.1

 

Total revenues

 

$

4,901.5

 

 

$

977.1

 

 

$

1,316.4

 

 

$

7,195.0

 

At December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identifiable assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

8,132.3

 

 

$

655.6

 

 

$

1,994.8

 

 

$

10,782.7

 

United Kingdom

 

 

4,964.5

 

 

 

126.6

 

 

 

—

 

 

 

5,091.1

 

Australia

 

 

1,217.9

 

 

 

90.0

 

 

 

—

 

 

 

1,307.9

 

Canada

 

 

913.6

 

 

 

3.1

 

 

 

—

 

 

 

916.7

 

New Zealand

 

 

695.9

 

 

 

22.8

 

 

 

—

 

 

 

718.7

 

Other foreign

 

 

817.7

 

 

 

—

 

 

 

—

 

 

 

817.7

 

Total identifiable assets

 

$

16,741.9

 

 

$

898.1

 

 

$

1,994.8

 

 

$

19,634.8

 

Goodwill - net

 

$

5,548.9

 

 

$

66.6

 

 

$

3.0

 

 

$

5,618.5

 

Amortizable intangible assets - net

 

 

2,289.9

 

 

 

28.8

 

 

 

—

 

 

 

2,318.7