XML 34 R24.htm IDEA: XBRL DOCUMENT v3.22.2.2
Segment Information
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Information

16. 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 and nine-month periods ended September 30, 2022 and 2021 as follows

(in millions):

 

 

Three-month period ended
September 30,

 

 

Nine-month period ended
September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Brokerage

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

1,736.2

 

 

$

1,499.7

 

 

$

5,599.5

 

 

$

4,500.1

 

Earnings before income taxes

$

370.7

 

 

$

334.5

 

 

$

1,400.0

 

 

$

1,114.5

 

Identifiable assets at September 30, 2022 and 2021

 

 

 

 

 

 

$

34,924.4

 

 

$

21,184.7

 

Risk Management

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

307.5

 

 

$

280.6

 

 

$

899.4

 

 

$

815.0

 

Earnings before income taxes

$

36.6

 

 

$

29.5

 

 

$

107.7

 

 

$

87.0

 

Identifiable assets at September 30, 2022 and 2021

 

 

 

 

 

 

$

1,128.0

 

 

$

1,079.7

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

0.3

 

 

$

357.9

 

 

$

23.4

 

 

$

921.6

 

Loss before income taxes

$

(92.3

)

 

$

(132.6

)

 

$

(302.7

)

 

$

(339.4

)

Identifiable assets at September 30, 2022 and 2021

 

 

 

 

 

 

$

2,615.4

 

 

$

4,651.4

 

Total

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

2,044.0

 

 

$

2,138.2

 

 

$

6,522.3

 

 

$

6,236.7

 

Earnings before income taxes

$

315.0

 

 

$

231.4

 

 

$

1,205.0

 

 

$

862.1

 

Identifiable assets at September 30, 2022 and 2021

 

 

 

 

 

 

$

38,667.8

 

 

$

26,915.8

 

 

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 September 30, 2022 are as follows (in millions):

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Commissions

 

$

1,186.9

 

 

$

—

 

 

$

—

 

 

$

1,186.9

 

Fees

 

 

396.0

 

 

 

275.3

 

 

 

—

 

 

 

671.3

 

Supplemental revenues

 

 

64.7

 

 

 

—

 

 

 

—

 

 

 

64.7

 

Contingent revenues

 

 

52.4

 

 

 

—

 

 

 

—

 

 

 

52.4

 

Investment income

 

 

37.5

 

 

 

0.2

 

 

 

—

 

 

 

37.7

 

Net losses on divestitures

 

 

(1.3

)

 

 

—

 

 

 

—

 

 

 

(1.3

)

Other net revenues

 

 

—

 

 

 

—

 

 

 

0.3

 

 

 

0.3

 

Revenues before reimbursements

 

 

1,736.2

 

 

 

275.5

 

 

 

0.3

 

 

 

2,012.0

 

Reimbursements

 

 

—

 

 

 

32.0

 

 

 

—

 

 

 

32.0

 

Total revenues

 

$

1,736.2

 

 

$

307.5

 

 

$

0.3

 

 

$

2,044.0

 

 

 

Revenues by type and segment for the nine-month period ended September 30, 2022 are as follows (in millions):

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Commissions

 

$

4,034.6

 

 

$

—

 

 

$

—

 

 

$

4,034.6

 

Fees

 

 

1,111.5

 

 

 

801.6

 

 

 

—

 

 

 

1,913.1

 

Supplemental revenues

 

 

204.7

 

 

 

—

 

 

 

—

 

 

 

204.7

 

Contingent revenues

 

 

167.1

 

 

 

—

 

 

 

—

 

 

 

167.1

 

Investment income

 

 

78.7

 

 

 

0.4

 

 

 

—

 

 

 

79.1

 

Net gains on divestitures

 

 

2.9

 

 

 

—

 

 

 

—

 

 

 

2.9

 

Revenues from clean coal activities

 

 

—

 

 

 

—

 

 

 

23.0

 

 

 

23.0

 

Other net revenues

 

 

—

 

 

 

—

 

 

 

0.4

 

 

 

0.4

 

Revenues before reimbursements

 

 

5,599.5

 

 

 

802.0

 

 

 

23.4

 

 

 

6,424.9

 

Reimbursements

 

 

—

 

 

 

97.4

 

 

 

—

 

 

 

97.4

 

Total revenues

 

$

5,599.5

 

 

$

899.4

 

 

$

23.4

 

 

$

6,522.3

 

 

Revenues by geographical location and segment for the three-month period ended September 30, 2022 are as follows (in millions):

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

1,140.3

 

 

$

260.4

 

 

$

0.3

 

 

$

1,401.0

 

United Kingdom

 

 

315.7

 

 

 

10.9

 

 

 

—

 

 

 

326.6

 

Australia

 

 

71.8

 

 

 

31.2

 

 

 

—

 

 

 

103.0

 

Canada

 

 

80.6

 

 

 

1.7

 

 

 

—

 

 

 

82.3

 

New Zealand

 

 

41.3

 

 

 

3.3

 

 

 

—

 

 

 

44.6

 

Other foreign

 

 

86.5

 

 

 

—

 

 

 

—

 

 

 

86.5

 

Total revenues

 

$

1,736.2

 

 

$

307.5

 

 

$

0.3

 

 

$

2,044.0

 

 

Revenues by geographical location and segment for the nine-month period ended September 30, 2022 are as follows (in millions):

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

3,492.0

 

 

$

752.9

 

 

$

23.4

 

 

$

4,268.3

 

United Kingdom

 

 

1,182.1

 

 

 

34.4

 

 

 

—

 

 

 

1,216.5

 

Australia

 

 

207.4

 

 

 

97.2

 

 

 

—

 

 

 

304.6

 

Canada

 

 

261.9

 

 

 

4.5

 

 

 

—

 

 

 

266.4

 

New Zealand

 

 

122.9

 

 

 

10.4

 

 

 

—

 

 

 

133.3

 

Other foreign

 

 

333.2

 

 

 

—

 

 

 

—

 

 

 

333.2

 

Total revenues

 

$

5,599.5

 

 

$

899.4

 

 

$

23.4

 

 

$

6,522.3

 

 

 

Revenues by type and segment for the three-month period ended September 30, 2021 are as follows (in millions):

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Commissions

 

$

1,016.2

 

 

$

—

 

 

$

—

 

 

$

1,016.2

 

Fees

 

 

353.8

 

 

 

247.9

 

 

 

—

 

 

 

601.7

 

Supplemental revenues

 

 

61.0

 

 

 

—

 

 

 

—

 

 

 

61.0

 

Contingent revenues

 

 

43.7

 

 

 

—

 

 

 

—

 

 

 

43.7

 

Investment income

 

 

20.7

 

 

 

0.1

 

 

 

—

 

 

 

20.8

 

Net gains on divestitures

 

 

4.3

 

 

 

—

 

 

 

—

 

 

 

4.3

 

Revenues from clean coal activities

 

 

—

 

 

 

—

 

 

 

357.6

 

 

 

357.6

 

Other net revenues

 

 

—

 

 

 

—

 

 

 

0.3

 

 

 

0.3

 

Revenues before reimbursements

 

 

1,499.7

 

 

 

248.0

 

 

 

357.9

 

 

 

2,105.6

 

Reimbursements

 

 

—

 

 

 

32.6

 

 

 

—

 

 

 

32.6

 

Total revenues

 

$

1,499.7

 

 

$

280.6

 

 

$

357.9

 

 

$

2,138.2

 

 

Revenues by type and segment for the nine-month period ended September 30, 2021 are as follows (in millions):

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Commissions

 

$

3,118.7

 

 

$

—

 

 

$

—

 

 

$

3,118.7

 

Fees

 

 

983.4

 

 

 

713.0

 

 

 

—

 

 

 

1,696.4

 

Supplemental revenues

 

 

183.0

 

 

 

—

 

 

 

—

 

 

 

183.0

 

Contingent revenues

 

 

150.3

 

 

 

—

 

 

 

—

 

 

 

150.3

 

Investment income

 

 

55.8

 

 

 

0.2

 

 

 

—

 

 

 

56.0

 

Net gains on divestitures

 

 

8.9

 

 

 

0.1

 

 

 

—

 

 

 

9.0

 

Revenues from clean coal activities

 

 

—

 

 

 

—

 

 

 

919.2

 

 

 

919.2

 

Other net revenues

 

 

—

 

 

 

—

 

 

 

2.4

 

 

 

2.4

 

Revenues before reimbursements

 

 

4,500.1

 

 

 

713.3

 

 

 

921.6

 

 

 

6,135.0

 

Reimbursements

 

 

—

 

 

 

101.7

 

 

 

—

 

 

 

101.7

 

Total revenues

 

$

4,500.1

 

 

$

815.0

 

 

$

921.6

 

 

$

6,236.7

 

 

Revenues by geographical location and segment for the three-month period ended September 30, 2021 are as follows (in millions):

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

1,000.3

 

 

$

233.9

 

 

$

357.9

 

 

$

1,592.1

 

United Kingdom

 

 

276.5

 

 

 

12.1

 

 

 

—

 

 

 

288.6

 

Australia

 

 

62.4

 

 

 

29.6

 

 

 

—

 

 

 

92.0

 

Canada

 

 

68.1

 

 

 

1.6

 

 

 

—

 

 

 

69.7

 

New Zealand

 

 

41.0

 

 

 

3.4

 

 

 

—

 

 

 

44.4

 

Other foreign

 

 

51.4

 

 

 

—

 

 

 

—

 

 

 

51.4

 

Total revenues

 

$

1,499.7

 

 

$

280.6

 

 

$

357.9

 

 

$

2,138.2

 

 

 

Revenues by geographical location and segment for the nine-month period ended September 30, 2021 are as follows (in millions):

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

2,919.3

 

 

$

672.9

 

 

$

921.6

 

 

$

4,513.8

 

United Kingdom

 

 

895.0

 

 

 

35.0

 

 

 

—

 

 

 

930.0

 

Australia

 

 

187.1

 

 

 

91.6

 

 

 

—

 

 

 

278.7

 

Canada

 

 

215.5

 

 

 

4.4

 

 

 

—

 

 

 

219.9

 

New Zealand

 

 

118.9

 

 

 

11.1

 

 

 

—

 

 

 

130.0

 

Other foreign

 

 

164.3

 

 

 

—

 

 

 

—

 

 

 

164.3

 

Total revenues

 

$

4,500.1

 

 

$

815.0

 

 

$

921.6

 

 

$

6,236.7