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Segment Information
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Information . 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 remeasurements.

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, 2023 and 2022 as follows

(in millions):

 

 

Three-month period ended
March 31,

 

 

2023

 

 

2022

 

Brokerage

 

 

 

 

 

Total revenues

$

2,375.2

 

 

$

2,122.6

 

Earnings before income taxes

$

690.9

 

 

$

618.4

 

Identifiable assets at March 31, 2023 and 2022 *

$

40,919.9

 

 

$

39,237.3

 

Risk Management

 

 

 

 

 

Total revenues

$

330.8

 

 

$

289.9

 

Earnings before income taxes

$

45.5

 

 

$

32.3

 

Identifiable assets at March 31, 2023 and 2022 *

$

1,126.7

 

 

$

1,047.2

 

Corporate

 

 

 

 

 

Total revenues

$

0.1

 

 

$

22.8

 

Loss before income taxes

$

(130.6

)

 

$

(113.0

)

Identifiable assets at March 31, 2023 and 2022 *

$

3,047.8

 

 

$

2,613.0

 

Total

 

 

 

 

 

Total revenues

$

2,706.1

 

 

$

2,435.3

 

Earnings before income taxes

$

605.8

 

 

$

537.7

 

Identifiable assets at March 31, 2023 and 2022 *

$

45,094.4

 

 

$

42,897.5

 

 

* See Note 1 for a discussion on the 2022 impact of the change in presentation of fiduciary assets and liabilities.



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, 2023 are as follows (in millions):

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Commissions

 

$

1,747.4

 

 

$

—

 

 

$

—

 

 

$

1,747.4

 

Fees

 

 

412.7

 

 

 

293.0

 

 

 

—

 

 

 

705.7

 

Supplemental revenues

 

 

81.6

 

 

 

—

 

 

 

—

 

 

 

81.6

 

Contingent revenues

 

 

71.8

 

 

 

—

 

 

 

—

 

 

 

71.8

 

Investment income

 

 

61.5

 

 

 

4.5

 

 

 

—

 

 

 

66.0

 

Net gains on divestitures

 

 

0.2

 

 

 

0.1

 

 

 

—

 

 

 

0.3

 

Other net revenues

 

 

—

 

 

 

—

 

 

 

0.1

 

 

 

0.1

 

Revenues before reimbursements

 

 

2,375.2

 

 

 

297.6

 

 

 

0.1

 

 

 

2,672.9

 

Reimbursements

 

 

—

 

 

 

33.2

 

 

 

—

 

 

 

33.2

 

Total revenues

 

$

2,375.2

 

 

$

330.8

 

 

$

0.1

 

 

$

2,706.1

 

 

 

 

Revenues by geographical location and segment for the three-month period ended March 31, 2023 are as follows (in millions):

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

1,475.3

 

 

$

280.1

 

 

$

0.1

 

 

$

1,755.5

 

United Kingdom

 

 

513.5

 

 

 

11.3

 

 

 

—

 

 

 

524.8

 

Australia

 

 

64.2

 

 

 

34.0

 

 

 

—

 

 

 

98.2

 

Canada

 

 

93.7

 

 

 

1.5

 

 

 

—

 

 

 

95.2

 

New Zealand

 

 

38.0

 

 

 

3.9

 

 

 

—

 

 

 

41.9

 

Other foreign

 

 

190.5

 

 

 

—

 

 

 

—

 

 

 

190.5

 

Total revenues

 

$

2,375.2

 

 

$

330.8

 

 

$

0.1

 

 

$

2,706.1

 

 

Revenues by type and segment for the three-month period ended March 31, 2022 are as follows (in millions):

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Commissions

 

$

1,565.3

 

 

$

—

 

 

$

—

 

 

$

1,565.3

 

Fees

 

 

391.9

 

 

 

259.0

 

 

 

—

 

 

 

650.9

 

Supplemental revenues

 

 

74.3

 

 

 

—

 

 

 

—

 

 

 

74.3

 

Contingent revenues

 

 

71.6

 

 

 

—

 

 

 

—

 

 

 

71.6

 

Investment income

 

 

18.1

 

 

 

0.1

 

 

 

—

 

 

 

18.2

 

Net gains on divestitures

 

 

1.4

 

 

 

—

 

 

 

—

 

 

 

1.4

 

Revenues from clean coal activities

 

 

—

 

 

 

—

 

 

 

22.7

 

 

 

22.7

 

Other net revenues

 

 

—

 

 

 

—

 

 

 

0.1

 

 

 

0.1

 

Revenues before reimbursements

 

 

2,122.6

 

 

 

259.1

 

 

 

22.8

 

 

 

2,404.5

 

Reimbursements

 

 

—

 

 

 

30.8

 

 

 

—

 

 

 

30.8

 

Total revenues

 

$

2,122.6

 

 

$

289.9

 

 

$

22.8

 

 

$

2,435.3

 

 

Revenues by geographical location and segment for the three-month period ended March 31, 2022 are as follows (in millions):

 

 

 

 

 

 

Risk

 

 

 

 

 

 

 

 

 

Brokerage

 

 

Management

 

 

Corporate

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

1,336.7

 

 

$

242.3

 

 

$

22.8

 

 

$

1,601.8

 

United Kingdom

 

 

440.2

 

 

 

11.0

 

 

 

—

 

 

 

451.2

 

Australia

 

 

59.0

 

 

 

31.7

 

 

 

—

 

 

 

90.7

 

Canada

 

 

87.5

 

 

 

1.4

 

 

 

—

 

 

 

88.9

 

New Zealand

 

 

34.4

 

 

 

3.5

 

 

 

—

 

 

 

37.9

 

Other foreign

 

 

164.8

 

 

 

—

 

 

 

—

 

 

 

164.8

 

Total revenues

 

$

2,122.6

 

 

$

289.9

 

 

$

22.8

 

 

$

2,435.3