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Segment Information | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Segment Information | 15. 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 and nine-month periods ended September 30, 2023 and 2022 as follows (in millions):
| Three-month period ended September 30, |  |  | Nine-month period ended September 30, |
| 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Brokerage |  |  |  |  |  |  |  |  |  |  |
Total revenues | $ | 2,122.1 |  |  | $ | 1,736.2 |  |  | $ | 6,585.7 |  |  | $ | 5,599.5 |
Earnings before income taxes | $ | 454.0 |  |  | $ | 370.7 |  |  | $ | 1,535.4 |  |  | $ | 1,400.0 |
Identifiable assets at September 30, 2023 and 2022 * |  |  |  |  |  |  | $ | 49,325.8 |  |  | $ | 34,773.9 |
Risk Management |  |  |  |  |  |  |  |  |  |  |
Total revenues | $ | 369.4 |  |  | $ | 307.5 |  |  | $ | 1,053.8 |  |  | $ | 899.4 |
Earnings before income taxes | $ | 56.4 |  |  | $ | 36.6 |  |  | $ | 151.8 |  |  | $ | 107.7 |
Identifiable assets at September 30, 2023 and 2022 * |  |  |  |  |  |  | $ | 1,275.9 |  |  | $ | 1,128.0 |
Corporate |  |  |  |  |  |  |  |  |  |  |
Total revenues | $ | 0.5 |  |  | $ | 0.3 |  |  | $ | 0.5 |  |  | $ | 23.4 |
Loss before income taxes | $ | (146.3 | ) |  | $ | (92.3 | ) |  | $ | (419.9 | ) |  | $ | (302.7 | )
Identifiable assets at September 30, 2023 and 2022 * |  |  |  |  |  |  | $ | 2,602.2 |  |  | $ | 2,615.3 |
Total |  |  |  |  |  |  |  |  |  |  |
Total revenues | $ | 2,492.0 |  |  | $ | 2,044.0 |  |  | $ | 7,640.0 |  |  | $ | 6,522.3 |
Earnings before income taxes | $ | 364.1 |  |  | $ | 315.0 |  |  | $ | 1,267.3 |  |  | $ | 1,205.0 |
Identifiable assets at September 30, 2023 and 2022 * |  |  |  |  |  |  | $ | 53,203.9 |  |  | $ | 38,517.2 |
* 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 September 30, 2023 are as follows (in millions):
|  |  |  |  | Risk |  |  |  |  |  |  |
|  | Brokerage |  |  | Management |  |  | Corporate |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Commissions |  | $ | 1,381.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,381.2 |
Fees |  |  | 523.0 |  |  |  | 323.1 |  |  |  | — |  |  |  | 846.1 |
Supplemental revenues |  |  | 70.8 |  |  |  | — |  |  |  | — |  |  |  | 70.8 |
Contingent revenues |  |  | 53.9 |  |  |  | — |  |  |  | — |  |  |  | 53.9 |
Investment income |  |  | 92.8 |  |  |  | 7.8 |  |  |  | — |  |  |  | 100.6 |
Net gains on divestitures |  |  | 0.4 |  |  |  | 0.1 |  |  |  | — |  |  |  | 0.5 |
Other net revenues |  |  | — |  |  |  | — |  |  |  | 0.5 |  |  |  | 0.5 |
Revenues before reimbursements |  |  | 2,122.1 |  |  |  | 331.0 |  |  |  | 0.5 |  |  |  | 2,453.6 |
Reimbursements |  |  | — |  |  |  | 38.4 |  |  |  | — |  |  |  | 38.4 |
Total revenues |  | $ | 2,122.1 |  |  | $ | 369.4 |  |  | $ | 0.5 |  |  | $ | 2,492.0 |
Revenues by type and segment for the nine-month period ended September 30, 2023 are as follows (in millions):
|  |  |  |  | Risk |  |  |  |  |  |  |
|  | Brokerage |  |  | Management |  |  | Corporate |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Commissions |  | $ | 4,539.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,539.0 |
Fees |  |  | 1,414.2 |  |  |  | 928.1 |  |  |  | — |  |  |  | 2,342.3 |
Supplemental revenues |  |  | 223.6 |  |  |  | — |  |  |  | — |  |  |  | 223.6 |
Contingent revenues |  |  | 179.9 |  |  |  | — |  |  |  | — |  |  |  | 179.9 |
Investment income |  |  | 223.4 |  |  |  | 18.8 |  |  |  | — |  |  |  | 242.2 |
Net gains on divestitures |  |  | 5.6 |  |  |  | 0.3 |  |  |  | — |  |  |  | 5.9 |
Other net revenues |  |  | — |  |  |  | — |  |  |  | 0.5 |  |  |  | 0.5 |
Revenues before reimbursements |  |  | 6,585.7 |  |  |  | 947.2 |  |  |  | 0.5 |  |  |  | 7,533.4 |
Reimbursements |  |  | — |  |  |  | 106.6 |  |  |  | — |  |  |  | 106.6 |
Total revenues |  | $ | 6,585.7 |  |  | $ | 1,053.8 |  |  | $ | 0.5 |  |  | $ | 7,640.0 |
Revenues by geographical location and segment for the three-month period ended September 30, 2023 are as follows (in millions):
|  |  |  |  | Risk |  |  |  |  |  |  |
|  | Brokerage |  |  | Management |  |  | Corporate |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 1,349.0 |  |  | $ | 313.2 |  |  | $ | 0.5 |  |  | $ | 1,662.7 |
United Kingdom |  |  | 427.3 |  |  |  | 11.9 |  |  |  | — |  |  |  | 439.2 |
Australia |  |  | 79.8 |  |  |  | 38.5 |  |  |  | — |  |  |  | 118.3 |
Canada |  |  | 89.8 |  |  |  | 1.8 |  |  |  | — |  |  |  | 91.6 |
New Zealand |  |  | 49.6 |  |  |  | 4.0 |  |  |  | — |  |  |  | 53.6 |
Other foreign |  |  | 126.6 |  |  |  | — |  |  |  | — |  |  |  | 126.6 |
Total revenues |  | $ | 2,122.1 |  |  | $ | 369.4 |  |  | $ | 0.5 |  |  | $ | 2,492.0 |
Revenues by geographical location and segment for the nine-month period ended September 30, 2023 are as follows (in millions):
|  |  |  |  | Risk |  |  |  |  |  |  |
|  | Brokerage |  |  | Management |  |  | Corporate |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 4,024.0 |  |  | $ | 892.0 |  |  | $ | 0.5 |  |  | $ | 4,916.5 |
United Kingdom |  |  | 1,468.4 |  |  |  | 34.8 |  |  |  | — |  |  |  | 1,503.2 |
Australia |  |  | 227.8 |  |  |  | 110.0 |  |  |  | — |  |  |  | 337.8 |
Canada |  |  | 288.1 |  |  |  | 4.8 |  |  |  | — |  |  |  | 292.9 |
New Zealand |  |  | 140.6 |  |  |  | 12.2 |  |  |  | — |  |  |  | 152.8 |
Other foreign |  |  | 436.8 |  |  |  | — |  |  |  | — |  |  |  | 436.8 |
Total revenues |  | $ | 6,585.7 |  |  | $ | 1,053.8 |  |  | $ | 0.5 |  |  | $ | 7,640.0 |
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 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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