Marsh & McLennan Companies (NYSE:MRSH) reported first-quarter 2026 results that management characterized as a “solid start” to the year, citing revenue growth, steady margins, and continued progress on its THRIVE efficiency program despite headwinds from lower fiduciary interest income and declining insurance and reinsurance pricing.
Leadership changes and strategic focus
On the call, President and CEO John Doyle outlined several executive committee updates aimed at supporting growth and execution. Mark McGivney was named Chief Operating Officer in addition to serving as CFO, with Doyle saying McGivney will take on more responsibility for evolving strategy, driving execution, and accelerating priorities. The company also appointed Nick Studer as CEO of Marsh Risk, with Studer succeeding Martin South, who is now Chief Client Officer. Ted Moynihan succeeded Studer as CEO of Marsh Management Consulting.
Quarterly results: revenue up 8%, adjusted EPS up 8%
For the first quarter, consolidated revenue increased 8% to $7.6 billion, with underlying revenue growth of 4%. Doyle said the quarter’s performance came “despite lower fiduciary interest income and continued downward pricing pressure in insurance and reinsurance.”
McGivney reported GAAP operating income of $1.8 billion and adjusted operating income of $2.4 billion, up 8% year over year. Adjusted operating margin was unchanged at 31.8%. GAAP EPS was $2.36, while adjusted EPS was $3.29, also up 8%.
Segment performance, as discussed on the call, included:
- Risk and Insurance Services (RIS): revenue of $5.1 billion, up 6% reported and 3% underlying; adjusted operating margin of 38.3%, up 10 basis points.
- Marsh Risk: revenue of $3.7 billion, up 8% reported and 4% underlying. McGivney noted sequential improvement in growth despite market conditions, with underlying growth of 3% in U.S. and Canada and 5% internationally.
- Guy Carpenter: revenue of $1.2 billion, up 3% reported and 2% underlying. McGivney said results were affected by softer reinsurance conditions and a tougher comparison to 5% underlying growth in the prior-year quarter.
- Consulting: revenue of $2.6 billion, up 11% reported and 5% underlying; adjusted operating income rose 13%, and adjusted operating margin improved 40 basis points to 21.6%.
- Mercer: revenue of $1.7 billion, up 11% reported and 5% underlying. Health grew 6% and Wealth grew 5%, while Career declined 2% due to softness in U.S. project-related work.
- Marsh Management Consulting: revenue of $897 million, up 10% reported and 6% underlying.
McGivney said fiduciary interest income totaled $85 million, down $18 million from the prior year due to lower interest rates, and the company expects approximately $80 million in the second quarter.
Insurance and reinsurance pricing remains a headwind
Doyle described a competitive environment across both insurance and reinsurance. According to the Marsh Global Insurance Market Index, global commercial insurance rates declined 5% in the first quarter, following a 4% decline in the fourth quarter of 2025. Property was a key driver, with global property rates down 9% year over year. Financial and professional liability rates were down 5%, and cyber also decreased 5%. Casualty rates increased 3%, with U.S. excess casualty up 18%, which Doyle said reflects continued pressure in liability.
In reinsurance, Doyle and business leaders pointed to ample capacity and rate reductions. Doyle said strong reinsurer profitability and higher capital levels have led to “meaningful rate reductions” and substantial supply of property catastrophe capacity. He noted that U.S. property catastrophe reinsurance rates for non-loss impacted accounts were down 15%–20% at the April 1 renewals, and Japan April 1 property catastrophe rates were also down 15%–20% on a risk-adjusted basis. Early signs for June 1 Florida renewals pointed to similar conditions.
During Q&A, Doyle said lower rates do not necessarily mean the “cost of risk” is falling, citing factors such as liability and medical cost inflation, increased cyber risk, and more frequent extreme weather. Studer added that Marsh has seen “double-digit new business growth” in the U.S. and Canada and noted that new business globally has trended up for four quarters. Guy Carpenter CEO Dean Klisura said his unit saw “record new business across our platform,” including a record seven catastrophe bonds issued in the quarter, and described increased client interest in alternative capital and structured solutions.
AI: growth, productivity, and efficiency—plus THRIVE savings and litigation charge
Doyle devoted a significant portion of prepared remarks and Q&A to AI, describing three pillars: growth (AI-enabled products and new services), productivity (tools to boost colleague performance), and efficiency (automation and process re-engineering through its Business and Client Services unit).
Executives provided examples across businesses. Studer referenced an AI-enabled toolkit called Claims IQ that draws on “almost $200 billion of loss information,” and said Marsh Risk is evolving client tools into a “Marsh Risk Companion” and an analytics platform he called “Marsh Risk Cortex,” with initial applications planned to launch in “a couple of weeks at RIMS.” Klisura pointed to Guy Carpenter’s “GC QuoteBox” as an AI-driven document ingestion tool aimed at improving turnaround times. Mercer CEO Pat Tomlinson described “Mercer Fiber” as a tool used with clients for real-time scenario planning and modeling in benefits strategy sessions. Moynihan said Oliver Wyman’s “AI Quotient” platform is its fastest-growing capability and cited use cases in performance transformation, strategy, and private capital due diligence.
Several analysts asked about whether AI-driven productivity gains could be competed away. Doyle argued Marsh’s business is not built on commoditized products and said its trusted relationships, data, modeling, and advisory capabilities position it to benefit from AI rather than being disintermediated. When asked about AI spending and technology partners, Doyle said the company has a “healthy tech CapEx budget” but has not disclosed AI spending levels and works with “a number of different major tech players,” depending on the use case.
On THRIVE, McGivney said the company remains on track to generate $400 million of total savings and incur approximately $500 million of charges to achieve those savings. He also reported total “noteworthy items” of $521 million in the quarter, including $37 million of THRIVE-related costs. Noteworthy items also included a $425 million charge related to litigation “stemming from the collapse of Greensill Capital in 2021,” which McGivney said represents the company’s best estimate of liability and was influenced by a recent court-sponsored mediation. He said the litigation is ongoing and the company could not comment further.
Looking ahead, both Doyle and McGivney said the company continues to expect 2026 underlying revenue growth similar to 2025, along with margin expansion and solid adjusted EPS growth, while noting that economic and geopolitical conditions could change materially. The company also reiterated plans to deploy about $5 billion of capital in 2026 across dividends, acquisitions, and share repurchases, with buyback levels dependent on M&A activity.
About Marsh & McLennan Companies (NYSE:MRSH)
Marsh & McLennan Companies (NYSE: MMC) is a global professional services firm headquartered in New York City that provides advice and solutions in the areas of risk, strategy and people. Founded in 1905, the company has grown into a diversified group of businesses focused on insurance brokerage and risk management, reinsurance, human capital and investment consulting, and management consulting. Its long history and scale position it as a prominent adviser to corporations, governments and other institutions seeking to manage risk and optimize human and financial capital.
The firm operates through several well-known subsidiaries and business units that specialize in distinct services.
