Segment Information

12 Months Ended

Dec. 31, 2023

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 and reinsurance 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 commercial, nonprofit, captive and public sector entities, and various organizations 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 2023, 2022 and 2021 is as follows (in millions):

Year Ended December 31, 2023	Brokerage			Risk Management			Corporate			Total
Revenues:
Commissions	$	5,865.0		$	—		$	—		$	5,865
Fees		1,885.0			1,259.7			—			3,144.7
Supplemental revenues		314.2			—			—			314.2
Contingent revenues		235.3			—			—			235.3
Interest income, premium finance revenues and other income		337.7			27.9			1.7			367.3
Revenues before reimbursements		8,637.2			1,287.6			1.7			9,926.5
Reimbursements		—			145.4			—			145.4
Total revenues		8,637.2			1,433.0			1.7			10,071.9
Compensation		4,769.1			776.8			135.3			5,681.2
Operating		1,272.3			257.4			160.0			1,689.7
Reimbursements		—			145.4			—			145.4
Interest		—			—			296.7			296.7
Depreciation		124.4			35.9			4.9			165.2
Amortization		523.6			7.7			—			531.3
Change in estimated acquisition earnout payables		376.8			0.5			—			377.3
Total expenses		7,066.2			1,223.7			596.9			8,886.8
Earnings (loss) before income taxes		1,571.0			209.3			(595.2	)		1,185.1
Provision (benefit) for income taxes		401.6			55.3			(237.8	)		219.1
Net earnings (loss)		1,169.4			154.0			(357.4	)		966.0
Net earnings (loss) attributable to noncontrolling interests		6.3			—			(9.8	)		(3.5	)
Net earnings (loss) attributable to controlling interests	$	1,163.1		$	154.0		$	(347.6	)	$	969.5
Net foreign exchange loss	$	(0.3	)	$	(9.9	)	$	(0.1	)	$	(10.3	)
Revenues:
United States	$	5,216.1		$	1,208.7		$	1.7		$	6,426.5
United Kingdom		1,946.5			47.6			—			1,994.1
Australia		312.1			154.7			—			466.8
Canada		397.7			6.2			—			403.9
New Zealand		192.2			15.8			—			208.0
Other foreign		572.6			—			—			572.6
Total revenues	$	8,637.2		$	1,433.0		$	1.7		$	10,071.9
At December 31, 2023
Identifiable assets:
United States	$	21,763.9		$	1,026.0		$	2,520.4		$	25,310.3
United Kingdom		15,999.7			129.9			—			16,129.6
Australia		1,969.7			469.2			—			2,438.9
Canada		1,692.9			4.1			—			1,697.0
New Zealand		773.1			20.1			—			793.2
Other foreign		5,246.8			—			—			5,246.8
Total identifiable assets	$	47,446.1		$	1,649.3		$	2,520.4		$	51,615.8
Goodwill - net	$	11,217.8		$	238.8		$	19.0		$	11,475.6
Amortizable intangible assets - net		4,427.9			205.4			—			4,633.3

Year Ended December 31, 2022	Brokerage		Risk Management			Corporate			Total
Revenues:
Commissions	$	5,187.4	$	—		$	—		$	5,187.4
Fees		1,476.9		1,090.8			—			2,567.7
Supplemental revenues		284.7		—			—			284.7
Contingent revenues		207.3		—			—			207.3
Interest income, premium finance revenues and other income		147.5		1.8			0.7			150.0
Revenue from clean coal activities		—		—			23.0			23.0
Revenues before reimbursements		7,303.8		1,092.6			23.7			8,420.1
Reimbursements		—		130.5			—			130.5
Total revenues		7,303.8		1,223.1			23.7			8,550.6
Compensation		4,024.7		664.9			110.2			4,799.8
Operating		1,039.9		233.9			57.1			1,330.9
Reimbursements		—		130.5			—			130.5
Cost of revenues from clean coal activities		—		—			22.9			22.9
Interest		—		—			256.9			256.9
Depreciation		103.6		37.8			3.3			144.7
Amortization		448.7		6.2			—			454.9
Change in estimated acquisition earnout payables		90.4		(7.4	)		—			83.0
Total expenses		5,707.3		1,065.9			450.4			7,223.6
Earnings (loss) before income taxes		1,596.5		157.2			(426.7	)		1,327.0
Provision (benefit) for income taxes		394.7		41.4			(225.1	)		211.0
Net earnings (loss)		1,201.8		115.8			(201.6	)		1,116.0
Net earnings (loss) attributable to noncontrolling interests		4.4		—			(2.6	)		1.8
Net earnings (loss) attributable to controlling interests	$	1,197.4	$	115.8		$	(199.0	)	$	1,114.2
Net foreign exchange gain	$	2.6	$	31.4		$	—		$	34.0
Revenues:
United States	$	4,503.9	$	1,029.6		$	23.7		$	5,557.2
United Kingdom		1,544.3		44.1			—			1,588.4
Australia		281.8		129.1			—			410.9
Canada		356.0		5.9			—			361.9
New Zealand		166.9		14.4			—			181.3
Other foreign		450.9		—			—			450.9
Total revenues	$	7,303.8	$	1,223.1		$	23.7		$	8,550.6
At December 31, 2022
Identifiable assets:
United States	$	17,485.3	$	914.5		$	2,540.8		$	20,940.6
United Kingdom		9,338.5		115.9			—			9,454.4
Australia		1,792.1		89.0			—			1,881.1
Canada		1,465.3		4.4			—			1,469.7
New Zealand		730.9		18.8			—			749.7
Other foreign		3,862.9		—			—			3,862.9
Total identifiable assets	$	34,675.0	$	1,142.6		$	2,540.8		$	38,358.4
Goodwill - net	$	9,358.1	$	112.2		$	19.1		$	9,489.4
Amortizable intangible assets - net		3,325.9		46.2			—			3,372.1

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
Interest income, premium finance revenues and other income		101.6			0.4		0.5			102.5
Revenue from clean coal activities		—			—		1,140.8			1,140.8
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	$	15,136.5		$	790.2	$	2,632.6		$	18,559.3
United Kingdom		8,170.7			134.1		—			8,304.8
Australia		1,674.3			84.7		—			1,759.0
Canada		1,427.2			4.4		—			1,431.6
New Zealand		754.5			20.4		—			774.9
Other foreign		2,406.5			—		—			2,406.5
Total identifiable assets	$	29,569.7		$	1,033.8	$	2,632.6		$	33,236.1
Goodwill - net	$	8,544.6		$	100.9	$	20.7		$	8,666.2
Amortizable intangible assets - net		3,906.1			47.9		—			3,954.0