Revenues

6 Months Ended

Jun. 30, 2025

Revenues [Abstract]

Revenues

NOTE 3 Revenues

The following tables present the revenues disaggregated by revenue source:

	Three months ended June 30, 2025
(in millions)	Retail		Programs		Wholesale Brokerage		Other (8)		Total
Base commissions (1)	$	483	$	254	$	141	$	—	$	878
Fees (2)		173		66		29		—		268
Other supplemental commissions (3)		31		7		3		—		41
Profit-sharing contingent commissions (4)		7		30		8		—		45
Earned premium (5)		—		17		—		—		17
Investment income (6)		3		6		1		25		35
Other income, net (7)		—		1		—		—		1
Total revenues	$	697	$	381	$	182	$	25	$	1,285

	Three months ended June 30, 2024
(in millions)	Retail		Programs		Wholesale Brokerage		Other (8)			Total
Base commissions (1)	$	449	$	243	$	129	$	—		$	821
Fees (2)		156		61		24		(1	)		240
Other supplemental commissions (3)		32		6		1		—			39
Profit-sharing contingent commissions (4)		7		25		4		—			36
Earned premium (5)		—		18		—		—			18
Investment income (6)		1		5		1		15			22
Other income, net (7)		1		1		—		—			2
Total revenues	$	646	$	359	$	159	$	14		$	1,178

	Six months ended June 30, 2025
(in millions)	Retail		Programs		Wholesale Brokerage		Other (8)			Total
Base commissions (1)	$	1,099	$	473	$	264	$	—		$	1,836
Fees (2)		350		131		53		(1	)		533
Other supplemental commissions (3)		128		8		5		—			141
Profit-sharing contingent commissions (4)		22		49		17		—			88
Earned premium (5)		—		36		—		—			36
Investment income (6)		4		11		2		36			53
Other income, net (7)		1		1		—		—			2
Total revenues	$	1,604	$	709	$	341	$	35		$	2,689

	Six months ended June 30, 2024
(in millions)	Retail		Programs		Wholesale Brokerage		Other (8)			Total
Base commissions (1)	$	996	$	449	$	242	$	—		$	1,687
Fees (2)		312		110		43		(2	)		463
Other supplemental commissions (3)		119		7		4		—			130
Profit-sharing contingent commissions (4)		21		51		10		—			82
Earned premium (5)		—		28		—		—			28
Investment income (6)		2		10		2		26			40
Other income, net (7)		2		2		—		1			5
Total revenues	$	1,452	$	657	$	301	$	25		$	2,435

(1)Base commissions generally represent a percentage of the premium paid by an insured and are affected by fluctuations in both premium rate levels charged by insurance companies and the insureds’ underlying “insurable exposure units,” which are units that insurance companies use to measure or express insurance exposed to risk (such as property values, or sales and payroll levels) to determine what premium to charge the insured. Insurance companies establish these premium rates based upon many factors, including loss experience, risk profile and reinsurance rates paid by such insurance companies, none of which we control.

(2)Fee revenues relate to fees for services other than securing coverage for our customers, including fees negotiated in lieu of commissions, and F&I products and services.

(3)Other supplemental commissions include additional commissions over base commissions received from insurance carriers based on predetermined growth or production measures. This includes incentive commissions and guaranteed supplemental commissions.

(4)Profit-sharing contingent commissions are based primarily on underwriting results, but may also reflect considerations for volume, growth and/or retention.

(5)Earned premium relates to the premiums earned in the Captives.

(6)Investment income consists primarily of interest on cash and investments.

(7)Other income consists primarily of other miscellaneous income.

(8)Fees within Other reflect the elimination of intercompany revenues.

The following table presents the revenues disaggregated by geographic area where our services are being performed:

	Three months ended June 30,				Six months ended June 30,
(in millions)	2025		2024		2025		2024
U.S.	$	1,073	$	1,006	$	2,247	$	2,105
U.K.		164		144		304		275
Other		48		28		138		55
Total revenues	$	1,285	$	1,178	$	2,689	$	2,435

Contract Assets and Liabilities

The balances of contract assets and contract liabilities arising from contracts with customers as of June 30, 2025 and December 31, 2024 were as follows:

(in millions)	June 30, 2025		December 31, 2024
Contract assets	$	649	$	575
Contract liabilities	$	115	$	119

Unbilled receivables (contract assets) arise when the Company recognizes revenue for amounts which have not yet been billed in the Company's systems and are reflected in commissions, fees and other receivables in the Company's Condensed Consolidated Balance Sheets. The increase in contract assets over the balance as of December 31, 2024 is due to normal seasonality, growth in the business and from businesses acquired in the current year.

Deferred revenue (contract liabilities) relates to payments received in advance of performance under the contract before the transfer of a good or service to the customer. Deferred revenue is reflected within accrued expenses and other liabilities for those to be recognized in less than twelve months and in other liabilities for those to be recognized more than twelve months from the date presented in the Company's Condensed Consolidated Balance Sheets.

As of June 30, 2025, deferred revenue totaled $115 million and consisted of $75 million and $40 million classified as short term and long term, respectively. As of December 31, 2024, deferred revenue totaled $119 million and consisted of $80 million and $39 million classified as short term and long term, respectively.

During the six months ended June 30, 2025 and 2024, the net amount of revenue recognized related to performance obligations satisfied in a previous period was $22 million and $21 million, consisting of additional variable consideration received on our incentive and profit-sharing contingent commissions.

Other Assets and Deferred Cost

Incremental cost to obtain - The Company defers certain costs to obtain customer contracts primarily as they relate to commission-based compensation plans in the Retail segment, in which the Company pays an incremental amount of compensation on new business. These incremental costs are deferred and amortized over a 15-year period. The cost to obtain balance within the other assets caption in the Company's Condensed Consolidated Balance Sheets was $130 million and $119 million as of June 30, 2025 and December 31, 2024, respectively. For the six months ended June 30, 2025, the Company deferred $16 million of incremental cost to obtain customer contracts. The Company recorded an expense of $5 million associated with the incremental cost to obtain customer contracts for the six months ended June 30, 2025.

Cost to fulfill - The Company defers certain costs to fulfill contracts and recognizes these costs as the associated performance obligations are fulfilled. The cost to fulfill balance within the other current assets caption in the Company's Condensed Consolidated Balance Sheets was $126 million and $145 million as of June 30, 2025 and December 31, 2024, respectively. For the six months ended June 30, 2025, the Company had net expense of $23 million related to the release of previously deferred contract fulfillment costs associated with performance obligations that were satisfied in the period, net of current year deferrals for costs incurred that related to performance obligations yet to be fulfilled.