MHM: Marsh & McLennan: Marsh & McLennan Companies Reports Third Quarter 2012 Results

  MHM: Marsh & McLennan: Marsh & McLennan Companies Reports Third Quarter 2012
  Results

UK Regulatory Announcement

  Revenue and Profitability Growth Continues Across All Operating Companies

                   Third Quarter GAAP EPS Increases to $.44

       Double-Digit Growth in Adjusted Operating Income to $358 million

                Double-Digit Increase in Adjusted EPS to $.39

LONDON

Marsh & McLennan Companies, Inc. (NYSE: MMC), a global professional services
firm providing advice and solutions in risk, strategy and human capital, today
reported financial results for the third quarter ended September 30, 2012.

Brian Duperreault, President and CEO, said: “Our Company delivered another
strong quarter. Each of our operating companies continued to generate growth
in underlying revenue, which, combined with ongoing expense discipline,
produced across-the-board improvement in operating margins and profitability.

“Marsh's underlying revenue grew across all geographies, reflecting solid
client revenue retention rates and continued new business development. Guy
Carpenter's trend of underlying revenue growth continued. In Consulting, both
Mercer and Oliver Wyman contributed to the segment's growth in revenue and
profitability.

"For the nine months, we produced double-digit growth in operating income,
substantial margin improvement, and excellent growth in earnings per share,”
concluded Mr. Duperreault.

Consolidated Results

Consolidated revenue in the third quarter of 2012 was $2.8 billion, an
increase of 1%, or 3% on an underlying basis from the third quarter of 2011.
Underlying revenue measures the change in revenue using consistent currency
exchange rates, excluding the impact of items such as acquisitions,
dispositions and transfers among businesses. Operating income rose 22% to $378
million. Adjusted operating income, which excludes noteworthy items as
presented in the attached supplemental schedules, rose 12% to $358 million in
the third quarter.

Income from continuing operations in the third quarter of 2012 was $246
million, or $.43 per share, compared with $133 million, or $.23 per share, in
the third quarter of 2011. The prior period includes $72 million of expense,
or approximately $.09 per share, related to the early extinguishment of debt.
Adjusted earnings per share in the current quarter was $.39, compared with
$.24 in the third quarter of 2011. Without the impact of the early
extinguishment of debt last year, adjusted earnings per share increased 18%.
Net income was $241 million, compared with $130 million in the third quarter
of 2011.

For the nine months ended September 30, 2012, income from continuing
operations was $939 million, or $1.66 per share, compared with $738 million,
or $1.30 per share, in 2011. Adjusted earnings per share for the nine months
was $1.63, compared with $1.30 last year. Excluding expense related to the
early extinguishment of debt, adjusted earnings per share increased 17%.

Risk and Insurance Services

Risk and Insurance Services segment revenue in the third quarter of 2012 was
$1.5 billion, an increase of 2%, or 4% on an underlying basis. Operating
income increased 26% to $234 million, compared with $186 million in last
year's third quarter. Adjusted operating income in the third quarter increased
13% to $213 million from $189 million. For the nine months of 2012, segment
revenue was $5 billion, an increase of 5% from the prior year period, and 6%
on an underlying basis. Operating income increased 14% to $1.1 billion,
compared with $925 million in 2011. Adjusted operating income rose 13% to $1
billion, compared with $918 million last year.

Marsh's revenue in the third quarter of 2012 was $1.3 billion, a 4% increase
on an underlying basis. International operations reported underlying revenue
growth of 6% in the third quarter, reflecting growth of 7% in Asia Pacific,
and 5% in both EMEA and Latin America. In the United States/Canada division,
underlying revenue grew 3%. Guy Carpenter's third quarter revenue was $249
million, an increase of 1% on an underlying basis, reflecting a moderating
pricing environment and increased risk retention by clients.

Consulting

Consulting segment revenue in the third quarter of 2012 was $1.3 billion, an
increase of 1%, or 3% on an underlying basis. Operating income increased 20%
to $193 million, compared with $161 million in the prior year period. Adjusted
operating income rose 15% to $192 million, compared with $168 million. For the
nine months of 2012, segment revenue increased 2% to $4 billion, or 4% on an
underlying basis. Operating income increased 19% to $524 million, compared
with $441 million in 2011. Adjusted operating income rose 17% to $528 million,
compared with $453 million last year.

Mercer's revenue in the third quarter of 2012 was $995 million, an increase of
3% on an underlying basis. Investments, with revenue of $129 million, had
underlying revenue growth of 10%; Health & Benefits, with revenue of $256
million, rose 7%; Outsourcing, with revenue of $179 million, increased 2%;
Talent, Rewards & Communications, with revenue of $179 million, was up 1%; and
Retirement, with revenue of $252 million, was unchanged from the third quarter
of 2011. Oliver Wyman's revenue of $351 million in the third quarter of 2012
increased 3% on an underlying basis.

Other Items

The Company had an investment loss of $4 million in the third quarter. At the
end of the third quarter of 2012, cash and cash equivalents exceeded $2
billion. In the period, the Company repurchased 2.3 million shares of its
common stock for $80 million. The Company has $373 million remaining under the
share repurchase program authorized by the Board of Directors.

On Oct. 12, 2012, Standard & Poor's Ratings Services raised its counterparty
credit rating on the Company to 'BBB' from 'BBB-', citing material improvement
in the Company's business and financial profiles in recent years. At the same
time, S&P raised the Company's short-term rating by one notch to 'A-2'.

Conference Call

A conference call to discuss third quarter 2012 results will be held today at
8:30 a.m. Eastern Time. To participate in the teleconference, please dial +1
888 296 4215. Callers from outside the United States should dial +1 719 325
2197. The access code for both numbers is 2270546. The live audio webcast may
be accessed at www.mmc.com. A replay of the webcast will be available
approximately two hours after the event.

About Marsh & McLennan Companies

MARSH & McLENNAN COMPANIES (NYSE: MMC) is a global team of professional
services companies offering clients advice and solutions in the areas of risk,
strategy and human capital. Marsh is a global leader in insurance broking
andrisk management; Guy Carpenter is a global leader in providing risk and
reinsurance intermediary services; Mercer is a global leader in human resource
consulting and related services; and Oliver Wyman is a global leader in
management consulting. Marsh & McLennan Companies' over 53,000 colleagues
worldwide provide analysis, advice and transactional capabilities to clients
in more than 100 countries. The Company prides itself on being a responsible
corporate citizen and making a positive impact in the communities in which it
operates. Visit www.mmc.com for more information.

This press release contains “forward-looking statements,” as defined in the
Private Securities Litigation Reform Act of 1995. These statements, which
express management's current views concerning future events or results, use
words like “anticipate,” “assume,” “believe,” “continue,” “estimate,”
“expect,” “future,” “intend,” “plan,” “project” and similar terms, and future
or conditional tense verbs like “could,” “may,” “might,” “should,” “will” and
“would.” For example, we may use forward-looking statements when addressing
topics such as: the outcome of contingencies; the expected impact of
acquisitions and dispositions; pension obligations; market and industry
conditions; the impact of foreign currency exchange rates; our effective tax
rates; the impact of competition; changes in our business strategies and
methods of generating revenue; the development and performance of our services
and products; changes in the composition or level of our revenues; our cost
structure, dividend policy, cash flow and liquidity; future actions by
regulators; and the impact of changes in accounting rules.

Forward-looking statements are subject to inherent risks and uncertainties.
Factors that could cause actual results to differ materially from those
expressed or implied in our forward-looking statements include, among other
things:

  *our exposure to potential liabilities arising from errors and omissions
    claims against us, particularly in our Marsh and Mercer businesses in the
    U.S. and the U.K.;
  *our ability to make strategic acquisitions and dispositions and to
    integrate, and realize expected synergies, savings or strategic benefits
    from the businesses we acquire;
  *changes in the funded status of our global defined benefit pension plans
    and the impact of any increased pension funding resulting from those
    changes;
  *the impact of any regional, national or global political, economic,
    regulatory or market conditions on our results of operations and financial
    condition, including the European debt crisis and market perceptions
    concerning the stability of the Euro;
  *the impact of changes in interest rates and deterioration of counterparty
    credit quality on our results related to our cash balances and investment
    portfolios, including corporate and fiduciary funds;
  *the impact on our net income caused by fluctuations in foreign currency
    exchange rates;
  *the impact on our net income or cash flows and our effective tax rate in a
    particular period caused by settled tax audits and expired statutes of
    limitation;
  *the extent to which we retain existing clients and attract new business,
    and our ability to incentivize and retain key employees;
  *our exposure to potential criminal sanctions or civil remedies if we fail
    to comply with foreign and U.S. laws and regulations that are applicable
    to our international operations, including trade sanctions laws such as
    the Iran Threat Reduction and Syria Human Rights Act of 2012,
    anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and
    the UK Bribery Act 2010, local laws prohibiting corrupt payments to
    government officials, as well as import and export restrictions;
  *the impact of competition, including with respect to our geographic reach,
    the sophistication and quality of our services, our pricing relative to
    competitors, our customers' option to self-insure or utilize internal
    resources instead of consultants, and our corporate tax rates relative to
    our competitors;
  *the potential impact of rating agency actions on our cost of financing and
    ability to borrow, as well as on our operating costs and competitive
    position;
  *our ability to successfully recover should we experience a disaster or
    other business continuity problem;
  *our ability to maintain adequate physical, technical and administrative
    safeguards to protect the security of our data;
  *changes in applicable tax or accounting requirements; and
  *potential income statement effects from the application of FASB's ASC
    Topic No.740 (“Income Taxes”) regarding accounting treatment of uncertain
    tax benefits and valuation allowances, including the effect of any
    subsequent adjustments to the estimates we use in applying this accounting
    standard.

The factors identified above are not exhaustive. Marsh & McLennan Companies
and its subsidiaries operate in a dynamic business environment in which new
risks may emerge frequently. Accordingly, we caution readers not to place
undue reliance on the above forward-looking statements, which speak only as of
the dates on which they are made. The Company undertakes no obligation to
update or revise any forward-looking statement to reflect events or
circumstances arising after the date on which it is made. Further information
concerning Marsh & McLennan Companies and its businesses, including
information about factors that could materially affect our results of
operations and financial condition, is contained in the Company's filings with
the Securities and Exchange Commission, including the “Risk Factors” section
of our most recently filed Annual Report on Form 10-K.

Marsh & McLennan Companies, Inc.
Consolidated Statements of Income
(In millions, except per share figures)
(Unaudited)

                   Three Months Ended          Nine Months Ended
                      September 30,                   September 30,
                      2012        2011           2012         2011
Revenue               $ 2,845        $ 2,806        $ 8,922        $ 8,618 
Expense:
Compensation          1,760           1,753           5,332           5,202
and Benefits
Other Operating       707            743            2,167          2,169   
Expenses
Operating             2,467          2,496          7,499          7,371   
Expenses
Operating             378             310             1,423           1,247
Income
Interest Income       6               9               18              21
Interest              (44     )       (49     )       (135    )       (149    )
Expense
Cost of Early
Extinguishment        —               (72     )       —               (72     )
of Debt
Investment            (4      )       —              20             13      
(Loss) Income
Income Before         336             198             1,326           1,060
Income Taxes
Income Tax            90             65             387            322     
Expense
Income from
Continuing            246             133             939             738
Operations
Discontinued
Operations, Net       1              2              (1      )       17      
of Tax
Net Income
Before                $ 247           $ 135           $ 938           $ 755
Non-Controlling
Interests
Less: Net
Income
Attributable to       6              5              21             18      
Non-Controlling
Interest
Net Income
Attributable to       $ 241          $ 130          $ 917          $ 737   
the Company
Basic Net
Income Per
Share
- Continuing          $ 0.44         $ 0.24         $ 1.68         $ 1.32  
Operations
- Net Income
Attributable to       $ 0.44         $ 0.24         $ 1.68         $ 1.35  
the Company
Diluted Net
Income Per
Share
- Continuing          $ 0.43         $ 0.23         $ 1.66         $ 1.30  
Operations
- Net Income
Attributable to       $ 0.44         $ 0.24         $ 1.66         $ 1.33  
the Company
Average Number
of Shares
Outstanding
- Basic               544            540            544            543     
- Diluted             552            549            552            552     
Shares
Outstanding at        544            538            544            538     
9/30


Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Three Months Ended
(Millions) (Unaudited)

                                                   Components of Revenue Change*
                                                 %                            Acquisitions/
                     Three Months Ended          Change        Currency    Dispositions     Underlying
                     September 30,               GAAP          Impact         Impact              Revenue
                                                 Revenue
                      2012         2011                                                      
Risk and
Insurance
Services
Marsh                $ 1,251       $ 1,210       3%            (3)%           2%                  4%
Guy Carpenter         249          251         (1)%          (1)%           —                   1%
Subtotal               1,500         1,461       3%            (3)%           2%                  4%
Fiduciary
Interest              10           14
Income
Total Risk and
Insurance             1,510        1,475       2%            (3)%           2%                  4%
Services
Consulting
Mercer                 995           975         2%            (3)%           2%                  3%
Oliver Wyman          351          364         (3)%          (4)%           (3)%                3%
Group
Total                 1,346        1,339       1%            (3)%           —                   3%
Consulting
Corporate /           (11)         (8)
Eliminations
Total Revenue        $ 2,845       $ 2,806       1%            (3)%           1%                  3%

Revenue Details
The following table provides more detailed revenue information for certain of the components presented
above:

                                                               Components of Revenue Change*
                                                 %                            Acquisitions/
                     Three Months Ended          Change        Currency       Dispositions        Underlying
                     September 30,               GAAP          Impact         Impact              Revenue
                                                 Revenue
                      2012         2011                                                      
Marsh:
EMEA                 $ 376         $ 367         2%            (7)%           4%                  5%
Asia Pacific           165           158         5%            (2)%           —                   7%
Latin America         81           84          (4)%          (9)%           —                   5%
Total                  622           609         2%            (6)%           3%                  6%
International
U.S. / Canada         629          601         5%            —              2%                  3%
Total Marsh          $ 1,251       $ 1,210       3%            (3)%           2%                  4%
Mercer:
Retirement           $ 252         $ 261         (3)%          (4)%           1%                  —
Health and             256           239         7%            (3)%           3%                  7%
Benefits
Talent,
Rewards &              179           173         3%            (3)%           5%                  1%
Communications
Outsourcing            179           186         (3)%          (1)%           (4)%                2%
Investments           129          116         11%           (3)%           4%                  10%
Total Mercer         $ 995         $ 975         2%            (3)%           2%                  3%

Notes
Underlying revenue measures the change in revenue using consistent currency
exchange rates, excluding the impact of certain items such as: acquisitions,
dispositions and transfers among businesses.

* Components of revenue change may not add due to rounding.


Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Nine Months Ended
(Millions) (Unaudited)

                                                   Components of Revenue Change*
                                                 %                            Acquisitions/
                     Nine Months Ended           Change        Currency    Dispositions     Underlying
                     September 30,               GAAP          Impact         Impact              Revenue
                                                 Revenue
                      2012         2011        
Risk and
Insurance
Services
Marsh                $ 4,043       $ 3,845       5%            (3)%           2%                  6%
Guy Carpenter         881          848         4%            (1)%           (1)%                6%
Subtotal               4,924         4,693       5%            (2)%           2%                  6%
Fiduciary
Interest              31           36
Income
Total Risk and
Insurance             4,955        4,729       5%            (2)%           2%                  6%
Services
Consulting
Mercer                 2,912         2,842       2%            (2)%           1%                  3%
Oliver Wyman          1,088        1,077       1%            (3)%           (2)%                6%
Group
Total                 4,000        3,919       2%            (2)%           —                   4%
Consulting
Corporate /           (33)         (30)
Eliminations
Total Revenue        $ 8,922       $ 8,618       4%            (2)%           1%                  5%

Revenue Details
The following table provides more detailed revenue information for certain of the components presented
above:

                                                               Components of Revenue Change*
                                                 %                            Acquisitions/
                    Nine Months Ended           Change        Currency       Dispositions        Underlying
                     September 30,               GAAP          Impact         Impact              Revenue
                                                 Revenue
                      2012         2011
Marsh:
EMEA                 $ 1,408       $ 1,363       3%            (6)%           4%                  5%
Asia Pacific           488           452         8%            (1)%           —                   9%
Latin America         242          228         6%            (6)%           —                   12%
Total                  2,138         2,043       5%            (5)%           3%                  7%
International
U.S. / Canada         1,905        1,802       6%            —              2%                  4%
Total Marsh          $ 4,043       $ 3,845       5%            (3)%           2%                  6%
                                                                                                  
Mercer:
Retirement           $ 797         $ 813         (2)%          (3)%           1%                  —
Health and             764           717         7%            (2)%           2%                  7%
Benefits
Talent,
Rewards &              436           417         5%            (2)%           5%                  2%
Communications
Outsourcing            534           550         (3)%          (1)%           (4)%                2%
Investments           381          345         10%           (2)%           5%                  8%
Total Mercer         $ 2,912       $ 2,842       2%            (2)%           1%                  3 %
                                                                                                  

Notes

Underlying revenue measures the change in revenue using consistent currency
exchange rates, excluding the impact of certain items such as: acquisitions,
dispositions and transfers among businesses.

* Components of revenue change may not add due to rounding.


                       Marsh & McLennan Companies, Inc.
                              Non-GAAP Measures
                       Three Months Ended September 30
                            (Millions) (Unaudited)

The Company presents below certain additional financial measures that are
"non-GAAP measures," within the meaning of Regulation G under the Securities
Exchange Act of 1934. These measures are: adjusted operating income (loss);
adjusted operating margin; and adjusted income, net of tax.
The Company presents these non-GAAP measures to provide investors with
additional information to analyze the Company's performance from period to
period. Management also uses these measures to assess performance for
incentive compensation purposes and to allocate resources in managing the
Company's businesses. However, investors should not consider these non-GAAP
measures in isolation from, or as a substitute for, the financial information
that the Company reports in accordance with GAAP. The Company's non-GAAP
measures reflect subjective determinations by management, and may differ from
similarly titled non-GAAP measures presented by other companies.

Adjusted Operating Income (Loss) and Adjusted Operating Margin
Adjusted operating income (loss) is calculated by excluding the impact of
certain noteworthy items from the Company's GAAP operating income or loss. The
following tables identify these noteworthy items and reconcile adjusted
operating income (loss) to GAAP operating income or (loss), on a consolidated
and segment basis, for the three months ended September 30, 2012 and 2011. The
following tables also present adjusted operating margin, which is calculated
by dividing adjusted operating income by consolidated or segment GAAP revenue.

                     Risk &                           Corporate/
                  Insurance    Consulting    Eliminations    Total
                     Services
Three Months
Ended
September 30,
2012
Operating            $   234         $    193         $     (49)         $ 378
income (loss)
Add (deduct)
impact of
noteworthy
items:
Restructuring        6               —                4                  10
charges (a)
Adjustments to
acquisition          (25)            (1)              —                  (26)
related
accounts (b)
Other                (2)             —                (2)                (4)
Operating
income               (21)            (1)              2                  (20)
adjustments
Adjusted
operating            $   213         $    192         $     (47)         $ 358
income (loss)
Operating            15.5%           14.3%            N/A                13.3%
margin
Adjusted
operating            14.1%           14.3%            N/A                12.6%
margin
Three Months
Ended
September 30,
2011
Operating            $   186         $    161         $     (37)         $ 310
income (loss)
Add (deduct)
impact of
noteworthy
items:
Restructuring        3               7                1                  11
charges (a)
Adjustments to
acquisition          3               —                —                  3
related
accounts (b)
Other                (3)             —                (1)                (4)
Operating
income               3               7                —                  10
adjustments
Adjusted
operating            $   189         $    168         $     (37)         $ 320
income (loss)
Operating            12.6%           12.0%            N/A                11.0%
margin
Adjusted
operating            12.8%           12.5%            N/A                11.4%
margin

(a) Includes severance from restructuring activities and related charges,
costs for future rent and other real estate costs, and fees related to recent
acquisitions and cost reduction activities.
(b) Reflects the change from the re-measurement to fair value each quarter of
contingent acquisition consideration, net of an $8 million impairment charge
of an identifiable intangible asset in 2012.

                       Marsh & McLennan Companies, Inc.
                              Non-GAAP Measures
                        Nine Months Ended September 30
                            (Millions) (Unaudited)

The Company presents below certain additional financial measures that are
“non-GAAP measures,” within the meaning of Regulation G under the Securities
Exchange Act of 1934. These measures are: adjusted operating income (loss);
adjusted operating margin; and adjusted income, net of tax.

The Company presents these non-GAAP measures to provide investors with
additional information to analyze the Company's performance from period to
period. Management also uses these measures to assess performance for
incentive compensation purposes and to allocate resources in managing the
Company's businesses. However, investors should not consider these non-GAAP
measures in isolation from, or as a substitute for, the financial information
that the Company reports in accordance with GAAP. The Company's non-GAAP
measures reflect subjective determinations by management, and may differ from
similarly titled non-GAAP measures presented by other companies.

Adjusted Operating Income (Loss) and Adjusted Operating Margin
Adjusted operating income (loss) is calculated by excluding the impact of
certain noteworthy items from the Company's GAAP operating income or loss. The
following tables identify these noteworthy items and reconcile adjusted
operating income (loss) to GAAP operating income or (loss), on a consolidated
and segment basis, for the nine months ended September 30, 2012 and 2011. The
following tables also present adjusted operating margin, which is calculated
by dividing adjusted operating income by consolidated or segment GAAP revenue.

                    Risk &                           Corporate/
                 Insurance    Consulting    Eliminations    Total
                    Services
                                                                     
Nine Months
Ended
September 30,
2012
Operating           $ 1,052        $   524         $   (153  )        $ 1,423 
income (loss)
Add (deduct)
impact of
noteworthy
items:
Restructuring         6                 7                8                21
charges (a)
Adjustments
to
acquisition           (20   )           (3   )           —                (23   )
related
accounts (b)
Other                (2    )          —              (5    )         (7    )
Operating
income               (16   )          4              3              (9    )
adjustments
                                                                        
Adjusted
operating           $ 1,036        $   528         $   (150  )        $ 1,414 
income (loss)
                                                                        
Operating            21.2  %          13.1 %          N/A            15.9  %
margin
Adjusted
operating            20.9  %          13.2 %          N/A            15.8  %
margin
                                                                        
Nine Months
Ended
September 30,
2011
Operating           $ 925          $   441         $   (119  )        $ 1,247 
income (loss)
Add (deduct)
impact of
noteworthy
items:
Restructuring         1                 12               3                16
charges (a)
Adjustments
to
acquisition           (3    )           —                —                (3    )
related
accounts (b)
Other                (5    )          —              (6    )         (11   )
Operating
income               (7    )          12             (3    )         2     
adjustments
                                                                        
Adjusted
operating           $ 918          $   453         $   (122  )        $ 1,249 
income (loss)
Operating            19.6  %          11.3 %          N/A            14.5  %
margin
Adjusted
operating            19.4  %          11.6 %          N/A            14.5  %
margin

(a) Includes severance from restructuring activities and related charges,
costs for future rent and other real estate costs, and fees related to recent
acquisitions and cost reduction activities.
(b) Reflects the change from the re-measurement to fair value each quarter of
contingent acquisition consideration, net of an $8 million impairment charge
of an identifiable intangible asset in 2012.


                       Marsh & McLennan Companies, Inc.
                              Non-GAAP Measures
                   Three and Nine Months Ended September 30
                            (Millions) (Unaudited)

Adjusted income, net of tax
Adjusted income, net of tax is calculated as: the Company's GAAP income from
continuing operations, adjusted to reflect the after-tax impact of the
operating income adjustments set forth in the preceding table. The related
adjusted diluted earnings per share as calculated under the two-class method,
reflects reductions for the portion of each item attributable to
non-controlling interests and participating securities so that the calculation
is based only on the amounts attributable to common shareholders.

Reconciliation of the Impact of Non-GAAP Measures on diluted earnings per
share - Three and Nine Months Ended September 30, 2012 and 2011:

                                               Amount     Diluted EPS
Three Months Ended September 30,
2012
Income from continuing                               $ 246
operations
Less: Non-controlling interest,                        6
net of tax
Amount attributable to                                —   
participating securities
Subtotal                                             $ 240         $   0.43
(Deduct) operating loss                $ (20 )
adjustments
Deduct impact of income taxes         (4  )
                                                      (24 )          (0.04 )
Adjusted income, net of tax                          $ 216        $   0.39  
                                                                   
                                                     Amount        Diluted EPS
Nine Months Ended September 30,      
2012
Income from continuing                               $ 939
operations
Less: Non-controlling interest,                        21
net of tax
Amount attributable to                                2   
participating securities
Subtotal                                             $ 916         $   1.66
(Deduct) operating loss                $ (9  )
adjustments
Deduct impact of income taxes         (7  )
                                                      (16 )          (0.03 )
Adjusted income, net of tax                          $ 900        $   1.63  
                                                                   
                                                     Amount        Diluted EPS
Three Months Ended September 30,     
2011
Income from continuing                               $ 133
operations
Less: Non-controlling interest,                        5
net of tax
Amount attributable to                                1   
participating securities
Subtotal                                             $ 127         $   0.23
Add operating income adjustments       $ 10
Deduct impact of income taxes         (3  )
                                                      7             0.01  
Adjusted income, net of tax                          $ 134        $   0.24  
                                                                   
                                                     Amount        Diluted EPS
Nine Months Ended September 30,      
2011
Income from continuing                               $ 738
operations
Less: Non-controlling interest,                        18
net of tax
Amount attributable to                                5   
participating securities
Subtotal                                             $ 715         $   1.30
Add operating income adjustments       $ 2
Add impact of income taxes            1   
                                                      3             —     
Adjusted income, net of tax                          $ 718        $   1.30  
                                                                   


The results in the table above are not adjusted for debt extinguishment costs
of $72 million, which reduced earnings in the three and nine months ended
September 30, 2011.


Marsh & McLennan Companies, Inc.
Supplemental Information
(Millions) (Unaudited)

                                 Three Months Ended    Nine Months Ended
                                    September 30,            September 30,
                                    2012        2011        2012       2011
Depreciation and amortization       $   87       $ 85        $   254     $ 250
expense
Stock option expense                $   3        $ 4         $   23      $ 16
Capital expenditures                $   100      $ 63        $   249     $ 205


Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets
(Millions) (Unaudited)

                                           September 30,    December 31,
                                              2012                2011
ASSETS
                                                                  
Current assets:
Cash and cash equivalents                     $  2,044            $  2,113
Net receivables                               3,059               2,906
Other current assets                          548                629        
Total current assets                          5,651               5,648
                                                                  
Goodwill and intangible assets                7,113               6,963
Fixed assets, net                             807                 804
Pension related assets                        225                 39
Deferred tax assets                           1,192               1,205
Other assets                                  748                795        
TOTAL ASSETS                                  $  15,736          $  15,454  
                                                                  
LIABILITIES AND EQUITY
                                                                  
Current liabilities:
Short-term debt                               $  259              $  260
Accounts payable and accrued                  1,742               2,016
liabilities
Accrued compensation and employee             1,225               1,400
benefits
Accrued income taxes                          154                 63
Dividends payable                             126                —          
Total current liabilities                     3,506               3,739
                                                                  
Fiduciary liabilities                         4,044               4,082
Less - cash and investments held in a         (4,044     )        (4,082     )
fiduciary capacity
                                              —                   —
Long-term debt                                2,660               2,668
Pension, post-retirement and                  1,594               1,655
post-employment benefits
Liabilities for errors and omissions          476                 468
Other liabilities                             920                 984
                                                                  
Total equity                                  6,580              5,940      
                                                                  
TOTAL LIABILITIES AND EQUITY                  $  15,736          $  15,454  

Marsh & McLennan Companies
Media
Jeremy Lehrman, +1 212 345 9775
jeremy.lehrman@mmc.com
or
Investor
Scott Douglas, +1 212 345 5488
scott.d.douglas@mmc.com

Contact:

Marsh & McLennan Companies