Financial Data and Key Metrics Changes - Consolidated revenue increased by 11% to $6.4 billion, with underlying growth of 4% despite headwinds from fiduciary interest income [12][15][26] - Adjusted operating income rose by 13% year-over-year, with an adjusted operating margin increase of 30 basis points to 22.7% [5][15] - Adjusted EPS grew by 11% to $1.85, while GAAP EPS was reported at $1.51 [15][24] Business Line Data and Key Metrics Changes - Risk and Insurance Services (RIS) revenue was $3.9 billion, up 13% year-over-year, with underlying growth of 3% [15][16] - Marsh's revenue increased by 16% to $3.4 billion, reflecting a 4% underlying growth [16][17] - Guy Carpenter's revenue was $398 million, up 5% on both GAAP and underlying basis [17] - Consulting segment revenue reached $2.5 billion, up 9% or 5% on an underlying basis [17][18] Market Data and Key Metrics Changes - Global commercial insurance rates decreased by 4% in Q3, with property rates down 8% year-over-year [10][11] - U.S. rates were down by 1%, while Canada saw a 3% decline; EMEA, Latin America, and Asia experienced mid-single-digit decreases [10] - Global casualty rates increased by 3%, with U.S. excess casualty up 16% [11] Company Strategy and Development Direction - The company announced a rebranding to Marsh, effective January, to enhance visibility and strengthen its value proposition [5][6] - The Thrive program aims to optimize operations, enhance efficiency, and leverage AI for better client service, with expected savings of $400 million over three years [6][21] - The company is focused on maintaining a strong talent base and enhancing its capabilities through strategic investments [9][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit underlying revenue growth despite economic uncertainties and pricing pressures [30][84] - The company anticipates that current market conditions will likely persist into 2026, with a focus on proactive client strategies [12][12] - Management highlighted the importance of navigating the complex operating environment and maintaining a strong growth trajectory [58][63] Other Important Information - The company repurchased $400 million of its stock in the quarter and plans to deploy approximately $4.5 billion in capital across dividends, acquisitions, and share repurchases in 2025 [13][24][25] - Interest expense increased to $237 million from $154 million year-over-year, with an adjusted effective tax rate of 24.8% [23][24] Q&A Session Summary Question: Impact of government shutdown on growth outlook - Management acknowledged the potential for low to mid-single-digit growth due to macroeconomic pressures but remains confident in their positioning and execution [29][30] Question: Details on the new wholesale business - The company clarified that it is not looking to build a third-party wholesale business but will enhance internal capabilities to access specialty markets [31][34] Question: Thrive program cost and savings ratio - Management explained that the $500 million in costs for $400 million in savings reflects a strong payback ratio, with confidence in achieving the projected savings [37][39] Question: Organic growth expectations in the U.S. - Management indicated that organic growth in the U.S. is expected to follow current trends, with some hesitancy from larger clients noted [42][44] Question: Oliver Wyman's growth amid uncertainty - Management expressed satisfaction with Oliver Wyman's performance and noted strong demand for their services despite economic challenges [47][48] Question: M&A environment in insurance brokerage - Management confirmed an appetite for larger-scale M&A while noting that the bid-ask spread may be widening in the current market [77][79]