MRSH

Marsh & McLennan delivered a strong third quarter with 8% reported revenue growth (5% underlying) and 10% adjusted EPS growth to $2.03, beating consensus estimates on both metrics. The company raised its Thrive cost-reduction program target from $400 million to $600 million, driven by accelerating AI deployment and Business and Client Services (BCS) optimization, while simultaneously committing to reinvest savings into sales capacity, technology, and brand initiatives. This dual strategy, efficiency gains funding growth investments, underpins management's confidence in sustained margin expansion and solid EPS growth for the full year despite a softening commercial insurance pricing environment. Risk and Insurance Services grew 3% underlying (5% reported), with Risk accelerating to 5% underlying growth despite persistent rate headwinds, while Reinsurance declined 6% as property cat pricing pressure and abundant capacity offset strong new business and retention. Consulting surged 8% underlying, led by Management Consulting's 14% growth driven by AI transformation work and favorable success-fee timing; People and Investments grew 5% underlying, with assets under management reaching $843 billion. The company's strategic positioning around AI, both as a margin lever through internal productivity and as a growth driver through client advisory and new products like Broker Workbench and the Stratus Exchange, reflects a company in the early stages of technology-driven transformation. Management emphasized that structural change (geopolitical conflict, extreme weather, AI advances) rather than cyclical dynamics is reshaping client risk profiles, creating durable demand for Marsh's advisory services across risk, strategy, people, and investments. Capital deployment remained disciplined: