Welcome to Marsh McLennan's Conference Call. Today's call is being recorded. 2nd Quarter 2021 financial results and supplemental information were issued earlier this morning. They are available on the company's website at mmc.com. Please note that remarks made today may include forward looking statements, including certain expectations related to COVID-nineteen and other matters.
Forward looking statements are subject to risks and uncertainties, and a variety of factors may cause actual results to differ materially from those contemplated by such statements. For a more detailed discussion of those factors, please refer to our earnings release this quarter and to our most recent SEC filings, including our most recent Form 10 ks, all of which are available on the Marsh McLennan website. During the call today, we may also discuss certain non GAAP financial measures. For a reconciliation of these measures to the most closely comparable GAAP measures, please refer to the schedule in today's earnings release. I'll now turn this call over to Dan Glaser, President and CEO of Marsh McLennan.
Good morning. Thank you for joining us to discuss our second quarter results reported earlier today. I'm Van Glaser, President and CEO of Marsh McLennan. Joining me on the call today is Mark McGivney, our CFO and the CEOs of our businesses, Tom Doyle of March
Peter Hernd of Cai Carpenter
Martini Farah of Mercier and Nick Studer of Oliver Wyman. Also with us this morning is Sarah DeWitt, Head of Investor Relations. I'd like to welcome Nick, who became CEO of Oliver Wyman July 1. Nick has led many of Oliver Wyman's major practices in his 23 years with the business and I look forward to seeing Oliver Wyman continue to grow and thrive under his leadership. On behalf of the Executive Committee, I also want to thank Scott McDonald for his many contributions during his March and MacLean had an outstanding second quarter.
We are well positioned and benefiting from an abundance of opportunities. We are stronger and have broader capabilities post the JLT acquisition. We're benefiting from what may be the strongest economic rebound in nearly 4 decades led by our largest region, the U. S. There is high demand for our advice and solutions in this time of uncertainty and in the face of challenging market conditions.
We are seeing a flight to quality and stability, which is contributing to high levels of new business growth and client retention, And it's helping us attract talent. And there is a long runway for growth as we think about major protection gaps around the world, new emerging risks, digitization, workforce of the future and underpenetrated markets such as small commercial. We are focused on capitalizing on these opportunities, and I am proud of our execution in the quarter. We generated record second The strength of our results was broad based with each of our businesses and virtually all of our major geographies seeing an acceleration in growth. Our adjusted EPS increased by an impressive 33% and we generated margin expansion despite challenging expense comparisons.
As we look ahead, the economic outlook for the U. S. And most of the major countries we operate in is encouraging. Vaccine availability is limited. As a result, much of the world is experiencing another wave of the pandemic with rising case counts Due to the spread of variance.
In addition, the shape of this economic recovery is very different from any we have seen before. Some industries are thriving, while others are being impacted by supply chain disruption, inventory issues and labor shortages. Navigating this dynamic landscape is challenging, even confounding for some businesses. The growth opportunity for Marsh McLennan is significant during this time of uncertainty and recovery. We are aiding and guiding our clients Through the complexities of the new normal as well as helping them tackle issues like climate risk, cyber, diversity and inclusion, employee safety and well-being and workforce disruption.
Our ability to provide differentiated high quality solutions to our clients rests on our talent and expertise. Our colleagues are our number one competitive advantage. And with the potential for industry consolidation, we see a meaningful opportunity to invest in hiring and deepen our world class talent pool. We have strong momentum and as we mentioned last quarter, our efforts are focused on resurgence and expansion. Let me provide some examples of how we are helping our clients address complex issues of the day, specifically 2 major challenges, Cybersecurity and Climate Change.
Cybersecurity is one of the greatest risks facing society. Supply chain and ransomware attacks continue to rise with a number of recent high profile attacks affecting organizations across all sectors and segments From technology to critical infrastructure and healthcare, Watson Planet is helping clients manage cyber risk. Increasingly, we are bringing our businesses together to leverage all of our expertise, data and relationships with public and private partners help clients become more resilient. Our growth and participation in cyber extends well beyond the placement of insurance. Under the leadership of Tom Doyle, we are leveraging the collective capabilities of Marsh and Carpenter and Oliver Wyman to bring cyber solutions from across our enterprise to clients.
Not only are we helping clients with risk transferred throughout our insurance businesses. Through our cyber risk assessment tools, we help clients measure and quantify their cyber risk exposure to better inform decisions about cybersecurity, risk mitigation and transfer strategies. We also help clients with incident response before, during and after events as well as a part of our broader efforts to Alpine's build resilience in the face of a constantly evolving threat landscape. A second defining challenge of our time is climate change. Climate and the broader topic of ESG are complex, multi dimensional challenges virtually all companies face.
The threat to the changing climate present obvious questions for companies touching everything from strategy To resilience to their workforce and how they communicate. Even though climate change is a long term threat, The issue is proximate and has immediate consequences as firms deal with calls for action, strategies to respond And more input from various stakeholders. Led by Nick Studer, we are bringing together our businesses to help our clients anticipate climate risks and opportunities. For example, Oliver Wyman is working with our insurance businesses to support clients in the transition to a low carbon economy and manage climate risk. We are assisting clients with the development of carbon like business models at a derisk investment in sustainable technologies.
At Marsh and Guy Carpenter, we are helping to develop innovative climate solutions to bridge protection gaps. We assist clients with stress testing models, quantifying the impact of climate change and providing risk management and insurance services to protect against climate impacts and Mercer's responsible investment business helps stewards and fiduciaries of investment pools understand how a changing climate could impact investment returns in the future and anticipate them today. Overall, we are uniquely positioned to help our clients with their most pressing challenges. Let me spend a moment on current P and C Insurance market conditions. The 2nd quarter marks the 15th consecutive quarter of rate increases in the commercial P and C Insurance marketplace.
The Marsh Global Insurance Market Index showed price increases of 15% year over year versus 18% in the Q1. The pace of price increases continued to moderate, but Global Property Insurance was up 12% and Global Financial and Professional Lines were up 34%, driven in part by steep cyber increases, While global casualty rates are up 6% on average and U. S. Workers' compensation rates declined modestly in the quarter. Keep in mind that our index skews the large account business.
However, U. S. Small to middle market insurance pricing continues to rise as Although the magnitude of price increases is less than the large complex accounts. Turning to reinsurance, Scott Carpenter's Global Property Detach Scheme Radar Line Index increased 6% in midyear. In the Q2, the market was more orderly and balanced than a year ago, reflecting adequate capital and an increased willingness to deploy capacity.
Measured and moderate single digit rate increases were typical after 2 years of double digit rate increases. However, programs that had significant losses saw higher increases and capacity remains constrained on certain lines of business, Most notably, cyber. Concerns remain around inflation, losses in certain lines, extreme weather events and the beginning of a new hurricane season. It is in times like these where our expertise and capabilities shine. We are working hard to help our clients navigate the current environment.
Now let me turn to our fantastic second quarter financial performance. We generated adjusted EPS of $1.75 which is up 33% versus a year ago, Driven by strong top line growth and continued low levels of T and E. Total revenue increased 20% versus a year ago and rose 13% on an underlying basis, the highest quarterly growth in 2 decades. Underlying revenue grew 13% in RIS and 12% in consulting. Marsh grew 14% in the quarter on an underlying basis, the highest quarterly underlying growth in nearly 2 decades and benefited from stronger business and renewal growth.
Scott Carpenter grew 12% on an underlying basis in the quarter, continuing its stream of excellent results. Mercer underlying revenue grew 6% in the quarter, the highest in almost a decade. Oliver Wyman posted record and reported underlying revenue growth of 28%. Overall, the 2nd quarter saw adjusted operating income growth of 24% And our adjusted operating margin expanded 90 basis points year over year. As we look out for the rest of 2021, we are well positioned.
With 9% underlying revenue growth year to date, our full year growth will be strong. We expect favorable market dynamics to persist for at least the remainder of the year, Although the pace of growth could moderate versus the Q2 as year over year comparisons become more challenging. We also expect to generate margin expansion for the full year and strong growth in adjusted EPS. With that, let me turn it over to Mark for a more detailed review of our results.
Thank you, Dan, and good morning. Our results were excellent with record second quarter revenue and earnings, the best quarterly underlying growth in 2 decades, meaningful margin expansion and significant growth in adjusted earnings. Highlights from our Q2 performance included the strongest underlying growth at March since the Q1 of 2003, the strongest Buckeye Carpenter in 15 years, a solid 3% to 6% at Mercer and record reported underlying growth at Oliver 1. 2nd quarter growth in adjusted earnings per share was also impressive, rising at the fastest pace of any quarter in more than a decade. Consolidated revenue increased 20% in the 2nd quarter to $5,000,000,000 reflecting underlying growth of 13%.
Operating income in the quarter was $1,200,000,000 an increase of 39% over the prior year. Adjusted operating income increased 24 percent to $1,200,000,000 and our adjusted operating margin increased 90 basis points to 26.4%. GAAP EPS was $1.60 in the quarter and adjusted EPS increased 33% to $1.75 For the 1st 6 months of 2021, underlying revenue growth was 9%. Our adjusted operating income grew 22% to 2,600,000,000 our adjusted operating margin increased 170 basis points and our adjusted EPS increased 26% to $3.74 Looking at Risky Insurance Services, 2nd quarter revenue was $3,100,000,000 up 21% compared with a year ago were 13% on an underlying basis. Operating income increased 37% to 950,000,000 adjusted operating income increased 22 percent to $927,000,000 and our adjusted operating margin expanded 30 basis points to 32.4%.
For the 1st 6 months of the year, revenue was $6,400,000,000 with underlying growth 10%. Adjusted operating income for the first half of the year increased 19% to $2,000,000,000 with a margin of 34.5%, Up 110 basis points from the same period a year ago. At Marsh, revenue in the quarter was $2,700,000,000 up 23% compared with a year ago, 14% on an underlying basis. Even excluding the impact of the revenue adjustment we recorded a year ago, underlying revenue at Marsh was up 12%. Growth in the quarter was broad based and was driven by robust new business growth and solid retention.
The U. S. And Canada region delivered another exceptional quarter with underlying revenue growth of 15%, the highest results since we began reporting this segment. In international, underlying growth was 13%. EMEA was up 16%, Asia Pacific was up 10% and Latin America grew 2%.
For the 1st 6 months of the year, Marsh's revenue was $5,000,000,000 with underlying growth of 11%. U. S. And Canada underlying growth was 12% and international was up 9%. Guy Carpenter's 2nd quarter revenue was $488,000,000 up 13% compared with a year ago or 12% on an underlying basis.
Growth was broad based across all geographies and specialties. Guy Carpenter has now achieved 7% or higher underlying growth in 6 of the last eight quarters. For the 1st 6 months of the year, Guy Carpenter generated $1,400,000,000 of revenue and 8% underlying growth. In the Consulting segment, revenue in the quarter was $1,900,000,000 up 17% from a year ago or 12% on an underlying basis. Operating income increased 35% to 344,000,000 Adjusted operating income increased 34 percent to $356,000,000 and the adjusted operating margin expanded by 220 basis points 19.5%.
Consulting generated revenue of $3,800,000,000 for the 1st 6 months of 2021, representing underlying growth of 8%. Adjusted operating income for the first half of the year increased 31% to 726,000,000 Mercer's revenue was $1,300,000,000 in the quarter, up 6% on an underlying basis, representing a meaningful acceleration from the Q1. Career grew 15% on an underlying basis, reflecting the rebound in the economy and business confidence. Wealth increased 4% on an underlying basis, reflecting strong growth in Investment Management, offset by a modest decline in defined benefit. Our assets under delegated management grew to $393,000,000,000 at the end of the second quarter, up 28% year over year and 3% sequentially benefiting from net new inflows and market gains.
Health underlying revenue growth was 4% in the quarter Driven by strength internationally. Alok Wyman's revenue in the quarter was $618,000,000 an increase of 28% on an underlying basis. The 2nd quarter results represent a sharp rebound from the contraction we saw in the Q2 last year. For the 1st 6 months of the year, revenue at Oliver Wyman was $1,200,000,000 an increase of 19% on an underlying basis. Adjusted corporate expense was $62,000,000 in the 2nd quarter.
Foreign exchange was a modest benefit to earnings
in the quarter. Assuming
exchange rates remain at current levels, we expect FX to have a minimal impact on EPS for the remainder of the year. Our other net benefit credit was $71,000,000 in the quarter. For the remaining two quarters of the year, we expect our other net benefit credit will be mostly consistent with the level in the second quarter. Investment income was $18,000,000 in the 2nd quarter on a GAAP basis and $18,000,000 on an adjusted basis and mainly reflect gains on our private equity portfolio. Interest expense in the Q2 was $110,000,000 compared to $132,000,000 in the Q2 of 2020, reflecting lower debt levels in the period.
Based on our current forecast, we expect approximately $110,000,000 of interest expense in the 3rd quarter. Our adjusted effective tax rate in the 2nd quarter was 24.4% compared to the 25% in the 2nd quarter last year. Our tax rate benefited from favorable discrete items, the largest of which would be accounting for share based compensation. Excluding discrete items, our effective adjusted tax rate was approximately 25.5%. Our GAAP tax rate was 31.6% in the 2nd quarter, up from 26.2% in the Q2 of 2020.
The increase reflects a $100,000,000 impact from the revaluation of deferred tax liabilities due to an increase in the UK statutory tax rate that goes into effect in 2023. Through the first half of the year, our adjusted effective tax rate was 24.4% compared with 24% last year. Based on the current environment, we continue to expect an adjusted effective tax rate between 25% 26% For 2021 excluding discrete items. As we currently look out for the balance of the year, we expect our top line growth to remain strong, reflecting the economic rebound and favorable environment. Keep in mind the 2nd quarter faced the most favorable year over year comparison for revenue growth.
As we progress through the rest of the year, this combined with continued normalization of expenses will result in more challenging comparisons. However, our businesses have momentum We expect positive trends to continue, resulting in strong performance in the second half and a terrific full year. Turning to capital management, our balance sheet. We ended the quarter with $10,800,000,000 of total debt. This reflects repayment of $500,000,000 of senior notes in April, which completed our JLC related deleveraging.
Our next scheduled debt maturities in January of 2022 when $500,000,000 of senior notes mature. We continue to expect to deploy approximately $3,500,000,000 and possibly more capital in 2021, Of which at least $3,000,000,000 will be deployed across dividends, acquisitions and share repurchases. The ultimate level of share repurchases As on how the M and A pipeline develops. Last week, we raised our dividend 15%, which is the largest increase since the Q3 of 1998. We also repurchased 2,400,000 shares of our stock for $322,000,000 in the 2nd quarter.
Our cash position at the end of the second quarter was $888,000,000 Uses of cash in the quarter totaled 993,000,000 included $241,000,000 for dividends, dollars 322,000,000 for share repurchases and $430,000,000 for acquisitions. For the 1st 6 months uses of cash totaled $1,400,000,000 and included $478,000,000 for dividends, $434,000,000 for share repurchases and $473,000,000 for acquisitions. Overall, we had an exceptional second quarter positioning us well to deliver strong growth in both revenue and adjusted earnings in 2021. And with that, I'm happy to turn it back to Dan.
Terrific. Thanks, Mark. And operator, we are ready to begin Q and A.
Our first question comes from Elyse Greenspan with Wells Fargo. Your line is open.
Hi, thanks. Good morning. My first question is on the organic growth outlook. Recognizing the comps do get a little bit harder in the second half of the year, but the Q3 was still negative last year. So I guess my question is, given what you know now, it sounds like you guys are positive, but a little bit cautious about the economy.
Is it possible it sounds like it's still possible we could see double digit organic growth over the remaining two quarters of the year?
Yes. So, we obviously as Clark was saying, we've got And we feel very good about how we're positioned. We're not that fearful about the economy. We are fearful about continuing waves of COVID, but the economies have adjusted Somewhat in many parts of the world and are more resilient certainly than they were in the spring of 2020. And so the impact economic impact won't be as severe as what we've seen even with continuing waves of COVID.
I mean last quarter, Elyse, we said that 2021 growth would be at the high end of our 3% to 5% range and possibly higher. I think at 9% underlying growth through 6 months, It's safe to say that we're in the higher category. We feel very good about our position. We're going to have a very good year. And 2021 is just going to set a new base for us.
We intend to grow revenues and earnings in 2022 as well. So this is Not going to be a 1 year wonder.
Okay. That's helpful. And then my second question was on the margin side. So you guys, Dan, I think you both said that some T and E has not fully come back, but also the pretty impressive revenue growth helped drive that margin improvement as well. So we think about the back half of the year and T and E coming back, can you just help us think through The resulting impact on the margins, especially if revenue remains strong, maybe the second half could also see some margin improvement?
Well, I'll start by saying that we absolutely expect margin expansion in the year and this will be our 14th consecutive year Of margin expansion. Margins are an outcome of how we run the business. I mean, we grow our revenue every year At a pace that's faster than how we grow our expenses. I think you may be overly optimistic about T and E really roaring back in the back half of this year, I think it's going to be very gradual and slow actually. And I think That companies, not just Marsh and McLennan, will travel with more purpose and will be more thoughtful About traveling and I think clients will expect the same of providers like ours.
And so we do expect and hope That over time, T and E gets back to kind of 2019 levels, but we may be quite a way away from that point in time. We were very pleased with our margin expansion in the quarter. And as you said, it was driven by our top line. That's where It largely came from and it helped us that strong top line helped us overcome a comparable, which was a minus 5% Expense growth, I mean look at RIS margins are up 30 bps, but that's on top of 430 bps of margin expansion in the Q2 of last year. So we like where we are.
We will grow margins for the year. It may not be every quarter, don't know that right now, but ultimately we feel good
our next question comes from Jimmy Bhullar with JPMorgan. Your line is open.
Hi, good morning. So just on organic growth again, obviously, you mentioned easy Were there any other tailwinds, such as maybe pent up demand in certain industries or just the Benefit of higher price hikes in P and C that might not repeat to the same extent in future periods.
Yes. The high levels of growth were not just because of easy comps at all. I mean, Pat Carpenter's comp was a 9 last year. March was a 1. It's not exactly layups in terms of comps.
I think that we have real momentum right now and the U. S. Economy is getting stronger, Sales integration is well behind us and the combined organization is emerging from the pandemic stronger than what we went in and focused And on our front foot, new business generation was terrific across the businesses and our growth was broad based. Retention is strong, pricing is a tailwind and we're benefiting from disruption and flight to quality and stability. So There are a lot of factors that are underpinning our revenue growth and we feel very good about revenue growth into the future.
Okay. And then on share buybacks, I think you spent over $300,000,000 in 2Q, over $400,000,000 for the first half, and that's a higher pace than you typically did prior to the pandemic. So is it more of a catch up From not buying back stock last year or should we assume this is going to be more of a run rate going forward?
No, we're not catching up with every year as its own adventure. And ultimately, as we've said before, We start every period believing in a balanced approach to capital management, not that we'll spend the same money in each of our 3 principal buckets of dividend and acquisition and share repurchase, but we don't have In approach that's weighted to 1 versus the other. And so share repurchase in large part is a function of what our Acquisition activity looks like and every year might not be perfectly balanced, but boy, the first half was pretty balanced. I mean, Our uses of $478,000,000 of dividends, dollars 4.34 of share repurchase and $473,000,000 of acquisitions. So It is a balanced approach.
And I think you'll see that from us. I mean, at the end, as Mark was saying, we have $3,500,000,000 or more to deploy. We are a cash generation type of company. So this is Again, not a 1 year wonder. This is an every year we're going to put money toward our dividend.
We're going to grow our dividend. We're going to Acquired a high quality firm, so we're going to buy back our own shares. I mean, that's going to be year after year.
Okay. Thank you.
Next question please. Our
next question comes from David Mode Madden with Evercore ISI. Your line is open.
Hi, thanks. Good morning. I wanted to talk a little bit more About the expenses, just the other operating expenses were up Not as much as I would have thought. I mean, it sounds like T and E continues to be a benefit. That's not going to roar back, but still up only 6% Year over year despite a pretty favorable or pretty tough comp on the expense side.
I'm wondering if there was anything else one off in there. And relatedly, I guess, are you guys realizing more sustainable expense saves as a result of some of the operational changes Due to COVID-nineteen like real estate expenses and that sort of thing?
It's a good question, David. We certainly are going to realize a number of efficiency gains over the next several years. And that's just as you mentioned, Real estate, more purposeful T and E or travel in general and hopefully E as well. Also, We've been undergoing some significant modernization projects on technology and on operations. And so That will benefit us more in the future than it's doing right now.
The thing is growth in our expenses, frankly, is Compensation, and I think that's a good thing. Our variable comp is going up along with our growth. We're in the market, we're hiring. I mean, the 1st 6 months of this year, our headcount has grown nearly 2,000. Most of that is coming within Marsh as they are capitalizing on the opportunity they see with their 2 biggest competitors Having some element of distraction and uncertainty.
So at the end, it's more expense related to headcount And expense related to compensation that's where the growth of expense is coming from and we feel pretty good about that. We can manage that over time, but we're in the market right now building our business and building on already The industry leading pool of talent we already have.
Great. Yes, that's good to hear. I guess maybe just a follow-up on that headcount. I mean, I think that's The 2,000 headcount growth this year is definitely more than I was thinking or I had thought. How much of a tail does that have?
Like is that something that you think can continue through the end of the year? Or Is that something that you have like this period of time where the consolidation is sort of in There is some uncertainty there and you guys are capitalizing on that. And then once that's over, it's sort of back to normal course where you guys are Still getting talent, it's just not as significant?
I think talent begets talent. People are attracted to working environments with smart, creative, dedicated people. And the more people like that you have, the more talent you Track. I mean, it's clear that the issues of Willis and In particular and AAON are creating a short term opportunity that will run its course one way or the other. I mean, I was just looking at the stats Recently, our hiring for Mayodan and Willis post the announcement is 3 times higher on a net basis than it was In the 16 months prior to the announcement.
So that's not going to run forever, but ultimately, we're doing our best to continue to build Now having capabilities within our already formidable firm. Next question please.
Our next question comes from Meyer Sheikh with KBW. Your line is open.
Thanks. So two questions I think Related to what you were talking about. First, when you talk about the Flight 2 stability, was that a headwind or a tailwind To margins in the quarter.
I think the flight to stability indicates that our account retention levels in our new business are higher than they otherwise would be. And so that would be a benefit to not only revenue, but Benefit the margins because the revenue is higher than it would otherwise be. It's not having an impact on expense.
Okay, perfect. And then obviously the reinsurance organic growth has been fantastic for a long time. There are it seems like there are a lot of new companies out there. And I was hoping you could give us a little bit more color on what's happening in the competitive environment.
Yes, absolutely. We're very pleased with Scott Carpenter's performance over a number of years, but I'll Hand off to Peter, so he can dig in a little bit deeper. So Peter, you want to take that?
Yes. Thanks, Dan, and thanks, Meyer. We have. We've enjoyed a terrific run over the past several years. Our model is based on consistent growth over a long period of time, And we've been able to capitalize on that model as a result of a very compelling proposition, discipline around both sales and pipeline That have resulted in new business wins.
And as we look at our new business wins over the past several quarters, Meyer, the amount of new business coming from new clients has grown significantly to the extent that in Q2 2021 that number was 56% of our revenue growth from new business came from new clients. So we're seeing continued growth based on the model that we've built. Yes, there are a number of new challenger brokers out there and we have to be mindful. All of Our competitors are worthy adversaries, but we believe we have a very compelling proposition that over a long period of time has produced sustained growth And opportunity for us on a continuing basis.
Okay, fantastic. Thank you.
All right. Thanks, Meyer. Next question, please.
Our next question comes from Brian Meredith with UBS. Your line is open.
Yes, thanks. Two quick ones here. First one, Dan, I'm wondering if you could break down at Marsh, just generally speaking, what the impact on organic revenue growth was from Rate versus call exposure growth versus market share gains, generally speaking?
I can speak up just a little bit more. I got the question, but It was a little faint. I'll hand off to John, But just start by saying how thrilled we all are with in our 100 and The company we could grow the GAAP top line by 20% and Marsh in particular have its Best growth in a couple of decades. It's a phenomenal overall performance. But John, do you want to break down the growth a bit?
Sure, Brian. Thanks
for the question. As Dan and Emhart both mentioned, we certainly benefited from the economic rebound Relatively soft prior year comp, but we're proud of that growth in the Q2 last year during the thick of the pandemic. The pricing environment, Dan talked about it a little bit in his remarks earlier. About 50% of our revenue is sensitive to P and C pricing. And while rate increases have been down modestly compared to the Q4 of last year and the Q1 of this year, They held really where we're sensitive to pricings and where we get commission.
But it's probably a number of different areas. But I also want to emphasize that we executed really well in the quarter. Our team has deepened and strong as it's ever been. They're highly engaged, So focused on delivering for our clients and the market remains challenging. It's again, while rates aren't up nearly as much as they were before, They are quite difficult.
I do think there's been a bit of catch up.
In some markets, there's a fair amount of new business Our results, whether it's in transaction risk in cyber or in construction, there are examples of where that is the case. But again, we're very, very pleased with the results in the quarter. Great.
Anything else, Brian?
That's great. Thanks. And then second question is, Dan, could you
talk a little bit about kind
of the M and A environment here, kind of what it looks like right now? And also have the issues that AAON and Williston kind of run into With some regulatory approvals, does that at all change your kind of strategic view of M and A right now?
No, it's had no impact. Our philosophy in M and A is basically we like buying firms That our high quality with a leadership team generally remains in place and are recovering revenue streams, High cash generation, low capital requirements and a history of success. That sets it up for us. And then It's really getting to know each other over a long stretch of time and figuring out it's not us buying and it's not them selling. We're deciding to come together.
We believe The outcome for our clients and our people will be better together than separate and that's the approach. Pipeline remains strong for us throughout our businesses. In fact, last year was is the highest acquired revenue within Washington and Clinton Agency, which as you know has been more than a decade long In terms of strategy build, and so we feel very good about that. I mean, obviously, there's a lot of capital in the world. So, both of those are higher than what we would like and we need to be very selective and very careful in our evaluation of Of pro form a results, because most of the companies we look at are private.
But our strategy for a long period of time Has been more of a string of pearls, not something where it's 1 mega type of acquisition, but it's Building the company's capabilities, geographic have broader end. JLT was an anomaly In some ways, it was perhaps our biggest acquisition in history. And we totally have to cover that acquisition because we have been Cultivating a broad relationship for a long period of time. We were coming together because we thought the combination was going to be better And you're seeing a manifestation of that. Growth is better because of all of our combination with JLP, particularly And our specialty operations.
And so that's kind of where we are. But our thoughts about M and A have not changed.
Great. Thank you.
Next question please.
Our next question comes from Ron Tunis with Autonomous Research. Your line is open.
Hey, thanks. Good morning. I guess just thinking about consulting, couple of things. First of all, with Oliver Wyman, the 28 organic, just Any color on, I guess, how you're thinking about that? Any visibility on sort of the back half of the year?
And I guess you said in Mercer, it sounds like there's been some focus on the call about comps becoming more difficult. It's not obvious that the comps get that much more challenging there. So I'm maybe curious if Martine can give us some perspective So how business developed in the 3 months of the quarter and where we're at now looking in the back half?
And I'm glad, Brian, that you answered our consulting. That's a big part of our business and a big part of our performance. And I'll hand it off to Nick first and then over to Martine, but let me just say a couple of comments first. 1, We've mentioned before that Oliver Wyman will tend to be our fastest grower over long stretches of time, But with more volatility. And so, yes, you look back to the Q2 of last year, minus 13%.
So we love the 28, But ultimately, you put them together at 6% over one of the more difficult periods in recent human history. And so, yes, we The box on that is that's a terrific result. Mercer on the other hand, Mercer is in terrific growth businesses, health, wealth, career And Martina has done some great underpinning work. And if you go back to the end of 2019, 2% growth, 3% growth and 4% growth in sequential quarters and then 5% growth in the Q1 of 2020 And then got last time, the pandemic as expected in some ways, it held up very well with a minus 3 throughout last year. So Martin and Mercer are going back to terrific results in the second quarter.
It's sort of getting back to the same pace We're getting back to the same processes that existed pre pandemic. Let's start with Nick and then we'll go to Martine.
Thank you very much. Yes, as Dan said, we're thrilled with the performance. And As to where it's coming from, it's been incredibly broad based. The growth in the quarter was highest in the regions and the sectors, Which have been most adversely affected by the pandemic and Dan referred to the comp. The Americas, particularly the U.
S, has seen a very sharp rebound in client demand, Which was the factor that suffered the greatest impact from the pandemic last year, springing back very strongly. While not of outsized of the Americas, growth in Europe and in the Asia Pacific region were also quite robust and across our major industry groups, financial services, consumer, industrials, healthcare, All actually growing at remarkably similar rates. And while we do think the outsized growth in Q2 As an outlier, we see business confidence remaining high as global economic conditions improve and we see some semblance of return to normality in some of the places we operate. And there's also a tightness in the labor market for the skill set that our consultants possess. So we have a decent outlook for the business for the rest of the year.
Thanks, Nick. Martine?
Yes. And thanks, Karin, for the question. Similar to Aldar and Weiman, the growth in the quarter really came Online business and other regions. But I think it's worth spending a moment on contributor. We have said through the pandemic that this is where we have the most Questionnaire project is a little bit more connected to our Oliver Wyman would be operating and it's up to the comeback.
Clients have restarted projects. There's a lot of demand out there. We are helping clients with their post pandemic workforce. There is a work for talent out there, so demand for rewards, demand for skills and skill set, assessment, engagement, transformation as companies accelerate their forward into digital and newer technology. So that is sustaining our career business.
We see strong sales, good momentum for the rest of the year. And I want to spend another moment on our wealth business. I think 4% growth in the quarter is we had not seen that since Q4 2017. Again, all sub solutions in our wealth business did well, In particular, our OCIO business, which is the part of the business where we implement asset management for our clients. And you see the slide to strong governance there, deep manager research, and combined with questions and helping clients with DHT and DEI theme type of investment in modeling and the likes.
Dennis spoke about this and then answered the 3 comments
a little
bit. And lastly, on wealth, This is the year where the DB part of our portfolio, which you all know is a structural decline, has been for some years, actually becomes Same size and becomes smaller than Investment Management Solutions that we have in the portfolio And we can see that this should be providing some tailwinds as we go beyond 2021.
Got it. And then just a follow-up for Dan and maybe John Doyle as well. Can you just, I guess, give us an update on the strategic importance of using wholesale Brokers on the P and C side and maybe how that's evolved over time?
Yes. I'll take it and hand over to John. It's an interesting question. I think wholesale brokers in a lot of ways might be misnamed in that they become Quite specialists in a lot of different areas with some really good skills. So it's not exactly what I think back in my career what Wholesale really meant 10 or 20 years ago.
I think specialty placement might be more appropriate. But John, you want to talk about use of wholesalers?
Sure. I think that's right, Dan. It's largely focused on specialty capabilities and for the most part we use wholesalers when we need to access certain markets. Certain specialty insurers, E and S insurers in particular, Restrict their distribution access to certain wholesale brokers. And so in that instance, we will use Wholesale Brokers.
For the most part, that happens in the United States, almost no utilization for us. I I think what I say in the United States, risk originates in the United States. To some extent, it happens in the London marketplace as well. We have a preferred relationship with a couple of the specialty wholesalers and focus our efforts to make sure we're delivering the same type of quality outcome for our clients that we can get from utilizing our own teams.
Next question please.
Thank you. Our next question comes from Paul Newsome with Piper Sandler. Your line is open.
Good morning and congrats on the core. My question is about the Potential persistency of some of these market share gains. I'm thinking about back to the JLT acquisition and It seemed to me there was a little bit of drag on organic growth for about a year as things sort of moved through the system and the integration happened. Do you think there's a read through to kind of what's happening for you on a positive sense today that as you hire these new people, It really takes kind of a year for the full revenue impact. And so that's kind of how we should think about The benefit of the Flight to Quality Day, it's kind of a year by year kind of effect?
Yes, I would start, Paul, By saying, we're an awfully big company. So we're we've made decisions to add to our talent capability and our broad capabilities more generally to build skills, content, etcetera, As opposed to actually saying, oh, that person is going to cost us this amount and we expect them to produce this amount Over the course of the next couple of years, your basic premise that when you hire senior people Generally, you take the expense first and then some revenue might come later. Yes, the premise is true as they Get involved with the firm more broadly, but unlike some more repeat firms, it's not just Focused on this is a producer and this is what they think their book of business is and then we're buying That producer, that's just not how we operate. We're much more of a content culture building capabilities. John, what are your thoughts on that?
The market share is a hard thing to make sure. I've read some estimates that the commercial insurance premiums will grow about 10% this year. So if you use that as a proxy for the market, then yes, we're picking up share. I mentioned earlier, we're picking up some new business, in the time of TR construction primarily. Our win rates are up though too, right?
Because when I look at the success in RFPs, it's up compared to historical levels. And the number of offensive RFPs and defensive RFPs is considerably better rich than it's been in the past. All that I think speaks to the quality of the team. And at the same time, we're investing in talent that's going to drive future growth. So we're on a turning pace.
We have good momentum and we're excited about what that means for us, Devenir.
Yes, just a little bit
more than market share. It looks like it came everywhere in terms of gains in your businesses. Is that Really a fair sense or were there some benefit business that you were
thinking about? This is the broadest level of business Growth that we've seen certainly since I've been at the company. And so it is occurring in many different I would put it down to that one we're in fundamental growth markets, risk strategy and people. Companies whether you're in the large account segment, the middle market segment or the small segment, if you work for an organization or government, you have to focus on those 3 things there. They're completely relevant to how you approach the business.
We've got competitive advantages. It starts with the quality of our people, our culture, We've got capabilities that got even further broadened through the acquisitions we've done over the last number of years, most notably JLT and our global footprint, those are competitive advantages. We don't have a lot of competitors in any way that can match up to those advantages. And we have continued to acquire best in class businesses. Our number one focus is on quality and history of success.
And so That's particularly in middle market brokerage. And we've got all kinds of opportunities. We spoke about cyber and climate in our script, But digital, small commercial, risk awareness in general is much higher. And so we're and I've mentioned before that the pandemic may have brought us closer than we ever were before. We're more connected, we're more collaborative Than ever before and we're leveraging our combined strength like never before.
So all of those factors come together And we are a more formidable force in the market and we're going to win business And that's going to continue.
Thank you. That's great.
Next question.
Thank you. I would now like to turn the call back over to Dan Glaser, President and CEO of Marsh McLennan for any closing remarks.
Okay. Well, that's the first. Okay. But I appreciate everyone joining us On the call this morning, I want to thank our 78,000 colleagues for their commitment, hard work and dedication to Marsh McLennan, And I look forward to speaking with you next quarter. Thank you very much.
This concludes today's conference call. Thank you for participating. You may now disconnect.