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MARSH & McLENNAN COMPANIES is a global professional services firm oering clients advice and solutions in the areas of risk, strategy, and human capital. We are: MARSH, a global leader in insurance broking and risk management. GUY CARPENTER, a global leader in risk and reinsurance intermediary services. MERCER, a global leader in talent, health, retirement, and investment consulting. OLIVER WYMAN, a global leader in management consulting. With annual revenue exceeding $12 billion, Marsh & McLennan Companies’ 55,000 colleagues worldwide provide analysis, advice, and transactional capabilities to clients in more than 130 countries. The Company prides itself on being a responsible corporate citizen and making a positive impact in the communities in which it operates. This annual report contains “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995. Please see “Information Concerning Forward-Looking Statements” on page (i) in the Form 10-K included in this annual report. LETTER FROM DAN GLASER, PRESIDENT AND CHIEF EXECUTIVE OFFICER DEAR SHAREHOLDER am honored and privileged to be the • For the sixth consecutive year, the leader of Marsh & McLennan Companies. segment produced double-digit growth IStrong financial and operating performance in adjusted operating income, rising in 2013 enabled us to deliver exceptional 11% in 2013. value to clients, colleagues, and share- • The adjusted margin reached its holders. We successfully built upon our highest level in a decade — 22.1%. leadership and innovation in risk, strategy, and human capital, oering services that Marsh delivered another year of strong helped clients grow their businesses and performance. Revenue of $5.4 billion address and resolve critical issues. reflected underlying revenue growth across all major geographies and record We are well-positioned for the future. new business of over $1 billion. Marsh Our unique combination of businesses, broadened its expansive global footprint depth of talent and expertise, vast in 2013 with the acquisitions of the global footprint, leadership strength, leading insurance advisors in Peru and the and collaborative culture all support Dominican Republic, and, in early 2014, our continued growth. increased the breadth of its operations RECORD OF PROVEN with the acquisition of the leading PERFORMANCE independent insurance broker in Scotland. Strong earnings momentum continued Marsh & McLennan Agency continued in 2013. Consolidated revenue rose to to expand its footprint. This February, we a record $12.3 billion, with underlying acquired Barney & Barney, the 34th-largest revenue growth of 3%. We also achieved insurance broking firm in the US with 14% growth in adjusted operating $100 million of annual revenue, which income(1) to $2.1 billion and an increase will serve as Marsh & McLennan Agency’s of 180 basis points in the adjusted western regional hub. Since 2009, we have operating margin to 17.4%. acquired 35 high-quality agencies, with annualized revenue for Marsh & McLennan Our Risk and Insurance Services and Agency now approaching $600 million. Consulting segments each achieved their fourth consecutive year of double-digit Guy Carpenter produced record revenue growth in adjusted operating income and of $1.1 billion in 2013, an increase of 5% margin expansion. on an underlying basis. Three-quarters of Guy Carpenter’s growth came from Risk and Insurance Services had outside of its 25 largest clients, reflecting revenue of $6.6 billion, with underlying a strategy to broaden relationships revenue growth of 3% at Marsh and 5% by customer size and geography. at Guy Carpenter. (1)For a reconciliation of non- Guy Carpenter has grown organically GAAP results to GAAP results, with respect to all non-GAAP for 20 straight quarters, with average references presented in this letter, please refer to the annual underlying revenue growth of 5%. Company’s Form 8-K, dated February 11, 2014, available on the Company’s website at www.mmc.com Our Consulting segment continued to make substantial progress to increase profitability. • Revenue of $5.7 billion increased 2% on an underlying basis. • Adjusted operating income rose to $847 million, an increase of $100 million, or 13%, from the prior year. • The segment’s adjusted margin increased 160 basis points to 14.9%. Mercer’s solid underlying revenue growth across all of its geographic regions fueled the Consulting segment’s record profitability. Mercer’s revenue was $4.2 billion, an underlying increase of 4% for the third consecutive year. Mercer launched Mercer Marketplace in 2013, its private US healthcare exchange, which delivers a dierentiated platform for the middle market and large clients. Since its launch, Mercer has added 67 companies, representing more than 280,000 lives, including retirees as well as active employees. Oliver Wyman’s underlying revenue Dan Glaser President and Chief Executive Ocer, Marsh & McLennan Companies growth steadily improved throughout 2013. Revenue was $1.5 billion, a modest decrease from 2012, as solid growth in Financial Services, Lippincott, Our ability to generate high levels of The payment of dividends to shareholders NERA Economic Consulting, and the cash is one of our greatest strengths. is sacrosanct. In 2013, we increased our International regions was oset by Strong cash flow has given us the quarterly cash dividend by 9% and declines in other practices. opportunity to preserve our operational are committed to double-digit growth and financial flexibility, support EPS in annual dividends. growth, fund reinvestments in our COMMITMENT TO GROWTH businesses, make acquisitions, and Strong cash flow also supports our tar- As we look ahead, our strategy for return capital to shareholders through geted acquisition strategy. Since 2009, achieving profitable growth will not dividends and share repurchase. In 2013 we’ve completed 57 transactions — what change. We are committed to producing alone, dividends and share repurchase I like to call a “string of pearls” — each one long-term growth in revenue and earnings totaled nearly $1.1 billion. making our enterprise stronger. and are exceptionally proud of our record of generating consistently higher earnings In fact, we have a consistent record of per share. Adjusted EPS rose 13.4% in CULTURE IS THE FOUNDATION share repurchase. Since 2010, we have 2011, 15.6% in 2012, and 15.3% in 2013. Our ability to shape our future and bought back approximately 35 million Over the same three-year period, the continue to succeed in any economic shares of our common stock for over consolidated adjusted operating margin environment begins with our people and $1.2 billion. Based upon the current improved 330 basis points. In 2013, total rests on the strength of our culture — market environment and our expectations shareholder return was 44%, an outstanding which is founded in values of integrity, for our future financial performance, we achievement, and well above the return respect, teamwork, and excellence. are committed to buying back enough of the S&P 500 Index. stock to reduce the number of shares outstanding on an annual basis. • We act with integrity, treat each other DEPTH OF LEADERSHIP with respect, and hold ourselves to We pride ourselves on the deep bench the highest ethical and professional strength within our senior management standards. We are guided by our Code team — and within leadership teams of Conduct, The Greater Good, which throughout the enterprise — as we has helped us establish a culture of risk innovate and perform in a fast-changing mindfulness and communicate the business environment. non-negotiable standards that apply to all of our colleagues. Last year, we We also have a highly eective Board of introduced our first Risk Appetite Directors, all the members of which are Statement, a framework for colleagues esteemed leaders in their own right. and the businesses within our Company Their knowledge, guidance, and insights to eectively and intelligently manage are highly valued by our management risk within our operations. team. In a change eective January 2014, Zachary W. Carter, who had been a • We encourage our colleagues to work member of our Board of Directors since collaboratively. We bring the best 2004, resigned to serve in the administration ideas forward and deliver high-impact of newly elected New York City Mayor solutions to our clients. Bill de Blasio. We thank Zach for his many contributions as a director, and we wish • We strive to produce exceptional him much success in his new role. results. Our emphasis is on finding the smarter, better, simpler way, and For more than 140 years, Marsh & McLennan on continuously challenging each Companies has been meeting the evolving other to produce the best work and needs of clients. New opportunities achieve excellence. abound because of our leadership in our businesses, strong financial position, • We give colleagues the opportunity unique combination of abilities, and scale. to contribute and thrive. We are I am thankful to our 55,000 colleagues committed to developing great leaders whose dedication, intelligence, and and professionals and investing in consistent eorts allow us to innovate programs that support our colleagues’ and achieve success. I appreciate the learning and development. We recognize continued trust our clients place in us and the value of a transparent, cohesive thank our shareholders for their support. culture — one that provides forums We are deeply committed to creating to let every voice be heard and one superior returns for shareholders in the that supports diverse cultures and is years to come. respectful and appreciative of the value of dierent perspectives. Best regards, We encourage colleagues to volunteer and contribute to communities where we live and work, helping others chart paths to brighter futures. We are expanding our eorts to manage our environmental impact, including reductions in our global Dan Glaser President and Chief Executive Ocer real estate footprint and encouraging Marsh & McLennan Companies behaviors at work that support environmental sustainability. February 27, 2014 Top, from left: Morton O.