Marsh reported a 6% increase in overall revenue for Q2 2026 to $7.4 billion, with underlying revenue growth accelerating to 5% compared to 4% in the previous quarter. Adjusted operating income grew by 5%, and adjusted EPS increased by 9% to $2.96. The company repurchased $1.5 billion in stock during the first half of 2026 and announced a 10% increase in its quarterly dividend, marking the 17th consecutive year of dividend increases.

Financial Performance

Consolidated revenue increased 6% to $7.4 billion, with underlying growth of 5%. Adjusted operating income was $2.2 billion, up 5%, resulting in an adjusted operating margin of 29.3%. GAAP EPS was $2.63. For the first six months of 2026, underlying revenue growth was 4%, adjusted operating income grew 7% to $4.6 billion, and adjusted EPS increased 8% to $6.25.

Segment Results

Within Risk and Insurance Services, Marsh Risk revenue was $4.1 billion, up 4% on an underlying basis. Guy Carpenter revenue was $664 million, down 2% on an underlying basis due to pricing headwinds. In Consulting, Mercer revenue was $1.6 billion, up 5% on an underlying basis, while Marsh Management Consulting revenue was $1 billion, up 13% on an underlying basis.

Strategic Initiatives and Outlook

Marsh is focusing on its Thrive program to accelerate growth by expanding capabilities, increasing sales capacity, and leveraging AI tools. The company expects another year of margin expansion and solid adjusted EPS growth, with underlying revenue growth similar to 2025 levels. Management anticipates deploying $5.5 billion of capital in 2026 across dividends, acquisitions, and share repurchases.

Insurers are increasingly prioritizing private credit allocations, with 57% planning to boost exposure over the next 12 to 24 months, according to the 2026 Global Insurance Investments Survey released by Marsh. This figure places private credit as the leading area for planned investment growth, surpassing public investment-grade fixed income, which 48% of insurers intend to increase. The shift marks a significant change from the 2024 survey, when only 32% of insurers planned to raise private credit allocations.

Focus on Investment-Grade Segments

The survey indicates that insurers' appetite for private credit is becoming more selective, with a strong focus on the investment-grade segment. Specifically, 40% of respondents are interested in allocating to investment-grade direct lending and private placements. Additionally, 38% are targeting investment-grade structured credit, asset-based finance, net asset value (NAV) lending, and fund finance. David Morrow, Mercer’s Global Insurance Proposition Leader, noted that private credit offers a compelling opportunity for insurers to diversify away from corporate risk while achieving a meaningful yield pickup over similarly rated public market bonds.

Regional and Sector Variations

Demand for private credit varies significantly by region and company size. In North America, 65% of United States insurers and 74% of Canadian insurers plan to increase allocations. In contrast, only 51% of European insurers and 46% of UK insurers report similar plans. Scale also plays a critical role, with 81% of insurers managing more than $25 billion in assets intending to raise allocations, compared to 46% of those with less than $25 billion. By sector, Life insurers (73%) show the highest propensity to allocate, followed by Health (56%) and P&C (40%) insurers.

Risk Awareness and Capability Gaps

Despite the growing interest, insurers remain acutely aware of the risks associated with private credit. The primary concern for 66% of respondents is a reduction in illiquidity premium and tighter spreads. Other major risks include deteriorating underwriting standards or covenants (54%) and rising defaults or payment-in-kind (PIK) structures (51%). Amit Popat, Mercer’s Global Head of Financial Institutions, emphasized that capitalizing on private credit benefits requires rigorous manager selection to navigate the next phase of the credit cycle.

The survey also highlights a capability gap, as only 30% of respondents report having "most" of the necessary private markets capabilities. This lack of resources may limit diversification and due diligence, prompting insurers to seek investment partnerships. Josh Zwick, a Partner in Oliver Wyman’s Insurance and Asset Management Practice, observed that even large insurers are looking to external managers to fill origination gaps and boost risk-adjusted yields.

Limited Adoption of AI

Artificial intelligence (AI) currently plays a limited role in insurers' investment operations. More than half (54%) of insurers report they are not using AI in a meaningful way. Only 29% utilize AI to analyze alternative investment data and research. The use of AI correlates with scale, as 75% of firms managing over $100 billion report meaningful usage, compared to just 10% of those managing less than $1 billion. Immediate applications for AI include data integration, scenario generation, document review, manager monitoring, and risk analysis.

Survey Methodology

The 2026 Global Insurance Investment Survey was conducted between March and April 2026. It includes responses from 123 insurers across 24 countries, representing over US$4 trillion in total investment assets. Marsh provides advisory services through its Guy Carpenter, Mercer, and Oliver Wyman businesses.