PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company's Q2 2025 revenue was flat at $2.26 billion, while net income significantly increased to $331 million Condensed Consolidated Statements of Comprehensive Income (Q2 & Six Months) | Indicator | Q2 2025 (in millions) | Q2 2024 (in millions) | 6 Months 2025 (in millions) | 6 Months 2024 (in millions) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $2,261 | $2,265 | $4,484 | $4,606 | | **Income from operations** | $368 | $212 | $800 | $492 | | **Net Income Attributable to WTW** | $331 | $141 | $566 | $331 | | **Diluted EPS** | $3.32 | $1.36 | $5.64 | $3.20 | Condensed Consolidated Balance Sheets | Account | June 30, 2025 (in millions) | Dec 31, 2024 (in millions) | | :--- | :--- | :--- | | **Total current assets** | $15,605 | $15,105 | | **Total assets** | $28,478 | $27,681 | | **Total current liabilities** | $13,871 | $12,598 | | **Total liabilities** | $20,298 | $19,664 | | **Total WTW shareholders' equity** | $8,100 | $7,940 | Condensed Consolidated Statements of Cash Flows (Six Months) | Cash Flow Activity | 6 Months 2025 (in millions) | 6 Months 2024 (in millions) | | :--- | :--- | :--- | | **Net cash from operating activities** | $326 | $431 | | **Net cash from/(used in) investing activities** | $612 | $(158) | | **Net cash (used in)/from financing activities** | $(800) | $364 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports 5% organic revenue growth for H1 2025, with improved profitability from lower operating expenses [Executive Overview and Market Conditions](index=37&type=section&id=Executive%20Overview%20and%20Market%20Conditions) The company's performance is influenced by economic conditions and a softening insurance market cycle - The insurance market is currently experiencing a **'softening' period**, which can put downward pressure on commission revenue[123](index=123&type=chunk) - The company faces risks from uncertain macroeconomic conditions, including **inflation, interest rate changes, and geopolitical conflicts**[127](index=127&type=chunk) [Consolidated Results of Operations](index=39&type=section&id=Consolidated%20Results%20of%20Operations) Q2 revenue was flat while net income rose 135%, driven by an 8% reduction in service costs Consolidated Revenue Change vs. Prior Year | Period | As Reported Change | Constant Currency Impact | Acquisitions/Divestitures Impact | Organic Change | | :--- | :--- | :--- | :--- | :--- | | **Q2 2025** | 0% | 1% | (6)% | 5% | | **6 Months 2025** | (3)% | 0% | (7)% | 5% | - Total costs of providing services **decreased by $160 million (8%) in Q2** and **$430 million (10%) in the first six months of 2025**, primarily due to lower transformation and marketing expenses[159](index=159&type=chunk)[162](index=162&type=chunk)[168](index=168&type=chunk) - Net income attributable to WTW **increased 135% in Q2 2025** and **71% in the first six months**, driven by lower operating costs[175](index=175&type=chunk)[176](index=176&type=chunk) [Segment Analysis](index=41&type=section&id=Segment%20Analysis) Both Risk & Broking and Health, Wealth & Career segments delivered strong organic growth in H1 2025 Health, Wealth & Career (HWC) Revenue Change (Q2 2025) | Metric | Value | | :--- | :--- | | As Reported Change | (6)% | | Organic Change | 4% | Risk & Broking (R&B) Revenue Change (Q2 2025) | Metric | Value | | :--- | :--- | | As Reported Change | 7% | | Organic Change | 6% | - R&B's operating income increased due to **operating leverage from strong organic growth** and savings from the completed Transformation program[155](index=155&type=chunk)[158](index=158&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $2.0 billion in cash and continued capital returns via share repurchases - Cash flow from operating activities **decreased to $326 million** for the first six months of 2025, compared to $431 million in the prior-year period[187](index=187&type=chunk) - The company **repurchased $700 million of its shares** and paid **$179 million in dividends** during the first six months of 2025[180](index=180&type=chunk)[191](index=191&type=chunk)[202](index=202&type=chunk) - As of June 30, 2025, the company had **$2.0 billion in cash** and full borrowing capacity under its **$1.5 billion revolving credit facility**[179](index=179&type=chunk)[184](index=184&type=chunk) [Non-GAAP Financial Measures](index=54&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted operating income margin expanded to 18.5% in Q2 2025, reflecting improved core operating performance Adjusted Operating Income and Margin | Period | Adjusted Operating Income (in millions) | Adjusted Operating Income Margin | | :--- | :--- | :--- | | **Q2 2025** | $419 | 18.5% | | **Q2 2024** | $385 | 17.0% | | **6 Months 2025** | $899 | 20.0% | | **6 Months 2024** | $868 | 18.8% | Adjusted Diluted Earnings Per Share | Period | Adjusted Diluted EPS | | :--- | :--- | | **Q2 2025** | $2.86 | | **Q2 2024** | $2.39 | | **6 Months 2025** | $5.99 | | **6 Months 2024** | $5.53 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk from interest rate fluctuations on fiduciary funds remains materially unchanged - A **25 basis point change** in short-term interest rates would result in an approximate **$7 million change** in annualized interest income from invested fiduciary funds[251](index=251&type=chunk) [Item 4. Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures are effective as of June 30, 2025 - Management concluded that the company's disclosure controls and procedures are **effective in providing reasonable assurance** that required information is recorded and reported in a timely manner[252](index=252&type=chunk) - **No changes in internal control** over financial reporting occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[253](index=253&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings are not expected to have a material adverse effect on the company's financial condition - The company is subject to various claims and lawsuits in the ordinary course of business but does not expect them to have a **material adverse effect** on its financial condition[104](index=104&type=chunk)[106](index=106&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the 2024 Annual Report on Form 10-K have been reported - **No material changes** from risk factors as previously disclosed in the Annual Report on Form 10-K, filed with the SEC on February 25, 2025[257](index=257&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased approximately $500 million of its ordinary shares during the second quarter of 2025 Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 540,279 | $314.14 | | May 2025 | 807,216 | $308.99 | | June 2025 | 266,932 | $302.90 | | **Total Q2** | **1,614,427** | **$309.71** | - As of June 30, 2025, approximately **$742 million remained** on the current open-ended repurchase authority[261](index=261&type=chunk) [Item 5. Other Information](index=64&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading arrangements during Q2 2025 - **No directors or officers** adopted, modified, or terminated any Rule 10b5-1 trading arrangements during the second quarter of 2025[264](index=264&type=chunk)

Core Viewpoint - Shares of Willis Towers Watson (NASDAQ: WTW) have increased by 12% over the past year, but remain approximately 8% below their 52-week high, indicating underperformance relative to the broader market in the insurance-related sector [1] Company Performance - The stock has shown solid performance with a 12% increase in the last year [1] - Despite this growth, the stock is still about 8% lower than its peak in the last 52 weeks [1] Market Context - The insurance-related sector has generally lagged behind the market, which may impact future performance of companies within this space [1]

Core Insights - Willis Towers Watson (WTW) reported second-quarter 2025 adjusted earnings of $2.86 per share, exceeding the Zacks Consensus Estimate by 8% and reflecting a 20% year-over-year increase [1][9] - The company's second-quarter results were bolstered by strong revenue from the Risk & Broking segment, improved EBITDA margin, and reduced expenses [1] Operational Update - WTW's adjusted consolidated revenues were $2.26 billion, flat year-over-year on a reported basis, but up 5% organically and 1% on a constant currency basis, beating the Zacks Consensus Estimate by 1.2% [2][9] - Total service costs decreased by 7.8% year-over-year to $1.9 billion, attributed to lower operating expenses, amortization, and transaction costs [2] Financial Performance - Adjusted operating income rose to $419 million, a 9% increase year-over-year, surpassing the estimate of $396.2 million, with a margin expansion of 150 basis points to 18.5% [3][9] - Adjusted EBITDA was $470 million, up 6% year-over-year, matching the estimate, with an EBITDA margin increase of 120 basis points to 20.8% [3][9] Segment Performance - Health, Wealth & Career segment revenues totaled $1.18 billion, down 6% year-over-year, impacted by the sale of TRANZACT, but organic growth was noted [4] - Wealth segment saw organic revenue growth driven by increased Retirement work globally and new business wins in Investments [5] - Career segment experienced modest revenue growth due to strong advisory demand outside North America, offset by client postponements in North America [6] - Risk & Broking segment revenues increased by 7% year-over-year to $1 billion, driven by new business activity and strong client retention [7][9] Financial Update - As of June 30, 2025, cash and cash equivalents were $1.9 billion, a 3.4% increase from the end of 2024, while long-term debt rose by 10.3% to $4.7 billion [10] - Shareholders' equity increased by 2% to $8.1 billion, and cash flow from operations was $326 million, down 24.3% from the prior year [10] - Free cash flow for the first half of 2025 decreased by 29% to $217 million, primarily due to increased compensation and cash tax payments [11] 2025 Outlook - WTW anticipates 100 basis points of average annual margin expansion over the next three years in Risk & Broking [12] - The company projects share repurchases of $1.5 billion, subject to market conditions and potential capital allocation opportunities [12] - A foreign currency tailwind on adjusted diluted earnings per share of approximately 5 cents is expected in 2025 at current rates [13]

Financial Data and Key Metrics Changes - The company reported 5% organic growth in Q2 2025, with adjusted EPS of $2.86, reflecting a 20% year-over-year increase [5][22] - Adjusted operating margin expanded by 150 basis points to 18.5%, with a 100 basis point improvement when excluding the impact of the TRANZACT divestiture [22][36] - Free cash flow for the first half of 2025 was $217 million, a decrease of $88 million from the prior year, primarily due to increased incentive costs and cash tax payments [39][63] Business Line Data and Key Metrics Changes - Health, Wealth, and Career (HWC) revenue grew by 4% year-over-year, with health business achieving 8% growth [23][25] - Wealth had a revenue growth of 3%, driven by the retirement business, while Career growth was 1% [27][29] - Risk and Broking (R&B) delivered 6% revenue growth, with corporate risk and broking growing 6% or 7% when excluding certain income [31][32] Market Data and Key Metrics Changes - The company noted strong demand for health care cost management solutions and pension derisking amidst rising global trade and inflation [8][9] - Growth in the Middle East was highlighted as a key opportunity, with significant client wins in the region [16][32] - The construction specialty business is experiencing strong results, particularly in data centers, which are forecasted for significant global growth [17] Company Strategy and Development Direction - The company is focused on accelerating performance, enhancing efficiency, and optimizing its portfolio, which are key drivers of its results [6][10] - A holistic approach to technology is being adopted to enhance growth and efficiency, including the rollout of a global broking platform and AI tools [11][12] - The inorganic growth strategy remains consistent, with a focus on enhancing broking and wealth presence in key markets [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver on 2025 guidance, including mid-single digit organic growth and adjusted operating margin expansion [20][41] - The macroeconomic environment remains dynamic, with clients increasingly seeking assistance in managing risks and costs [7][8] - There is optimism regarding the second half of the year, with expectations for strong demand in health and wealth sectors [26][30] Other Important Information - The company returned $591 million to shareholders through share repurchases and dividends, with plans for approximately $1.5 billion in share repurchases for 2025 [40] - The adjusted tax rate for the quarter was 18%, compared to 22.4% in the prior year, with expectations for consistency in the full year [38] Q&A Session Summary Question: HWC organic growth acceleration - Management indicated that HWC is expected to maintain mid-single digit organic revenue growth and margin expansion for the full year, driven by strong demand for global benefits management and outsourcing [43][44] Question: Risk and Broking growth contributions - Management confirmed that the 6% growth in R&B was attributed to the specialization strategy, talent investments, and strong client retention [55][56] Question: Free cash flow performance - Management explained that the decrease in free cash flow was due to increased compensation and cash tax payments, but expects improvement in the second half of the year [61][63] Question: Talent competition in insurance brokerage - Management acknowledged ongoing competition for talent but emphasized their strategic hiring approach to enhance capabilities [65][66] Question: Guidance on reinsurance joint venture costs - Management clarified that the revised cost estimate for the joint venture is based on better insights into expenses, with no expected changes at this time [70][72] Question: Drivers of margin expansion - Management highlighted operating leverage and efficiency improvements as key drivers for margin expansion, reaffirming their commitment to achieving 100 basis points of annual margin expansion over the next three years [73][78]

Financial Data and Key Metrics Changes - The company reported 5% organic growth and adjusted EPS of $2.86, reflecting a 20% year-over-year increase [4][19] - Adjusted operating margin expanded by 150 basis points to 18.5%, with a 100 basis point improvement when excluding the impact of the TRANZACT divestiture [19][33] - Free cash flow for the first half of 2025 was $217 million, a decrease of $88 million from the prior year, primarily due to increased incentive costs and cash tax payments [36][61] Business Line Data and Key Metrics Changes - Health, Wealth, and Career (HWC) revenue grew by 4%, with health business achieving 8% growth, driven by strong demand for global benefits management and cost management projects [20][21] - Wealth revenue increased by 3%, primarily from the retirement business, while Career growth was 1%, with solid performance outside North America [24][25] - Risk and Broking (R&B) delivered 6% revenue growth, with corporate risk and broking growing 6% or 7% when excluding certain income [28][29] Market Data and Key Metrics Changes - The company noted strong growth in health care costs globally, with U.S. healthcare inflation projected to exceed 10% [46] - The Middle East remains a key market for growth, with significant client wins contributing to the expansion [13][29] - The construction specialty business is experiencing strong results, particularly in data centers, which are forecasted for significant global growth [14] Company Strategy and Development Direction - The company is focused on enhancing efficiency, optimizing its portfolio, and executing a holistic technology strategy to drive growth [5][8] - The strategy includes expanding its presence in high-growth, high-margin areas and enhancing its broking and wealth capabilities [16][38] - The company is committed to delivering long-term operating and free cash flow margin expansion, aiming for 100 basis points of average annual margin expansion over the next three years [32][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and deliver on financial objectives for 2025 [6][17] - There are positive signs of improvement in client demand and market conditions, with expectations for continued growth in the second half of the year [6][41] - The company anticipates strong demand for health solutions and expects mid-single-digit organic growth across its segments [22][52] Other Important Information - The company returned $591 million to shareholders through share repurchases and dividends, with plans for approximately $1.5 billion in share repurchases for 2025 [37][38] - The company is strategically hiring to enhance its talent pool, particularly in specialty areas, to support growth [64][66] Q&A Session Summary Question: HWC organic growth acceleration - Management noted strong demand for global benefits management and expects mid-single-digit organic revenue growth and margin expansion for HWC in 2025 [41][42] Question: Free cash flow performance - Management explained that the decrease in free cash flow was due to increased compensation and cash tax payments, but expects improvement in the second half of the year [60][61] Question: Impact of talent competition - Management acknowledged ongoing competition for insurance brokerage talent but emphasized their strategic hiring approach to enhance capabilities [63][64] Question: ICT growth expectations - Management expects low to mid-single-digit growth for ICT, driven by a strong technology pipeline despite a softer consulting environment [86][88] Question: Impact of rate environment on CRB - Management confirmed that while rates in certain classes are trending downward, the overall growth in CRB remains strong due to client retention and new business generation [91]

Financial Performance - WTW generated organic revenue growth of 5% in Q2 2025[12] - Adjusted Operating Margin expanded by +150 bps in Q2 2025[12] - Adjusted Diluted EPS grew by 20% in Q2 2025[12] - WTW repurchased $500 million of shares and paid dividends of $91 million in Q2 2025[12] - Q2 2025 revenue was $2261 million, a 0% change compared to Q2 2024[14] - Income from Operations increased by 74% to $368 million in Q2 2025[14] - Net Income increased by 134% to $332 million in Q2 2025[14] - Diluted EPS increased by 144% to $332 in Q2 2025[14] Segment Performance - Health, Wealth & Career (HWC) organic revenue growth was 4% in Q2 2025[23] - Risk & Broking (R&B) organic revenue growth was 6% in Q2 2025[26] Financial Position - Cash and Cash Equivalents were $1963 million as of June 30, 2025[28] - Total Debt was $5311 million as of June 30, 2025[28]

Core Viewpoint - Willis Towers Watson (WTW) reported quarterly earnings of $2.86 per share, exceeding the Zacks Consensus Estimate of $2.65 per share, and showing an increase from $2.55 per share a year ago, representing an earnings surprise of +7.92% [1][2] Financial Performance - The company posted revenues of $2.26 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.20%, although this is a slight decrease from year-ago revenues of $2.27 billion [2] - Over the last four quarters, WTW has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - WTW shares have declined approximately 3.6% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4][7] Estimate Revisions and Industry Context - The trend for estimate revisions ahead of the earnings release was mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The current consensus EPS estimate for the upcoming quarter is $3.04 on revenues of $2.27 billion, and for the current fiscal year, it is $16.57 on revenues of $9.58 billion [7] - The Insurance - Brokerage industry, to which WTW belongs, is currently in the top 33% of Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - WTW reported strong second quarter results for 2025, indicating progress in its strategic initiatives and solid financial performance despite economic uncertainties [2][3][5] Consolidated Results - Revenue for Q2 2025 was $2.26 billion, flat compared to $2.27 billion in Q2 2024, with organic revenue growth of 5% [3][5][7] - Net income increased to $332 million, a 134% rise from $142 million in the prior year [3][6][7] - Diluted earnings per share (EPS) rose to $3.32, up 144% year-over-year [3][6][7] Segment Performance Health, Wealth & Career (HWC) - HWC segment revenue was $1.18 billion, down 6% year-over-year, but showed organic growth of 4% [9][10] - Operating income for HWC was $280 million, with an operating margin of 23.8%, up 190 basis points from the previous year [9][10] Risk & Broking (R&B) - R&B segment revenue increased to $1.05 billion, a 7% rise from the prior year, with organic growth of 6% [11][12] - Operating income for R&B was $222 million, with an operating margin of 21.2%, up 60 basis points year-over-year [11][12] Cash Flow and Capital Allocation - Cash flows from operating activities for the first half of 2025 were $326 million, down from $431 million in the same period last year [8] - Free cash flow decreased to $217 million from $305 million year-over-year, primarily due to increased compensation and cash tax payments [8] Financial Considerations - The company expects share repurchases of approximately $1.5 billion in 2025, subject to market conditions [14] - A foreign currency tailwind on adjusted diluted EPS of about $0.05 is anticipated for 2025 at current rates [14]

Revenue Performance - Revenue for Q2 2025 was $2.26 billion, flat compared to $2.27 billion in Q2 2024, with organic revenue growth of 5%[6] - Total revenue for the three months ended June 30, 2025, was $2,261 million, a slight decrease of 0% compared to $2,265 million in the same period of 2024[46] - Revenue for Health, Wealth & Career segment decreased by 10% to $2,331 million, while Risk & Broking segment increased by 7% to $2,029 million[47] - Total revenue for the company was $4,484 million, a decrease of 3% compared to $4,606 million in the previous year[47] - Revenue for the first half of 2025 was $4,484 million, down from $4,606 million in the same period of 2024[67] Profitability Metrics - Net Income for Q2 2025 increased to $332 million, a 134% rise from $142 million in Q2 2024[7] - Diluted EPS for Q2 2025 was $3.32, up 144% from $1.36 in the prior year[4] - Operating Margin for Q2 2025 improved to 16.3%, an increase of 690 basis points year-over-year[4] - Adjusted Operating Income for Q2 2025 was $419 million, a 9% increase from $385 million in Q2 2024[4] - Adjusted net income for the three months ended June 30, 2025, was $285 million, up from $247 million in the previous year[55] Segment Performance - Health, Wealth & Career segment revenue decreased by 6% to $1.18 billion, with organic growth of 4%[10] - Risk & Broking segment revenue increased by 7% to $1.05 billion, with organic growth of 6%[12] - Health, Wealth & Career segment operating margin improved to 23.8% from 21.9% year-over-year, while Risk & Broking segment margin increased to 21.2% from 20.6%[51] Cash Flow and Capital Management - Cash flows from operating activities for the first half of 2025 were $326 million, down from $431 million in the same period last year[9] - Free cash flow for the first half of 2025 was $217 million, a decrease of $88 million compared to $305 million in the prior year[9] - The company plans to repurchase approximately $1.5 billion in shares, subject to market conditions[15] - Free Cash Flow is defined as cash flows from operating activities less cash used for purchasing fixed assets and software, reflecting core operating performance[36] - The company repurchased shares worth $700 million in 2025, up from $301 million in 2024, indicating a 132.2% increase in share repurchase activity[74] Financial Position - Cash and cash equivalents as of June 30, 2025, were $1,963 million, an increase from $1,890 million at the end of 2024[70] - Total current assets increased to $15,605 million as of June 30, 2025, compared to $15,105 million at the end of 2024[70] - Total assets increased to $28,478 million in 2025 from $27,681 million in 2024, reflecting a growth of approximately 2.9%[71] - Total liabilities rose to $20,298 million in 2025, compared to $19,664 million in 2024, indicating an increase of about 3.2%[71] - Total equity increased to $8,180 million in 2025 from $8,017 million in 2024, reflecting a growth of approximately 2.0%[71] Taxation and Regulatory Environment - The company reported a U.S. GAAP tax rate of (6.8)% for Q2 2025, compared to 15.6% in Q2 2024[62] - The adjusted income tax rate for Q2 2025 was 18.0%, down from 22.4% in Q2 2024[62] - The company faces risks related to changes in economic conditions, competition, and regulatory environments that could impact financial performance[40] Future Outlook - The company anticipates future capital expenditures and ongoing working capital efforts as part of its growth strategy[39] - The company plans to continue focusing on organic growth strategies and market expansion initiatives in the upcoming quarters[47]

Core Insights - Natural catastrophes are significantly impacting global insurance markets, with insured losses consistently exceeding USD 100 billion annually for the past six years [2][3] Industry Trends - The Willis Natural Catastrophe Review highlights that 2025 is likely to continue the trend of losses exceeding USD 100 billion, driven by events such as the Los Angeles wildfires, which alone are estimated to cause losses of USD 40 billion [2][4] - The Review emphasizes the need for the insurance industry to adapt to increasing risks associated with climate change, as global efforts to limit temperature rise are failing [4][6] Major Events - Significant natural catastrophes in 2025 include the Los Angeles wildfires, the worst wildfires in Japan and South Korea in a generation, and an active tornado season in the United States [6] - The Review notes the first landfalling cyclone near Brisbane, Australia in 50 years and the highest wind speed recorded over Ireland, indicating a trend of increasing severity in natural disasters [6] Risk Management - The Review calls for risk managers to reassess their strategies in light of climate forecasts and to optimize insurance frameworks to address evolving threats [6] - It provides guidance on leveraging seasonal weather forecasts and identifies regions at elevated risk for natural catastrophes in the coming months [6]