Core Insights - The funded status of the largest corporate defined benefit pension plans in the U.S. improved modestly to 100% in 2024, up from 98% in 2023, despite strong equity market gains and rising long-term interest rates [1][2] Group 1: Funded Status and Financial Health - The aggregate pension funded status for 361 Fortune 1000 companies at the end of 2024 is estimated at 100%, a slight increase of 2 percentage points from 98% at the end of 2023 [2] - Pension obligations decreased from $1.25 trillion at the end of 2023 to an estimated $1.12 trillion at the end of 2024, attributed to higher interest rates and pension risk transfer activities [2] Group 2: Investment Performance - Pension plan assets declined by 8% in 2024, finishing the year at $1.12 trillion, with overall investment returns averaging 3% [4] - Domestic large-cap equities increased by 25%, while small/mid-cap equities rose by 12%, contrasting with losses of 2% and 6% for long corporate and long government bonds, respectively [4] Group 3: Future Considerations for Plan Sponsors - Sponsors of underfunded plans are advised to explore cost management and cash contribution strategies, including investment strategy and de-risking initiatives [5] - For well-funded plans, sponsors should consider how to protect assets and utilize surplus for employee benefits in the upcoming year [5]

LONDON, Jan. 02, 2025 (GLOBE NEWSWIRE) -- WTW (NASDAQ: WTW) (the “Company”), a leading global advisory, broking and solutions company, announced today the completion of the sale of TRANZACT to GTCR, a leading private equity firm, and Recognize, a leading digital services investor. “Completing the sale of TRANZACT is a meaningful milestone in sharpening our strategic focus on our core offerings,” said Carl Hess, WTW’s Chief Executive Officer. “This divestiture demonstrates our commitment to optimizing our po ...

Core Insights - Despite a tight labor market, U.S. companies are maintaining salary increase budgets at similar levels to the previous year, with a projected average increase of 3.7% for 2025 compared to 3.8% in 2024, both above the pre-pandemic norm of 3% [1][2] Salary Increase Trends - The average payroll increase for companies surveyed was 5.5% in 2024, indicating a healthy rate of salary increases by historical standards [2] - Companies planning to reduce salary budgets cite weaker financial results (36%) and cost management concerns (34%) as primary reasons, while those increasing budgets point to inflationary pressures (39%) and tight labor market concerns (31%) [3] Employee Retention and Attraction - A decrease in reported difficulties in attracting and retaining employees is noted, with only 36% of organizations facing challenges, down from 45% last year [4] - Organizations are focusing on improving workplace culture, with 54% emphasizing diversity, equity, and inclusion, and 53% enhancing the employee experience [6] Comprehensive Benefits Approach - Companies are encouraged to evaluate their benefits offerings beyond salary, including healthcare, retirement benefits, work flexibility, and meaningful contributions to workplace culture [5] Labor Market Dynamics - The U.S. labor market has stabilized, with a significant drop in demand for talent over the past three years, while supply remains unchanged, leading to vulnerabilities [7] - Employers considering lowering salary increases should be cautious, as competition for talent remains strong in certain industries, emphasizing the importance of retention strategies [7] Survey Methodology - The Salary Budget Planning Report was compiled from over 37,000 responses from companies in over 150 countries, with 2,002 organizations responding from the U.S. [8]

Core Insights - U.S. companies are increasingly aligning ESG metrics with business priorities in executive incentive plans, despite some backlash against DEI initiatives [1][4] Group 1: ESG Metrics in Executive Incentive Plans - 77% of S&P 500 companies reported incorporating at least one ESG metric in their executive incentive plans, unchanged from the previous year but significantly up from 52% four years ago [2] - Globally, 81% of companies included at least one ESG metric in their executive incentive plans, with 77% using ESG measures in short-term incentive (STI) plans and 29% in long-term incentive (LTI) plans [3] - Among S&P 500 companies, human capital metrics are the most popular ESG category, utilized by 72%, while 57% use DEI metrics in their executive pay plans [3] Group 2: Trends in DEI Metrics - Despite opposition to DEI initiatives, 57% of U.S. companies use DEI metrics, with 26 companies introducing them this year, although 29 companies eliminated ESG metrics and six disclosed plans to remove DEI metrics [3][4] - The prevalence of DEI measures may decrease amid pushback, but companies that retain them are likely to present a stronger business case for their importance [4] Group 3: Performance and Payouts - ESG and non-financial metrics yield about 10% higher payouts than financial metrics among S&P 500 companies, raising concerns about the rigor of goal-setting for ESG metrics [4] - The study indicates that the focus will shift towards the quality and material relevance of ESG metrics, ensuring they are objective and measurable [7] Group 4: Regional Insights - In Europe, 94% of companies use ESG metrics in executive incentive plans, with nearly two-thirds (64%) using them in LTI plans, while in Asia Pacific, 74% use ESG metrics, with only 30% in LTI plans [6]

Global Asset Owners Growth and Trends - The top 100 asset owners globally (AO100) saw a 12.3% year-on-year increase in assets in 2023, recovering from an 8.7% decline in 2022, reaching a record US$26.3 trillion [1] - Sovereign wealth funds (SWFs) manage 38.9% of the AO100 assets, while pension funds hold the largest share by fund type at 51.2%, despite their slower growth rate of 8.9% [2] - SWFs dominate in EMEA, accounting for 70% of total assets in the region, compared to 43% in Asia Pacific and 2% in North America [3] Regional Asset Distribution - EMEA is the largest region in the AO100 study, representing 34.3% of total assets under management (AuM), followed closely by Asia Pacific at 33.0% and North America at 32.7% [5] Top Asset Owners - The Government Pension Investment Fund of Japan remains the largest single asset owner globally with US$1.59 trillion in AuM, followed by Norway's Norges Bank Investment Management (US$1.55 trillion) and China Investment Corporation (US$1.24 trillion) [4] Macro Trends and Challenges - The global investment environment in 2023 was marked by volatility, high interest rates, and mixed performance across asset classes, with central banks implementing gradual rate cuts in the latter half of 2024 [6] - Asset owners are navigating geopolitical risks, major elections, and the use of monetary policy to tackle inflation, requiring a more sophisticated approach to balance financial returns and regulatory compliance [7] - Traditional risk management methods are struggling to keep up with complex, interconnected risks, necessitating new approaches to address systemic risks with limited historical precedent [8] About the Thinking Ahead Institute and WTW - The Thinking Ahead Institute, established in 2015, is a global not-for-profit investment research group with over 55 members focused on improving the investment industry [9] - WTW Investments, with over US$4.7 trillion in assets under advisory and US$187 billion in assets under management, provides expertise in risk assessment, strategic asset allocation, and investment management [10] - WTW offers data-driven, insight-led solutions in people, risk, and capital, serving clients in 140 countries and markets [11]

Core Insights - WTW has announced a partnership with Kayna and Vibrant to enhance cybersecurity insurance distribution and vendor risk management [1][2] Company Overview - WTW is a global advisory, broking, and solutions company that provides data-driven solutions in people, risk, and capital across 140 countries [7] - Kayna is an embedded insurance infrastructure platform that facilitates the distribution of insurance products relevant to vertical SaaS platform customers [5] - Vibrant is a vertical SaaS platform that manages third-party vendor cybersecurity oversight by tracking vendor insurance coverage [2][6] Partnership Details - The partnership integrates Kayna's technology with Vibrant's platform to provide continuous vendor coverage assessments and real-time alerts regarding cybersecurity risks [2][3] - This collaboration aims to simplify third-party risk management and improve cybersecurity standards across various sectors, including Manufacturing, Education, Healthcare, and Financial Services [2] Technological Innovations - Kayna's technology leverages Vibrant's monitoring data to offer tailored WTW-brokered insurance policies to at-risk vendors, enhancing organizational oversight and risk management [3][4] - Vibrant's platform allows organizations to monitor a large number of vendors efficiently, reducing costs and administrative burdens associated with traditional cybersecurity assessments [4] Market Impact - The partnership is expected to close protection gaps in the supply chain and address the issue of underinsurance by providing organizations with necessary cybersecurity protections [4]

NEW YORK, Nov. 14, 2024 (GLOBE NEWSWIRE) -- WTW (NASDAQ: WTW), a leading global advisory, broking, and solutions company, today announced the appointment of Tyler Adkerson as Growth Leader for Private Equity and Transactional Solutions (PE&TS), Corporate Risk and Broking, North America (CRB NA). In his new role, Adkerson will develop and execute strategic client initiatives to strengthen partnerships with key stakeholders in Mergers and Acquisitions. Leveraging the subject-matter expertise of WTW’s Industry ...

Financial Data and Key Metrics Changes - The company reported a 6% organic revenue growth for Q3 2024, with adjusted diluted earnings per share increasing by 31% to $2.93 compared to Q3 2023 [6][7][34] - Adjusted operating margin expanded by 190 basis points year-over-year to 18.1%, driven by operating leverage and cost discipline [6][34] - Free cash flow for the nine months ended September 30, 2024, was $807 million, up 14% year-over-year [7][58] Business Line Data and Key Metrics Changes - Health, Wealth & Career (HWC) achieved 4% organic growth, with Health growing by 6%, Wealth by 3%, and Career by 7% [10][35] - Risk & Broking delivered 10% organic growth, maintaining the same growth rate as the prior year [18][41] - Benefits, Delivery & Outsourcing (BD&O) experienced a decline of 1% due to strong comparables from the previous year [39] Market Data and Key Metrics Changes - The company noted double-digit growth in international markets, particularly in Europe, driven by strong client retention and new local appointments [36] - North America saw growth attributed to increased brokerage income, with expectations of high single-digit growth for the year [37] - The company observed stabilizing and softening global rates, particularly in property and financial lines, with casualty rates remaining stable [45][78] Company Strategy and Development Direction - The company is focused on specialization and expanding its MGA, MGU, Data & Analytics, Affinity, and Specialty Solutions [19][24] - A definitive agreement was made to sell the TRANZACT business, simplifying the portfolio and allowing a focus on core B2B activities [28][54] - The company is actively pursuing strategic partnerships to enhance its offerings and expand into high-margin areas [20][22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2024 targets, citing strong demand and successful investments in talent and technology [8][32] - There is optimism regarding potential upside from productivity improvements and rebounding global M&A activity [9][64] - The management acknowledged challenges from a $14 million book of business activity in Q4 of the previous year, which may impact future margins [65][47] Other Important Information - The Transformation program has realized $52 million in incremental annualized savings this quarter, totaling $446 million since inception [25][49] - The company returned $294 million to shareholders through share repurchases and dividends, with an increased repurchase target for the year [52][53] - The pending sale of TRANZACT resulted in significant pre-tax losses, but these are one-time non-cash charges and do not affect adjusted earnings [56][57] Q&A Session Summary Question: Impact of the sale of TRANZACT on Q3 organic results and free cash flow - The sale of TRANZACT was a 70 basis point headwind on organic growth at the HWC level and 50 basis points at the enterprise level [60] Question: Additional color on the impact of new hires and growth in exposure units on organic growth inside Risk & Broking - Growth in Risk & Broking was primarily driven by client retention and new business, with new hires contributing positively [62] Question: Clarification on margin guidance and EPS guidance for the year - Management remains optimistic about margin guidance but has not changed EPS guidance due to potential headwinds from prior year comparables [64][65] Question: Comments on increased competitiveness in the London market - The company is seeing a stabilizing to softening market, with decreasing commercial rates and stable casualty lines [78] Question: Insights on the potential rebound in global M&A activity - There has been an uptick in M&A activity in Europe, but not yet in North America [84] Question: Expectations for the healthcare consulting business amid potential regulatory changes - Generally, changes in regulation are seen as beneficial for consulting services, as clients seek guidance on navigating new regulations [105]

NEW YORK, Oct. 31, 2024 (GLOBE NEWSWIRE) -- While employers are taking steps to support employees’ physical and mental wellbeing, there is a disparity between the focus of employer wellbeing programs and what employees need the most. This is according to the latest Wellbeing Diagnostic Survey by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. The survey found U.S. employers are prioritizing support for mental (73%) and physical (50%) wellbeing. Yet, employees say that financial ...

Core Insights - Willis Towers Watson (WTW) reported revenue of $2.29 billion for Q3 2024, marking a year-over-year increase of 5.7% and exceeding the Zacks Consensus Estimate by 0.41% [1] - The earnings per share (EPS) for the quarter was $2.93, up from $2.24 a year ago, representing a surprise of 9.33% over the consensus estimate of $2.68 [1] Revenue Performance - Revenue from the Health, Wealth and Career segment was $1.33 billion, slightly below the average estimate of $1.34 billion, reflecting a year-over-year increase of 3.6% [3] - Revenue from the Risk and Broking segment reached $940 million, surpassing the estimated $935.50 million, with a year-over-year growth of 9.9% [3] - Total segment revenue was reported at $2.27 billion, exceeding the estimate of $2.26 billion, and showing a year-over-year increase of 6.1% [3] - Revenue from reimbursable expenses and other was $15 million, significantly lower than the estimated $23.60 million, indicating a year-over-year decline of 48.3% [3] Operating Income - Segment operating income for Risk and Broking was $170 million, higher than the estimated $147.09 million [3] - Segment operating income for Health, Wealth and Career was $329 million, compared to the average estimate of $317.80 million [3] Stock Performance - Over the past month, shares of Willis Towers Watson have returned -0.6%, while the Zacks S&P 500 composite has increased by 1% [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]