Core Insights - WTW has appointed Simone Bonnet and Andrew Hirsch as Co-Heads of Transactional Insurance Solutions within Private Equity and Transactional Solutions, Corporate Risk and Broking North America [1] Group 1: Leadership Appointments - Simone Bonnet and Andrew Hirsch will co-lead the Transactional Insurance Solutions team, focusing on managing clients' risk strategies in corporate M&A transactions and developing innovative coverage solutions [2] - Aartie Manansingh, Head of Private Equity and Transaction Solutions, expressed confidence in Bonnet and Hirsch's leadership, highlighting their industry experience and technical understanding [5] - Michael Chang, Head of Corporate Risk and Broking, emphasized the potential for innovation and market expansion under their leadership [5] Group 2: Background of Appointees - Simone Bonnet has over fifteen years of experience in broking, underwriting, and legal practice, previously serving as a senior underwriter at Hamilton Insurance Group and in-house counsel at MetLife [3] - Andrew Hirsch also joined WTW in 2021, bringing experience as a senior underwriter from Everest Insurance and a background as a corporate attorney at Debevoise and Plimpton LLP [4]

NEW YORK, Aug. 26, 2024 (GLOBE NEWSWIRE) -- WTW (NASDAQ: WTW), a leading global advisory, broking, and solutions company, today announced the appointment of Jenna Ziomek as the Property and Casualty (P&C) Leader for Private Equity and Transactional Solutions (PE&TS), Corporate Risk and Broking, North America (CRB NA). In her new role, Ziomek will lead the Property & Casualty team (PE&TS) towards accelerating growth, executing strategy, expanding the team and strengthening WTW's position as the leading broke ...

LONDON, Aug. 26, 2024 (GLOBE NEWSWIRE) -- WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company, announced that its Board of Directors approved a regular quarterly cash dividend of $0.88 per common share for the quarter ended June 30, 2024. The dividend is payable on or about October 15, 2024 to shareholders of record at the close of business on September 30, 2024. About WTW At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Le ...

Core Insights - A significant number of older working Americans are opting for phased retirement rather than traditional retirement, driven by financial concerns and a desire for a gradual transition [1][2]. Group 1: Phased Retirement Trends - The 2024 Global Benefits Attitudes Survey indicates that 34% of workers aged 50 and older are either currently phasing into retirement (15%) or wish to do so (19) [2]. - Employees who began phasing into retirement at age 59 anticipate working for an additional nine years [2]. - Most employees currently phasing into retirement have reduced their work hours (61%) or job responsibilities (41%) [3]. Group 2: Motivations for Phased Retirement - The primary motivation for employees considering phased retirement is financial security (76%), followed by health (50%) and the desire for more time for family, leisure, and travel (45%) [3][4]. - Nearly half (46%) of older workers expect to work past age 70, a notable increase from 36% two years ago and 30% before the pandemic [4]. Group 3: Employer and Employee Perspectives - There is a mutual benefit in phased retirement for both employees and employers, as it allows employees to transition financially and emotionally while retaining experienced workers [5]. - Only 30% of employees feel their employers effectively utilize the skills of older workers, highlighting a gap in employer engagement [5]. - Two-thirds (67%) of employees believe mentoring younger colleagues is important before retirement [5]. Group 4: Importance of Retirement Plans - The survey reveals that 66% of employees consider their employer-provided retirement plan increasingly important, with 72% stating it is their primary retirement savings method [6]. - Over half (55%) of employees view their retirement plan as a key reason to remain with their current employer, an increase from 48% in 2017 [6]. Group 5: Employer Challenges and Solutions - Employers face challenges in meeting the flexible retirement needs of employees while addressing long-term financial requirements [7]. - Defined contribution plans are highlighted as essential tools for employers to provide flexibility and enhance benefits for employees preparing for retirement [7].

Company Overview - Willis Towers Watson (WTW) currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 2 (Buy), which is associated with a historical outperformance in the market [4] Price Performance - Over the past week, WTW shares increased by 1.38%, outperforming the Zacks Insurance - Brokerage industry, which rose by 0.83% [6] - In a longer time frame, WTW shares have risen by 10.75% over the past quarter and 40.96% over the last year, compared to the S&P 500's increases of 5.24% and 27.74%, respectively [7] Trading Volume - WTW's average 20-day trading volume is 438,716 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, 10 earnings estimates for WTW have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $16.28 to $16.62 [10] - For the next fiscal year, 11 estimates have also moved upwards with no downward revisions [10]

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...

The review also highlights how different 2023 has been to date with five category five storms in the first five months. This year's combination of El Niño and exceptional Atlantic warmth is expected to have significant impact on weather patterns and temperatures across the globe. As the world warms, we continue to see natural disasters, such as the unprecedented Canadian wildfires that began in May and have burned over 11 million hectares to date. Human activities, such as land use, often exacerbate the imp ...

Financial Data and Key Metrics Changes - The company reported an adjusted diluted earnings per share of $2.55, a 24% increase over the prior year, and achieved a 240 basis points year-over-year adjusted operating margin expansion [84][108] - Unallocated net was negative $106 million for the second quarter, reflecting a $13 million provision for significant litigation, with expectations for the full year 2024 balance to be consistent with 2023 [1][61] - Free cash flow for the six months ended June 30 was $361 million, an increase of $11 million from the prior year, driven by operating margin expansion [123] Business Line Data and Key Metrics Changes - Health, Wealth, and Career (HWC) segment achieved 5% organic revenue growth, with health business generating 9% organic growth [90][111] - Risk and Broking (CRB) segment reported 10% organic revenue growth, driven by new business and strong client retention [95][116] - Insurance Consulting and Technology (ICT) revenue was flat compared to the prior year, with expectations for mid-single-digit growth for the full year [120] Market Data and Key Metrics Changes - The company noted a stabilizing to softening market in property, while casualty markets are experiencing reduced capacity and higher pricing [19][20] - The global trend in property is stabilizing, with premium increases driven by complex risks such as social inflation and geopolitical conflicts [20] Company Strategy and Development Direction - The company raised its 2024 adjusted operating margin and adjusted EPS target ranges to 23.0% to 23.5% and $16 to $17, respectively, reflecting confidence in execution and outlook [86][109] - The transformation program has been successful, with cumulative annualized savings raised from $425 million to $450 million by the end of 2024 [86][109] - The company is focusing on specialization, investments in talent and technology, and enhancing client service to drive organic growth and margin expansion [97][106] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving 2024 targets, citing strong client retention rates and a robust pipeline for the rest of the year [6][13] - The company is confident in its ability to navigate regulatory changes and market developments, particularly in the Medicare-related business [50][52] Other Important Information - The company returned $290 million to shareholders through share repurchases and dividends, with expectations for share repurchases to total approximately $750 million in 2024 [2] - The company is actively managing expenses to optimize free cash flow and is focused on achieving sustainable and profitable growth [127] Q&A Session Summary Question: What is the biggest swing factor for exceeding EPS guidance for 2024? - Management highlighted execution in the first half of the year and opportunities for stronger performance relative to margin guidance, particularly from productivity investments [6] Question: How sustainable is the organic revenue growth seen in the second quarter? - Management indicated that the growth is sustainable, driven by increased compensation benchmarking participation and a strong client pipeline [12][13] Question: What are the expectations for the Property and Casualty market? - Management noted a stabilizing to softening market in property and a more challenging environment in casualty, with pricing dynamics varying by risk type [19][20] Question: How is the company managing headcount growth in R&B? - Management stated that hiring efforts are now more opportunistic, focusing on enhancing capabilities for sustainable growth [55] Question: What are the priorities for the new hire Lucy Clarke? - Management emphasized that Lucy Clarke's experience aligns with the company's focus on specialization and talent development, which will accelerate existing strategies [70]

Revenue Performance - Revenue for the three months ended June 30, 2024, was $2.3 billion, an increase of $106 million, or 5%, compared to the same period in 2023[178]. - Organic revenue growth for the three months ended June 30, 2024, was 6%, adjusting for foreign currency impacts and acquisitions[178]. - For the six months ended June 30, 2024, revenue was $4.6 billion, reflecting a $203 million, or 5%, increase from the prior year[178]. - Revenue for the three months ended June 30, 2024, was $2.265 billion, representing a 5% increase compared to $2.159 billion for the same period in 2023[186]. - Organic revenue growth for the three months ended June 30, 2024, was 6%, excluding a 1% contribution from interest income[186]. - Health, Wealth & Career (HWC) segment revenue for the three months ended June 30, 2024, was $1.260 billion, a 4% increase from $1.215 billion in 2023[195]. - Risk & Broking (R&B) segment revenue for the three months ended June 30, 2024, was $979 million, a 9% increase from $900 million in 2023[200]. - HWC segment revenue for the six months ended June 30, 2024, was $2.596 billion, a 4% increase from $2.502 billion in 2023[197]. - R&B segment revenue for the six months ended June 30, 2024, was $1.957 billion, an 8% increase from $1.804 billion in 2023[203]. Cost and Expense Management - Salaries and benefits accounted for 62% of total costs for the three months ended June 30, 2024, totaling $1.4 billion[178]. - Total costs of providing services for the three months ended June 30, 2024, were $2.1 billion, resulting in an income from operations of $212 million, or 9% of revenue[178]. - Total costs of providing services for the three months ended June 30, 2024, were $2.1 billion, an increase of 2% from $2.0 billion in 2023[204]. - Salaries and benefits for the three months ended June 30, 2024, were $1.4 billion, a 4% increase from $1.3 billion in 2023[205]. - Other operating expenses for the three months ended June 30, 2024, were $439 million, an increase of $6 million from $433 million in 2023[207]. - The Transformation program is expected to generate annual cost savings in excess of $450 million by the end of 2024, with cumulative costs of approximately $1.045 billion[166]. - Cumulative annualized run-rate savings identified since the inception of the Transformation program amount to $394 million, primarily from process optimization[167]. Profitability Metrics - Net income attributable to the company for the three months ended June 30, 2024, was $141 million, representing 6% of revenue[178]. - Diluted earnings per share for the three months ended June 30, 2024, were $1.36, compared to $0.88 for the same period in 2023[178]. - Adjusted operating income for the three months ended June 30, 2024, rose to $385 million from $315 million in the same period of 2023, reflecting a significant increase driven by higher revenue[282]. - Adjusted EBITDA for the three months ended June 30, 2024, was $466 million, compared to $411 million for the same period in 2023, indicating strong operational performance[289]. - Adjusted net income for the three months ended June 30, 2024, was $263 million, up from $219 million in the prior year, showcasing improved profitability[292]. - The net income margin for the three months ended June 30, 2024, was 6.3%, up from 4.4% in the same period of 2023, reflecting improved overall profitability[289]. Cash Flow and Capital Management - Cash flows from operating activities for the first half of 2024 were $431 million, slightly up from $430 million in the same period last year, supported by operational margin expansion[238]. - Free cash flow for the six months ended June 30, 2024, was $361 million, up from $350 million in the same period of 2023, reflecting a growth of 3.1%[301]. - Cash and cash equivalents at June 30, 2024, totaled $1.2 billion, down from $1.4 billion at December 31, 2023, mainly due to share repurchases and dividend payments[234]. - The company repurchased $301 million of shares during the first half of 2024 and has authorization for an additional $1.0 billion in share repurchases[229]. - Total cash dividends paid during the six months ended June 30, 2024, were $176 million, with a quarterly cash dividend of $0.88 per share approved in May 2024[257]. - The company repurchased 774,616 shares at an average price of $258.17, totaling an aggregate repurchase cost of $200 million for the three months ended June 30, 2024[255]. Debt and Equity Position - Total debt as of June 30, 2024, was $5.307 billion, compared to $5.217 billion at December 31, 2023, reflecting an increase in long-term debt[245]. - Long-term debt increased to $5,307 million as of June 30, 2024, compared to $4,567 million as of December 31, 2023[25]. - Total liabilities as of June 30, 2024, were $20,207 million, up from $19,497 million as of December 31, 2023[25]. - Total equity as of June 30, 2024, was $9,415 million, a decrease from $9,593 million as of December 31, 2023[32]. Taxation and Regulatory Environment - The effective tax rate for Q2 2024 was 15.6%, down from 19.8% in Q2 2023, attributed to a tax refund benefit[223]. - The U.S. GAAP tax rate for Q2 2024 was 15.6%, a decrease from 19.8% in Q2 2023, indicating a significant reduction in tax burden[298]. - The adjusted income tax rate for Q2 2024 was 22.6%, down from 23.7% in Q2 2023, showing improved tax efficiency[299]. - The company is assessing the impact of the new income tax disclosure requirements effective January 1, 2025[48]. - The Inflation Reduction Act introduced a share repurchase excise tax, which may affect future financial strategies[51]. - The company is monitoring evolving tax legislation, including the OECD's Pillar Two rules, which may impact its tax provision starting in 2024[52]. Operational Transformation and Future Outlook - The company continues to focus on its multi-year operational transformation program to enhance efficiency and drive growth[11]. - The company aims to enhance its billing and collection efforts to increase free cash flow, indicating a focus on operational efficiency[22]. - The company is facing risks related to regulatory changes and potential legal claims that could impact future performance[21].

Corporate Risk & Broking had organic revenue growth, primarily driven by higher levels of new business activity, strong client retention and renewal increases across all geographies. Insurance Consulting and Technology had flat organic revenue growth in the reported quarter, primarily due to tempered demand for discretionary services. Long-term debt increased 16.2% to $5.3 billion at quarter-end from the end of 2023. 2024 Outlook The insurer expects approximately $88 million in non-cash pension income. It e ...