Core Insights - WTW reported strong performance in Q4 2025, driven by strategic investments and a focus on operational efficiency, despite a decline in revenue due to the sale of TRANZACT [2][5][10] Consolidated Results - Q4 2025 revenue was $2.94 billion, a decrease of 3% year-over-year, with organic revenue growth of 6% [3][5][7] - Net income for Q4 2025 was $736 million, down 41% from $1.25 billion in Q4 2024, while adjusted net income decreased by 3% to $784 million [6][11] - The operating margin improved to 34.6%, up 490 basis points from the previous year, indicating enhanced operational efficiency [3][7] Full Year 2025 Results - Total revenue for FY 2025 was $9.71 billion, a 2% decline from $9.93 billion in FY 2024, with organic growth of 5% [8][10] - Net income for FY 2025 was $1.61 billion, a significant recovery from a net loss of $88 million in FY 2024 [11][8] - Adjusted diluted EPS for FY 2025 was $17.08, up 5% from the previous year [8][11] Cash Flow and Capital Allocation - Cash flows from operating activities increased to $1.78 billion in FY 2025, compared to $1.51 billion in FY 2024, with free cash flow rising to $1.55 billion [12] - The company repurchased $350 million of shares in Q4 2025 and $1.65 billion for the full year [12] Segment Highlights - The Health, Wealth & Career (HWC) segment reported Q4 revenue of $1.65 billion, down 11% year-over-year, but achieved organic growth of 6% [13][14] - The Risk & Broking (R&B) segment saw revenue increase by 10% to $1.25 billion in Q4 2025, with organic growth of 7% [16][17] 2026 Financial Considerations - The company expects continued annual margin expansion, targeting approximately 100 basis points of average annual margin growth in R&B over the next two years [18] - Anticipated share repurchases of $1.0 billion or more, subject to market conditions [18]

Core Insights - WTW has launched Rewards AI, a Generative AI-enabled software aimed at transforming HR and compensation professionals' access to rewards data, enhancing decision-making clarity and efficiency [1][3] Group 1: Product Features - Rewards AI combines WTW's data integrity with advanced AI technology, offering a "human-led, machine-powered" approach to simplify workflows and accelerate insight discovery [2][3] - The software features a conversational interface that allows users to ask questions in natural language, providing instant and tailored responses to complex rewards data [3] - Transparency is a key feature, with all recommendations traceable to their sources, fostering trust and eliminating guesswork in compensation planning [4] Group 2: Market Relevance - The ability to quickly understand and respond to compensation trends is crucial in today's dynamic market, and Rewards AI provides a transparent and intuitive method for exploring rewards data [5] - The solution empowers organizations to make informed, strategic decisions based on reliable information, moving beyond surface-level insights [5]

Core Insights - Willis Towers Watson Public Limited Company (WTW) is anticipated to experience a decline in both revenue and earnings for the fourth quarter of 2025, with revenues expected to be $2.87 billion, reflecting a 5.5% decrease year-over-year [1] - The consensus estimate for earnings per share is $7.93, indicating a year-over-year decrease of 2.4%, although this estimate has increased by 0.3% over the past 60 days [2] Revenue Expectations - Revenue growth in the fourth quarter is likely to be supported by strong performances across all segments, particularly in Health and Wealth, driven by international expansion and new business initiatives [5][10] - The Wealth business is expected to benefit from robust Retirement work in Great Britain and North America, along with growth from new investment products [6] - The Benefits Delivery & Outsourcing segment is projected to perform well due to strong project and core administration work in Europe, although this may be partially offset by lower commission revenues in North America [7] Expense Projections - Expenses for the fourth quarter are expected to rise to $1.9 billion, influenced by higher incentive costs, salary expenses, and costs associated with the Transformation program [8][10] Earnings Prediction Model - The Zacks Model indicates that WTW is not likely to beat earnings expectations this quarter, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [3][4]

In its upcoming report, Willis Towers Watson (WTW) is predicted by Wall Street analysts to post quarterly earnings of $7.93 per share, reflecting a decline of 2.5% compared to the same period last year. Revenues are forecasted to be $2.87 billion, representing a year-over-year decrease of 5.5%.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Be ...

Core Insights - Natural catastrophes caused over US$100 billion in insured losses in 2025, marking the sixth consecutive year above this threshold, but a decrease of $40 billion compared to 2024, indicating persistent natural catastrophe risk despite no hurricanes making landfall in the US [1][2] Industry Trends - The Natural Catastrophe Review by Willis highlights the need for insurers to adopt sound strategies to manage high catastrophe risk, emphasizing investment in resilience and mitigation rather than avoiding risk [2] - Insured losses from natural catastrophes in 2025 were over $100 billion globally, indicating a higher risk floor for catastrophic perils [2] - The report discusses structural pressures and systemic vulnerabilities that exacerbated the impact of natural catastrophes in 2025, advising insurers to update their risk perspectives [2] Risk Modelling and Case Studies - Wildfire is identified as a core contributor to insurance portfolio volatility, necessitating adjustments in wildfire models to reflect current conditions and realistic replacement costs [3] - Risk modelling must account for compound perils, as cumulative damage from multiple perils can lead to delayed claims and disputes [3] - The warming North Atlantic is altering hurricane behavior, with implications for the Caribbean and the potential for more intense storms later in the season [3] - Flood risks are expanding beyond traditionally defined zones, with extreme rainfall leading to severe flooding in areas not typically considered high risk [3]

New integrated framework takes a client-led, specialized approach to protecting critical global infrastructureNEW YORK, Jan. 28, 2026 (GLOBE NEWSWIRE) -- Willis, a WTW business (NASDAQ: WTW), today unveiled a new, forward-looking model for comprehensive data center risk management, responding to the growing recognition that data centers are no longer standalone assets but critical, interconnected digital infrastructure underpinning global technology strategies, AI adoption and economic growth. Drawing on it ...

Core Insights - Willis has re-entered the light and recreational general aviation insurance market after a 30-year hiatus, expanding its insurance offerings through the integration of the Crispin Speers team [1][3] - The updated portfolio now includes coverage for various general aviation operations such as microlights, balloons, gliders, commercial drones, and light fixed-wing aircraft [1] - Willis is also extending its commercial insurance services to non-aviation risks, leveraging expertise from its broader network [2] Group 1 - The re-entry into the light and recreational general aviation sector fills a long-standing gap in Willis' portfolio, allowing for a comprehensive suite of insurance solutions [3] - Clients will benefit from a seamless, one-stop approach for all aviation insurance needs, supported by Willis' global reach and reputation [3] - The expansion reflects Willis' commitment to clients and partners, aiming to deliver market-leading insurance solutions and drive positive change in the aviation sector [4] Group 2 - In October 2025, Willis introduced Captive Fit, a service designed to assist organizations in refining their captive insurance strategies, utilizing WTW's Igloo risk analytics platform [4]

Core Viewpoint - WTW has successfully completed the acquisition of Newfront, enhancing its capabilities in the U.S. middle market and high-growth sectors through Newfront's technology and expertise [1][2]. Group 1: Acquisition Details - The acquisition of Newfront, a top 40 U.S. broker, is aimed at combining its technology-enabled broking model with WTW's global footprint and analytics platforms [1][2]. - Newfront's expertise in high-growth industries such as technology, fintech, and life sciences will bolster WTW's service offerings [2][8]. - The integration of Newfront's team, including its Co-Founder and CEO Spike Lipkin, will focus on client development and technology [3]. Group 2: Strategic Implications - The acquisition is a significant step in WTW's strategy to enhance competitive differentiation and create long-term value for stakeholders [2]. - Newfront's business segments, Business Insurance and Total Rewards, are now integrated into WTW's Risk & Broking and Health, Wealth & Career segments, respectively [3]. - The deal is expected to accelerate WTW's execution of technology and specialty strategies through Newfront's advanced automation and AI capabilities [8]. Group 3: Advisory Roles - J.P. Morgan Securities LLC served as the exclusive financial advisor to WTW, while Weil, Gotshal & Manges LLP acted as legal advisor [4]. - Perella Weinberg was the exclusive financial advisor to Newfront, with Reed Smith LLP providing legal advice [4].

Core Insights - Nearly 73% of U.S. employers plan to enhance their leave programs in the next two years, driven by the need to improve employee experience and strengthen attraction and retention [1][3] Leave Program Enhancements - Over 80% of employers currently offer parental leave, with 16% planning to enrich these programs [2] - 18% of employers intend to expand bereavement leave by increasing duration or broadening eligibility [2] - Caregiver leave is expected to see the most significant growth, nearly doubling from 22% to 39% over the next two years [2] Strategic Importance of Leave Programs - Leave programs are becoming a strategic differentiator for employers in the talent competition, with enhancements seen as a cost-effective way to improve well-being and strengthen company culture [3] Challenges in Leave Administration - Nearly 49% of employers cite program administration as their biggest challenge, followed by integration of leave systems (39%) and managing workforce availability amid rising leave incidence (38%) [3] Trends in Paid Time Off - Interest in unlimited paid time off (PTO) is increasing, with 15% of employers currently offering it, up from 12% two years ago, and 18% expecting to offer it within the next two years [4] Outsourcing Leave Administration - 72% of employers currently outsource State and Federal Family and Medical Leave administration, an increase from 64% in 2023, with 82% expecting to outsource within two years [5] - Outsourcing of Americans with Disabilities Act (ADA) functions is projected to rise from 27% to 46% within two years [5] Role of Artificial Intelligence - Two-thirds of employers are uncertain about current AI applications in leave management, but nearly 70% are open to using AI for routine case-management tasks, indicating potential for future innovation [6] Compliance and Modernization - Compliance requirements are becoming increasingly complex, especially for multi-state employers, and organizations that modernize their leave programs are better positioned to meet employee expectations and manage risks [7] Survey Overview - The survey included 585 employers, representing a combined workforce of 8 million employees, conducted from late October to mid-November 2025 [7]

Core Insights - U.S. investors are increasingly focusing on ESG policies that enhance sustainable business practices and shareholder value, leading companies to refine executive incentive plans with quality metrics centered on human capital [1][6] Group 1: ESG Metrics in Executive Incentive Plans - 76% of S&P 500 companies reported incorporating at least one ESG metric in their executive incentive plans, marking a 1% decline from the previous year [2] - Globally, 80% of companies included at least one ESG metric in their executive incentive plans, with 75% using ESG measures in short-term incentive plans and 32% in long-term incentive plans [3] Group 2: Diversity, Equity, and Inclusion (DEI) Metrics - The prevalence of DEI metrics in the U.S. has significantly decreased due to recent Court rulings and policy changes, with only 34% of S&P 500 companies using these metrics in executive incentives, down from 55% the previous year [4] - 23 companies (5%) of the S&P 500 disclosed plans to remove DEI metrics from their executive incentive plans for the current year, indicating a continuing trend away from these metrics [4] Group 3: Human Capital Metrics - Human capital metrics remain a priority, with 71% of North American companies and 81% of European companies including at least one people-related metric in their executive incentive plans [5] - Common people-related metrics include employee engagement, succession planning, culture, and employee retention, reflecting a focus on governance of people risks and opportunities [6] Group 4: Study Overview - The WTW 2025 ESG Incentive Metrics Study analyzed 1,070 public company disclosures across major stock exchange indices in 18 markets, covering fiscal years ending between May 2024 and May 2025 [7]