Willis Towers Watson(US:WTW)2023-02-24 17:14Revenue Segmentation - The company generated 60% of its revenue from the Health, Wealth & Career segment and 40% from the Risk & Broking segment for the year ended December 31, 2022[20]. - The Health, Wealth & Career segment generated 60% of total revenue, while the Risk & Broking segment accounted for 40% for the years ended December 31, 2022, 2021, and 2020[20]. - A significant portion of revenue in the Health & Benefits business comes from recurring work, with contracts typically being annual or multi-year[25]. - The Retirement business has high client retention rates, with a significant portion of revenue derived from recurring work and multi-year contracts[28]. - The Benefits Delivery & Administration business generates recurring revenue from commissions and long-term service contracts, typically ranging from three to five years[37]. - The company’s Investments business provides discretionary investment management solutions, with the majority of revenue driven by retainer contracts[31]. Client Base and Market Presence - Approximately 93% of the FTSE 100, 89% of the Fortune 1000, and 90% of the Fortune Global 500 companies are clients of the company[18]. - The company operates in over 140 countries, providing services across various industries, with no single customer accounting for more than 10% of consolidated revenue[18]. - The company operates in attractive markets with a diversified platform across geographies, industries, segments, and lines of business[65]. - The Risk & Broking segment provides a broad range of risk advice and insurance brokerage services to clients worldwide, from small businesses to multinational corporations[42]. Employee and Talent Management - The total number of employees as of December 31, 2022, is approximately 46,600, with 24,000 in Health, Wealth & Career, 14,000 in Risk & Broking, and 8,600 in Corporate and Other[69]. - Hires increased by 34% over 2021, totaling over 9,700, with approximately 2,400 open positions at year-end[72]. - Voluntary turnover excluding seasonal employees stabilized at 15.2% in 2022, consistent with 2021, while pre-COVID-19 attrition averaged around 12.0%[69]. - The company’s ability to attract and retain qualified personnel is crucial for its operational success and future prospects[78]. - The company launched WTW Work Styles in 2022, offering office-based, hybrid, and remote working solutions to attract and retain talent[77]. Strategic Priorities and Growth - The company aims to grow at or above market in priority areas, focusing on core opportunities with the highest growth and return[68]. - The company’s strategic priorities include grow, simplify, and transform, aiming to accelerate revenue, margin improvement, and earnings growth[66]. - The company emphasizes strategic planning and innovation, with Anne Pullum playing a key role in determining the company's strategy[113]. Technology and Operational Efficiency - The company emphasizes the importance of technology and integrated service delivery to enhance client experience and operational efficiency[24]. - The company leverages technology to enhance client experiences and improve operational efficiency, aiming to transform operations for better savings and client satisfaction[68]. - The company is committed to enhancing its operational efficiency and market presence through strategic leadership and governance[116]. Diversity and Inclusion - The company has a commitment to Inclusion and Diversity, focusing on increasing female representation and overall diversity in leadership levels[70]. - The board composition will be 40% female after the 2023 Annual General Meeting, maintaining representation from the LGBT+ and Black communities[74]. - The board's composition is currently 44% female, with plans for further diversity enhancements in 2023[73][74]. - The company has a strong focus on diversity and inclusion, with Imran Qureshi chairing the North American Inclusion & Diversity Council[114]. Competition and Market Challenges - The company faces intense competition from firms like Accenture, Aon, and Marsh & McLennan, impacting its market share[79]. - The insurance consulting market is experiencing pressures from clients retaining more risk and relying on self-insurance mechanisms[80]. - The company competes in the HR consulting and risk management sectors against firms like Mercer and Aon, with strong competition from both large and specialized firms[82]. - The global workforce remains competitive, with a focus on attracting and retaining top talent amid ongoing market challenges[63]. Regulatory Compliance - Regulatory compliance is critical, with activities subject to oversight by various authorities, including the SEC and FCA[88][93]. - The company is subject to various financial crime laws and regulations, which could result in disciplinary actions if not adhered to[101]. - Non-compliance with regulatory requirements can lead to disciplinary actions, fines, and reputational damage, affecting the company's financial standing[102]. - The company is awaiting approval from the FCA for its Brexit broking solution, which will increase regulatory supervision and requirements[96]. - The European Union's Insurance Distribution Directive mandates compliance for insurance intermediaries, affecting operations across member states[97].