Financial Data and Key Metrics Changes - The company achieved 5% organic growth in Q3 2025, with adjusted EPS of $3.07, reflecting an 11% year-over-year increase [4][15] - Adjusted operating margin expanded by 230 basis points year-over-year to 20.4% [15][26] - Free cash flow for the nine months ending September 30, 2025, was $838 million, an increase of $114 million from the prior year [27][28] Business Line Data and Key Metrics Changes - Health, Wealth & Career (HWC) revenue grew 4% year-over-year, with 5% growth when excluding book of business settlement activity and interest income [16][20] - The Health segment achieved 7% growth, or 8% excluding certain impacts, driven by strong performance in International and North America [17][20] - Risk and Broking (R&B) reported 6% organic growth, with Corporate Risk & Broking (CRB) also growing 6%, or 7% when excluding specific activities [21][24] Market Data and Key Metrics Changes - The company noted headwinds from declining rates in certain segments of the commercial insurance market [6][5] - Pricing pressure was particularly noted in the property insurance sector, with expectations of mid to high single-digit organic revenue growth despite these challenges [42][43] Company Strategy and Development Direction - The company continues to focus on its specialization strategy and investments in technology to drive sustainable growth [21][24] - The strategy aims to enhance efficiency and optimize the portfolio, which has been effective despite a volatile macroeconomic environment [5][4] - The company is committed to delivering 100 basis points of average annual adjusted operating margin expansion over the next three years [24][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit organic growth and margin expansion for the full year 2025 [29][15] - The company is monitoring economic indicators such as employment levels, which may impact business prospects [5][6] - There is a strong pipeline for the remainder of the year, particularly in the Health segment, driven by healthcare inflation and employers' focus on managing costs [17][69] Other Important Information - The divestiture of TRANZACT is expected to create a headwind to adjusted diluted earnings per share of $1.14 for the full year 2025 [15][26] - The company returned $690 million to shareholders through share repurchases and dividends [28][29] Q&A Session Summary Question: Insights on Risk and Broking organic revenue results - Management noted that the 6% growth in R&B was supported by strong new business across global markets, particularly in construction and credit risk solutions [32][34] Question: Concerns about margin expansion in Risk and Broking - Management remains committed to achieving 100 basis points of margin improvement annually, driven by investments in technology and process improvements [37] Question: Expectations for free cash flow in the fourth quarter - The company anticipates continued free cash flow margin expansion, supported by the divestiture of TRANZACT and reduced transformation costs [40] Question: Impact of insurance pricing headwinds - Pricing pressure has been significant in property insurance, but the company expects to maintain mid to high single-digit organic revenue growth in Risk and Broking [42][43] Question: HWC margins and future expectations - HWC margins improved significantly in Q3, and management is confident in sustaining this performance through disciplined resource management and process optimization [46][47] Question: Confidence in BD&O growth - BD&O is expected to see strong growth in Q4 due to the timing of commissions and new client implementations [48] Question: Interest income levels and sustainability - Interest income levels are influenced by geographic cash balances, and while there are no one-time factors, the company expects healthy interest income moving forward [50] Question: Talent acquisition and retention - The company is successfully attracting and retaining top talent, which is crucial for driving organic growth [54][55] Question: Long-term growth prospects in Wealth - The Wealth segment is expected to grow steadily, supported by new client acquisitions and project work [71][74]

Willis Towers Watson (NasdaqGS:WTW) Q3 2025 Earnings Call October 30, 2025 09:00 AM ET Speaker2Good morning and welcome to the WTW third quarter 2025 earnings call. Please refer to the wtwco.com for the press release and supplemental information that was issued earlier today. Today's call is being recorded and will be available for the next three months on WTW's website. Some of the comments in today's call may constitute forward-looking statements within the meaning of the Private Securities Reform Act of ...