Financial Data and Key Metrics Changes - In Q3 2025, the company achieved 5% organic growth, 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% [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 [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] - Risk and Broking (R&B) reported 6% organic growth, marking the 11th consecutive quarter of high single-digit growth when excluding specific impacts [8][21] Market Data and Key Metrics Changes - The company noted headwinds from declining rates in certain segments of the commercial insurance market across various geographies [6][22] - Pricing pressure was particularly noted in property insurance, with most lines showing softening except for North American Casualty, where pricing continues to rise [42][81] Company Strategy and Development Direction - The company continues to focus on its specialization strategy, investments in talent, data, and technology to drive sustainable growth [21][60] - The strategy aims to enhance efficiency and optimize the portfolio, which has been effective despite macroeconomic volatility [5][29] - 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 2025, despite challenges in the current pricing environment [29][60] - The company anticipates strong demand across its global business driven by healthcare inflation and employers' focus on managing costs [17][68] 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] - The company returned $690 million to shareholders via share repurchases and dividends during the quarter [28] Q&A Session Summary Question: Insights on Risk and Broking organic revenue results - Management noted that the 6% growth in Risk and Broking was supported by strong new business across global markets and specialty lines, with project-based placements contributing to growth [31][34] Question: Concerns about margin expansion in Risk and Broking - Management reaffirmed commitment to achieving 100 basis points of margin improvement annually, driven by technology investments and process improvements [36][37] Question: Expectations for free cash flow in the fourth quarter - Management indicated confidence in delivering free cash flow margin expansion, supported by reduced transformation costs and the divestiture of TRANZACT [39][40] Question: Impact of insurance pricing headwinds - Management acknowledged ongoing pricing pressure, particularly in property insurance, but maintained expectations for mid to high single-digit organic revenue growth in Risk and Broking [42][43] Question: HWC margins and future outlook - Management highlighted consistent margin improvement in HWC, driven by disciplined resource management and process optimization [45][46] Question: Prospects for BD&O growth - Management expressed confidence in BD&O growth due to the timing of revenue generation, particularly during the Medicare enrollment period [48][49] Question: Talent acquisition and retention - Management emphasized the company's ability to attract and retain top talent, which is crucial for driving organic growth [54][56]

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 ...