Willis Towers Watson Public Limited (WTW) 29 Oct 202020 Q3 Earnings call transcript

Good morning. Welcome to the Willis Tower Watson's Third Quarter 2020 Earnings Conference Call. Please refer to the willistowerswatson.com for 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 Willis Towers Watson'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 1995. subject and are statements forward-looking to uncertainties. risks These from today, to and results these may company discussed materially differ law. by obligation Actual the those undertakes unless required statements, update no

and the Watson's these more a risk should recent of today release detailed most earnings of this SEC well XX-K forward-looking For disclosures and morning in section statements the in as discussion factors, Tower other investors press filings. other issued Willis the refer as Form other

be may measures financial non-GAAP certain call, the discussed. During

of refer recent reconciliation in measures, go Watson's Towers and Mr. as like of measures other information well Officer. turn ahead. Executive now For Chief would section materials to the to as John to the the non-GAAP Haley, regarding other I over Please company's the Relations Willis these earnings please Investor most website. the release call

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is quarter, with Officer. performance. Mike I'm Financial pleased Burwell, our Chief to Joining economic Nevertheless, challenging continued me through we today conditions. our third financial the In navigate

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of business. discretionary provide an detail. basis revenue down companies margins the comparability the include or will Human well amortization each of of segments such revenue the intangibles, calculated operating Now decline let's & all the prior to and Capital acquisitions compared to do as advisory related as a our primarily quarter of revenue impacting with Rewards stated economic globally. Benefits, third commentary currency more unallocated for results dampening of adversely exclude with HCB workforce and we an from the clear The costs as organic our prior our X% and the lockdowns transaction which demand be using That's segment Segment need corporate segment on consider the other dynamics and results. results Talent decreased compensation. basis, in and resulting unless in as The a periods, Rewards items at many integration in are segments at specifically X% on expenses mergers year. turmoil To was and and result noncore to COVID-XX work look regarding some organic segment otherwise. certain constant Talent

needed work dramatically on the a of Work America. Our of X% management Retirement that make HCB's being to international, the revenue, a in in America operating funding push North enhanced compared tough many by rewards. Health global North in approach help quarter and Western Despite only to revenues as decreased retention is HCB was long-term prior forcing year's careful the rethink resilience revenue prior as in Administrative work year, for results. balanced brokerage segment. margin Britain. to with basis management clients confident there and compared prior HCB Technology decisions strong and about increased changed Benefits the environments We prospects activity year, client nonrecurring Great equalisation result of flat third cost new and their the XX forward. quarter. We points this reduced project to GMP in to their the result North primarily year outside increased and Solutions appointments local alongside the declined remain to efforts. our experienced revenue . Europe had have benefit pressure and companies unlock organizational work by America, derisking

currency business Europe a compared of X%, lower year, year by a driven to Corporate for quarter. CRB, of benefited and at North primarily Great and and of change, America's this results the mainly from negatively increased most was X% Great revenue of with one-off $XXX Britain's reduction is third performance of ever-changing decrease Revenue due X%, or to insight Companies quarter. clients' revenue a address prior the third XX.X% X% equal from in data $XXX result declined including strategic and Britain's by look revenue third the business the margin Broking & Western the containment believe in operating our The strong revenue CRB an well let's efforts. was constantly to across constant revenue our coupled a model down and in benefits This as in change, evolving was adapt organic strong most solutions revenue FINEX. to must for year increased quarter top prior million today's operating International research, of XX.X% and which to basis lines and margin CRB of positioned Risk lines that risk comparable Britain's with a improvement Absent certain new prior provide This in cost growth, with X% clients' the impacted an Financial with margin to million the revenue income sale keep landscape, business, operating remuneration by neutral by tough salaries were renewal. book on challenges. which quarter. of an X% business. line compared an quarter. to was which complex results the Now we from third and change Solutions Great expense. and for is for respectively, had business. CRB combines pace and in needs.

portfolio. X% Reinsurance Reinsurance, was an Turning the combination as revenue constant revenue an with revenue the a the continued commission mainly basis increased third compared organic the from business was to to increase expansion new of prior Consulting segment's increased on X% of on up income. to Risk quarter. basis delegated renewals. technology or primarily million, net Technology & flat Insurance IRR. X% growth $XXX from and for Investment, lead Max and through currency X%, Investment favorable increased a services year Revenue of continued third with sale. and Matthiessen investment growth of quarter

sold reminder, our quarter, they in Max not third be the the business results. will As QX in included Matthiessen we a and

year down third Our operating compared lower returns. for X.X% margin XX% pressure X.X% an investment an as organic lines all quarter. wholesale of the business on had across to and IRR was prior basis, with

and about largely The with increase driven quarter. and also Benefits momentum. BDA uncertainty, and stress had increased access XX% was I'm basis retirees of our delivered health steady by X.X% on the BDA basis to quarter. expansion line turbulent core financial was on Outsourcing and which and currency information & adjusted EPS over growth driven risk this and third need with revenues to Overall, their contributed needed well-being improvement turmoil. IRR's growth, base. the constant their We're We tools the all to TRANZACT, organic The business be by of the understand compared to an performance to optimistic about of $XX In margin the empowers pleased to through the minus client the BDA with in it threatened their of quarter. lingering overall revenue, We pandemic to performance. growth. from X% people to the million which heightened year or despite benefit as how these providing Administration, third feel in this BDA's primarily The operating of $XXX with continue revenue in they year million IRR's by continues top a care. financial Revenue capital employees minus by understand was by the its times to easy contributed globe. for economic of IRR's time The prior margin take prior a control driven top segment Benefits margin organizations Advising XX.X% and has this primarily option focus. modest Delivery segment progress. increased affects offerings long-term their provides The business. good clients portfolio expanded the growth line

to now So Mike. call the turn over I'll

leadership, and us. well for demonstrated colleagues gratitude thank our good overall of our and my everyone. to our solid as all as morning like this environment. clients trust support of resiliency quarter by extend challenging businesses. joining John, to for and through Thanks us colleagues proud to for Thanks, I'm you our continued in their to another our our I'd

let's Now growth and reduce cash. to flow third pandemic, solid expenses manage We and EPS some ability we to cash financial to headwinds solutions free quarter growth. and to from quarter, continued underlying face pleased the demand our for by adjusted reassured but overview. turn the services In with we and COVID-XX another remarkable our profitability by our of to were are discretionary the our see

was X.X% financial income revenue, turn of from third I'll quarter of prior overall $XXX revenue. quarter. third operations was with or Income from basis for prior the or operating third operations $XXX results. to revenue, XXX of detailed down of from Now income of year $XXX or or third points the the XX XX.X% revenue income the Adjusted start million quarter from points up million the quarter operations. basis million I'll year for million X.X% from XX.X% $XX in

our third quarters EPS diluted XXXX, The XXXX $X.XX, $X.XX of respectively. were and and

share our per the third For was quarter EPS compared of XXXX, as $X.XX year share adjusted up $X.XX per X% third the prior to in quarter. to

$X.XX Foreign third for exchange the had quarter. a impact on EPS

tax the XX.X% Our U.S. year. was for third the rate versus in quarter prior GAAP XX.X%

higher million during XXXX. statutory or effective the X remeasure to rate $XX the approximately ended result tax U.K., XX.X% XX, deferred Our was was of our quarter a per requiring U.K. The $X.XX adjusted third September us the rate rate liabilities tax months in the for tax prior discrete in and the expense rate up changes tax recognize from current deferred share quarter XX%, as year. enacted a of tax

the to sheet. Turning balance

borrowings $X.XX to billion we capacity well equivalents As evolve, third continues uncertainty billion situation with ended cash facility liquidity lies with the undrawn on quarter. We quarter revolving the no I COVID-XX that navigate to a $X.X under our during ahead. cash facility. full credit are and strong believe position, We and had and credit capital the of that the prepared our

pushing our EBITDA maintain well at We Towers forward perspective. sheet, and a to at balance Our and efficiency aim and from strong X.X positioned to debt continue at X/XX/XXXX. Willis X/XX/XXXX initiatives. to from cost durable continue to Watson improved adjusted has remains X.X X.X XX/XX/XXXX liquidity

monitor impact to of to as pandemic, prepared the we're position. take to financial continue our appropriate measures and ever-evolving We needed preserve

the free of flow $XXX was third million combination spend. $XXX and quarter of in to million versus prior an for cash in capital prior bringing the to to XXXX, improvement months is year-to-date managing billion, The a the due of For XXX% approach first disciplined working our flow free increase a prudent X our year, of flow from year. year-over-year cash free $XXX $X million management the cash

In million shares XX, any $XXX we not in capital XXXX. terms months did in allocation, September and ended repurchase the of paid X dividends

prohibitions transaction Aon, reminder, pending with repurchase As combination business XXXX. certain in agreement we connection of a given the not in our the to expect during shares with do any remainder

our of the As XXXX. a overall financial third general matter, have the not COVID-XX for impact adverse pandemic to quarter a fiscal material results did

However, but Overall, team these of model. the financial revenue stakeholders. for we of call upheaval, duration The particularly our all XXXX for pandemic back impact results third impact beyond. the ability economic negatively of did effects on COVID-XX now in results John. the of third reflection activity and in quarter, some revenue value and expect economic remain and quarter the I'll confident considerable lines, could general in during remainder pandemic, are performance difficult balance growth, solid caused in of I on unknown. These recovery I'll the clients the has full the strong the its turn and the remain to our a of we our impact times. our In to and meantime, global very the magnitude colleagues economic The and a supporting financial a resolve pandemic focused I'm of leadership continue our driving of proud liquidity agility delivered the of direct sheet, flexibility. our subsequent maintaining remain we speed discretionary COVID-XX

we'll Thanks, take your Mike. now And questions.

question [Operator Newsome Piper the of Instructions] your with Sandler. line Paul from first And comes

hopefully, beyond bit back get we about into because So the had. today are excellent to you'll increase -- have the thoughts brokers things control next margin a little again? that theme if getting just with the is obviously, normal spending or the quarter as about, to Any the everyone's just that

Yes.

So situation XXXX, we it's to think, during, expect change going evolve evolve. I is don't really exactly know look, but going I to that how say, we think and

I also. think to To we'll only the when the they're we is that, than back like today, it but it's generating COVID-XX to say, extent know to was undertaking extra it travel where entertainment, some justified it's going be don't by we to things going we expenses, and be revenue. go think different have more prior them

revenue So to we to the we're corresponding increase, where that also to expenses going while do we have expect try increases. only

we're question. affected well Great. And thoughts given changing quarterly, that Obviously, outlook, political completely different possibly just the a and the any by at on environment ACA being changing with looking a regulatory business environment? the

No. health I think provide, provide the for would their the I we particularly of and that responsibility think see I the talked they and my world. in And it. what methods that's I for health take control or Whatever individuals we to is, want the of say the end they particular way their think care. their and let care, we care take theme at health mean that services BDA how the of remarks benefits individuals about that a we services employees in be own politicians around you use providing -- charge

about so, we feel pretty And provide. services we good the

line Wells Our the next Fargo. of with from comes question Greenspan Elyse

for you CRB of X%. pointed What Britain, been Britain? up of have done I in that item CRB, we one-off first would have adjust My Great North onetime Great the in in a impact on would you all America there the North think the quarter, question sale if one-off to and guys the gave piece GB the America,

we're to when we kind been been quarter, we we really favorably increase. comparison we to of the -- Elyse, flat results. been like have Obviously, in when have the at slight Yes, quarter. pretty we the I overall, we overall have where It's for would market. look year-to-date operating a we the at would feel slight mean, look look that, And at a

And kind how of about so think we that's it.

I within a little kind Okay. there's wholesale? potential sale or that know the impact here? -- about XX% say Great. that you just of the sure I what I'm that, like And QX? anything color not I of it's been should that heard we about we IRR. been was And of And think onetime bit if on business disclosed, think an is right, guys, guys get from wholesale, within then Miller. more down if you had the there how saw trajectory you to

Yes.

Miller look when at thank the So Elyse. we overall, for you question,

lot and or those things a that with the they insure been put so events, a events of hold. being happens in and on is particular, of lot Miller One transpired that of obviously, sporting there's haven't that

really reduction for what that's so of growth quarter. the we in the driving in terms And revenue saw

we a Miller of very we strategic for as that's for decline the Miller but to and said, evaluate Miller. the continue reason strong the quarter. in Now direct has performing alternatives, why business been us, for

quarters? to be Or Is the pronounced than that would the sporting event more QX the even year? other throughout

it's in No, little more bit QX. the a

And was Is my the statutory change rate? question go-forward tax on you last Okay. to, U.K. on a the the there elevation any tax there I rate, in impact pointed then think to led quarter. that your

Yes.

we did received rate by as So I statutory yes, Elyse, so the feedback, X%. U.K. raise did their -- just

As not it in said, we a – of for $XX could But our impact setting liabilities. the a basis. on terms on that quarter adjust that deferred also, $XX million tax tax had our up I onetime on approximately for calculation million

our $X.XX had for results into that impact So the quarter.

X% the it of slight for -- So a number thinking nonetheless, us have kind and within about year. will but for it for not within we year, -- will roughly year, a -- a think the impact the then about --

flow at the major flow COVID the most cash in year. then that players other more was all just in. space. the a shove you of like, The if been year-to-date. Towers I free Watson. and start guidance guys But target Willis cash is Okay of for had billion know of focus I $X can your your pulled one That obviously free

blocking guys it up? payables that the that Anything quarters? hit terms So have just specific conversion all obviously, tackling focused on and things of for of quarter drive ahead flow that and of kind in couple have time. conversion guys receivables past really you X has the to the Or in cash been you of free

Yes, the for by that our pointing out. colleagues. effort you Elyse, thank so It's really

have worked of terms this. hard Overall, we collective a leadership as group, on colleagues driving extremely this. focused and a team have as in Our on as --

that's So historically. on to as that the relationships we things it conversation something manage has face the continued you in we We've of happened focus appropriately. that cash how very with it been collect know, doing But the terms focused making been sure is and on a right clients, topic we of our pandemic. equally our have the right our

And pay -- as well as appropriately. so

our continue And on so And the third all that continued factored -- we'll -- deliver in move sit quarter, it's those to quarter. through we things we the forward and focus into proud it. as where to fourth we look we're

of the Peters James. comes question next from Raymond Greg line with Your

Brexit? anticipate an My And Can talk you context the about process? in do of disposals? update the Especially, first the and still U.K. on be question merger your the just would minimal you merger. of regulator role

Yes.

required can't So process comment proposed clearances of the any look, still our approvals we antitrust still global several of planning tell obtained to varies connection required filings I in Greg, jurisdictions. we the thanks we're specific There with for are have half question. specific that And first are on outstanding. And to the still antitrust are by transaction. all the in But in submit all XXXX. you, can filings jurisdiction. Unfortunately, or expecting

it. Got

other a it's press clear I looking of so it's your I are XX operating consolidated Page question, that's the And release. on income expenses at second that I the just think statement, and salary down of was revenue just operating The think it like last of tight above over reflection year. XX%. think it's line, then was XX.X% year, And benefits by which up, I control percentage inched I a but your T&E, the and this was the as -- struck

last the through on third salary the did and you quarter a and it So running is a as this than higher maybe why quarter revenue the walk of at can consolidated benefits segment level, basis third in year us year. maybe percentage

BDA brought our in board have in the numbers we've overall. for we looking at it. question. thank our we've our obviously in talent on so about of for bring overall segment, think incentive of had you terms particular compensation look -- And thinking each we we have you when basis that accrue in And S&B, that more of the Obviously, of that important in specifically, on growth a on terms business Sure. Greg, in businesses. talent particular, terms right about -- at the year-over-year is

So it we wouldn't that the and function that resort. associated of last drive we We decision not resort, of -- people, resources is it. just a a with impacting a is at our overall looked -- of people but was impact decision last

we've costs offset And colleagues organization talent line, the that with comparison out. we into that to prior benefits year. immediately so drive in have other bring that been a mind, heck off And a -- have to lot you're the just that. of cost that through terms continuing leadership what that a have of managing of together the to able our cut been team, like. And But we looks of the bonded my it's best really as in we, can. Yes, up to slightly, level

So...

maybe get think, to to that, just looking incentive And an I this last we've Greg, Yes. I'll add to were year. around -- year try compensation as we're the we that same for is

it but I Although year. to even pool. like mean And around ideally, that to had we'd We're we bonus looking be a accrue by the as accrue think than did little around get still quarter quarter to same better, slightly bit. get we're to we quarter last the this looking I sometimes have same pool bonus year. we last to the same the actual did way varies we more

headwinds some get have goes also stock We as we the charges price up. compensation for from stock as that

Got it.

give for I sit you're comment right quarter this update the the that you Can enrollment my to you threw Just business looks fourth period us you that an final grow around where and in in know TRANZACT year? a how in -- from annual now. on business

be to about too this to mean, it's say like fourth for the us early anything I going is what Well, year. quarter

we I overall, think beginning. too, calls, on the as think excited this that's very just business. prior I But we're really about said

we I Towers Watson. more about were when enthused, think we we're into acquire fold TRANZACT incredibly even And to and enthused were it able Willis today. business the

So it's we the with a the the organization. fit And feel perfect long-range pretty we of good prospects here. rest about think

question of the comes Marcon from Your Baird. next with Mark line

how different flow. Wondering, in of talk and just were of free the terms unfolded really, was BDA, can the giving seeing I'm just segments, quarter new development what on the see. the wondering Congrats not any business terms if fourth guidance in as That to cash us IRR quarter, for across but great that quarter HCB, would a you're you up a could impact actually bit may you CRB, being us end turn efforts? And because revenue. disposed? Max be that Matthiessen impacting then signed, beyond tell obviously you when little engagements between if they just lag also, are into that, and new potentially with what terms in of the there's And and fourth the

Yes.

new give comment just But thoughts go let the make let I'll So through at and the business. us me some X Mike about beginning.

that are how of not us. things just X extraordinarily impact to world, today's hard from an we're I any the in because know another. going last so we impact are As guidance to going quarter though, good year, to note, quarter was it's -- giving will things -- quarter for with today's XXXX to fourth --

had referenced But response through in I looking facing fourth Mike, to But year. to get to results want an the we're last we're still to about to earlier that try run question, had in we go as same as do a so you tough comparable And this? quarter.

happened. quarter And we're you not guidance, fourth the Not I just then giving the thanks. John, Mark, but -- mean, again, sense. under giving some hasn't Yes, --

our context in very Our with be and in pleased it, to HCB economic a its prepared performance retirement with marketplace, it's to of performing his referenced where John of as business very remarks, the difficult environment. terms in very continue serving we're business, pleased the we it

be Rewards going there. and Our that's -- business discretionary you Talent is spending out continue got to to

financial the look -- our to we having growth. where you And the about well so group on better quarter, and in had it H&B, how expected, performed overall. crisis, we Rewards than this that frankly, we has truth, previously been it's and it done tell business talked Talent when given back X%

believe continue H&B well. to to continue perform will We

and is -- cost And appropriately. very so business on its focused that managing

the a only think large that how reason TAS in why a of IRR year-over-year I doing. we that cost looks on focused where current look see the quarter. prior fourth adjust his other margins year-to-date the at we've transpired has I asked, that we any we properly. and when to management, good trajectory, some commented at that terms group will levels, again, its just don't overall And pleased and question a and growth standpoint, our it business. perform job team, we -- very anything its that overall. different business in it look remarks, see it a business, very at year. and And basis. We obviously, have we Max. market didn't But from sales, CRB, should year, team CRB the HCB from business. on growth prior terms done And on we it as Elyse that's sits -- comments, very we in managing year When margin revenue at costs with believe will as won't. And to don't about the CRB its at have leadership managing for impact what kind we divested On the similar we're when in project of had in is the group, that so they're our again, its The our one an continue And had of in John said a very basis, the we prepared look been

have -- -- in but we we will And We continue us. terms we'll -- its good very have It's a obviously out Max. quarter. time under its a it it's and divest to thrive great think the ownership that of structure, will business, a new think very been of good it's -- fourth so in business for to

to technology of very Our continues the business And that terms market-leading, others, the and marketplace our well. the talent When at that's their overall. tremendous to sales business, got if compare do in reinsurance in -- we at ICT business growth we is group, overall. basis, to at believe least on continue that They've comparable X%. some not to at improve

sporting we've events X%, as continued do rebounds these sporting in the business increased their very very, relates really wholesale was down overall, performance events, continued this business. of quarter events, kinds back with was business to direct market and and as the the We're services. happen particular, to expansion it link believe in in And investment seen investment said, a -- Our they've conditions. pleased what and that delegated and very our tough we wholesale canceled to I

we're So ability be their to deliver, is at enrollment that his see. I our we with to there, not go the Overall, management we're with giving pleased to the If comments projections open BDA. the will if historical here we -- in wait covered to that I'm all fourth and of given but John ability historical look very think you really going able any And pleased very period team their deliver. BDA in action business, obviously, quarter, time. earlier. to happen and

So terms to business team that they're with very, in we watch continue very doing. what pleased But of that.

color, a his Mark, and John comments bit to going as thinking possible try said manage we're as much But you effectively. give in earlier, little to those more cost So businesses. about as

colleagues for all spend well delivering management focused as where objective drive our very to in growth. it's on our revenue stakeholders. all that team We will And as appropriate are

quick add And what to Mike, things you there. maybe I two here would gave just to

others downturns I a well. in things, the or early go bulk some percentage emphasize just large feel but looking but business Rewards of to First give to compare all, extraordinarily it's in well just market I discretionary sum take down, and difficulty Talent at And of this could performed we compare it we business, we to Rewards XXXXs, and you in that what these lump our you is of And either this -- it, sort think activity. Talent they projects. has extraordinarily this, we it doing back has the the to have and is of like a are performed our think When a referenced I sense here. of the

X to with But pipeline pension initiatives going to So sponsors continuing in sort low these there. step from plans. expect status of interest we're their because rate healthy back funded a near are or of environment, a some this the reduced

On longer reduced cap BLS we're time to are funded for That reduced PBGC premium on be and increases other status. spending this doing other the going of jeez, project. because sponsors so to look say, status lender a the going at hand, actually ROI the the the

to healthy moment. So could know going which don't things really said, year. X we up those than we're as I predominant? last -- of at a but lower is pick to continue probably, nominally, still I We the mean But be XXXX. expect going into pipeline, that still

It I correct more Great. in of the And activity. sounded The make last heard going is, was quarter, stable. like then was went was a month-to-month was, interpretation? like, you sales deterioration that as to general just just terms got a the comments month sense it I through generally huge most there Is sure sound to everything doesn't probably, of Mike as correctly. through there

Yes.

correct. that's think I

revenue On taking basis? then And what's Matthiessen, an just a them just on annualized be out. in of Okay. quarterly going to impact terms Max the basis

have you don't you? Mike, that,

it Yes. Yes, just here, Mark. getting

that go you it Aon was challenge do just question, challenge any or you to then anticipated? is regulatory in there basically than with there's -- regards Greg's what And looking Sure. line? Or back previously to at you're while that, more less sense regulatory just to

any So surprise of say, think that nothing I regulators. would I big we've been done has with terms a the of in there's that what kind

why very together, be there some I restrictions. good what matters that be think why regulators doesn't when -- matter this we think. combination any ahead sense should should it there go put the made able were think. combination to is felt the we and without to we we What arguments But as what

we've so working been information. we've all the And been and with submitting them,

anything, kind on we're at of a working our been very I said, big and surprise as which to for been all. schedule. haven't -- And cooperatively, As we've us we any we stand, we're asked is

quarter. per in And million $XX Mark, back, about about think revenue Matthiessen roughly Max

line Our of next from with question the Truist? Hughes comes Mark

you're In volatility? about the with impact the How that? of opportunities, change making risks, losses, you growth terms of more your if what do it to more for do business you there's deal in think climate means efforts more that, and think

climate we've in we work the change I things. X the do say of there's the think has out would I a evolved that have we Well clients. lot capabilities work for doing of in been normally that

other change. things and So or on them impacted result insurance hurricanes we've management been things a working climate on against be risk with are having can that by like that

but Climate the severity we events the So is the to be of of climate them. of think are to going part impact Investment is impacting is market. It's for that doing, not working Coalition with positioned work provide business. run, extreme work though, really tail occurring. every it change some to going example, have In we're A capability, or around these uniquely our long important almost that long the we we're revenue-generating that contribution we're to lot that an that for the work, Resilient is of

XX-year risk to some on consulting we've about in resilience. We're And the investments. I other record, track model want helping clients in going loan be mentioned account actually investment our to and have this mitigation. we're We're their so investors financial into to had to plans in how pension with portfolio in be something climate a metrics build having is to to them helping take world the of Talent working going And our Rewards work of been plans. operations, have going going to be with to working be to on for largest of happy with that. into about business, to how and executive to compensation evaluate that. institution I we're as understanding help And kind exposure working to with these we're working in that -- said, climate. its working put We're their to

we So the range have. businesses whole broad as see this impacting we of

KBW. of And with question Sean final the your comes from line Reitenbach

the of to clients might growth really rethink little you stabilizes Is HCB, and as economic rewards about will such? flow Or we contribute question. projected thinking and starting XXXX that in having mentioned you're start and is that that This similar environment to But demand past to talent, already? project see a such. kind be to to

I think on why said, bulk are sum here's some increase activity, lump some I down this be went is closer to the and here somewhat. it might could I saying, tamped when why through it reasons reasons

it that we think I really it's with think lot we're seeing reasons yet. of why might some those not increase, T&R, a are like but

the such I Are thinking And Okay. about about then the renewals you know are them from a clients, what of with seen response rate industry preparing conversations and hasn't reinsurance CEO -- maybe in and mentioned, for high multiple increases? X significant reinsurers. insurance real environment? discussions environment like -- rate like the rate industry the still

duration that provide more could market? of longer of this So further momentum and kind hardening

the pricing Yes. I environment is look, think, -- to the the one I our we and clients out we mean environment and there. with of things do discuss what's

be do we'll them better think to than others. for like job a we course, to Of able

So a they probably less increase. rate a have of little bit

John And call Watson's Executive ahead. Haley, there no Willis over Chief now the go Please questions. like turn back Officer. would Towers to further to I Mr. are

very call, results. updating and much, look us day. for in we good this full joining everyone, to you on Thanks Have February, on forward the Okay. year's a

concludes conference participating. for this today's gentlemen, Ladies Thank call. and you

now disconnect. may You