Willis Towers Watson Public Limited (WTW) 28 Apr 222022 Q1 Earnings call transcript

Good morning. Welcome to the WTW First Quarter 2022 Earnings Conference Call. Please refer to 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 Litigation 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

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

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

For the Carl reconciliations I Chief Executive measures website. go section non-GAAP Hess, WTW’s materials as well ahead. the measures, Relations as regarding to company’s of the earnings would other other now please most and Investor Please the information refer Officer. release turn the to the in of over recent call

Good morning, earnings XXXX us everyone. joining for Thank first for quarter WTW’s you call.

is today me Financial Chief Joining Krasner, Andrew Officer. our

solid that improved with our of expense quarter to year, basis continued adjusted first start X% in and our results new momentum expectations marked our organic business. by by generation We business expanded with revenue The points, XXX margins generated discipline. and line growth a and in operating were driven reflect

deliver our capital year and completed remain also to on since our solid to the the strategy Day. goals a on start longer to focus financial XXXX We and billion Overall, and confident have Investor continue our now in XXXX allocation executing for $X.X our term. repurchases share we’ve both ability had in

chosen steadfast solution our their the to who in months. crisis our wish the We have share relocate. in been any operating support chose accommodation I’d who’ve support colleagues the to over Ukraine financial for heartbreak mind colleagues strategic in region for and our all has and well-being in wholeheartedly daily top and those affected. been WTW contact remain and our dismay who past Ukraine. provided to in progress and remain results, been safety and discussing a peaceful of have families the and with Before Their in like to

is to leader. contingency Our operation own risks guidance Ukraine special our and country providing assistance

also our our in donations who matching help I’m utilize showing disaster financial proud to colleagues you increase for colleagues how other. for support. each relief. come encouraging We’re gifts of up Thank our to program together for

In addition investment, areas crisis, political, is key including clients various related and across to our cyber. supporting and risk employees, WTW chain to this in such claims lines supporting as supply

to operate decided In talk from our minutes, business of As ownership independently to management who Russia. exit previously impact transfer the announced, withdraw will Russian in our financial about the WTW Andrew local Russia to market. more will and in decision few a

a updates our Day, last address to I’d and simplify do a together transform clients diverse key on as and the unveiled Now strategy, strive on Innovation the us. we One At enterprise the first we strategic needs, so during like for and continue to few provide we against bring unmet and our innovate the priorities behalf current priorities. each of And of Investor our first been capabilities in quarter. WTW, to to area company-wide executed we has always against our to these progress quarter. grow, of focus of our

Let few walk a me through you examples. just

analysis analytics diagnostics, performance. of and a Our a ESG which Risk launched provides firm’s segment Broking comprehensive and ESG multisource

of an help bespoke for from designed risk a clients to risk, which our recover clients. rapidly products our manage is solution reputational area We and crises. importance growing address ESG also Both introduced reputational understand,

on we Health, performance. We’ve that business continues topics to and, that commitment Risk I’m unveiled called be understand help our affect and Our to various and ongoing Engage insights client Career, Wealth to potential. and employee excited to employees’ had Broking. the continues & feedback product by new its to views their pleased Risk Analytics our within innovation on date a in platform clients recognized say about growth Engage fantastic industry. to In drive ultimately, business innovation are experience employee the

in and top actions team processes. innovative During our as reinforces you in of the quicker recognition, dedication the industry. the well, innovation spot structure insurance and about quarter, refocusing in WTW technology, best the across WTW WTW our delivering while into company to of to and Advisen’s advanced geographies operating enhance clients actionable streamlined which secured complex agility create of of Pacesetter We’ve team X proud segments products enabling more services recognition and annual engage XX and the as launched having I’m solutions topped At to in I and the them. front our with to today’s and index X and also Index our the make capital. work us business and common to Investor a for simplify platforms challenges bring our this the P&C leverage this to also the people, to capabilities risk for our product leadership XXXX. Day, new to spoke on it earning easier we

the and transformation quarter, estate realized align way we $XX as And WTW also and progress first we we’ve WTW transformation styles, to total our of $XX enhance our bringing the colleagues modernizes contributes our of be to not WTW variety $XX work and in program, program high-performing can successful working part working introduced inception. which a a program’s estate. for savings promote a culture styles on focus work of our savings. ways We million belief our confidence real environment our target to I’m initiatives. incremental program real million transforming since our hybrid a footprint shared speed XXXX. to the of result our talent, that million encouraged exceptional the this reflects that of by is work to We exceeds market during made on This to efficiency, and all annualized original the the

our hiring single a of in talent, hiring XX% quarter the reaching quarter since by quarter XXXX. to first in of fourth compared the volume rate Speaking our of XXXX, accelerated highest

new hires tripled last roles Our first year. to compared sales and quarter the client management in

We continue and more QX in a traction attrition see also XX% level efforts same departures. decline voluntary to with & from play out significant our seen Risk senior in Corporate segment. of Broking positive QX, dropping XXXX dynamics gain retention We’ve the in

enhance due share to the adjusted for earnings our Overall, on and in performance reflected operating to of was result million On $XXX last of points X%, revenue growth per me our XX.X% period aggressive basis commitment most and growth aligned prior a organic profitable quarter, profitability XXX our up or diluted minute reflecting quarter. financial million and highlights period. year, the our strategy. or share Adjusted of our the revenue $X.XX, the our up from XX.X% in expense to the to same was expectations across now for Let touch over discipline income some Net repurchase execution revenue an basis, as was growth $XXX part businesses. our year with growth representing take our of of combined the in the XX% was of program. in quarter our successful

a our executing my our over closing, us to I colleagues growth delivered for XXXX. We positioned and our are we live for values track $XX and incredible to plus progress to clients more believe we express have And environment. results. that, on my gratitude continue a driving well challenging In for by Andrew in every and team to our reach continue goals and who call transformation. detail I’ll to with With billion on our the momentum, day our want financial on to volatile sharpened XXXX turn has focus, to build company become of and our

Thanks, all of so Carl. for to early in Good morning, day. joining everyone. you us the Thanks

growth. navigate and first required saw will evolve will long economic and into are and values supply inflation, and growth. markets ultimately shifts changes geopolitical the uncertainty and throughout our into year. expect The in exposures, are a clients’ the it to are premium that strategies expected ways. last Ukraine in dramatic asset dampen insurance forces pricing affecting to policy inflationary how translate in landscape, factors tight likely our quarter short-term people translating we Monetary to significant moderation events High rapid labor continue with that of around variety remeasured impacting in macroeconomic to the Geopolitical and us

continue and businesses navigate this to dynamic to a of organic We growth. most start good revenue complex through backdrop with have the contributing to delivered and our year,

a segment businesses. our exit detailed me on to our from Before results, let moment to our take we touch Russian turn

Russia our XXXX X% segment. headwinds will Risk XXXX, decision comprised we reported, previously for operations The and primarily consolidated which we Russia, beyond. As company our made of to in in Broking exit modest create and approximately profits the WTW lost revenue from for our within margin the operations

to measures which action XXXX have taken and we However, and for our in financial confidence identify mitigation to longer-term near-term swift offsets, year goals. gives our deploy the guidance achieving reaching us cost

which growth individual by quarter. the Wealth, Health a X% Let’s generated an & our rewards growth in basis, strong segments a Work Career, constant periods, and increase revenue led growth Administration which timing as as Employee X% quarter, through turn prior for driven be revenue a which This the Advantage shift organic our growth HWC Wealth XXXX. and segment, prior year software. all revenue expect our quarter demand Medicare administration Health, first compared we businesses, all basis client of decline & segment, Outsourcing, lower commentary was direct-to-consumer revenue of strong plan of retention, in represents Investment In clients. revenue increasing and to Delivery currency clear Medicare results by broking on businesses, with the following on basis of to BXB and and the exchange of growth to of segment businesses, X% driven which will well Benefits regarding by our reflected benchmarking represents otherwise. and X% of benefit new business, normalize revenue project appointments Health, organic X% from in driven from Benefits Note our The which from stated XXXX, largely a detailed had was business. comparability consulting, the pay growth business, quarter, an consulting The increased course first and in and and that or declined the to the new for of year. over provide work. in by comprised our Career, growth marketplace results. our & X% the X% and unless on specifically Benefits of delivered our Experience Rewards QX is encompasses Delivery of combination for Retirement

in We XX.X% a see operating to HWC’s leverage primarily growth environment growth. industry-leading to that growth. operating HWC’s the outlook to margin quarter, business. should HWC’s the continuing. supports on tailwinds driven continue first drive expanded and core see strong historical our Both our remain margins continue organic this HWC We from macro positive. basis XXX solutions long-term in by its near-term for markets and opportunities points market-leading

Broking, was and at R&B. compared or to R&B’s prior basis and currency let’s Now Risk first revenue as an constant quarter. on organic year look flat the

to was was from Corporate X%. Excluding a increased prior book with increased gain advisory Risk solutions that Insurance Consulting ICT revenue for In demand or prior X%. Risk work. the quarter, & the technology recorded compared in X% first Broking, period, a comparable business or Technology, alongside headwind of business, revenue and revenue sales up Broking’s declined CRB, growth year organic was on and the sale

Excluding mentioned lines. with earlier M&A notable strength growth primarily I and of Russia-related regions, revenue, FINEX business in and, new from increased CRB our and sale all X% business book the across

of from where improvement. led sales, book significant prior senior continued growth, levels rates show business retention North headwinds colleague Excluding have year CRB’s to at America

and was and also compared in first margin CRB’s Russia for quarter first XX.X% the Risk our to Excluding the business, contributed quarter. year prior Europe to growth. XX.X% international operating Broking’s

primarily Broking’s factors Risk of and headwind when as business line period basis for to us. continued during departures hiring of a due that the sale has industry trailed the alongside quarter points and reduced growth the elevated top organic business averages, increased was Excluding pending, we book result colleague cost in combination now from first are believe the X margin growth XXX the the management. period, prior behind

longer revenue half term. have over the in of We of gap growth will pace enable the continue second over to to for actions impacts and our we that positive our narrow the actions as expect mid-single-digit with build expected the the the of year, accelerating Risk with course us growth headwinds Overall, and subside. remains XXXX Broking the outlook taken

turn XXX to from enterprise priorities a year, focus points QX, to growth let’s prior increasing XX.X% in management. of cost product Now our with the operating basis level generated we the XX.X% profitable adjusted strategic In results. and on margins

improvement year on margin expect to we as continue each margin XXXX We deliver work goals. to our

will mentioned, to Carl transformation that be expansion. margin our ongoing As a initiatives contributor key

Our and have million rate $XX successful, been for we have surpassed the early area savings our very efforts in this annualized year. goal already run

from million $XXX $XX million, of in primarily seeking actively nonrecurring settlement for offset paid you consist free made as businesses We items, flow which we’ll update cost flow. progress. the $XX opportunities, which of the payments are transaction had and -- and like million a first of We cash totaling inflows Reinsurance, million quarter such XXXX, $XXX to a cash increase prior prior other flow, flow divested further transformation negative million cash the current the core in cash driven of was year was from million remaining free by as transformation increase in year. payments $XXX of costs, legal items flow increased cash million $XX and net year, cash free free partially improvement by onetime cash related negative now free $XXX the The Approximately prior those items. while year onetime decreased

billion a and QX, We XXXX quarter $X million achieving dividends to end $X.XX million prioritize share under continue shareholders the $X.X of commitments. near-term repurchase approximately we shares for Investor the At and X.X target attractive, XXXX. repurchase to this expect of current in for we’re paid to highest repurchasing from repurchased remain returning first to remain free in in at can We and those the set billion capital aggressively highly committed billion, executed on the Day. $XX start Overall, to our flow We to cash excess deploying manner. into return continue believe we to opportunities free capital and and authorization. our flow continue cash deploy off return shares we achieve good remains

the will As we demand opportunities see we for think about clients. that year, macroeconomic challenges and our create of to services the help rest to continue

in and feel We positive made we this talent continue to last investments about the year. year

We our for are will it achieve Q&A. up confident the let’s and year. With growth support open will revenue targets we that, investments for those that

Jefferies. first Our from Instructions] [Operator question comes with Yaron Kinar

you that first my have the comp that benefit about is and basis evolving see hiring So XXX on and How was think it I now down ratio, question year-over-year. attrition do inflected? points

different line. FX. salaries of benefit is Part lot of components a the There’s it Yes. moving within and

take had businesses of the also of year, some that Miller, It who year’s were system. this group work last numbers We as as part that for the time such will were not to through in some well.

So as over historical normalized through. stuff more we and to ratios return time clears to that levels expect

for do any sales And year? book you see the Okay. of rest impact lingering from the

Yes.

year. quarter. the this So first had there obviously, were no the we sales book of headwind quarter last And from

about We we’ve the expect to talked return in as over to more time past. normalized levels

that that would couple relate transpired XXXX. over quarters, of in However, always there to possibility next have directly may there’s some, be the that the events

Evercore Motemaden question next with comes from ISI. Our David

question. a Just

spoken that have to more response and lot sales. ben time. previous comp returning a moving the and as ben business more about time? around in of a comp had been think here I’m different ratio just over normalized what Obviously, guess we And about over I wondering a should normalized define you ratio would things from You

Yes.

to FX. and at the was ratios is go and ben within M&A of stable that at historical some comp less ins our and look to way business some best less there the out think I backwards, more activity, look when

it. Got

below is I new look I good I’m some you maybe the completing you’re think schedule. share Okay. about have still ahead $X that wondering, left healthy, the a Understanding billion, repurchase leverage on you guess still about That’s maybe should helpful. talk could we your the how just cash about authorization, And level how target. guess authorization of see still to thinking existing one. the completed, but on and then was and of timing

that I authorization, to always the with Willis termination balance present free divestiture on capitalize that that we Re. pacing enough have headroom repurchase large flow balance amount to course, sure cash Yes. cash sort be we -- from terms right, share of mean of in sheet And we through themselves. able of the on the opportunities the of now And make of we’re the payment. may

expect So over in to continue the of our the is moderate own highest I pace year. rest would we return But believe opportunity that shares. investment our the to the

Greenspan from Elyse Our next Fargo. comes question Wells with

Can Where retention. on organic last that the give think what the And that’s quarter? question impact how we retention should case was kind just where XXXX? within quarter? of And client growth base client through us this My a first it about was going mid-single-digit the then sense retention guidance? in to was client you year how embedded organic of for

Yes.

forward a effects last retention. to needs expect we we clearly, successes been we’ve as to figures right? the the there, couple in clearly where of There But the So and is that workforce back second the don’t human retention that One disclose are clear with faced And show uncertainty, post year that is capital some organizational to of dissipated. headwinds it merger has a that factors we well. the reverse team uncertainty with be. our the which had up and to dissipated building the hiring within able fact And termination. path our have

story both business. of as new we’re we retention forward traction So tells of those, as, what of good think going happy that, be for that with and quite well pretty can a the course,

you right, that that can. Delivery did Benefits I disclose then Outsourcing was TRANZACT I’m And X% negative guys willing if organic. business, sure quarter. then this & not if you not provide the And see the I revenue noticed that Okay. to you’re

your business year? decline that that, would that within organic decline saw within And guidance? be embedded you assuming that also would mid-single-digit a TRANZACT. growth expectation is And I’m So this the

Elyse, it’s Yes. Andrew.

so and of I unpack all think I anything, of that. please me let if a that, couple miss to try there know. I’ll are pieces And

So few will with the business under segmentation. the for providing business, acquisition. figures provide on growth for detail of past the that give into the We’ll clarity years TRANZACT first new give continue growth that to the color the given to did that we first, our just aligned metrics are level but we different In the further be during way are running we’re the the segmentation. years, new

there some in headwinds fully that timing In We TRANZACT for terms business, to that those were growth full over for expect year. of occurred QX. the normalize

mentioned can previously TRANZACT to we really supports opportunities As some high run calls, on profitable continue environment continue We growth business see have that growth that business. strong growth. for the macro that a in expectations which and

question with Josh next of comes Bank Our America. from Shanker

One we through ‘XX, is? that terms can is items. book business couple we it of thinking ‘XX should quantify to expect XQ that? A -- in the about And drag, of continue XQ

Yes.

So of over drag the last $XX business quarter million. quarter book was the for about this

that’s that business. for particular headwind that created what’s So

As get with they discussions imagine, you episodic through. worked counterparties sometimes as a involve things lengthy bit are can these and

year expect a So from it’s But hard rest to year. do say like of to and said rest events timing up time of of throughout look for earlier, with over we the directly level related any pop as to anything certainty return what I the does this that to those normalized may XXXX. throughout the any the

side to our, in need guess, budget we on the I in do inorganic for loss anything numbers? Russian And revenue

it’s divested. No,

it organic numbers. come So out will in the

hires but you’ve basis. talking you talk net about last you versus we you whatnot. the of And we wondering was Can Is any I got to some terms how Can maybe about Okay. you’ve in then can’t, way have percentages, if and have headcount? in quarter, hires gross about don’t the can -- there one. talk grown one --

of Yes, departures but of net a the don’t we guess, positive. effect, and we’re to down, from least of Yes. place up being hiring I detail, give happy view, my which at be -- that therefore, has level being point in

give the count end you do And yet? quarter employee at

Annually.

Only annually.

Okay.

with question James. from comes next Our Greg Peters Raymond

mapped fiscal into results And year months view if guess to view I I’m out XXXX you would you you you versus for an us your could updated be just where about fiscal X mapped date to year the since what targets and we’re progress Carl, what So ‘XX. out on to investors you be. give want your how curious

we’re and happy we’re pretty where how Sure, both XXXX XXXX. Greg. with kind just of respect doing are Thanks. I we with mean in

happening We’re in of I in The and making And at opportunities little capital above said talked leading progress, to begin and to we think and see see bit stabilize would, transformation right, aspect did generate a we’re to we for we’re for about good results in of plans us growth. the retention workforce, human take. we has to that, continuing we the to XXXX right, kind we would do. what are of or hires XXXX the that’s with And resumption XXXX, steps there, again, signs the of growth respect the there. And what starting and to that terms it we’re been progress the took our and said efforts. we

I And think tone general think what said done we’re hopefully, and agree. is, I happy, do. we’ve you we we pretty would my So

achievable. revenue line anymore, away a that this, targets, number take be not you’d It might bottom firm of is be holding would especially the looks right? falling still you from a you to that little think bit on off, the assessment like with us they’re on -- but that your that like it’s are So Russia layup a the

good We Russia, right. didn’t plans right, That’s We’re and when things happen, our so things, good one very... not that making knew Russia. knew right? things No about know we about would but

time hires and you, a cost, and -- the but -- between heard prior -- actually new this -- there’s there’s and in produce at to of question just they and isn’t I the actually guess you’ve come it’s a they’re revenue. then the questions, second some this had, the I lag it onboard news you there’s them,

how revenue. And sit you results, assume progress, I we versus working your But point to versus a understand the works if sense. the revenue, wonderful within and trying inflection margin that’s the see we’re of company, this that all new there’s makes about is outside the that because the I cadence forward-facing so on with talk that sales. hire guess increased cost the limited big of how of trying as watching cost upfront And to chunk assumptions

a and I’ll couple as So of points, then talk well. let Andrew

not First get of mean, way, people a pretty all, businesses will lot the to client I right? roles that the between us and and in those relationships today as There’s to of demand such management of people So course, training going And it, WTW come marketplace as existing to work Work for for that as some And time have do demand delay with well. they’ll instance, with be bringing the in payroll, on is quick. we the services. what’s that is sales in our revenue, put we all so for, soon onboarding them & Rewards business on right? can us

long So time the it’s way a this. of not a natural sort nothing is of for doing

‘XX disposal investment we need levers got Yes. year but we for that, The thing add, throughout improvement of be our other And linear, that I period. targets, over be out various right, we’ve that accounted make margin would do won’t our at throughout expect present period sure journey. happens. to it that And we every to set course, pace when of the is that hires to the make

comes Our from Baird. Mark with Marcon next question

you least that talked growth mid-single-digit Wondering -- at To revenue in stresses. in energy we what with through for if hires revenue newer what conceiving is are terms up modify talk target. about organic be of are you should & kind intending your as the add within and Corporate because Risk pursued how And dynamics of occurring Europe hikes expectations the a the going more the you concerns you to within for extent were perspective now economy a what do extent taking could rate terms of from that cyclicality that to regards about to end think we were that just while of Broking? to can back-end loaded year there our

and Andrew, talk the part it about It’s the first to I environment. to why hand Yes. macro I’ll Carl then don’t of take that, over

talked depends of So continue going We half of The it’s on for in some to with terms we I that hiring expect organic accelerate narrow exactly the the into the of pace did peers. of throughout this we’ve line think pacing year second that our how year. that gap accounted to and sort our expectations line rest of XXXX. revenue growth, online. with in of during pacing the as of the of of And our about Carl the business, of about the growth organic plan comes sort commentary quickly in the

and their quite can much moderating go as rein just their up the how clients. the to I retain differentiated be to for an rates And Clients the, we in what deliver with sharply, rate for pace think we where And risk respect approach way thus, even business. matter good they no mean, our say, may increases, environment exposures. tend risk. dynamics, And of rate, our spending a and more work tailored to through when management risk they’re

that I markets. the issues. advice necessarily great to and the of sorts turbulent good grapple or only typically And seeing times solutions and recessionary decreased to during or in And opportunities today, with potential rates they intensifies out dynamic doesn’t -- provide our we’re risk spending revenue decreased as translate need think clients As these to management moderate, with solutions numerous into that for for the advice respect I’d recessionary us. environment, point

resilient strategy and So But we continue are impact pretty financial the potential monitor necessary. in where ones adapt they’re as to general, these economic outcomes cycles. these our of our business, industries to

you with what then enrollment that you to BDA back be And regards of certain by the for prior with to of the just in what your would elaborate growth and terms period? business, regards headwinds getting meant the timing new And answers business trigger can that? Great. within just to that to in

Yes.

growth meaningful on business that You basis, at that from right? basis, an annual annual on And look expect need absolutely an to business. we

results show So the the don’t one continue right? basis It course a will year-over-year year, of much over to too quarter the of on momentum. focus on positive

sales big smaller cycle, QX mean, independent. right? X and and I QX really TRANZACT Yes. a cycle There’s has cycles, the really they’re pretty

Got strong transformation to start. it. And lastly, is off program the then a

over in restructured about of think quarter. You’ve How course $XX million this the should that we year? about the

Yes.

the incremental So meaningful with entered savings, savings a achieved rate run first the rate year have in quarter. we run

add you this so and math of will throughout is of there the some course we’re The announced much discussed that to probably expectation of continue that try possible. year. new far to how the as year evaluating develops. and an could much to that we’ll prepared out opportunities, think during back capture we’ve I for do on look will remarks, as with that being as as what to come we captured and up opportunities, And simple the update figure that we end constantly

next comes Paul (sic) Our from question Sandler. Newsome] [Paul with Piper Wilson

us Newsome. modeling thoughts on a given it’s normal I U.S. of that? kind you wouldn’t tax think tax a The of tax questions. to I misname new is Paul That’s just a One Usually, It’s Any from want -- you. great. that on folks, rate. have ask the like Newman. thoughts be maybe help you model a rate, would -- but rate to be just the any XX%, for would couple

guidance providing we’re not tax Yes, for XXXX.

projected been for where on we tax based the However, based swings don’t foresee historically. current environment, rate in XXXX, large any on it’s our

into effect positive tax on have take which our any doesn’t a legislation, course, account future negative rate. or Of it could

be than before look back maybe But kind quarter, this place sort look of if this we a [actually]. would that quarter to better of

Yes.

look will expectations. the pretty you of our on X I a basis it indication an over think last years, good you if give annual

great. of the the of just as we thoughts couple And some restructuring, reconcile and should the That’s and charges more of the Any net we adjusted? pace on then modeling. a the of some expect restructuring between that try difference prospectively

Yes.

We we of $XXX Day. of pace haven’t exact Investor spend mentioned disclosed during million, the which the the

the would and front-end X to back-end the would would of be You course from opposite of of what which a which over, first more over loaded you lot the loaded sort expect period. might years, be X-year that of be expect savings, the accelerate the say,

net. and model but And how bit savings I’m then well, for should piece about coming about we through that’s been little we finally, us a I box the level guess, wrong. think relative trying segment I of black a How It’s a cost similar, Willis. what’s always to going to And that? -- that of with think assume maybe as should happen unallocated

Yes. little bit? Can question a on elaborate you just there the

we’ve a segment And possibly about good potentially expenses size part pretty there’s and much through a cuts about of that been think was come just the talking corporate, that’s level? of number. should changing Well, if the under wondering right, that we how I time? Historically, that expense level over

areas Yes. they No, I and you’re think associated the are distributed with. those will costs, the asking to that back be about

Our next question with comes from Shlomo Rosenbaum Stifel.

I experience hiring to kind are quarter, of And sequential with a the about that all attrition us some and where for see showing a had what don’t you question of can of just situation headcount and talk where much. but you’ve the hiring longer-term improvement, on dealing attrition. the the we context quarter if quick numbers kind I is move Again, normally to about Willis Watson, on wondering first a -- Towers around give relative historical definitely a fourth the just basis. levels you was are if just the you’d that people historical could with are situation levels had in

Yes.

mean, had our the we’ve quarter I quarter So hiring since was the first in of any highest XXXX. first quarter

measure. it’s, any think, mean, I I So strong by quite

normal getting rolling we the out XX-month distorted to attrition, of see at very coming yes, look and get There back if of by you things levels. attrition, COVID. terms a like effect COVID of right, In this then things --

of to For are If immediately as we examine, right? quarter to there’s tough got, so course, numbers pay look have little said, of read. short-term And timing like monthly attrition, we termination rates a things at the sort those lumpiness some figures a of that and So numbers. lot after we to fourth those our [quality] right? in you incentives, we’ve versus instance, there’s

this are organizations, the what in it, historically with levels way much However, we’ve line easiest seen normalizing that we to to see for right, is precombination. more put the

different? line normalization? of you the right are if modestly significantly with just So sight pre-COVID now you to you good Or times, go to different are

it on look at -- Again, there’s If we’re what at pretty it if it a be magnifies basis, is because taking visibility something the hard XX-month might and annualizing COVID we a on you of differences. monthly look right, periods. little in number here a basis, factoring sort small

I we’re and numbers want retention. to with don’t attraction So overgeneralize on here, we’re the but the pretty seeing happy

UBS. question next with Our from Brian comes Meredith

questions Two here.

what XXXX? so we XXXX, one quarter one for -- organic headwind from actual simple is in of what here. benefit sales is the was at the first XQ Andrew, know quick we the book as second a XXXX look hopefully, just the First,

For QX of XXXX?

Yes, exactly. Yes, exactly.

we the be For will of what XQ sales be? benefit in what the book the understand of -- was will kind so XQ impact or can of headwind XXXX, kind of

it if think me my about I memory million, serves X-X. was correctly, $XX

the helpful. a to stuff I or, I’m impact when the going then call there that do going the think number sure of of question, I’m what quarter? couple curious, That’s the revenue And you if Great. of that fourth what growth, was next back during decided merger quarter will having merger left quarters? on. the million. think do this it, some on second because [contrary], leave And and here just on, think were that’s be curious, the just was during your drag organic $XX so the in clients merger I’m you of regulatory

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magnet definitely for looking year we’re happy dissipating We And back versus my due goes over year, at as to clients and new Brian. And is The comments about So a earlier being of and the so prior other vibrant second is instead that. right? of right? see to clients is that comparables, people, something not numbers. RFPs] part up, the balance as of about a and signing the sort well strong that [indiscernible] one. if of very WTW Again, the out effect, away [X

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Yaron question Kinar have a we And Jefferies. from with

TRANZACT. quick Just one on follow-up

I since at does goodwill looking peers’ that into acquisition, charge? publicly point a seen traded valuations impairment quite So factor the At a the we’ve what potential bit. think compressed

Yes.

you Thank Andrew. for question. the it’s So

some We a continue got believe traded that to different I demonstrated and, of the have we’ve than peers. business stand-alone think, publicly very

around different with relationships got have and processes the We’ve generation lead We carriers. different verification.

impacted So believe while the we do take we a companies. look dynamics we’re at course, that, by those same as completely don’t of

I’m to remarks. questions back I’d any closing like showing queue. the turn call management no to in other for the

morning. everyone thank we us joining this for So

the said, engagement to XXXX progress respect the our to be morning. happy about with we Thanks have WTW made, As forward that look as we’ve both we’re XXXX best and great be. can very much, goals. we with further you We and to we forward a take

Thank you conference today’s concludes This participating. call. for

now disconnect. may You