Willis Towers Watson Public Limited (WTW) 28 Jul 222022 Q2 Earnings call transcript

Good morning, and welcome to WTW Second 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 cause you forward-looking statements within the meaning of the Private Securities Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties. materially obligation discussed unless to law. differ company and required may no undertakes update results from today those the by Actual these statements

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

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

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

joining Thank us WTW everyone. call. second earnings morning, you quarter for XXXX Good for

to Chief as Joining Officer. start that expected me to per built Financial off delivered $X.XX adjusted initiatives. share organic diluted X% In make earnings and continue the had year. Krasner, is solid results Andrew our quarter WTW revenue strategic growth on as our of today the progress of we We generated our second we

continued basis headwinds investments. new leverage and discipline generation drove margin business XX Our operating from program points transformation operating expense adjusted growth of from despite our

in in $X.X the in of grow, our also and to against investments our year, year. quarter, confidence we annualized pleased our ramping to We and the we've seen in our the in the of accelerate cumulative the second total million we're note This our end continued line run results transform productivity. savings second talent medium-term Overall, I'm first our deliver in million particularly to our simply million inception incremental half original comes of top more to target. already of million $XX as longer our $XX bringing XXXX. against program's by strategy than initiatives. the ongoing and half pulling will from as the XXXX million. our the million to execution we're target Through goals identified $XX double during benefit confident talent XXXX execute share capital that against from our in benefits Accordingly, that rebuilding allocation in repurchases previously the for $XX and pleased progress is increase We bringing the well from performance term. with ability on quarter, of repurchases $XXX simplify to transformation transformation this continued not raising included important second XXXX our and forward billion. expect quarter $XXX strategy financial total and with completed share meaningfully since realized over to remain guidance It's our $XX to savings the both rate for cumulative our second our million savings

both and as Our continuous we of us new focus opportunities helped progress which improvement accelerate could sources value. identify areas, well incremental on in has as

generate to one on and the the excess new bringing initiatives grow cost we the clients our annual we existing $XXX of As a bear by quarter, end capabilities in progress In both for made solutions. program million result, second now full also to expect through of our of the savings XXXX. WTW

is with of CRB market average in lines Our strategic gaining & the growth Corporate exceeding focus on business scaling Broking by in the these lines traction and XX%. Risk our global

wins It's we're markets further analytics in early a seven-figure and outreach world reporting our to and product in US ESG on April, this part the new multiple climate has a We risk maintained in already markets solving needs client RIMS simplifying the program launched believe XXXX. scale under results also solutions as analytics generating our tools analytics around steady focusing launches, high-growth of ESG for Conference. clients banner. data, such we high-need two building In quantified ESG and solution and climate pace potential markets We and risk. suite our pilot world-class by of been and the management climate has of at

announced one software and software asset our and managers longtime of this in climate Following, introduced climate with further our the year of Earlier for our we asset value partners, enhancing at transition climate transition the development of climate of we accreditation the data and risk framework index owners. technical our capabilities. and pathways month, launch transition of this stocks analytics XXXX, acquisition our

us Our are investments manage leader organizations climate and helping area in in risk. global positioning this to a be transition

innovation are priority products to everyday growth and nimbly new other supporting changes. as is respond important, our to our approach environmental also legislative we While

by As everyday label, in happening this suggested the there's lots area.

introduced existing idea. So their an response care quickly and clients you share I'll one give just supports our obligations transparency as clients. is No that solution cost-effective a add-on US in easily we bundles, an In to communication developed and to Surprises Act, meeting to compliance the health sold

the management our of first initiatives, the quarter has compared quarter in hires and beyond. revenue foundation pace matched strong XXXX second focus in Lastly, of for roles our second the growth intense a to strategic client growth The and our together second quarter last doubled and the new built with talent that of year. hiring sales on half onboarding in

been that long-term as mature attrition to deliver performance reasonable expect trends. WTW. we to them also operate in aligned initiatives of efforts, as financial macro improve we and significant creating a shareholder returns. and voluntary agile this our leaner, more at way with the these we've see will quarter, levels sum, changing they We the confident continued at innovative work more I'm benefit In with hard retention

want is of Andrew hand to and well in I moment resilience to to WTW believe our Before I potential weather talk face and macroeconomic take business both recession. discuss it a including dynamic economic the challenging financial positioned inflation conditions. We to of over results, our about the to uncertainty,

is services. about businesses base We nondiscretionary recurring, estimate that our revenue of is portfolio solutions relatively often of noncyclical. upon built XX% Our and

solutions variety and value a geographies and tend economic industries and importance our In clients environments. of increase addition, span in complex to our

these our some companies economic For is in business downturns sensitive industries. than other reasons, less to

and As still X%, company's growth the do from economically an they to would segment, you'd our posted we organic performance to nature, exposure profitable in with do the declined discretionary said, example, quarter where exposure in Wealth but by successful our if have GDP of that reflected results recession predecessor expect XXXX, of of relatively impact low. the to and That in work growth sensitive grow we X%. XXXX we some business, X%. revenue to downturn, looked Overall, economic our primarily in by our continue our lines we execution Health, organic be and when in is Similarly, aligned X% of see that commitment US you the and at revenues XXXX, the Career strategy. was expectations our

momentum with driving our in to results. are the and growth on our And call day values on We delivered that, focus, continue In my focused goals. positioned to sharpened and to and our I'll clients With a transformation. build for challenging long-term we closing, live express and colleagues incredible want on every our have turn more to over for gratitude continue who our our Andrew I delivering volatile executing on team environment. my detail remain of to well

everyone. Thanks, you all Carl. us of Good morning today. Thanks joining to for

equities on Before volatile concerns rate signaling conditions. results, believe is in to interest turning about expand to With take future navigate profits. and market exceptionally clearly me minute the economic a and WTW's spiking the our let to second Carl's ability we the near-term of quarter, economy about comments corporate difficult the

continued during mentioned, and revenues. Carl economic to grow downturns, As the thrive previous WTW

the cost costs, on to demonstrated post-pandemic travel, remain as maintain expansion our resilient near-term We allowed long-term earnings remains our structure, repeatedly in outlook and inflationary its financial during business costs Despite has challenging normalizing labor of variable and exercising we discipline have pressure on economic unchanged. margin which such steadfast also power times. the and

results. to Turning our financial

of across up X%, revenue expectations. of operating reflecting XX growth basis $XXX basis, businesses. second our aligned up The XX.X% discipline combined an the organic On as was of enhance from The income our representing $X.XX, of growth to quarter our net growth expense per prior XX.X% profitability. year period or X% revenue with quarter, was last most million for and the result was or points the our over was in million $XXX year. same share adjusted revenue Adjusted diluted earnings

Benefits growth comparability on includes on Wealth an the growth departures segment commentary clear is of to to of and Health, detailed to generated compared in business and organic broking comprised second delivered segments of consulting will The occurred both recorded a segment Health gain basis periods, all results of otherwise. our Career that stated book constant of be basis, organic regarding and prior senior This X%. that results. in year. staff with related currency provide business with an unless revenue Note turn specifically settlements and connection prior the XXXX. Health, HWC which quarter of X% Let's our to or our the

project we've retirement a and the appointments by bolstered Excluding of new had year that business decrease further which driven our was quarter to by and performance the our book of a client in headwind investment the business primarily were as was from decline work. due discussed growth gain, organic previously. X%, of Health's Wealth, fees for revenue quarter. primarily The prior outsized Investments in consists X% businesses recorded

Solutions Benefits, In and & Outsourcing, Technology revenue individual products Advantage encompasses and improvement new Administrative to businesses, which businesses the reflected and revenue Delivery growth the during our business. the was and year, contributed driven market for Work in also client acquisition and client prior half growth in see the for client increase quarter. demand Administration across in data of second The work, strong growth driven legislative the & from by was work advisory and in Employee appointments driven which Rewards increased and strong grew to response by software year our largely change. in marketplace significant Benefits, specialist X% licenses. quarter. growth new the client includes market demand with X% This and expect businesses segment, revenue revenue Career, for our direct-to-consumer the base. existing largely our wealth Medicare second increasing We Experience & by the Outsourcing also to Delivery volatility

to for this was see We the prior quarter period. that XX.X% supports operating HWC's environment to this in a compared continue XXXX. opportunities business growth in margin XX.X% macro

currency business performance XX program. points, by from savings foreign expanded driven of of transformation one-time strong our in-year impact book margin the fees and fees, Excluding operating leverage the basis from and gains and

HWC in continue the ongoing businesses and outlook solutions its near-term for drivers to positive,. Our long-term to growth. remain drive demand organic market-leading core we expect and as its

X% up and X% compared basis was an to revenue Looking as at second Broking, Risk prior on constant organic currency and the on year a basis quarter.

second CRB's Technology specialty International and teams Natural Book a Broking driven expansion headwind to X%, the second solutions improved Corporate, the investment and clients settlement continued by These has their book increased mid-single-digit welcomed X%. base, Aerospace, and business, globe and and to the & of leaders higher XX.X% colleague throughout half and we us revenue Resources in revenue meet the Europe by margin business both X%. up prior settlement operating business FINEX, by North year senior will key Insurance, Natural revenue Facultative. in such actions R&B's second accelerate quarter, prior rebuild in rates talent. new from the or our CRB's of and organic will Seeing Aerospace, the business We compared activity CRB work improvements. to stemmed pipeline our and of activities and which FINEX expertise that geographies. departures of work. new increased In year Excluding driven of deliver in QX, the lines. was Resources Natural from modest for and conviction done across significant steady hires organic the increased was our Risk specialty lines year, affect revenue-producing in longer-term business. business rate. levels from primarily our in to these at enable that all In have to occurred will industry sales retention, growth compared advisory driven did quarter, decline Growth The R&B retention across improvements XX.X% and declined our insights in was margin all year-over-year nominally R&B's by have client as came client our revenue new service results the for growth meaningfully strengthened those quarter. notable organic but driven Construction technology across in regions, show demand our talent growth Construction, strong senior for growth, this significantly Consulting client growth XXXX, strength from regions from business to believe, not colleague America goal prior year. led yield generated M&A, growth with new The second in lines. the Resources

growth, than let's results. XX to level period. offset margins and turn during in profitable we talent year, XX.X% operating generated with to our points Now in increasing the basis increased investments initiatives transformation In enterprise our XX.X%, operating QX reflecting improved primarily which more leverage adjusted the prior from the

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

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

and centralization been area By collaboration have real through far and very this million estate efforts, accelerating annualized portfolio drive services workforce surpassed $XX to savings the opportunities shared in run-rate goal efforts optimization, year. for early Our our we successful. incremental identifying have

As raised our near- a and long-term result, both targets. we

with currency through headwind dollar euro. Foreign year, against due to the $X.XX of EPS a the first of the on the strength U.S. adjusted the largely half of

flow guidance the cash due Assuming of range $X.XX. first today's from deal rates the to earnings $X.XX flow year. the additional from updated $X.XX business the million the Willis for fee a remainder tax the Re currency of foreign range headwind related the last now approximately of the decrease million $X.XX primarily in prior absence was $XX of adjusted of for and to from to an We months as termination decrease our a generation cash This Willis year, divested expected resulting to million free our from on received cash generated well XXXX, free year. as $XXX of continue Re both sale payments $XXX we've to six share, per of

We shareholders returning executed prioritize continue to to capital aggressively on and this commitment.

we and and million that June. May of the Of XXXX, paid $XX $XXX dividends shares During million was million in million. $XXX during million quarter second for repurchased X.X $XXX completed

We repurchase authorization billion remains. $X.X which also billion billion raised our of approximately to $X.X by $X

deploying still be can our highly and believe expect Accordingly, flow we from we to continue highest committed repurchasing the the subject as would. the with off in a market continue to cash return shares to deploy capital free excess into manner, in business we're free good ramping attractive. conditions. achieve we it We to flow to that start cash remains this to XXXX opportunities Overall, and expected performance return of

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

the up investments feel drive investments about confident achieve made growth and With position have operational open it we are we revenue forecast us expansion let's and and continue We margin to talent, goals. in transformation the have XXXX those and for will positive for year innovation our Q&A. organic that, to

James. Peters Thank [Operator question Our Raymond comes you. Gregory from Instructions] first with

open. is line Your

everyone. morning, Good

focus to like is slide in I'd the what on, targets X. guess, I So the revenue

a billion headwinds. And fiscal XXXX. results reiterated revenue of lot there's, a target year I achieving in think you've of $XX the

got potential objectives. You've the couple economies. dispose of against you would years pathway, organic your accelerate suggest growth had to that's to to just gone the curious weakening and that ForEx about next some the get and Russian And of has revenue total I'm [ph], operations it

think you you can sense that give how can $XX of some So you to billion target? us get

to you. Greg and Sure, morning good

of predict we we to cycles, right, and think originally occur. in exactly looking know don't try which and three terms they're when they going when years can in lot of Investor over So, can economic back three a occur, we and but set years happen I Day were at we targets those some

tailwinds. resilient a a to not a too into variety X-year a that a variety that tried against quarter-to-quarter try happen we of Recession of can back headwinds reasonably got we chart think period. economic might into the reasonably of is that thought over do even businesses we path growth turn So, portfolio that was occur to And turn of all against conditions of think can about because what and occur. excited economic these might resilient get FX over out. things FX lot we we will And can conditions. we've

So, of across performed and confidence. variety has us so pretty on pretty right? premiums got thus higher can will good healthcare businesses prices and instance fact forth, business that where drive turn -- commissions. so for inflation drive a a drive diversified of places, we've portfolio and which higher well, cycle the asset got the I a of inflation will price we've historically and the healthcare insurance up So, that gives

were Now because an happen period did that the we place. but that's to to not like for three-year would we a things say, world Russia allow over that predicting is uncertain Greg, there happen simply

many it's It's hiring hard employees my of hiring. going that and on made for organization let's around broker the us see the give the announcement follow-up kind just broker kind on? on. brought details think going being to guess new on you're of thousands on. gauge workforce to an some -- to in that really thousands or because And I the it's tens Okay. progress of hires detail a context the of against of terms outside touch of or of headlines. sense areas question this so an us Can that hard of get people what's you granular some I percentage We the additional of just you on focus what's

So additional helpful. detail there will be

Sure Greg.

our that activity been was was highest quarter first matched the turn in which since our mentioned during we second as of quarter the So, it's XXXX. hiring

that other gauge side industry our progress to are very we the benchmarks on use rates, Our attrition there. with consistent

voluntary exceeded So, terminations. hiring has

sales continues office management strongly very client we making jobs increase. think good We progress. the and on and headcount focus we're to front and Our

And revenue We're where has physicians the that, On represent we're broking some our side, to we for the in played we overall grow and on think the win continue overtime. joining reason positive. we've of the looking press and And for into global you're rest of make to attracted do proposition the we're very continuing we our net accelerated We that. confidence right? that to as we specialize, think trade than that the employer strategy, we outlook the said have sort out of -- reasons we faster the bring that lines for improving follow business attractive year. our people yes think and in people right people one that's our we see a hire will but to of revenue sense we that's are people the

Got it.

Okay. are Well, two my those questions. Thanks.

Thanks Greg.

from with Sandler. question next Newsome Piper Our comes Paul

is line Your open.

some Good morning. little us like gains some was necessarily at of a about unusual book least bit impact not respectively? margins. give the the and that impact maybe Could It level recurring more quarter detail be of have you would of gains that looks a something these had of on in the book there margin

Happy Yes. that Andrew. Paul answer it's to one.

for points at of points basis level, Broking there you an you margin same And we of have performance expansion headwind. sale. during underlying on right headwind various the been HWC prepared a the the sale you basis, on which without have within fees margin, remarks, basis would without Risk if exclude with been the expanded The and on HWC. the enterprise of the XX enterprise, the the would about impact segments margin the or As XX would think and have that gain will. if and as impact the presented gain mentioned the

actually made thinking second past. Thank you sensitivity comments question economic I the the from My the you. was Great. or in about

of both think or company. I referred they predecessor Willis in think of to I companies? because kind you thinking that's separate Were Towers combined, XXXX XXXX, were or you the

up steps during separate in I You're further and And right, were absolutely build to terms in performed both were resiliency we've then. right. our citing We businesses the since we how should period. we taken add, of that

insurance more at make more contracts of are talking And you look capital that that towards human consulting the of business that technology if things, in our mix we're we to sensitive rates we which had that instance, or multiyear growth deliberate technology thought side means economic businesses, took sustainability between our the step that's less consulting volatility. far either a to was and sure to over the technology shifted and business very time. For the

on our deliberate part. very So,

I’ll question. some ask other Fantastic. let to folks

help appreciate So, the always. as

That is all, Paul.

Thank you.

next comes question Fargo. with Greenspan Wells from Our Elyse

Your line is open.

just half is Hi. Thanks. for outlook Good growth. revenue morning. of the My on first question the second

So, remarks, half. talent you that the you in back from in benefit mentioned meaningfully accelerate your the to expect prepared

full additional the back you revenue half give second much a you book of us within And of can of the in mid-single-digits, year? you're expecting hires are So the also, your half then new how expecting sense from guidance year? of this gains in any year the

Sure. Elyse, start Andrew. with I'll concept it's Yes. hiring growth. translating the of Hi into

pace the at hiring onboarding talent, the that been been a have but quarters. always have We experience several activity the it's case we and by of hiring revenue fast a lot lags

with we in quarter, quarters XXXX half all segment. the with As expectations the those our gradual Broking some What expect and the then and last of gap build in the consistent to of be a first remains & narrowing the trends first positive we industry. benefits reflect with the Corporate accelerating said saw second second half to we Risk

to We in second expecting are half. line the meaningfully that top and accelerate seeing benefit

we Looking into and question? beyond as second Elyse, XXXX. continue the that, hires a larger we're the will making that move I'm even should you -- And contribution now expect contribution to your make sorry,

full any I quarter? year organic, you the book was additional or the expecting gains just when guidance, you we what just second curious, saw say are in mid-single-digit does

of expect time. to to them this through return first normalized we've events half of as seen that the remainder to XXXX year. do this to over level throughout We year some still expect see the a relate We

the to into you as known, we to that that. -- treat performance our changes And we in right? try expectations things, rather in We're knowns, give book just trying trying fees surprises those the comment, than in right, to or give later So it's that we're sort a factor As you our we're... and general right? of gains outlook whether on period

when say, said X% you from that like then, the greater. I when think or set ever defined have mid-single-digit baseline or you what using? some that. mid-single-digit Okay. X%, you that And percentage know as organic, peers you I you had guys see Do don't guys are X%

Yes, yes.

You're in correct range terms about Elyse. we of the it, how in think

Okay. Thanks.

you. Thank

Thank you.

next Our question with from Motemaden David ISI. Evercore comes

line Your is open.

morning. growth Hi. where Thanks. to a I'm it hiring, point wondering R&B? we're seeing yet accelerated follow the up year-over-year wanted if headcount at particularly specifically, little bit just are on looking on in Good headcount and basis. has year-over-year I basis, we in it a sounds quarter-over-quarter a like that's producer we're on on at roles just a grown basis, a

about that. quite success doing rebuilding deal a We yes. That's office of and and good sure -- deliberately we targeted, big making with a year that's in that correct. just our exactly very Yes ago, beginning focused on front

our to So and we're head growth. the the continue with made people bring to the year-over-year right to count answer happy are very your But question, David, for is, increasing yes. direct on accelerate our progress to we've in look to continuing

the to million -- about footprint coming of increase schedule optimization now what million doing, real $XXX that real I are that cost helpful. incremental you the remind just It I how That's how that from over $XXX And see some estate just of then, and estate to of you plan much million sounds optimization? much the could cost imply does guess, on guys of ahead you target the cut? the your are plus, good it's target. of you upside saves, is like is real coming estate Thanks. saves, me And wanted to Great. from $XXX guys

our got buckets So program. to we've respect can journey do technology standardize organization we the we're got got we across at and real got with taking. to three technology and we've measures identified footprint operational the as Investor estate, We've efficiency presentation, what and accelerate transformation Day there. cloud our the our that to We've major

just As of we improved we outlook, look potential toward real see not all in our estate. these,

real But cylinders, You're just and from was isolation. all element the our expeditiously. improved move estate correct could for program of not we that outlook for the is the have on real first estate million over acted those $XXX program program the in we

$XXX coming And from just I estate that. optimization. million was was for million real real your of of embedded from -- of cut total the sort up plan follow to $XXX how it. Got Any footprint real million estate remember, just on that's that much it in outlook? you to had there $XXX Is sense estate

Yes.

there to your I there. some reference out -- a the put based what probably the figure think, million, of $XXX is we representations ballpark on graphical

is the is, it reduction past, with remains of get to of We As of our that we reconfiguring And in the discussed right, foster interactions client that think of won't a but it workspace about Carl footprint. in into our footprint, colleagues. portfolio as that specifics terms the meaningful estate our what percentage has our sort after real in significant. quite collaborations fact is and

new the which our toward one conversions the here to of We're Yes. from office, early today people. It's looking toward the a meet we've made actually -- footprint. place great call David taking is Philadelphia actually

Great. Thank you.

Our with next question comes Goldman Cox from Robert Sachs.

Your line is open.

Hi. Good the quarter growing and flow in takes morning. throughout you Could puts about cash cash flow on talk free free remainder the you see year? and how the the of

the divested, combination. well related the the to as from some Thanks resulting driven business cash was by the which generation sale cash payment primarily from from Yes, additional as of The termination decrease both was Re for absolutely, in and Willis elimination payments flow the Robert. tax receipt free question. Willis Re the

change. really that driving what's that's So

goal imagine, volatility $X or billion set can quarter-to-quarter. the short-term any, by you Investor that as at as may of, $X that of sort arise our to focus, to Our remains performance Day on XXXX billion opposed we long-term

then transformation of And comments second pull in just savings. a to were initiative. were forward the you. Thank savings question a it. the going back Got The that

also million target how $XX assume a I in it you're increase do more additional fair to it savings looks Thanks. like is, $XXX is is in the get So increase savings? finding upside question then getting could that my you to rate. And savings much -- the XXXX an because think run scenario, here million million guess, $XX you your you're

Yes.

we that So a been of some to year along. also some combination opportunities new the current , have real the some identified moved non-real but the accelerate estate increase able for program estate, has as that things we've is

expect to this of in the excess not the uniformly direct the excess year -- think about We about there to year. forward there's give would applies translation of our we more applies I'm expect uniformly end year this going program. and on So do we excess the towards detailed the the in that guidance that the if to to -- sure XXXX entire share thoughts excess our do of stuff do entire of to We program. when

Thank you.

Hughes question Truist. Mark a have from with We

Your open. line is

Thank you. Good Yes. morning.

you look think Does been apply growth the and we Advantage. growth. I the got particularly a see well? that's pretty lately think environment do maybe that Advantage were I that as dislocated as at know you to Medicare Medicare out to enrollment early get season? alluding an in macro you area How I supporting shaping

sort enrollment season address, of, those. for I'll So early of morning. Mark. days both Good

traditional fond of And First rather the Medicare in from to over to the who of we're an expected eligible just buy of the XX% terms use of to just day. the of go Medicare eligibles for plan market end XX,XXX than decade. right, continues people It's more by newly percentage than as every advantage opportunity, rise. all Medicare become XX% citing

taking clearly even the into account growth this even market. not receiving potential that's So there's And in people current -- Medicare.

of year, transact's -- season. vast to, remember of revenue the indications sort our selling for of, most quarter, bulk is respect right? with It's that's fourth our Now

I and campaign QX, QX big So the QX, think our difficult takes overall year mean infer, what happening sales what's to days that sort and deal early our the end enrollment really place. of, annual of into when -- might for today

Okay.

balance of capital the about reasonable the Now the this stock management quarter. back on front, Is rate run a good for this of year? amount a

Yes.

of we acquired expect free to and the as the year last down cash we to our first this on which during Willis amount we've sale payment. before I that and had to buybacks and that our we think, opposed it's our half end share the balance shares fair of of rate termination from of manage said come would the say year the at cash generation sheet flow as Re large using the have

I a that's to think it. So think good way about

Thank you much. Okay. very

you. Thank

from with Jefferies. Kinar Our Yaron comes next question

line Your is open.

operating everybody. Good the And profit just now $XXX What cost target above Hi. first that's margin seeing? also increasing the that mean morning, XXXX. are to for million of save to of Is if target end that you does My increasing? XX%? the going what back XX% offsets question by not

right? it in No. a for along range, provides and that The variability profit is may uncover target margin the way. So XXXX we opportunities out

the that think way XX% think is I right So about target. to still XX% to the

program one general. And point, just transformation I'd about like the make to in

continued be margin can While finding this looking done be. be a program team most we entire we efficient end opportunities At we're WTW the for is The of and organization. best it, three-year the going at improvement can management how to across we anticipate. is committed don't to the

And so of be is end we to that tell look company. the you we're think we've we'll But us at the transformation that. continuing to further the in the regardless of have that's the quarter headed for one where additional opportunities on the program of caused what for an seen efficient day opportunities be reasons, outcome prior

to think Got your previous a HCW. in the response then question the prepared And in margin bookings it. I from around in both and comments impact

the these adjustments. performance You making had lumped when with you were gains fees book in

thinking how by have a on than then just those bad it's book adjusting performance margin, but guide would would conceptually, I more about gains fee been the been am offset adjustment? a have from correctly that guide it So good the

Yeah.

the terms tailwinds thinking the I an from The at on headwind that in and you're enterprise from right. margin, at one-time look the In larger and examine and think the gains tailwinds the to the – tailwind fee the the way right of to than is of about headwinds headwinds performance all level. was the think sale I items

Can quantify you either?

will later you from I detail the pick it's filed there. can will think up – disclosed today that in be that Q get so it

you. Thank

you. Thank

with from UBS. a Brian We have question Meredith

is open. line Your

Yes. Thanks. here. Two questions

over that the some your more and And of mid-single-digit the about been half organic it how little confidence you bit client that segments levels business between make is two what First, Carl look out the talk months? XX last I'm giving a call the it also and you what's ability maybe curious to will could trending growth just year? that's and retention in second break like

that perspective a opportunities much Remains revenue like uncertainty business, right? the and revenue, we're is But the this qualitative maximum as year our core been at look from rates clients, an at take hand the of has across in clear they very, having appreciate is a on There destiny way, of a Yeah. that making that of year, about XX% in terms effect don't retention our it's to from deepen it have clients we rates. across and strategy continue which base new point us pretty think did we day portfolio. helpful to organization, and the retention think I'll a those which I ago the variety I the strong we were relationships. disclose recurring organization. sure extremely Last to for a very

– same you So and Career again, inherent in been exact business instance business, that Wealth our right? way through our lower stickier decades, forward past Our the to which sticky has for the have which a just past so few more disruption retention it several in software so we've And is are historically simply and play buildup of the incredibly seen. any the that seeing despite we're have career talent remain Retirement years over businesses is over our offerings, nature. just addressed project rate oriented at our Health might there and

On what doing. year. last Our actually the from following our sign R&B the as during healthy to of is right? the expect growth new, of worth the we've that very a rates retention couple rest lot in side, is which the we've been years' of business And the of stabilized of for activity lead growth that we acceleration coming should a indicates analysis stabilization

Thanks. kind I'm impact a did of what you're that potentially that one imagine maybe have little I just growth? And Andrew. on on second for quarter getting the income the fiduciary then there's inorganic and Great. year-over-year in and margins curious, basis benefits pickup. the a nice

right that investment have $X Brian. movement. you're income don't We detail million at XX investable cash. of pick fiduciary given I basis of the about hand, all points rate quarter for every up Yeah. But

started impact. to have it has an So,

However, the right we to higher the reinvest to at have have -- to rate. able portfolio turnover be the

but the positive does it a seeing little there. we impact So, bit take P&L, and work are to of momentum time through

Thank Great. you.

Our next Stifel. Rosenbaum comes with from question Shlomo

line is Your open.

the hiring, the I to the you for how hey, continued that thinking line dropped just incremental Hi. that of the line? over thinking Good the little and we you taking just my and top or want about some we savings bottom anything will of you're cost thinking investments, be questions. just you actually, about of Thank continued year, course are generating will that to you that accelerated a bit driving there program business, be Carl, are find, ask morning. of this -- from extra or about really on thought the you're focus holistically as,

revenue. and, morning. a this have as We Yes. Good I Thanks, a three-year Shlomo. of right? bit view an target for

course that to for And the of gets end chart that we We margin. target have sensible at day. want a the us three-year to a

into growth, -- a the circumstances times management will But active I day. ourselves So, for to to be we'll going wouldn't have between job have and a Andrew times a there individual two to out. tension thing. discussion how come And get goals, a going think a and the we're more know able as company. be all where end set we them, and there pattern and take the And savings read permanently there to as are a be we've efficient are an that to to balance recognize been we be our quarter-to-quarter So, of that I I of the we that we that's to quarter to of invest there's where transform those team at that judge that it's and want going right? time.

Okay. And there any the the stuff last Russia excluding was business year. from impact then, by to

the year-over-year? we there talked about book fees, about business investment was anything of negative As Russia income that talk but we was business, a

you there. an We country we give -- we information were mean, exiting Yes. that from the impact of in disclosed revenue business ongoing when that some announced a perspective. the I size we the would X-K and the

a the in a focused our bit our headwind most expect business, is from there notable history Broking yes, and on given might a perspective, So, there Risk part market. the business of of of you just that revenue as

Okay. Thanks.

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

is line open. Your

to color a And little on questions. Yes. Thank some wanted you. I the dig I appreciate of earlier deeper.

opportunities walk congratulations, curious, it's rationalization. so you even save happens lot can far I'm of On of I'm talked the That's change. you works. estate the to just find I quickly from a I'm $XX cost with how what little the and that that specialists, you to maybe so up a savings by big over million wondering guess million $XX move restructuring through million a and $XX can to a not end money. of about year. one real money,

of down Yes, the out to estate were analyze there then, that as attractive end IT That meaningful it. similar related of that weren't sure. the some that right, we the we of part sketched space that right-shoring drove of drove And start necessarily types or economically that economic of along, our on the continuously apparent and able other on for opportunities, as and that business. the we estate hadn't of at to last there business side able to were made quickly. I'll uncovered us relatively at areas were outset moved was to were the and the year. sense when part And to a program new advantage execute real take also, other where reconfigure where situations real that portfolio, been identify the sat opportunities we opportunities exit were we program

optimization. opportunities far will too our extrapolate don't We momentum. measured before we more next a out things Yes. phase like modernization, the disturb our require point right, business technology right would I to approach want right process of

timing And measured will a in have consistent the be program. around we overall with the so those we approaching way

so expectations? get step retention I new organic your thing have is? like from your I as new production with imagine power three put you market then business But -- if in retention, element what far and in Are think, answer price your to where the weak been other service business And even buckets growth Okay. with selling getting you're know that's on I been the the peers price the you questions. has for the the

Yes.

from we we look will the and price growth be but sort driver, at not where main as expect growth right. to come contributor, alluded the to-date As to a you of

expectations. the rates business continue been over They've line are and the that's front to to of expectations line the accelerate as with New has given in in expect taking we we'll retention mentioned hiring last office. year. all The Carl with in our improved our place

We continue year. improvement year through expect the next the as to metric in rest of into we that continue

much. you Thank very

you. Thank

comes with question from Autonomous. Ryan next Tunis Our

Your line is open.

Yes. morning. Good Thanks.

of you the XX-K, seats. a disclosed number in unfilled February in guys back So

think you I give update on number was today? what an looks that then. like it us Could X,XXX

think don't that we I hand to Ryan. have

So we the is can follow-up that to comfortable extent if you. for

the think of the headwinds you Wealth the headwinds headwinds get organic, I on it did quarter? those in in Wealth you problem. year. idea us give half will mentioned then business, second you ignoring X% out Sure. in think core And business those see No some said Could this it XQ? better stripping where you negative was you some the but organic of

business, down the is us. business business, within three. is answer due the work Retirement for Retirement that's bigger to Retirement Wealth timing a absent think our our I performance Wealth to right? principally have bulk business. been fee Investments business the of And that would our Retirement So and It's

We so And is remainder of of during year. the that timing the principal work visibility that decline. the a rebound have of cause of project activity actually take into the

Thank you.

Marcon from with Mark Baird. Our next question comes

Your line open. is

morning questions. related. have that my and are taking questions for I two thanks Good macro

to opportunities broking significance are with from The any they is any aside hear historically inflationary there that from they've one areas taking companies of environment. sort given haven't. the been to where first We're price up raise starting other prices in

wondering any I'm opportunities if that you So from have just perspective.

of charge ability is have basis, them old -- variety billing do. we billable the modify to on We consulting of one still but and We our a businesses rates. good hours

rates Some we but which flexibility. specify of that prevailing is hourly subject to force rates and may are others contracts in that have

So -- at all in and that sorts of do we is something economic conditions. look

you're like sounds And opportunistically taking and Great. it of that? advantage the environment doing

side comes pull side. look when our We revenue expense the portfolio well of our to it all business to in levers as the as

is, to I yes. the that answer safe think So

how And concern. you goal? that Great. a Okay. macro the about process I'm falls should philosophically not. how you've recession we're on But the that highly because are to thinking if -- or to a no the and little and adjustments, doubt flexibility reduction you you There's we've continue entering still second There's of then a more little the or wondering the be thinking about that's to hit three-year the focused headcount short, wondering, or are retaining. in we're successful. given about proving year bit adjustments. got Julie's not fluctuations like not it slowing you're make if think really -- been a Do more And the we to bit obviously things business, get historically -- overriding how you are in is of we're debate or Obviously, worse How whether macro And it's a targets. the one environment. responsive to that. some made just a even levers program rebuilding cost that's rebuilding about have about recruiting

the pull one short there industry We -- a we variable. I for right? is our manage of an, in levers we the term there of the term. we the And don't can resilience, approach many lot and business are mean of them as firms I I way like can. said, long the in amount this, right? ignore the is here, it's think are compensation and greatest don't certainly ignore We we

our and share rewards in burdens varies, as so we that variation performance. And of the the that performance

one. that's, So

of our that less they in a done less side, in Wealth the transform over so have Health best to sensitive. business. work side done again the We our the of sort businesses and are the are rear lot sensitive, The economically of economically just years Julie's side

the some so out provider, And as we've pure said, that provider economic business. sensitivity consulting of I a from of solutions as moved a to taken we

the that makes little our short now, business And resignation. I great so we despite -- the great the economic light very clouds is think for term demand demand great going looks inflation? this now we're the right are Career still the the what seeing. a And strong, over what to ride one there's of for our in particularly, do interesting services

you. Thank Great.

Thank I'd you and have closing for management, like to all question. that’s for turn we the the to back remarks. time call

managing do, much. great and very we you achieving continuing a to in right? strides I have time a appreciate you start just everyone. three-year Great we happy for we forward. with all the that right Thank I engagement we think, dialogue be. outlaid day, want it. good more earlier and I to the achieve As question this going to forward the call, with program to great we have while this good we today is said We There can Have WTW chance how we've business look as out and are think really the is point to made a you. explain,

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

may disconnect. You now