Willis Towers Watson Public Limited (WTW) 9 Feb 232022 Q4 Earnings call transcript

Good morning. Welcome to the WTW Fourth 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 Reform Act of 1995. subject and are statements forward-looking to uncertainties. risks These from today undertakes in results obligation may company discussed materially differ statements. company Actual the those and update these to no the moment. One Thank you.

may update in Some comments materially results to meaning the no to statements forward-looking Securities of Private may risks today’s from required undertakes by These statements Act obligation XXXX. are in call differ of of the Reform company statements unless within and constitute these today’s and the discussed forward-looking those subject Actual uncertainties. law.

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

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

of reconciliations refer and For measures, materials Investor these well the earnings as release recent section measures company’s of information the other as regarding other non-GAAP the to in website. most the please Relations

I’ll call over Hess, go Officer. Carl now turn Executive ahead. the WTW Please Chief to

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

simplify of Joining transform to and our is Andrew growth, Officer. priorities, our Financial XXXX, strategic generating focused WTW shareholders. best to today for on our against bring value our Chief the we continuing executing me In Krasner, and clients

I’m year and stronger, we I’m and proud ago, to going say about better were that forward. all will of more achieve resilient are a than we commitments. Today, what delivered these on positioned we we excited

organic for full the in growth In QX, with solid mid-single X%, momentum growth, Our X% fourth year. to building finish line digit performance a we’ve and been delivered our to great forecast year brought which a XXXX. the reflects organic quarter we is

business modest a is activity, which forward. of to settlement also headwinds We book margin normalize expansion going prior expected significant year from despite saw

per $X.XX, over share adjusted up the We fourth year of quarter. earnings XX% generated diluted prior

in million capital the quarter, allocation share total against bringing fourth $XXX strategy year also our completing another to our execute billion. full repurchases continued We in $X.X to

to a impact. continue efforts significant transformation Our have

During This to to the of million. the million savings $XX our and we well us of XXXX million total annualized in the since target annualized cumulative savings. quarter, $XXX positions $XXX achieve realized program’s fourth incremental inception brings

for we advancing structure our our and In shared simplified This Asia unit one refined will consolidating operations our to resources be Asia-Pacific who able of seamlessly to the organizational goals, into Weaver, new better is in collaboration will growth further the business. streamlined across by Australasia driving and Head responsible closer Australasia region. serve clients the integrated region. leverage lead the Simon through be and previously region

which initiatives, access sector, better our grow we our focused aviation clients and online outcomes through offerings. platform Most across customized globe to for for our remain the recently, on expertise WTW’s we driving innovative a launched For our clients the differentiated gives XX/X.

unique aviation-related client of depth needs and the airline this and share strengthening and the sector, to and challenges Tailored of news expertise, clients allows to insights, breadth our relationships. technical industry the platform and

collaboration with WTW’s Specialty our with Liberty of the advanced recent and initiatives also Markets We introduction grow Markel.

flexible digital our transform of The strategy broader entire will value digital launched capabilities efficient, we in the forward commercial options. an chain. the connectivity, trading pilot step This our innovative improve phase significant a to brokers platform. giving Together, across is insurance venture

is global rollout organic our growth. results ongoing our of producing in with lines specialization high-single Elsewhere Risk within and CRB of digit business driving great industry strategy Broking, the

within & gained We’re grow our initiatives by Wealth also Health, Career. traction excited have the

referred our other discretionary project on by with Our businesses portion businesses. making our across the focus produced meaningful a noteworthy benefits quarter connections in fourth sales of

destination talent in colleagues appeal last WTW X,XXX year, demonstrating as investments significant base. a made we of WTW the talent. over XXXX, rebuilding In our hired for

and to XXXX, in Our continue investment XXXX. throughout expect this revenue has into growth we translated

also line in with We of trends. macro the efforts benefit remaining retention attrition our voluntary with saw

around divestitures increase XX,XXX result, time. with the since the globe, year levels an despite the made As that finished headcount that has WTW a colleagues to restored XXXX our

quarter priorities with we The creation. that date, to fourth WTW have I’m growth simplify value Overall, progress path the confidence executing transform grow, right our to performance. is drive us on made to pleased and our gives and sustainable strategic

we’re The greater driving In our prioritizing current focused supports generation. complex our the growth, year accelerating economic cash leverage and ambitions. ahead, on operating environment further

uncertainties, many market, risk GDP softer facing a are rates, clients interest and growth, ESG tight rising recession. including labor Our potential inflation,

is The regulatory also focus on pensions uncertain environment heightened. economic an in

create businesses provide. can environments. help such and complex our unique and volatility pleased ability with work products specialist As risks clients that seen their our we’ve these evaluate I’m strong demand opportunities for of historically, in combination to

For of market created have benefit recent for levels, increased sponsors modifications has to dynamics alternatives a range potential the plan provided which explore turn to investment funding example, which defined significant flexibility in of strategies many over years options. specialization. transfer pension require transfer increase as projects, in well degree risk and a pension high a as We’ve multiple evolved seen of including risk

reviewing their in seeing benefits are ideally we which as additional in investigating as to placed workforces, well their we’re programs areas clients addition, interest In help. increased non-qualified to manage

insurers complex clients clients pushing increases. manage This challenges try Many greater as of even navigate our risks. our they insurance for to commercial sustained rates to for continue across lines, causes rising are also various premium

well-positioned environment. this to through difficult rate help clients We’re

Our for of future represents Intelligence of it ensure clients this tools portfolio their believe Risk efficient call customized their Connected financially across risks. the insurance entire We the and get premium that return buying. dollar best

At we time, the same momentum. continue build to

productive. more Our recent hires are becoming

digit transformation better connected demand manage their We’re clients our to We continued solutions mid-single getting our growth program revenue strengthens unique is challenges, conviction in organic which faster, XXXX. achieving and and seeking from delivering. see our in more agile

$XXX in free cost operating driving Andrew short, to deliver improved transformation million but year, We and margin hard by share incremental on to expansion long-term flow. in expect details our another outlook annualized our for we’re targets. an the program more year savings cash of will led achieve

of demonstrated and delivering commitments we our of remain on risk performance the a client complex of successful We shareholder our our value. and and goals execution our the achieving our believe continue on focus sustainable drive on focused and robust demand closing, pursuit to will momentum environment face creating that profitable, strategy our growth. in in In XXXX

least, not to I certainly performance colleagues to dedication, but thank service commitment our continued our sincerely Last, their want I appreciate for year. clients. their and this

over And turn with call Andrew. that, the I’ll to

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

finished and As outlook we high year a positive. XXXX on is Carl our mentioned, for the note

X% basis. with The our Now I’d like an on details fourth was with revenue in on further organic up share results. to line financial quarter our some expectations,

organic we businesses. our solid growth and X%, revenue year, growth the was For across had portfolio of

prior share quarter, the earnings For diluted per over the adjusted $X.XX, of XX% increase an year. were

adjusted diluted share year, the the were earnings representing growth $XX.XX, over XX% prior year. For per

our Now health, prior on results last unless wealth growth with periods, X% of regarding to quarter of provide generated segment our comparability of commentary or basis and detailed segment Note currency HWC will organic on on that the fourth all otherwise. basis, an compared the results. to and organic be career year. revenue segments to The constant stated specifically an

from headwind revenue organic business book year-over-year X%. the HWC’s grew Excluding settlement activity, of

book in fourth quarter Revenue from flat primarily year. arising prior due strong the for was the for gains to comparative a health

appointments health project helping America well and work costs as revenue primarily this legislative in implementing to international changes. Europe X%, clients related increased portfolio new increasing driven Excluding activity, North in client grew as and and by manage growth

by earnings and This business North markets, grew The a a the new America fourth project partially expected offsetting call. experienced by The earlier was our administration the Wealth offset our attributable regulatory which quarter. settlement finished of in in and decrease year in headwind declines primarily was Wealth with higher quarter business, an activity mentioned growth fourth XXXX. X% nominal clients work, we Britain. of work was third and during in a Great in valuation growth strong levels to Investments quarter, in actuarial pressured declines capital combination

engagement growth we experienced compensation by Career continue fourth which surveys client X% This talent year. to growth well and as employee demand strong work, for offerings, quarter. products, the advisory compensation largely expect was and including as benchmarking in this driven

and higher strong largely marketplace, increase policies. revenue Delivery in Advantage Medicare Benefits The fourth individual was quarter. from placements by with the generated and X% growth Outsourcing volumes growth in driven

full growing the profitably As expected, its strongest and the seasonally for on a quarter in by driven supportive focus double-digit year, growth TRANZACT business. delivered our and environment macro

and Technology to activity. also increased revenue primarily new due Administrative increased and Solutions client project appointments

see operating margin year to growth into will fourth for for continue this XX% in that to quarter was We prior quarter. businesses XX.X% continue HWC’s expect compared growth and their they the XXXX. opportunities trajectory these

XX% Excluding margin of compared activity, the business of impact fourth prior to operating year HWC’s quarter. was XX.X% in the book

point in and and on constant Risk due improvement revenue X% compared the XX.X% was operating margin operating fourth prior was year. HWC’s year, improved full an The Broking X% basis compared the basis transformation-related XX.X% prior the basis organic to currency XX to year on leverage to quarter. and savings. up a For was

business headwind of increased Excluding from the settlement activity, revenue X%. R&B’s book organic

& organic X%. revenue Corporate CRB, increased Risk or Broking

settlement new generated driven construction, revenue organic aerospace. by all X%. activity, business natural of growth book and across CRB’s was Excluding business growth resources The business regions, in wins

with business construction notable of CRB’s and growth revenue contributions and increased construction. strong new business America international North also book aerospace. made year in settlements, growth prior from with in headwinds Excluding to Europe

had from fourth over and expected been originally the was benefiting earlier increased the up as Consulting In which XX% Insurance the of year Technology year revenue well sales, timing work. business, advisory the as software prior in quarter,

growth line with business. expectations For for delivered X%, of strong the ICT this in long-term year, our

XX.X% margin quarter operating the in was compared R&B’s XX.X% quarter. year to the prior fourth for

of the compared year margin book in operating of to business XX.X% fourth activity, R&B’s for the was impact the Excluding prior XX.X% quarter quarter.

in year, to year. XX.X% investments margin in due XX.X% R&B’s operating was The decline to in talent. the the full compared prior significant was margin our For

gain meaningful. of investments more expect become XXXX momentum as these to these the to We continue hires in contributions

point enterprise Adjusted quarter XX% $XXX let’s the a revenue, improvement million for was level to Now year. with basis operating the the turn of XX prior income over results.

the improvement prior XXX XX.X%, adjusted operating the over was a For year, point basis year. margin

at operating benefits talent alongside realized the in savings, our some increased were which transformation strategic reflect of were were margins primarily more investments adjusted program the during corporate but improved by level, the period. our management in of at segment which Our portfolio realized offset than level, the businesses

continue for our to which mentioned, fourth aspect the forecast the both our Carl a million incremental we target quarter, As results margin for original be by $XXX key savings of we’re exceeded most year. as of $XX encouraged Transformation will of realized expansion and this ongoing million annualized the our XXXX efforts million savings. $XX year, during recent

savings, To and cloud the footprint. transformation reductions date, driven accelerated a original expectations estate perspective, workforce from our technology operations savings in by primarily our real to migrating our have timing savings outpaced from overall

incremental run from end in we savings technology XXXX, transformation with year million by the to program and continued rate the real deliver optimization. contributions For expect our estate, $XXX approximately of process

largely Foreign on the the of strength a the dollar. currency adjusted headwind of EPS for due was to U.S. year, $X.XX

at cash Assuming primarily free QX current We year. decrease due to exchange headwind billion a the levels, treaty-reinsurance receipt to in the $XXX and of we period generated for rates of termination was a This XXXX flow cash compared divested of $X.X absence generation currency $X expect from comparable billion of XXXX. in full remain only cash XXXX, million the but fee the the free headwind in flow business. of for to foreign the $X.XX $X.XX be

earnings remain our Looking flow cash priorities. generating ahead, and healthy free growing

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

for rate with XX.X% the was the the to profits. the prior tax adjusted XX.X% distribution Our primarily year, of due geographic difference quarter in versus

our year. the versus For in GAAP tax XX.X% XX.X% was year, U.S. the prior rate

year the prior for the in rate XX.X% the full tax rate adjusted year. with was in XX.X%, line Our more

In shareholders, billion. XXXX, amount XX.X capital a and we returned to dividends shares of million for million our $XXX in significant repurchasing paying $X.X

strategy with We return that capital to disciplined internal investments M&A opportunities. strategic return in continue to pursue and will allocation the highest capital deploy capital our a balances

remain share all for we expect our we options to to While primary value avenue to create the deployment, continue evaluate repurchases shareholders. for capital

revenue organic on margin growth. Turning XXXX we in guidance. long-term adjusted alongside growth to deliver expect our market Based operating conditions, to expansion investments despite continued mid-single-digit current

expect outflows cash related primarily free to an also behind onetime We us. improvement flow now our in divested that treaty-reinsurance cash are business

we to and volatility a we pension earlier, to $XXX incremental market in annualized to expect non-cash transformation due million savings. movements. With mentioned rate to I As see respect see interest income, expect decline program

million and $XXX our For like we management on in to we and to continue improved. plans focused prior $XXX expect will long-term in cash of income targets and significant these to momentum remains dynamic, XXXX, growth. despite that on them, subject need areas of million the position pension about achieve attention. this to funded compared that of the to I’d XXXX. flow our build We as note remain accelerate recognize has revenue, margin Each

quarter with Overall, WTW year with it for aligned and a expectations. strong was performance our that

results unwavering we XXXX dedication which included Our a ended of will hard efforts, of momentum the colleagues. in long-term initiatives lot investments vigorous in and our achieve I’m We to technology, continue the position, year successful a that reflect solid as in work, build confident hiring we transformation work targets. to and our

that, open for it With up let’s Q&A.

Thank Our Wells line the Fargo. you. from Elyse first with [Operator Instructions] question comes Greenspan of

Your line open. is

well and your Hi, as first just guys question. revenue book My morning. Thanks. full income margins the year? impact the for fiduciary give on you and for Good of as the fourth both gains Can us the quarter the investment

Andrew. It’s Thanks, Elyse. Yes, sure.

those out, figures quarter. revenue components the think, as point you talk meaningful underlie that to for the I about two it’s growth

full quarter and know, you investment by gain was from income The on from gain were the tailwind partially $XX was by $XX million partially which million quarter from headwinds of for the sale year. was that we $XX for on And for investment had we sort the for and $XX and these sale million As the the which activities, headwinds had income. the activity year. full offset offset million

I it’s absent growth still to we have think those and margin important note items. that had would organic mid-single-digit also expansion

still laid where – flow, second for short Okay. you on that of have my guys you’re I target Thank you right? is running XXXX, then mean out. you. three-year free And you’re were guys question Given that cash

XXXX And so you your that improve some cash talk – is you into And a can there ways through to – get could of looking target? just in to XXXX? free the of cash sight just getting flow line flow free and you’re

Yes, sure.

on and both on in other headwinds cash Russia and in we last had made on on economic the including cash flow timing and discussed XXXX. the cash including capital differences we these Willis from termination we items, free the XXXX payments more call, anticipated, As fee free impact meaningful faced originally Non-recurring regain. than tax exit from our factors payments working flow a

flow ahead, $X.X cash guidance, Looking do three-year any provided we’ve not cumulative target billion committed to cash billion. we annual free $X.X but our achieving flow free to remain of

today, target are to get generation, what we to where we lining from is things We’re free focused flow on cash there. understand up required reach that are we and

tactical We expect as our items headwinds related and we’re the the and one-off the to focusing well. portfolio, business abate optimizing capital improvements of on cash generation we’re working profile

one. And then more just one quick

pension XX% be have will the right? that target? EPS in $XX.XX So you for embedded that guide, you quarter, income then did is be us last gave lower revise But to pension guide, your the $XX.XX, lower, right, XXXX income this would EPS quarter. base That income you Is within and which to the a XXXX still XXXX. pension to lower target get able

not for current Elyse, assumption our adjusted So the got we’ve in headwind income XXXX. we’ve XXXX pension

XX do the can as months, seen factors, the well. it so leverage external we’ve and savings remain driving a when two operating comes can organic over target. next EPS lot during cost growth, happen change lot long-term to years focused our to achieve last a As on We

[Operator Gregory you. line Raymond of question from with James. Instructions] comes Thank Peters Our next the

line is open. Your

morning Good everyone.

in in employees I results, as some I’m margin onboarded XXXX? get when in those the And margin hires margin. remarks, adjusted productive all how XXXX successfully focus new the XXX year. hires two talk hires to that. executed results, full XXXX prior on you and question, from in affected more and that going talked the become and margin the maybe operating first on from they there’s Can up about prepared those guess get thinking expansion results tailwind about you my new your I basis If it’s three, year the your And look get about For year. last points at I’m year both – and the year more you on

there perspective some would So be helpful.

Greg. Yes,

efforts on talent, positive. our we’ve hiring the with with year So really for the progress year. the higher pleased to I made during regard is we’re mean, Net

almost Our talent that’s expect employees, We and in is into the to then. up XXXX kind positive contribution is made XXXX. do and to already seen to base by fee despite since X,XXX as our we’ve XX,XXX levels, progress which the divestitures headcount back improvement through the we’ve become meaningful more of XXXX, we trends

from in numbers reflected that’s think I growth quarter-to-quarter. the revenue

the really and the we’re achieve based time to expanding continue needs. in hire open of and necessary talent made, focus at to course, positions given on our any as to our to base going continuing going by encouraged But targets. opportunistically on We’re progress to position, number vary of our we’re growth are we’ve base

XX-K, our the see You’ll filed detail some in efforts goals month. higher which in be in probably on further will our later

run And sort just think a more is is for cycle think back would XXXX, – workforce? Or hiring we as you is I it of you XXXX are to I normalized that. to are – super your – on about more it a point type substantial to of a when addition XXXX still make you of like guys clarification of viewed still – still looking rate additions? out

areas others. kind you services we And opportunistically, are of in to firm I think hire is key, we’re more Greg. substantially than opportunistically into we is said, continuing a right? But okay, what doing to always we advance as say, XXXX. coming and span going yes, do the to be look that Well, there’s we’re Whereas where I some of need

about needs As the had calls, earlier we we in pronounced organization. across talked more

sense. makes that Yes,

on but technically, third my revenue my is guess, I will question, last be second guidance. My organic Okay. question

I’m the idea Risk I context that’s some us down you. why don’t get guess And mid-single-digit ICT the and reason and give something I results if you guidance this, can could that you guidance. XXXX wondering mired Health, as itself? the just XXXX in detail, were Broking about know of and asking like in if want to inside in You really I’m you strong, the and sustain look might Thank Career but at of perform provided pieces I’m Wealth how the that think the wondering the and I

continued revenue in growth growth demonstrated Thanks of for this confident achieved the ability remain That’s from we momentum strengthens We seeking pipeline organic by coupled solutions the robust with that. to investments the our mid-single-digit to to The and that our our future. get our mid-single-digit talent making the in we’re clients Yes. reflecting year, in our XXXX all our conviction beyond. that growth businesses. ability growth and achieve in organic revenue in that in our

September from by refer to XX, Our focus one growth around the for – of business and thoughts Investor remains materials you growth we set we Probably our digits each specifically of business components. profiles on regarding where our long-time some back of of revenue those to each Day best enterprise organic what long-term mid-single organic out the that level, long-term target did in of of businesses. expect

it. for the Thanks Got answers.

Greg. Thanks,

next question Motemaden from comes Evercore. Our the Instructions] [Operator line of David with

Your open. line is

Good just quarter Hi, was of be quarter? about in in could you maybe would in the thanks. size much talk if the the that timing the that XXXX? first an organic revenue favorable wondering had headwind And growth ICT morning. a how just of I benefit R&B

right, referring to the the timing the sales? Is I of David? Andrew. you’re software about assume that it’s comment Yes, ICT

Yes. That’s right.

we fourth sales close, actually earlier that in cetera. the that when cycles the year occurring stuff in et just up expected to was had ended quarter that So

over of look that’s expectations line to has that I a it’s So and full basis, best year that business at the longer in how business term. performed on our with think

think X-point excluding looking the That’s a it. income. just drag then Got calculating X% X-point I growth, also fiduciary helpful. at a R&B book Okay. benefit the it organic business and I’m of was And around from

which impacts X% around it about take was fiduciary out as the I book to same of getting I’m is impacts, So organic if and last quarter. business

didn’t see So quarter? why if I’m that is we accelerate we growth see really versus that third I first, – I that right? didn’t the or why guess so, guess, wondering And

Yes.

I is rates. around the there first the So point growth of clarification and think Broking Risk

income. So X% X% on organic sale sale X% – investment gain gain on excluding the organic, and and excluding

X% the it investment without have that tailwind or within with been of income So line would business. from

missed Thanks I Okay. that. Great. Thanks. for that.

No problem.

big one business target size adverse And the I years. the this over of I’ll to cash Russia impact get flow divested of like flow it maybe year? Could sneak had cash low reinsurance the free just the next that Because more does on to pretty ramp guess just couple in. the in end feel one free you a

helpful? maybe help like what look get for just have would sense if would So didn’t more flow a free items be those us cash a normalized we number

Yes. We last quarter. on did talk call, a bit the about this the

Russia about business So had I disclosed margin. base double think revenue margin we of X% a the more than and that our the of total enterprise

associated So there pretty flow that. is healthy some EBITDA with cash

write collect. off business, did were to a were unable we Additionally, that large we receivables amount associated that of which with

business. So and of there’s from that a the write-off headwind, itself fairly sizable presented which divestiture

for insurance just that any that broking – have been divestiture. Willis reinsurance would Yes, which already not divested broking was Re the with clarity, business, of our we

line BMO. Our comes Thank you. [Operator next with the of Michael Zaremski from Instructions] question

Your open. line is

question I good it a promise morning. hold to just Hey, and one follow-up. to

to I Elyse’s into clear, XXXX. about and a But wanted the question your to – it’s I can be it just factored volatile. be long-term to just headwind heard want the answer income question, in First I guide being pension meaningful

pulling are there expected than so more of to you kind to other margin so XXXX you’re able that improvement? had be previously levers show And in

XXXX. So on in you’ll income million of clarify $XXX for as guiding the $XXX for we’re see pension XX-K, million to our the and just XXXX was headwind, size in

the the sorts We the the quantitative get And company. or gives during we’ve of of you directions, run have, the available we expected for to search we we in extent at XXXX, running manage day. do headwind as just company shows we as all you facing. us can how we’ve to benefit a headwinds basis levers diversified all direction, think think, We what look us portfolio what opportunity to product we’re like got not. elsewhere. I do feels we other that, can seen So adapt. the every the That and And this

And that more a remote follow-up, always some in of ways collaborate. better looking the back lot more your for the about bring your And cost lower virtual peers to have believe saves been curious, of overall I in of some clear just just estate office But the has – to of view been kind collaborative come real cost footprint publicly from Willis to the my you’ve of estate. and Okay. of kind talked employees changes real and kind of any less will a firm’s view work? on the meaningfully Thanks. and environment.

So the adapted employment. workplace as collaboration that their from of that and are, to a navigating reduced back to real work, in-office we recognize we extremely well well. absolutely wants the the incompatible collaboration is back tomorrow estate of remote flexibility None work, benefit have footprint and but to we really think, of really with I successfully

in think So that’s happy remote. kept how and clients, and seen both with by perform we’re really I’m they able no I how have and to to great up for our demonstrated as lag our I’ve in do, adapted results. our work office colleagues

Thank you.

with Paul Sandler. [Operator Piper Our from next the Instructions] Thank you. of Newsome comes line question

open. is Your line

if little a prospectively is the comparison a comparisons. not have ago year what it not in that will be also the comparisons for and the I you there’s an having bit walk book gain likely through, prospectively there more, not impact. more Thanks morning. others if I again, Good But One over gain wanted today. maybe that versus the we just are the think continue sales book versus impacts. one could having next any of quite give of is year us of a a two mind my to sure us ago. I’m And some actual maybe is year I thing getting the not And revisit to negative have call. just if having impact

we should how will think And so those sort how of comparisons. gain And about about long pieces? be two book talking we

Yes.

There of a So experienced does component, been is sale some headwinds that normalized the from expect can to get And that as gain and sales that XXXX further book look level you that level you’re right, pre-XXXX, events start if sort our is about what and away. going and of to of a right. off, the looks of talking we’ve expect do that what we’ve businesses. from further bleed relatively excluded there like, of the terms revenue getting forward. on We back in be short to do sense absolutely we of in second normalize order get you in

So does next in that of into going normalized couple mean that this talking XXXX be or still quarters? we to we’re essentially about the

XXXX line receives. book a we normalize put as began levels progress think XXXX we I gains we to to in in be with and historical as through XXXX, expect them

So normalization looks been And we’ll throughout as have headwinds as we that detail provide on – continues some like. that quarterly there be may XXXX. what

was Thanks. Elyse. I’ll my That question to it. second see

Thanks, Paul.

Paul. Thanks,

of Instructions] Andrew question [Operator comes Suisse. Thank next Our you. the with Credit line from Kligerman

see is line Andrew if mute. just on open. you’re Your to

you have it I hires particularly sense net summer, a volumes, commissions on XXXX, Am of quite that had strong. reading more been in the hires, that these I but of these that. of and about morning. you about Could mentioned thinking is we might the as was aerospace Good lot numbers. quarter, Sorry XXXX off? give hires thinking be good as Because and about these something like this real right? impact a you looks should have roll kind about in sales, a construction the impact that XXXX non-competes result very XXXX

Yes.

don’t fully expect It’s people think about productive. We bring mean they’re right, before that I XX on. productive months is typically to one. XX, from Andrew. we I fully day be them

be during their to so on the following kind right? And hitting stride brought QX, summer year expect QX, – in full, we we in someone the of

the months Do variation because that get of that’s year, take – someone a of you end to and great you’re of in XXXX hitting right? XXXX, brought front the renewals, beyond. many those that the – their talent But So efficacy around – right? where opposed bunching in of absolutely on in timing particular and office how as the right, we might the some who’s we’ll right they stride be individual,

This it of like like the where business gains, of these not So focus to seems book getting of focus something closer just on should we’re the be. the just sort seems to focus on. normalized. it It’s call is

question on smaller business kind Advantage about kind seeing folks seem sales. the They of the read in is business. of write about Med of all improvements is to quarter could was segment? it. public It prospects little you to next very you interesting bit overall a margins. lot the continued HWC growth. talk off a my in of So and But compared and opportunity talk bit could on the volumes Advantage just for players very some little this a And focused are Medicare And margins of to a be about as were that you low-margin the that the seeing

Andrew. It’s Sure. Yes.

there products, MA, as we’re and of it into products, is but are pleased of that portfolio we with well. that profitability margins business is balanced that are level in specific primarily overall there the nice specific to a So we portfolio get not of different product of but course, going a the seeing as

growth, variety backdrop be are for profitable means us, it’s think, And that relationship prospects, will opportunities us we I very growth looking strong our well the and well. position one continuing. I we all, does sake. business But served has very overall as of and for remains far growth’s Yes. the partners have that guess a continuously with run for than first philosophy That rather sustainable that of growth for mean, this and as business I

it’s just over plan rising, of XX% buy to From eligible for but you use quite XX,XXX have people Medicare percentage people cited a enrollment every per when newly than from the by it the a traditional just I’ve eligible is rather decade. than perspective, this X.X% expected an XXXX. year is over XX% And MA becoming for more macro before, grow who is Medicare tailwind Medicare industry. to day, to the projected Medicare grow

for business. conditions our good So those are all, I think

Thanks a lot. Excellent.

you. Thank

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Yes.

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Yes.

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about reinvestments year? buying current you the think valuations Good for about to just morning. way stock versus back and this buybacks Thanks. think How do you

Sure. Yes.

business to the As got portfolio with a lens attractive at we we our at ensure reinvest share future. think although cash. capital do current growth does fairly begin investments return of strategic use is the management given we’ve organically inorganically repurchases disciplined a that primary to valuations, and for the to or to in that need as need looking approach you a to as that do very And we’re investing continue look of in through to appropriate potential continue

helpful. your then organic is it. a And you upstream to on moving Can my level. this digit about you just your Investor high accounts. that’s update an year? growth mid-single on Got That’s last Day, that’s how of larger kind us in At talked second And how guidance more progressing? contemplated question give for

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change moving components actions pulled of that than just whether really real of and And targets. sort across So taken, faster estate that of right come got we’ve QX anticipated. amount is optimization things in or technology nature. shoring, to that of no we’ve The certain the was XXXX portfolio it a the matter forward that’s or

of all components So pretty we’re come from the did that program. pleased it

year? And that’s this as well the terms of in $XXX the coming for expectation million

to all expect contributors do components We be Correct. going forward.

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