Willis Towers Watson Public Limited (WTW) 6 Feb 242023 Q4 Earnings call transcript

Good morning. Welcome to the WTW Fourth Quarter and Full Year 2023 Earnings Conference Call. Please refer to wtwco.com for the press release and supplemental information that were issued earlier today. Today's call is being recorded and will be available for the next 3 months on WTW website.

Some of the comments in today's call may constitute forward-looking statements within the meaning of the Private Securities Reform Act of 1995. subject and are statements forward-looking to uncertainties. risks These from today to in results these may company's discussed materially differ law. by obligation Actual the those undertakes unless required statements update no

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

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

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

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

joining Earnings Year us and Full Call. for Fourth you Quarter WTW's Thank XXXX for everyone. morning, Good

the our today as me a on with note Joining Financial and per Chief robust fourth Andrew continue adjusted strategic our we expense expansion earnings in solid drove our ended to and growth. simplify solid is adjusted investments solutions program discipline Officer. transformation begun XXXX WTW on and maturing world-class priorities. revenue growth. In generate operating organic and growth, diluted helped margin XXXX momentum and has transform strong talent share our Krasner, quarter, execute and

an quarter year. achieve $X.XX, share fourth performance over the goals. the We points And throughout earnings more organic Adjusted XX% XX.X%, an today, to growth increase up XXXX. diluted per better margin steadily of in positioned our basis improved resilient delivered Our WTW adjusted prior year-over-year. is were and XXX stronger, revenue operating X% with

growth we mid-single-digit above year, our X% full of the had organic revenue For target.

expansion. expansion an points of XXX of operating margin our commitment year-over-year basis margin drove of also to annual achieve margin XX%, fulfilling adjusted We

and in share model, these strong We strategic relentless $XX.XX, on investments and product diluted an hard team's prior are adjusted per and earnings results our our our global technology over work increase believe client talent the focus Our X% delivery. the were year. best-in-class of

within clients and enthusiastic investments see believe people and profitable to long term. confidence we areas from and the greatest progress that we're create receiving with the shareholder response sustainable be aligned opportunities us we The that are WTW growth value over drive to our strategies, our our give the

me enterprise. take Let of minutes ahead the of segments. the and us Throughout was opportunities driver key share both a XXXX, Broking across our few strategy specialization we've progress growth to our Risk for and the the & a segment in made

higher relationships clients new of and client businesses to of our growth, growth significantly and rest old expansion approach. existing Our has back part win This validated in and the large our specialty ones the have to ability strength improved continue segment. in client driven retention, by attract

services. in continues more specialization data solutions It close to to result, provide that to efficiencies their allows strategic us digitization, primary analytics, create a with gaps insurance As by us tailoring value create enable and focus R&D. risk that our profile. be timely can Together for effective management we and in clients

we Our colleagues, with is now XX specialization and In approach operate. we verticals supporting processes industry each which to infrastructure North is complete, That XXXX, built to that tailored process America. in alignment. geography in out

region more Western our to launching seen across we've success we'll international model the and industry in in in Europe, industry Given date, verticals XXXX. of process out we're this the build

multiyear win our of positioned as reach, a our an This has construction mandates recent model, a to share global energy with key player win sector. for the project complex of in together outsized European such us

such across our new proposal industry good apart. its and steadily as also underwriter, to countries in Veritas, ability September. revenue managing growing expertise product expanding our data and is teams since into specialist new making We're progress initial cutting-edge streams launch bring which our Our our several superior from analytics general set and and together differentiated

XXXX, balanced our to clients. and fourth received focus brokers, the XXXX, both additional in on of Just premiums In we've strategy quarter MGA external onboarded we'll geographies. MGU our and expanding and submissions own brokerage for

our In people addition win platforms and to offerings & business. new expanding business invest to Risk in continuing at we're our Broking, to

in colleagues by increasingly back half XXXX. as of and the have XXXX the who revenue talent Our become segment's strength, and our base joined strong have evidenced full us XXXX during to productive organic brought growth second

focused we're investments believe potential. business These growth geographies should we now of in offer profitability enhance lines presence that the and greatest investments. on talent Accordingly, and and the opportunistic our strategic capabilities

work We beyond. a expect inflation and by environment manage opportunity new we growth see continued these costly efforts closely XXXX complex we business to natural as risk clients challenging marked social to Furthermore, conflicts. and and continue help increasingly for disasters geopolitical strong throughout

We've the and our of and career our simplifying BD&O. on it clients we focused work. by we've growth where In by by for connections value leveraged across made making HWC, core progress and significant across strength organization portfolio, and how driving businesses adds wealth the staying health, through

at We global more across For service [ excellent least had retention including offerings. dozen for our clients businesses. and maintained for XX% of improved example, than include like solutions of or new ] X,XXX rates packaged we our a LifeSight retirement clients outsourcing our We benefits client to all retention our master rates expanded and offer. one with management signature relationships trust HWC,

and enhance key size to the centers hub the our around of increased teams world scope and in consistency. capacity we And

Across services, a for on intense it are WTW of paying clients and with and to business coming suite solutions. Our do full cross-selling focus simpler making more off. to is us industries

talent few support and firm our benefits development brokerage appoint our and Financial [indiscernible]. this its our integrated solution a software. us to quarter, the pertaining X portal Corporation's and major that us delivery a Just between move fully software we turned reward a global Embark using includes engagement consulting of with and A from request client their a multiyear the to through had of survey experience mention attracting WTW employee global work supporting Engage simple total and for to

health outsourcing for changes service health solid and a the which their our and wealth, with program, system include temporary And We're our foundation confident existing growth creation to major regional support benefits leading relationships a for actuarial a will XXXX. of a health of rollout in center. and to we pension provide in HWC leveraged

our to discussed this needs and landscape we've the integrated as increase environment unique solutions And approach. in requires clients' capital and in a on calls, the human prior complexity finding to right holistic, continues consultative

meaningful conditions deliver speed at the Our for resources ability our advantage and clients opportunities quickly each. creates to helps take right and of move changing

to see the our In for clients help of business, we for continuing plan They're plans management trends clients to us X tailwinds and environment the through looking are retirement effective increasingly specialty solutions as care around our are ways business, that and status. in their buyouts. on highlight address change population can their XXXX. for rate with more in And health health [indiscernible] annuity world. cost the the I'll buy-ins capitalize to improve increasing pension health look derisking to by

XXXX. XXXX plans With we largest ended in corporate business support growth during at pension trend U.S. will and the status the this funded XXX%, that of expect having

also between and into to segments. expect extends quarter to our XXXX with also connections continue cross-selling X We smart growing our this momentum

cross-segment the solid our colleagues We tools understanding full of and and facilitate identify continue of a services to to opportunities. arm all range our with

made administration in in design, client that illustrate engagement drive also multiyear solution the expansion. with at a company a began a large The this HWC our progress as enhancing X-plus originated growth of Two engines review and and and over the quarter a arranged a approach, past R&D years by is colleagues increased media benefits wins benefits CRB with the us health P&C to of fourth retirement margin X power we've major insurance that our enabling broking column.

tightened $XX a program the productivity quarter, drive realized benefit strong We incremental the on foundation enabling transformation discipline. improvement continuing us to of to our the savings and bottom transformation to inception. During XXXX. from from $XXX Similarly, for of program's expansion. year a operating program and we margin we transformation finish lay identify million year savings fourth adjusted continues of savings the million program, significant to cost line. the our the focus the to the million a in annualized to in run raising our another during saw our target and to momentum of accordingly, $XXX able to bringing are additional savings end $XXX quarter, and total been since fourth success rate have Thanks million annualized the cumulative cumulative by

$XX.XX XXXX to billion to of $XX, our detail diluted that hard confident cash we're will and on X-plus business revenue XXXX our grow, least right and we're touch over growth adjusted guidance at to adjusted targets work operating continued in mid-single-digit additional share more ahead, transform margins on our achieve earnings performance simplify improvement per total of margin. reflected our revenue, shortly. closing, in XX.X%; path past XX.X% our In flow to in to leading in free Looking years. the organic $X.X of Andrew the XXXX our

and the progress I can clients to colleagues I'm continued and continued want and and and and to confident to our service in profitable their pipeline, made excited I'm Based we healthy our commitment the sustainable ahead. opportunities we've proud of deliver on for beyond. momentum dedication, about our growth thank XXXX our WTW.

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

morning, Thanks, thanks joining today. us Carl. and Good for

our in both momentum, the our hires, in strong our in in growth & of our organic with quarter X% share putting strong the further at robust year achieve and of benefits the quarter, to we on targets, also for full revenue top of segments. and growth. rate X%. details enterprise finished year Alongside level human this and The the results. we Broking to a and and demand some full in us I'd drove capital to for productivity each margin XXXX continue bringing expansion line mentioned, Carl the position year investment Risk and . We ramp-up services our specialization like delivered to fourth As growth, growth the solid the ongoing our HWC fuel strategy financial

and diluted of adjusted the earnings was year. share for quarter result the The for per $XX.XX $X.XX

be generated to of some unless Health, reviewing Next, all X% time the last our specifically comparability that stated basis, Career the segments year I'll with organic otherwise. will compared results. prior the of quarter periods, provide X% segment finished an year with on growth. and & Note to regarding growth revenue fourth of Wealth results our spend commentary

primarily higher the employee and fourth higher growth in Retirement contributed of in XXXX, across project was of X% solid driven continued and quarter. significantly X% HWC's increased increased and all the management in compensation grew our activity. quarter, also generated positive portfolio quarter points book new regions outsourcing. marketplace X% pension by global project brokerage our in XXX increased Medicare by delivered similarly fees. the will to additional We activity the basis for when services sales XX.X%, and on the Investments quarter, business compared of project the year America in by growth outlook benefits driven the and expect life expansion excluding prior acquisitions and margin Career to or we impact fourth Delivery Advantage volumes results The and client Wealth business increase driven health advisory benefits and increased delivered Going another policies reflecting Board survey project increased related to confident growth client Europe of of derisking work executive international. by and experience. transformation to quarter segment. growth for Benefits for income Revenue into feel Europe. and driven some activity for savings. modest operating outsourcing the to North and in quarter. be placements in increased X% compensation driven related the by as as brokerage individual work the the work in well X% growth

for For the prior XXX fourth revenue an up margin basis an operating HWC's organic Broking points Risk increased year quarter. year, the exceptional over basis was XX%. & on to full XX%

plan investment with QX organic million the enterprise of quarter the income year. for results, Note in $XX up include we that materials. on was income at impact our levels the to the XXXX $XX beginning last from million growth quarter, segment Interest and fourth

contributions as strategy. organically XX% organic the mid-single and pursue grew with in our with in or in digit continued segment growth from the specialization XXXX are platforms for better and identify talent For full investments & expecting year, line our opportunities we Risk Broking revenue we

renewable activity, Corporate Risk and revenue revenue revenue quarters. from quarter, we improved last growing & and business Broking the the robust retention increased had client business another levels drove seen XX% trajectory have organic growth Higher over organic new strong in rate couple continuing of growth. the of increases

contributors globally led performance, retail, the Solutions, Financial strong lines natural growth major management across led Strong crisis CRB facultative Our construction. to Phoenix by growth by and resources, in P&C was be specialty continue Europe to facultative,

and Phoenix. marine, benefited the leisure new construction, we as aerospace, industries North from estate strong and Natural business Resources which real strong in saw in CRB Natural we America specialize. in demand and hospitality Resources,

all Our Technology over a business quarter, was comparable, organic and activity. In the also exceptional Latin on international revenue across including strong X% business, by Solutions, XX.X% growth strong point subregions year new Consulting quarter. top Insurance region for XXX in America. contributed the of growth, higher with and year including the prior over period led was up the R&D's Technology fourth prior fourth by operating driven increased strong sales basis increase a project margin

strong to benefited see continued from modest driving exchange The partially some tailwinds margin operating productivity, and and technology and greater in income, hiring continue results offset yield expense platforms. and transformation, by to from investments people rising increased interest foreign We also efforts leverage. discipline our activity

year, increased XX.X%. to year the full points over RMB's prior operating XX For basis margin

mentioned, we in this to announcement. opportunistically initiatives talent invest plan in As segment our with in Carl strategic and line continue to previous

margin expect full to continue year we XXXX, basis. on For expansion a

business increase of vary the basis was the RMB adjusted that year. of enterprise quarter uncertain investments, At prior a note pacing Given the please margin scale for may margin XX.X%, the the operating from expansion point seasonality XXX over level, quarter-to-quarter. and

points basis the full XXX saw improvement margin XX%. to we of year, For

benefits of $XXX since part million program's of the incremental the transformation expansion year. total The We of margin inception. for had the fourth savings transformation of drove program large bringing a our the million $XX our annualized for quarter,

additional we optimization $XXX expect Carl and XXXX. opportunities. from process target savings structure growth end As come primarily technology help mentioned, reduce additional unlock and savings million raising which savings by The and cost will are our the cost to to further modernization of long-term our we transformation

The which total on their improvement serve by direct program to at now infrastructure Along estimated transformation creating for as a investment, amount the catalyst is an with efficiencies. of drive cost to achieve to from billion. $X.XXX these additions will additional return further

item was in net from the million million full XXXX, of $XX primarily unallocated a headwind prior prior balance. a Our the over to onetime increase for year year, an favorable $XXX due reflected year

EPS and the year. was a Foreign for a for $X.XX quarter exchange $X.XX headwind tailwind adjusted the on

recorded with At pension adjusted headwind current expectations. rates, with relatively spot impact foreign expect line in our exchange have XXXX, to income we a $X.XX on million in EPS We no for for QX. $XXX in XXXX

interest expect movements. we performance the million with market XXXX, in driven pension decrease $XX For and rate income by

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

quarter XX.X% the quarter Our to adjusted XX.X% for compared fourth tax rate XXXX. for of was the

with the our the XX.X%, prior year. consistent items prior rate Our rate onetime for items tax was rate. XX.X% U.S. XXXX lastly, tax there in were resulted in adjusted nonrecurring our in versus tax for which tax was GAAP in year. adjusted QX, the year year XX.X% And Notably,

adjusted Excluding these EPS would would diluted tax have and been our have been $XX.XX. benefits, our XX.X%, rate adjusted

and our dividends expect rate repurchases we our million. We to of benefits. excluding full $X.X year XXXX closer our billion with returned in be adjusted tax share XXXX $X these adjusted XXXX, billion to to of onetime shareholders In tax nearly $XXX rate,

and an to currently of attractive view We capital to create share long-term a continue value. capital allocation use execute as disciplined shareholder strategy repurchases

which repurchase remains. continue billion current We shares share XXXX in $X.X expect repurchasing under authority of our approximately to our

other conditions, in relevant expect to repurchases factors. million subject XXXX, $XXX approximately We among of market share

costs. cash transformation by prior cash XX%. operating program-related flow. from were of our nonrecurrence the flow above flow reflected TRANZACT's margin increased by in in of headwinds onetime offset XXXX, representing improvement partially improvement driven generated The billion was and period, in cash a of the XX.X%, year target We These expansion margin free $X.X free of comparable the improvements

our to Turning financial XXXX targets.

mid-single-digit We to towards revenue work of goal our $X.X-billion-plus. expect as growth organic we continue revenue

We to to margin XX.X% expand end XX.X% the expect high the range. our operating toward adjusted of

earnings our share target diluted on expect $XX.XX of to per adjusted $XX. also to We deliver

we cash expect in margin. free our improvement Finally, flow incremental

our full are for relentless operational serving our our XXXX progress, the a strategic fourth quarter focus execution on continued Our results colleagues' to and and year our testament clients.

into with momentum and very our as on continue we delivering We are pleased to performance XXXX our focus expect on targets. our

With that, let's up it for open Q&A.

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

platform it stabilized say that And finally I'm the like year. you to going feel last does

does it -- should your future. So well it bode for

& rate us of new to On the give on versus you through business think 'XX, the you for sense is run can outlook mid-single-digit benefit a Risk going inside how the guidance Broking, increases Risk line. in the Career on . quarter. And the a BD&O Health, the lower Can you fourth weak your line then the talk there? & in was -- about fourth Broking and little Wealth outlook and/or

R&D. So with starting

the we effect begin talent the with and what however, it's across of of few in we how reorientation into effect on. me remain mixed in continue bit what's headwind Let mattered The us difference and investment portfolio feel specialization will rate for terms the the going over frankly and for into of last XXXX. business and going in view significant has years a tailwind of, the the as or us is a terms to markets a made don't made which really differentiate XXXX the of towards we've going XXXX.

to revenue human XXXX. not global respect are around And in constructed us right? our story as confident we're specialization care in a The NASH changing this forward, capital environment talked current have apart We've to of HWC, than pipeline, see and will P&Ls, in from our landscape growth that as these remarks, interest Connection I approach, rate in HWC our we specialized going opening activity. divisions, result we which do anticipate mean the around momentum we our others tailwind. directly XXXX. highly looking global And our dedicated costs revenue of businesses, book with earlier. focused tailwinds growing for just And cross-selling to and sets businesses these growing industry very our With mentioned derisking to writing complex And responsible approach to that industry. in pension specialization ties personnel, has our a faster overall increased about mid-single-digit impacts and much with to accountable trends lines is just practices, our opportunities 'XX. strategy another we Smart expect as be as these we continue health resulted

benefits. Okay. deck. That was investor of expectations, sense. that I slide to I XX% XX-year putting on about a more around like that benefits XX some free getting think color is wanted some get you parameters to when the And XX%, looking on going management in negative target, and are X-year target? margin of And to cash you focused kind inside some that comments you those Slide long-term objective? what you're makes where pivot Or the some objectives I'm what about for your and that of flow to is plus made positive that a

year-over-year the we in incremental Andrew. Yes. do for expect was XXXX, target. progress work long-term on the a but XXXX question. it margin in flow margin Craig, towards as cash basis. improvement Thanks free good it's XX.X% We The

in factors. X see . and main expect through really XXXX that margin improvement We beyond, to

margin going things footprint We one deepening expansion. and area to a MGUs, greater not leverage business MGAs, improving is our just nature. of result that but mix intend in of profitability be by do our to through So the the transformation of this driving example, operating for first also as

through XXXX. the the abatement is which piece half of transformation-related second the expecting spend, first of The we're

that be the the next expect conversion in -- of TRANZACT as The changing to the which a the the we third maturation well cash is of improved years. business business. business few positive piece product going the come as That's within mix to result within as improving

like some is software. to in and life our that. support factors growth, investments of by Over And side for where development things mentioned new invest those MGA temporarily term, I and the be cash as progress business future product on of R&D ICT the continue going business near MGU we HWC offset an to also to example

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

My first on EPS guidance. question is the

last high reaffirmed I bit the July, guys expect to operating at and end that little gave summer. the believe, is midpoint the target, a the pension, you in but of You come margin us of it favorable like you relative guidance update sounds to in the guidance

the and So towards you why the up tight you the towards upside in do maybe in range start there's of the or just of like conservatism could level not feel range some come the upside year? to

Elyse. the Yes. Thanks question, for

'XX EPS had target So we to $XX that for of range confident set remain $XX.XX the in we out.

expense out will the we the about you thought and portion income. puts share in all headwind of offset operating in As be along we the well $XXX rate. we adjusted as coming increase with increase very there, and confident range pension activity our the about income, a there. XX% those felt there. and mentioned The as of puts you landing interest laid mentioned, through takes when some see within we takes, about That And a share tax meaningful as the that supplemental repurchase from materials, there. can expected million

guidance. my share repurchase then the is second And on question

in So than yet in Andrew, free though your 'XX, bought not then, the right, right, guys, should you a lower And I cash conversion that's think XX half million what 'XX, first I the million guess, should even you guys back said flow RE earnout. the from I $XXX $XXX improve, level? Willis you 'XX receive 'XX, in event, believe, right, from it's of

of part just to in free equation. So more million is and improvement the square trying it level why 'XX. I'm buyback flow cash lower be the would 'XX of than or $XXX the M&A in buybacks

to took million, there in incremental keep stock mind level year, throughout the we the lower leverage opportunity The debt buy May price. where capitalized the on expectation we and than the you have was year. when to shares is throughout right, 'XX, 'XX, pressure for on The on $XXX more in Sure. our did that $X some is -- billion

million $XXX continuously conditions. last did static, and And the accelerate it, year. we'll not the just presents to advantage if levels, we itself opportunity we take necessarily So share of market repurchases, like is monitor cash

as expect, as always to to evaluate all continue, share creation of carefully We part that internal have. options M&A include our we buybacks, of allocation investment does you we're shareholders. which for value ensure our . might capital considered for as that strategic maximizing and

Our line next of Cox Robert with comes the Sachs. Goldman question from

where is flow be correctly? Maybe restructuring think ahead the TRANZACT cash free a I'm similar thinking question to flow to future margin improved when that you've exclude Am target? Or a cash already received correct? I about so on a meaningful flow there year, considering? if any long-term I upside there get free XX% couldn't restructuring Is to charges the drag are cash cash flow free you X, the over this not headwinds in cash some when I has And free ways. and spend But XXXX. or million XX% to margin in that $XXX

I revenue necessarily long-term for Think at course, long objective Rob. converting as as time when that rest the those some of think think to that does got same you generally, example, XX% and I for rate right, drag the there. the on focus free able we've it's TRANZACT, take the our after not you're the about materials business. math the abate it term, is in there, our I And correctly positive there margin, free that thinking will flow cash over the on cash headwinds of it's of a well. turns because still grow continue to the flow plus about

calculation. that margin dynamics into the other there's So factor

broking those talk And follow-up quarter, sustainable just on versus business. on last the incremental are savings risk the expense Okay. started you of program. enact the the And expenses about that some transformation in then savings of quarter to more you outside just and last quarter? a color Could the in some things how

That's platform. we're specific we I sure R&D. But generate expenses looking to across to on ongoing business, balance add been make that? platform. revenue the the Carl, Yes. about, operating savings anything that . which with expense leverage is obviously, There's transformation to on -- the we on think, to the just of focus And discipline not that weight parts investing year. during growth across we've top that certain talked in you'd for the the heavily

opportunities highlighted have the base in a quarters, that on Yes. substantial that talent right? And and talent, principally in investment is as I business, that opportunistic smoother hires we right, I So just at of greatest offer right? profitable expense story, we momentum which a full we and see growth, the point leads ahead for it's to strategic to guess a potential geographies rebuild opposed our the on story a growth. we're back think this as capitalize we've in now concentrating prior pattern to to strength,

from Zaremski BMO. with comes Michael question next of the Our line

I offsets in said the flow. development. one was cash cash the you investments just Back product of believe to free

to looking one of maybe revenues. is than as So your guess, level it'll maybe currently offsets. be a I And to rise be kind I you of are ratio higher historical guess, it alluding bit a we at by CapEx should the divided of

or to terms want don't splitting am some in of commentary? hairs I I -- your of

good Yes. question. it's No, a

be modest to temporary invest offset it the continue BAU would last expect to I'd been right, say build future and depressed -- platform we tailwinds meaningful to Obviously, the a the spend somewhat and recall, that as on little we the the on relates margin, the Just couple been over uptick CapEx, perspective spend increase in it right, years. from a it's would out of CapEx, of a I bit ratio to a as some just but transformation mentioned there's earlier.

color good on sense. makes really That And Okay. HWC the segment.

of interesting kind to think Specifically, guys defined much growth a I segment, hear not maybe which it being rate have about has of a leading a talked benefit that historically, -- retirement not a was solutions high you or know as Willis I grower. retirement, of long-term

want But tailwind of in make those to business, I growing is is term, like the understanding a because said just it you environment, it a to which near correctly? of I'm comments kind the sure sounds 'XX.

Yes, I factors forward. several going have think see retirement We the us for got we working And as that business. do right. you've market-leading

pension we do Given right, strategies. clients environment we're equipped that well the our for status that capabilities ourselves our remains to that to the funded help better, enjoy, positions a economic And clients the fund journey. in derisking with find is increased. are the And and with substantial there appetite still

have In the of talked growing Andrew juries the investments clients efficiency landscape, in about strategies, attractive are business, corporate as the made addition, where retirement. our a earlier, the number enabled such to pension economies of these of just an LifeSight in gain master provision for in trusts our we've place growth

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

I a your experience wonder kind business was quarter. influence BDO organic for the a just the your in for that it little about you long-term TRANZACT, if was below any talk growth . average change The whole. this as of bit business And market? does you outlook see could business? the what Did

We look commission they just spend growth generate don't growth opportunities is run guess seeing Well, that's are policy economically is the if for we opportunities. sensible. the TRANZACT And we're I it. at to it profitable way we do if necessary

I -- balancing we given made, and the this think, ourselves very So we [indiscernible]. that and growth found I a we manage choice a where in place year conditions business, profits, think, sensible

just X to add to Mark, that. thing And

on some QX the of growth had HWC. revenue time we call factor last which component that quarterly business, mentioned If into within rate that I think you into recall, the that from did had we

business it is growth the you we think way to the rate really in best head the look where I if full think at the So representative to year of about future. expect

that? the the there verticals you then that for most And think was are are motivation promising. And any client particular what strategic engagement, Understood.

Yes.

you're is think team, referring to complex account large I right? the that

right. that's Yes, .

portfolio entire Yes. their our can combination natural help macroeconomic like That's across to analytics dollar and our could approach social facing things this manage we risks. So inflation, them I our return a best footprint, clients all about. our the complex, environment industry-leading of think we tools, the that right, mean of global leave disaster, specialist that's ensure for is clients challenge what the extent customized right? the help clients to our their to get specialization premium can our geopolitical approach compelling that offer proposition

question Our next with David Motemaden the of Evercore. line comes from

had a was sooner expected. drag to to from that flow cash then had the I impact expecting in a positive point on think which had you flow of is set near level us a XXXX. out, basis I was question like free Could cash much guys are margins it XXXX? it you in you a just adverse in it little XXX free than guys sounds And called TRANZACT term, about how I be

if So be about could that, just would talk . driving what's it helpful. you

Yes, sure. year-over-year We had about margin XX business. that basis in cash flow free improvement from point drag the

have that we've portfolio, the the different different think on within products and few with cash business progress drivers quite the as products to that cash of there portfolio focused through made TRANZACT. profiles. pleased within that The next So the business conversion is product getting we free as more matures in flow of years positive

that appropriately. balance to seek we So

As profitable always that that trade-off Carl making run business there. mentioned, decisions growth we we're

part will to the that, business mature. As and continue of

us a getting will that as that we think be to free cash flow into to contributor positive business So well.

Got numbers of big And businesses at higher specialty size businesses mentioned sort maybe have you specialty you the how your that growth what rest . And the segment. are. Carl, just, of had growth Could they're just organically? put RMB growing it. That's around rate the than helpful. and some

Yes.

half the the what portfolio our nearly at of mean, I businesses think So way CRB about we fair And used as global of twice looking we've a to for it. growth our a I or rate specialized classify amount the lines business.

So the that. on you back into I can math relative think

Cowan. the TD Andrew with from line comes question Kligerman of next Our

at growth an So number exceptional that XX%. was R&D

to groups. just going how still on down kind more new that's -- curious, to now little? slow does hires the I'm think it going . So a got in at again, make process? little the help forward, client Carl, strategic opposed next How make opportunistic. it it going as about and that people helps involved boost said in quite the -- we strategic new you that on, terms specialty want or sure And that is them Or looking the on just I to engagement a you'd hires, flat, of to I year not should then just think you be clear understand be touched how down because specialty up new little, of that mean you've a complicated.

Sure.

always of a with all, revenue, that attracted strength. We've job who going of opportunistic team years full find and First going Garrard we're you if the I be think said regard plans, in couple fabulous continue back add on respect to can be we you're With are hiring. I base. talent of proposition, -- last But craft Adam value correct. talent to people our acquisition to this we're to to... over invest the with this on building to has and to can focusing business we're done done strategic

the in how that The opportunistic should new be bias hires slightly then? would up I Is approach. take

trying right? it's to anybody is best-in-class And several the over to the have, that their I I regard specialization. strategic With that we There's for where of last be way, just involves than equally Andrew. add right? sake I'd hire base. engagement, the are deliver this client And value. that hiring, client engagement, to making understand would needs, at the don't think our their is for look to we -- fulfilling We risks think sure anticipate that lookout we way going on can it I right? on right, we service then client better for which our important. we And a quarters, We're else. continue to hire And talent

not So as a view and a this but. I

focus profiles verticals, focuses organizations. a is on risk may the Fortune of XXXX the particular, where are clients to industry complex strategic engagement going other what more the than concept more And in think type but and really be client about expansive primary be

comes of question with Kanal line Yaron next from Our Jefferies. the

want Elyse's a in seeing question And of there? higher potentially guess going see some restructuring. question, guidance underlying are at . the pieces back the from that we essentially Elyse's goes to Or and time, first move when the the call. I in we of my question see we earlier same actually cost we're saves back bit, expectation at namely of I offsets there guidance? EPS again, seeing guidance you remain margin is EPS degree see some to the conservatism unchanged are you sure unchanged. and keeping to and make a just where

Yes.

both think of it's I bit little a there. probably

We and of are play takes are make expect well. to -- that that commitments some as to focused on delivering XXXX talked through on we want the And our XXXX. puts we we for about sure

end guidance, can a on would would variables versus And foresee lower maybe main the you kind you that elaborate the what Okay. what to that little today bit end variables get the the of that you of be are. upper

Yes.

be driver our leverage that might right, biggest factor I drive that think biggest current going maybe think operating the be is the will incremental be to because so there growth, expectations I will -- organic there. what above

from Next question with the line Mark Marcon Baird. comes of

questions. Two

did of lines? keep truly this think how still settle on Xx other up said do you First, general and they you and new talent long How the because relatively the to additions market, going of lot of enable that will of In level we to gain a the is in the this words, can you're you growth out. -- things have Or a to continue higher and or to differentiated specialty you lines, basically share. the lines. specialty growth the boost extent what on generating

we should from a how . longer-term that about think perspective? So

long focusing to in business remember, through we part very time. couple successfully enables delivering over analytics broker attractive around very proposition. are this in that of. continuing we're and that that we for organizing we the The XXX doing play We've the years, we've likely value So to nearly of would these think to invest, I as and a So been client businesses, we someone's opposed actually return us us, enhanced right? see side differentiator We that on next on that's strategic, that and of to see there. a right, where been out that this engagement superior the don't a not abating. for is has is are And specialist it's a very on argue desk. focus this itself

talk little boost a to about Great. the getting bit then we in with up rates engagements business . can and retirement much IBM and And ability to in how pension end change just the could of you a shift just the policy? extent what additional the of any does their derisk. And news to in -- terms then getting are regards the with you that made

pension stimulating on do So and into the macroeconomic see are just goes I and us do the that as is mean, environment of into buy-ins that clients them preparation so and going and funded for talked transacting XXXX. the our analysis we with not as position we've the that think where demand them plans necessarily buyouts we and helpful about for

And some as right, clients transaction. on of that will derisking episodic take be

plan. there's This year. X were evaluation. may with defined is respect with to situated. well their reopened alluding to interest And positioned who benefit to well the guess, out throughout to and I be there help So pattern clients sponsors where going it's be that other poised on at plan And similarly a least was, you the not examining clients we're behalf of this

& the Bruyete, line from Keef, of comes question with Shields next Meyer Our Woos.

Two quick questions.

verticals. that I Carl, about sort XXXX Fortune First, the hoping . XX outline represent? XX much talked was verticals having could you And you of how of

So quite I think don't that right. map is

equity, a of see smaller For well. stretch this to as organizations nor alternative the We right? around private down strategy. our instance, it verticals X focuses verticals large industry confined is public market, necessarily So equity to industry isn't capital, right? the

significant answer across is the with our coverage there's verticals. Corporate So America industry

focused think on and broad say, quite hospitality. them quite are are some of them we value, areas we of particular can deliver where Some

Okay. No, fair enough.

or full to group not tapping back sure how Second, but that really talked from and see Did about productivity to there full how the the -- Adam's fourth the [ ask over I'm to XXXX. margin? brought cadre this of either we momentum . question, overall in you levels. still quarter course Is this expand for [indiscernible] the of ] newest productivity some 'XX,

we as have with while our do our the picture hires. happy colleagues the latter. we're cohort part the much progress productivity made colleagues see existing of see newer increased for of and being Very last Yes. We that our do -- both very

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

be at was growth in pretty Thank a be to we the want the previous aggregate, Or coming the think the rate segments. there's . beginning be trend that influence Is to back seems way orderly, quarters your for volatility. of you we general the a quarter? next in organic volatile. seems should operates? difference about run Greg will of to by expect various the might the about were In that right much from segment, quarter very business expect the lot growth how rates I go there just rate Should segment asking the but to question that growth to there the a a

Yes.

of are I think play rates. business which have quarters growth timing year-to-year. between you're about asking out and do seasonal Parts things, our sequential periodically we

rates something tend our So is to that And is why keep growth we for on to businesses. in mind. full year that focus

XXXX in seasonality a Does should the . that the consider in seasonality represent year? shown XXXX we

quarters and of the think be timing course, of For to were through I couple some And the where of amounts part, those, there going the think revenue. the other of things, about did got that you were largely forward. And BDO call some of the most example, between the unusual I but QX throughout the larger throughout book for sales where of a out couple QX things. swings impact year, year. to expect of there think a had we in we

from line of with comes question Citi. next Our Ward the Mike

I relatively to spoken but was just incremental savings. curious, the you've margin consistent, guide some

about benefit actually think by some being Could . costs. So should those that wondering if just margins? maybe savings we XXXX offset

Yes.

that regard range. future really about to be from I that do regard unlock to for of incremental savings in additional are margin end benefit we future. growth obviously investments talked but we're some toward the us XX% opportunities with as as target, There's opportunities had leverage higher we making the So will expect the and that help also the a mentioned operating

investments do the for So beyond continued year. this be tailwinds we're now there'll think of some making we

curious you we talk you've expect kind book . a some year, then running. quarter. to is And how the a XXXX for should of much if of the year book Wondering If about this gains Okay. could spoken of in gains. headwind is attrition normal just where

expect towards our return normal back No, historical we to level.

going range or the sort level forward. add about expect bokanes are we overall attrition for we we've company, tailwinds So significant well just would within of I historically. the the don't had any from to headwinds back thinking at down

a situation very manageable So for us.

Our from next Meredith question with comes UBS. of the Brian line

the for the just on curious growth in had year XX% I'm Carl, you R&D. organic

out You of to . mentioned Is are that was improve? it retention. was client client new to parse and how for that retention. kind your historical is growth of retention way that was a much of back levels? And room business and it to of there kind you the there Or kind more

of see, service. is result and We a that is client are which back, to great superior

rest on behalf many where not think do I are. nice many, be we laurels, many, colleagues but I to it's our of on very

been [indiscernible]. very performance and rate proud the what made on the new has with can Our WTW really effort of team business the first just has we representing of in do

change? growth to second as they out? continue you expect Great. economic XXXX respect question, type the And your are with Do inflation just what look baseline with Any and assumption kind . are? then outlook, of of to I'm way curious, the you things

mirror great the toward not looking right? dislocation, way nor looking we there's on us mean we I not it manage economic do recognize think out volatility. of more in them that of for continue sort help dislocation the there's for that We're far one, does opportunity but the sort too they to incredible -- geopolitical necessarily are a are anticipating look, incredible over back not clients, our there. is lot That volatility but of that

over further the to I'm turn to in now I would the showing queue. questions remarks. closing for back no like call Hess Carl

am a all year XXXX. look WTW us forward thank of achieved XXXX. proud such strong everything work I So again, all, of to us note the for help end for the appreciate momentum I colleagues who globally to will our I on in joining we've tirelessly you us. keeping up

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

now You may disconnect.