Willis Towers Watson Public Limited (WTW) 31 Oct 242024 Q3 Earnings call transcript

Good morning. Welcome to the WTW Third Quarter 2024 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's website.

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

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

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

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

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

everyone. XXXX joining WTW's us Good you for for Earnings morning, Third Thank Call. Quarter

Chief is in by XXX organic We X% year-over-year driven revenue operating growth, our Joining success driven quarter, to cost and of basis & leverage, me and the another Krasner, Risk delivering transformation XX% Financial our margin discipline today XX.X%, expanded strong Adjusted in operating program. Broking organic Officer. by points Andrew continued had HWC. growth X%

a third earnings in increase resulted together, of Taken quarter the this per share versus of $X.XX, XXXX. adjusted diluted XX%

We months also million ended $XXX year-over-year. generated X free cash for September XX% the flow of XX, up

to which treatment of accounting of business, loss the the TRANZACT discuss Andrew will While due our in the results GAAP sale our more reflect pending detail.

performance fourth quarter. strong gave momentum the entered third us Our quarter as operating we

performance in talent fuel are resonate marketplace powerful to our in our at investments proposition returns. helping and value Our technology attractive the solutions continued strong continue and and

on the from we targets. we transformation could do possibility these us confident for we're for continued expense our within as more see we supportive margin factors specifically, talent, quarter, the Potential will better-than-expected and of timing relative management savings, demand environment global M&A opportunities some come stronger to activity. last targets, our those experiencing, the upside XXXX mentioned goals. Alongside in And of make rebounding productivity performance investment work

share me even progress. TRANZACT achieved intentionally In and our we performance X% the in moderate quarter this continue highlight let we Now on growth organic to business. quarter some growth our in that as details of strategic HWC, developments our

wage remains While employment and of somewhat various growth in slowed world, parts the strong. demand

Our X% in notable and outsourcing, X% and services. HWC compensation global derisking X% and surveys, Remuneration health, career. gained in connections appointments for assignments. and in growth our health core capitalized also retiree in resulting Core this management, and on our benchmarking Committee benefits remained activity benefits Advisory in grew We've smart new focus growth exchange continued Services, actuarial total rewards care wealth

than new include Maryland state These a being actuary customers strategies again can't they countries for designed in solutions breakthrough than in quarter. captive to mitigation cost and a a insurance new captive we wins to XX-year from bidding where will be introducing affect virtual named XX,XXX add market, employee and individual this solutions to XX we process, exchange several that of the through of company. the covered We unseated our traditional record care track U.S. that major incumbent. Continuing utility risk health more introduced lead benefits competitive our the more us a

Our and analytics. approach data aggregation incorporates predictive

sustained reductions also turnover. cash effective proposition, culture the risk modeling minimizing while management It cost employee reduction capabilities We to of organization's in predictive end-to-end achieve The workforce to a impacts an and to manage new includes in also communication includes management developed unwanted change proposition solution limiting support force. help flow engagement. organizations and the targets

engaged with workforce some their our teams company's marketplace moved program, retirees retirement, HR cost pay retiree HWC a did an by employee services to of insurance and working and savings. gas a cross-business company experience, individual was across finance continued to to also has design rewards, dividends obligations separation connections that the their it transfer to medical smart concerned support and and provided carrier. as when BDA life Colleagues on focus across Our to and we

European In another example, client through and technology risk with needed CRB help going acquisition employee recognized that a corporate benefits. an

on introduced XX% the pace period. Risk they integration in so and and And grow the growth at continued diligence, organic prior WTW HWC. employee team brokerage this and due delivering supported XX% planning services. Broking benefits of to the top Together, growth of strategic year quarter corporate

this generation investments strategy, business performance. specialization technology, and contributed talented to excellent in client all strong substantial new Our retention rates

specialty continue segment. growth the generate strongest Our in the to businesses

specialization our driver of address growth. primary to Our ever-changing our has continues a and complicated profile better focus on organic clients' be enabled risk strong us and to

to our expand progress continue by rapidly strategic and MGA, data our Specialty and on services MGU, affinity also strategy We analytics, developing products with make to Solutions innovative and partners.

me developments. update the Let on you latest

in and client new large new to complex for reflects on focus risks. of which our beginning as clients introduce First, the year. bolster and North [ insurance insurance in since efficiently offering, the edge launch Veritas brokers new will growth ] capacity risks facility Verita, well at to expectations our partnered called its innovative option Insurance venture our Verita market as U.S. partners. market recently exceeded bringing This deliver property a additional open America need To middle the has with MGU Canopius capacity solutions

administration Second, enable a brokerage advisory general [indiscernible], expertise workers' [indiscernible] liability and analytics insurance auto we sector with our announced a and and the and commercial of sectors. platforms offering platform. bring top-tier [ meaningfully to compensation, liability, data industry a insurance insurance distribute variety solutions us to to This for specialized property, tailored insurance fast-growing to strengthen and there. tools will partnership collaboration ], affinity our presence infrastructure with Cana Together we're

offerings. lead development insurance product specialist the teams broker and will Our all

exposures The of in was American our R&D North companies Mooring quarter Japan. announced will co-brokerage third strategic focus the segment agreement J. at headquartered our on partnership this which Company with

high-margin to in risks. our relationships industry carrier our value chain strengthen growth WTW's and have specialization parts skill been unique on specialty expansion and insurance risk to Asian set companies address These complement driving will will insurance solutions tailor in them focus will with help organic management margin-accretive the vast needs which strategic R&D. and and now access drive which to have of to continue geography-specific partnerships

bringing Moving incremental savings transformation $XXX from of growth margins, contributors to total both leverage million savings efforts the margin key and $XX in this program during were cumulative realized The operating since program inception. to expansion our transformation million to the quarter, annualized the annualized quarter.

life infrastructure impact leverage drive the positioned made, direct the is the the we've technology, across made have better to of efficiencies program and into well to the addition continued investments in further us transformation processes In and future. operating

management focus our activities. with management the growth Finally, update you opportunities I organization on strategy and align last want significant profiles core and as that we years our capabilities. cash over is our our of on strong flow businesses simplify part margin to and work X portfolio to Portfolio to also

this into As a agreement TRANZACT. we announced definitive sell to entered earlier month,

to the divesting later. Atmos our ], only simplifies to in going is of we Andrew previously on walk only investors. a options expanded U.K.-based manager to investment our institutional and BXB a the [ TRANZACT growing the portfolio, which core WTW's allow progress uses details toward long-term wealth minority diverse value are interest in was free [indiscernible] business and through between a has trillion. wealth of which and available Elsewhere engine that activities. array and [ goals. expansion margin acquired direct-to-consumer $X.X and strengthens WTW alliance our BXBXC flow existing individual sale who the an Atmos accounting our significantly and of with our with wealth financial and relationship business, its cash stake WTW's also our broad ] strategy accelerates TRANZACT to U.K. strategic Atmos. Notably, clients investment this our penetrate focus will This estimated to provide investors sale portfolio were market market large Optimus

internal process, our all with profitable These strongly M&A. growth. through continued value to portfolio businesses consider strategic on which I strategic announcements with repurchases, ensure reviewing and actions, allocation focus options well partnership to and considered management maximize aligned capital we earlier, share disciplined investments our positioned portfolio to This our are along shareholder creation, our including dovetails our drive reflect mentioned the carefully

pleased and efficiency. ideas quarter and performance, focus third work team's reflects with In needs our hard closing, our innovative which clients' with to we're meet our

As excited the and focused on fourth executing we by the enter market. and the encouraged we're response our quarter, on see strategic the am in I client opportunities we enthusiastic priorities.

we'll confident and I'm strong objectives. and year momentum, positive finish the have achieve We our

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

were $X.XX thanks to over adjusted expanded and today. morning, an joining we of the of XXX and increase Good X%. quarter, for year. organic points growth Carl. per delivered third diluted earnings share the In prior XX.X% us Adjusted margin operating revenue basis XX% and Thanks,

to continue our us give XXXX in financial Our confidence targets. achieving results solid

segment Next, on organic results. that comparability our will the to I'll segments basis, prior with be regarding of spend periods, specifically all Note unless results our otherwise. an commentary some time stated reviewing provide

the Health, of last grew to X% wealth compared third quarter revenue and career year.

X% a income. in generated and or in solid the quarter local our business client increased book continued the driven retention, as strong Health Europe with international, client business generated by benefits of North global Our of of brokerage portfolio. was revenue for management of excluding growth activity. growth America growth appointments growth X% along Double-digit expansion new result

the for commission based continue strong the single-digit our quarter, high business, expected year by our driven Wealth pipeline for in in work valuation business third on grew due our the retirement stream. primarily We expect to revenue Europe. and X% in to growth growth

a in growth our deliver survey in X% sales markets experience, participation growth and from benchmarking we and We the Delivery and the our of In saw to rewards. employee Investments our analytics [ compensation quarter. [indiscernible]. and Growth Korea improvements in also due of solution. outsourcing X% of quarter business data last decline delivered growth sales solid year. compensation our working increased had delivered in custom growth third helped LifeSight for capital Benefits versus ]

quarter strong As related growth benefits a moderating a project And been client our due well faced a in Medicare administration. businesses. this other we the sourced deliberately and previously its health of in to outsourcing mentioned we third a have work headwind to during quarter year's as last timing BD&O reminder, quarter, as comparable discussed related last as

and with TRANZACT. low growth are was primarily XX year savings. As expecting quarter, a XX.X%, by increase margin result, we for have third to operating transformation year, an the HWC's compared basis without points to driven BD&O prior single-digit of the

Broking. Risk to and Moving

growth This in quarter a year. year. an Interest Third from the of last Risk was income $X versus with geographies Broking XX.X%. revenue XXX expanded in basis prior up business million & million and organic XX% XX% points Britain quarter all book to Corporate double-digit $X includes our activity Great margin of basis up on third was strong growing and the $X across regions. million quarter, had international and including contributions Europe Western solid operating

specialty major businesses. As globally Carl and facultative, led be strong our financial the performance lines to contributors growth crisis to mentioned, solutions by management continue our

We Britain strong grower the a also specialty CRB Crisis in FINEX and saw a Growth natural CRV resources double-digit in construction. of and FINEX businesses. also financial by our very led X aerospace. countries Europe Western Western Management, our facultative in growth businesses, Europe, solutions, region. performance largest Across construction by of strong number saw FINEX and had Great was we

strong construction, natural supported CRB growth and resource contributions had solid by marine America from our businesses. North

in and subregions, businesses well and P&C had Asia America across growth all all retail by region of almost international double-digit affinity. our organic growth specialty as Latin growth led and as double-digit Our in

its stable, is We commercial stabilizing conditions and lines from market North are rates global the risks exposures. Milton increasingly Hurricane but rates for U.S. are in the seem continue of impact Property, inflation. to rates, to natural motor still but catastrophe decreasing. softening the did remains uncertain. not and Casualty financial increase and American see difficult slowdown financial

Our stabilize, continue increases in political but with trade to specialty lines risk credit. and some

was by over a driven organic leverage quarter, to third Technology technology the our on R&D's expense demand Insurance the due Moving as point strong practices. the continued XXX double-digit as our transformation in for partially practice, and operating primarily quarter to in offset operating well management Revenue was basis growth with business. consulting and tempered Consulting XX.X% prior growth increase margin year up savings. disciplined revenue X% by

occurred will R&D But business full $XX margin in million expect QX, for as that of to the year. continue we a from book of for last in We year. reminder, face headwinds of QX activity expansion

benefits since driven enterprise to of and transformation the our of cumulative level Now by let's over the enterprise program's XX.X%, turn results. savings XXX savings, leverage the to operating inception. million level, margin total year million We basis At bringing primarily adjusted quarter $XXX had the the prior for incremental point transformation was $XX increase a operating annualized the of program.

million unallocated was the $XX Our negative net quarter. for third

the to expect balance year with XXXX We consistent continue to full be relatively XXXX.

a be a exchange EPS for adjusted of $X.XX on was At to headwind foreign approximately EPS for the current the Foreign $X.XX year. exchange rates, adjusted we spot to headwind quarter. expect of

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

quarter XX.X% the similar Our items, which the adjusted compared rate the previously to was rate, year's to excluding quarter mentioned be for our to year of XX.X% XXXX was XX.X%. that our tax anticipated onetime we rate tax last third adjusted XXXX. tax for for We

be more now current favorable. rate our moderately Given tax adjusted position, we to expect our

to of $XXX use to repurchases Continue view of allocation. central and the capital of our we During create million and an attractive long-term of returned shareholder the million. our to value focus approach to share repurchases $XXX share as balanced $XX million dividends via quarter, capital shareholders

our we expect and As accelerate of conditions relevant With based now for opportunities and we we year to repurchases be mentioned presents previously, opportunity share from up repurchases that, the million. continuously $XXX previous conditions take levels advantage market other our current itself. to $XXX market estimate the to cash monitor million, on factors, if of

the transaction sell cash In sharpen mentioned, transaction, liabilities. our accounting TRANZACT long-term results be continue for expected reflected The customary this agreement our to We anticipate subject help we the portfolio accelerate conditions. with financial goals. definitive WTW through connection and is to as treatment booking will the financial full not towards entered our target and of focus, us year do simplify closing held-for-sale to a later business. in TRANZACT financial TRANZACT. our believe progress in applies a regulatory statements pending Carl which date margin impact We approvals our of financial strategic QX, expect results sale to the the free As our be closing approximately to transaction to year flow assets has TRANZACT will and of

pending billion in not which The onetime over for $X diluted are QX. resulted in the per supplemental charges are GAAP share. TRANZACT's impairment financial adjusted reflected in are related losses results stand-alone are pretax and earnings each, of the in These included transaction charges slides. included historical noncash results and

to million that X to want driven margins of ended of $XXX months those expect the accretive from primarily offset operating review organic free we to flow now, growth, September won't million discretionary margin cash $XXX XX, for compensation I related the I generated outflows detail While margin. and in cash cash and adjusted do operating to transformation year, highlight sale free increase the be We by payments. partially by prior an expansion, flow

goal. expect and And performance closing, free In year-over-year be enable confident free us to TRANZACT, achieve our this improvement momentum to our XXXX margin of business expectations our continue our sale year in flow expect of targets. to very pleased our we strong flow We cash with margin. in full are long-term to cash towards the given progress accelerate we

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

James. from [Operator of Instructions] Peters Greg comes Our first question Raymond

This you is Ruben of of the Can flow? Peters. Mitch cash the and clarify of behalf free results TRANZACT Greg on on QX sale organic impact

to XX and and QX, enterprise HWC Mitch, basis in that in were year growth uneven growth thanks of organic note X% with prior It's the a for half question. XX level. growth TRANZACT results basis QX. point level on headwind at the at XX% the In in the was QX second your BD&O's points important

point relevant business for will serve So more unit. specific that the of results full a comparison as year reserve

a results and adjusted will have that For our growth, on margin impact free positive operating organic anticipate excluding XXXX, margin from profile. the flow TRANZACT cash our we

exposure a provide growth the As of follow-up, impact on can broken? color new you some and hires on additional growth in organic and [indiscernible] units

This Mitch. is Carl. Sure,

And they're growth happy in actually right? that growth that the effect only they've give we all including our the there. of Majority risk right? Let business, perspective drivers due with quarter. were for prior didn't me in have at pleased from you drove The the principal look we're you are really and And with growth, quarters and progress new retention of some new client the our we and to enjoyed as to new is parts, part growth we're hires, [indiscernible] made that the rate. but our really colleagues, hires. story, When

next comes Wells of question Our from Elyse Greenspan Fargo.

just guide. guidance saying my guys have this question, the you positive, guidance there to at to relative EPS end tailwind you there's in not lowered for expect but some year's So started of the we think you do of Do EPS guide? Andrew, Carl, tax the be off lack updates built XXXX year. positive high and margin by Is changed range? guidance overall change conservatism you the the these first up And buyback How the in? a to the about

bit we're talk That's expansion points with We remain we're with margin Andrew points So see about EPS. basis but where of we basis guidance XXX on margin We're and let had continue quarter. year-to-date. me to We really execution. XXX guidance, for expansion of opportunities for this global within range optimistic a guidance, the tracking our margin pleased activity including that opportunities Elyse, do the little about with talent creates to rebounding [indiscernible] both just opportunities potential impacting example, M&A timing to relative growth the trim segments. and within in in And there's performance without talking our continuing productivity The Mitch. segments, expenses to investment of both better-than-expected transformation productivity. find that from stronger for

a was year. of QX factors, the It's sale million lead to Carl, in also $XX happened of important outperformance there side. that margin in that of on those all business mind last to And keep could book

of through transformation headwind be as bit last really -- a the comparable. pacing year the fourth that in that a a would savings well came also produced that quarter and of tougher as So

Elyse, the deliver terms of end EPS pleased the and momentum confident last In EPS within EPS, range. execute, we'll raised we're to ability with our target and low of we execution. Year-to-date business that in quarter And the our given see we're our range. that

In start that terms coupled growth. opportunity the greater operating really Carl line any top to on alluded just of that's outperformance adjusted there, with to with to, margin the going outperform

amount are guys follow-up you my then that $XXX I And appreciate, into right, coming you good year's on guidance guys last million, cash this was year. by repurchase. but did of

have range, just right, XXX [ from million the the $XXX ], TRANZACT something from earn-out Gallagher in Re We the divestiture.

think in this coming you when you to approach So M&A. cash about all a think said Carl, door, I balanced

So I'm assumption to my just will balance probably considered, about incremental trying how going is is And more like to if bolt-on M&A think repurchase. banks. you're it be

evaluate we as advantage capital to our opportunities. appropriate investment take continuously opportunities repurchases of inorganic deploy across it's to share organic Elyse, ensure capital and and to structure

us. the talk the to given year. were to flow and So that target you where the want upping the year position we maybe, progress little And of And is do important cash about... repurchase and a for flexibility advantage wanted to maintaining on Carl, our really cash the in take free bit

a We've been while efforts, significant we transforming client able at we've through now the and base, a basis, company. right? rebuilt to from the we're time, Yes, our a thinking way simplifying the integrate in healthy long a X have believe to period, go-forward competitive talent Across to where this business. stabilized far allocation execute Since same years, better that our we've beginning in of about we to M&A, And peers M&A last the capital our to I a place And guess, approach place to We're brought capital allocation through organic industry, also on And return this those come a created and balanced We evolving. we've that's to value able growth. revenue component growth shareholders restored Elyse, our to over levels. is opportunities. started. is be and our base. and

component all take that of and buybacks continue a will strategy. evaluate options, include central to capital those of to we as course, of do, balanced And a approach which allocation share

Sachs. Our next Rob from comes of question Cox Goldman

head you on the settlements excluding up to might quarter. income believe about question. the drive the the I anything would mean your as what growth into talk largest -- And appears you strong of you see it performance quarter kind growth organic, in be continues would following organic in risk lead broking to Can that revenue fourth there? Just different and materially there. book investment have if quarter that accelerated you

XX% the that last rate. the of period I year Yes. on in did mean income the and to was business organic comparable top And a with book quarter. R&D that of in neither we're recognize organic impacted XX% prior growth really pleased we or interest meaningfully during

investments our We to continue platforms in and pursue from contributions earlier in opportunities we mentioned strategic meaningful our to specialization we continue expect line strategy. talent, as and with

within CRB, investments growth, Carl the of in meaningful talent was income have Retention talent in book the a Rate activity our obviously new impact. not and not meaningful from the importance but had the really did well, have business the did last quarter. that want and impact meaningful both did XX% existing business a driven a Yes. Investment And of have stress not to a we've as impact. to right, new alluded by the base. really made component earlier, there business we've as that

by strong there demand really the that really by driven the double-digit X% within temper the business, growth profile mentioned, as in was So that Within was ICT, which on for consulting partially quarter, the technology And business. offset growth. CRB. had we was --

tax regulatory this getting Okay. the follow-up, of was then actually what on given the you're global pressure XXXX, I might of could changes secondly, sale into you of expecting seeing on of could TRANZACT year, the tax comment better like if is from comment be of potential type as Appreciate the guys shield the business? that color. And any you taxes? my And on but kind magnitude rate some hoping

Yes, sure.

other impairment there losses that. would to relates have that we you some TRANZACT, it and associated disclosed as be that will So with noted

that specific. to most can extent are so they to those capital U.S. gains are is be losses, applied only be capital the going the and part, that there For

to specific of that capital that got tax So to our early on we do have rate guidance into forward, tax make offset appropriate we've going year structures would rates. increasing call And point. full seek this U.S. to in in sure risks get those. terms we have cover gains year. to not We'll next place around going to at But manage

next Securities. Our is from Truist call of Mark Hughes

that Carl, talent redoing you in a you of talked XX seeing better did your years transaction? about a available. Or and capital acceleration pace has you've that's sense ago is that from you of the post couple got that continued lot the productivity pursuing? that X, mean, new hiring us of could Are in you I this something kind hiring give how you're months? of last some

Yes.

find a were to I that to strategy. our talent, as But our And it's segments business rebuilding aligned years of more what continuing terms well hire people we who in contrast with we're we where pursue really to So few Mark. are opportunistically in we're trying ago across those.

I and of I one bring individuals is there we'll it's But this up We're numbers, great think continue out are much We partner excellent growth competitive right? That's can news. and rates. and organization And to showing rebuilt. an out on them we seek talent think grow those organically. that is to, there closing be continue this to right? call all in highly pretty the aware, every

cash the you And program headwinds of over But transformation early impact XXXX, XXXX? how And transformation the for in some program, extends what sense into a got that from you've the the cash then number much can of impact, presentation. us full Andrew, cash then that give is? that disclosures year

Yes, sure.

But we'll free have year flow some into to plays flow same time, relatively timing outflows cash impact will cash years. consistent prior We that margin expect cash the a over free as the with cash next and be that bleed that at from perspective out.

wind sort by its will way and that out end of HX. QX of But

question comes from next BMO. of Mike Our Zaremski

carriers heard CRB talking see Charlie it competitiveness London see increased this from we've in the Mike. or quarter, about whether you're global is it how and you Can guess seeing businesses? you in This impacting the you what some talk lines I for about market. there on

Yes.

decrease, guess, North part America. the America. a And Property globally, to -- we're some to Cyber decreasing. we're event, and North Milton the globally cat. way a I inflation. rates stabilizing say So that. CrowdStrike and quickly Europe a in markets, international effect are for lesser are of I'd London and impact U.S., slowdown stabilizing a except mostly obviously, of countries the Commercial the softening extent, it's in rates E&S market are are We're of in lines seeing rates. in I decreasing Financial certainly impact and lines seeing working from short-term Hurricane had nat Casualty are to decreasing. returned the a stabilizing but think still then our through the starting

is there lines lines liability, marine but in stabilizing specialty he's Marine various tailwind issues of particular stabilizing, unsettled been are concerned just don't a results global as have is stable, few impacting sort headwind view do vary. environment. in construction with rate with We general, The But specific and which risks mean in the increases. reflecting high unless last I across single-digit the of trade project. seeing are several or been terms a significant which a credit, a across the like quarters. geopolitical exceptions our us political portfolio

continue been primarily make and really success differentiate a retention growth by strategy. our That's difference. business rates has and us to going help the reflects strong to I us specialization our we've of driven think new As high said, and

guess, closes. your how should depends when we on closes. see depending should right expect margins the we to including you're so think I I Is it And sounds helpful. XQ And going like numbers? to way think that XQ keep I guess, TRANZACT about That's to the it? sale guess, deal it in until about, looking results it on, the And in

Yes.

we expect closing, of to enough close full essentially year numbers. within the have it terms year end our results to the In occur of of we a would that

where full an we the impact free forward, of full be it and as expect on we guidance terms And headwind a organic to of range to margin. expect for margin on in elimination don't land flow the So the going mentioned will year. year cash growth, the have

question Evercore Peter of ISI. comes from next Newton Our

some seeing color Carl, global optimism? us just mentioned could today optimism wondering, I'm you coming some you on team rebound your from is a M&A causing that's in that more give what activity.

Yes. sure the right? word this, potential, that did not phrase but just open use I'm I optimism, this raise So too. I'd

extended in activity an seen have We've seen M&A North lesser that international. uptick We not in America. Europe, in

question, demand curious Okay. I'm my expect you Got returning just on with go similarly, as when what be in headwind And to great. away are of it. shoots green commentary the temper That's this would any continued the might helpful. any consulting on conversations just this And like well? you are second then seeing services. clients for

Okay.

think way the to me you're in wasn't regarding referring comment phrased. HWC? and was I probably talk ICT you want about to quite I the risk broking. clear you that over by Do

No, that was for ICT, yes.

a Yes. continuing the over we've consulting we're that the technology. around the works I demand of way way ICT solutions. mean years the to our lot And for technology strong built its see

that value get they technology. it's So helping clients from maximize the

very -- with M&A But of there companies. sort dependent So including that ICT conjunction insurance activity, issuance often leads of can will on follow. are cyclical sort some securities are and when technology within various areas by consulting in and M&A be

business adjust of pointed we can Make been in the we've them. that the through to right keep and before, these direction. sure cycles we kind So

more of over makes lowers and has One last a XX a successfully we've done so changed than of actually or business the the technology mix bit the things just more cyclicality consulting years balanced between to which the resilient. and XX-XX it far be the very

of contract. the the the of some recorded the technology over spread sale sales said, the life being time at That are of when

a the get you So in That's its lumpiness quarters, might little between smooth have way lumpiness results. out you the quarter. some within but

Our Meyer Shields next of from question comes KBW.

[indiscernible] first on It's My for is Meyer. on TRANZACT. question

of going on how earnings wondering seasonal would forward? earnings highly tender removal affect Just quality TRANZACT [indiscernible] the

Yes.

the that slides, year. there's impact how regarding on allow So which the which seasonality we some a supplemental will perspective a information on provided quarterly basis in will the us throughout

your rate strategy, the client of see specialization question in do is My retention as strong second you critical Got broking? resin elements what most it. in on maintaining

specialization things, entire not few the market, is the parts a face out others aside that is point just are verticals. right? along our that One structured said I'd So that industry business,

that attractive able financial specific solutions our personnel not to value respective have outcomes clients geography. and as manage enhanced our these industry It for that responsible risks. dedicated focused on that manner, that client for for for process business. businesses, better because are directly clients and solving products we're with issues industry-leading global accountable step that Every is providing business looking and they in to operational practices in the person, every that and drives more P&Ls very to every tailor So through and techniques. approach, and makes result, proposition national tied just And a a services a their focused and engagement analytics delivers to decisions

depend differences different on part and of have because we dynamics as geography. there our that are that strategy, And in of specialties regions local each

in more for real America, example, and in leisure of large region. there's estate that got For verticals demand we've commercial In hospitality client in and insurance. Europe, where industry a auto base demand given North

We that have segment. for specialty local particular teams

all that works it's at [indiscernible] client. So about the And

Barclays. Alex question next from comes of Scott Our

for on is Justin This Alex.

First it's was from savings when coming of savings looking to program. the It of to sort and end are at transformation the -- question like seems as spending perspective. though the we're a sort an related a savings, coming

about in thoughts time. into the about subsides sort of just pace of in of think transformation terms over sort as how So the expansion of -- margins program margin we're should XXXX curious your about thinking we terms heading how of

Yes. we about early normally as early year, we from in your year tailwinds guidance do savings the through part do. expect talk to of run generated point. continued next XXXX that We'll We're program give on next of But any some going this this not savings at in terms rate to the converting year. transformation

what that the get we this we could not we improvement I'd the margins period, savings out achieve by we quite can transformation thought total explicit we've program during the also add we been organization. of thought that X-year this associated sized and

will years. be than a we margin for. rather it cash margin trying transformation through doing in and as free So done We'll subsequent improvement DAU be drive to just flow

I had guess just I And it. a quick follow-up Got question.

allocation. Just on a high capital on level just

with are I'm -- like how was transaction growth. sort deal to about sort curious sort XXXX. just being sort infusion we're the you a there around of of sort try of then allocation inorganic of comments sort comment of heading up repurchases more think of of for own into coming sort I lead some that Gallagher thinking your the and this and guys in capital being opportunistic on disposition. earlier about of hiring through does capital opportunities When that -- slightly triangulate

a as Yes. part I value we and that available bit thinking through well. talked to who We've M&A, seen us think as it. opportunity M&A on our competitors about of is create

Now gotten the order our that house program. simpler in transformation we through and have better

value flow We'll portfolio and which the business we I opportunity expand our enhance So can think we'll helps strategic is Investor our improve don't within be talking be looking bit if across know to chains at and I I think talking reach for we This a operate, find we'll fits in -- we interested. Day. us the something that our be to cash will about. opportunities more margins. operating mix be free

from comes [ Katie ] Sakis Autonomous Our of next Research. question

ahead? Willis' the I on just curious and towards about quite about I'm think there. seen as middle bit ask a big markets. we next wanted year approach pickup market perspective guys' to in the specifically is We've of deal own opportunity strategy what And activity middle main you

operate Well, market. we already I in mean, the

job that potential, us. new So it's we're middle a creation creation a market occurs see business in of lot familiar We subject an the the and area to not and with. attractive that

accreation Because begin. several to begin forward, in that I I for primary I middle going do where as And the we've well questions. some the think service a to middle growth critically it's And to market. the opportunities intellectual watched it's alluded including of invest over our employers opportunities, we offer think repackage strategy past years. lot to our the large the instance, capital that and they inorganic . part of market, some for earlier we'll in continue I as survey to of businesses HWC our to occurs organically of as

flow then that? the or cash full different place from the enterprise Got quickly about level TRANZACT. bit on is impact And year where to say group thinking It really this margin you the from year, impact like of the And would guys the little free it. for a XXXX is business contemplate right looks on versus XXXX?

it's in part we'll should been once than driven of the for the dynamic helps it's more less the intentional business for have the flow And meaningful free longer portfolio cash no of XXXX has headwind slowing growth impact The and to largely year, cash historically, flow that margin. it the by which next accretion be there, of a free then terms business.

Our Robert of Marcon next from comes Mark W. question Baird.

results. Nice little Wondering X can more a about respects. you HWC if talk bit in

the . happen is the business? other First How of that consulting you've the election health be multiple one regards changes could care impacted the going think the of side, Carl, to by do or all, part business health with the -- portion you on you've through obviously to been cycles. of way potentially that

Yes.

programs. side So change on work is their a period short-term through their of good their of generally us change because effect quite mean have over potential way or to in operation sort the potential clients consulting of for might is changes [indiscernible], the I what benefits mean to regulation

effect across generally, fly that's in So I for business career a pensions wealth that think not our change. we beneficial our for health can from business, instance, just our a business transparency. across And see

prior is So we've cycles -- generally change think over friend. like our I this,

on regards And sure extent And to that pension I'm to Boeing. wondering to you've with what up spurring regards just could I'm the actions all wealth side end particularly specifically some suspicion. seen with the my and to That's going regards then on pension. to derisking. with the side, news

So plans I of and there's I world. to unanswered paid is around mean, in have had of millions great the financial pension question the shift questions. no lots we've starting security define mean, with contribution of traditional Boeing, an millions role that the And important people

help on were that positioned they're still well is work workforce. of to where WTW think I to out find correct for solutions, the right and them fit their seeing And through. their they we're trying sort employers countries and offer spectrum employers to to way where

debate sponsors I'd outlook, We've a plan we been our few time. pension long, guess or I that right So respect for PRT I think plan for welcome what's the answering say long, workforce. the question things. the for long With a to

also to current rate the preparation clients, been goes rate we the has take that the our the but driving of in with it. the we environment for interest demand year, This analysis and just strategies pension where North America all, derisking transaction assist have seen not clients evaluation to First and more and favorable In especially given the initiate the well-funded on alternate seeing Great remain derisking environment. interest general, advantage opportunities, the been of pension buyouts Britain. environment to pension bulk nature and still of plans, rate interest in derisking through annuity sums of like average We've actions these lump type attractive.

the such increases we activity retiree we'll off, as as that about Day. probably We sum this here. Investor more may medical annuity expect, activity. a are fall We'll in bit or see other talk And bulk lump at seeing purchase derisking continued areas activity

showing would to it to I'm this you. Thank like I now no questions time. for at back Carl closing further turn remarks.

Halloween, at Investor Day you I'd and for connecting joining supporting Thank look like support. We our And shareholders has has track in their to to to achieve us forward our to once all you us with strong continued goals helped to I today. you, [indiscernible] our December, again for also thank I'd everyone. Happy like deliver and colleagues, us another thank for in clients quarter XXXX. our and their thank on dedication

for Thank in conference. This the today's participation your conclude you program. does

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