Willis Towers Stock Price, News & Analysis

WTW reported strong financial results for Q1 2023, with revenue of $2.24 billion, up 4% year-over-year, and organic growth of 8%. Diluted EPS surged to $1.88, an 83% increase compared to the previous year. The operating margin rose to 12.7%, a 440 basis points improvement, while the adjusted operating margin reached 18.6%, up 140 basis points. Net income jumped 65% to $206 million. The company enhanced its cash flow, with operating cash flow at $134 million, and achieved free cash flow of $92 million. Significant investments in talent, technology, and strategic partnerships contributed to this growth, despite challenges from the divestiture of its Russian operations.

WTW (NASDAQ: WTW) released its 6th annual political risk survey revealing that 92% of companies faced political risk losses in 2022, a sharp increase from 35% in 2020. The report highlights significant financial impacts, particularly due to the Ukraine conflict, affecting 86% of Western European respondents and 33% of North American firms. A stark shift in political risk management is noted, with 100% of companies enhancing their capabilities since February 2022, and 68% now purchasing political risk insurance, up from 25% in 2019. Key risks for 2023 include the ongoing Ukraine crisis and economic decoupling from China. The survey, conducted in early 2023, involved 50 global companies, half of which have revenues exceeding $1 billion.

WTW (NASDAQ: WTW) announced the appointment of My Thien Nguyen as Country Leader and Head of Corporate Risk & Broking for Vietnam, effective August 1, 2023. She succeeds Philippe Robineau, who will depart on July 31, 2023. Thien brings nearly 20 years of insurance industry experience, previously serving as the CFO of WTW Vietnam, where she contributed to strategic growth.

Simon Weaver, Head of Asia Pacific, expressed confidence in Thien’s ability to elevate WTW’s Vietnam operations, enhancing client resilience and success. The announcement coincides with WTW's 30-year anniversary in Vietnam, underscoring their strong commitment to the local economy and community.

WTW (Willis Towers Watson, NASDAQ: WTW) will announce its financial results for Q4 and the full year on April 27, 2023, prior to the market opening. A corresponding conference call is scheduled for 9:00 a.m. ET on the same day, where the financial results will be discussed, including a Q&A session for investors. The call will be accessible via WTW’s website for live streaming, and an online replay will be available shortly after the conclusion of the call. WTW specializes in delivering data-driven solutions across people, risk, and capital, aiding organizations in enhancing resilience and performance.

WTW's Spring 2023 Energy Market Review highlights ongoing challenges in the global energy sector, including the transition to net zero, price volatility, and regulatory uncertainties. The report underscores rising insurance costs due to these disruptions. It emphasizes the need for governments to prioritize energy security, especially in light of the Ukraine conflict. Insights from WTW experts advocate for risk optimization and reassessment of insured values amidst inflation. The report anticipates a potential softening of insurance market pressures this year, provided there are no major losses. Key findings cover sub-classes in energy insurance and geographical market intelligence.

WTW's Crisis Management Review highlights a significant rise in crisis incidents in Europe, driven by repatriations due to the Ukraine war, making up 30% of global incidents in 2022, up from 4% in 2021. Political repatriations accounted for 24% of all reported incidents. In contrast, the Asia-Pacific region saw a decrease in incidents, dropping to 12% from 30%. Threats were the most common incident type at 28%, with kidnaps increasing to 25% of incidents. WTW anticipates further volatility in 2023, urging businesses to prepare for emerging crises.

WTW's new analysis reveals that investment teams with higher gender diversity achieve better outcomes, outperforming less diverse teams by 45 basis points annually. The report draws from over 1,500 investment strategies, noting that equity and credit strategies report a diversity premium of 46 and 14 basis points, respectively. Despite some progress, only 42% of asset managers have measurable DEI objectives, and nearly half lack initiatives to attract diverse senior talent. WTW plans to enhance diversity monitoring through the WTW Diversity Index, emphasizing the need for broader diversity data collection beyond gender and ethnicity.

According to WTW’s latest Global Pension Assets Study, global pension assets fell by 16.7% in 2022, marking the largest decline since 2008. The total now stands at US$47.9 trillion. The U.S. retains its position as the largest pension market, followed by Japan and Canada, which together hold over 76% of assets in the largest 22 pension markets (P22). The report highlights a shift from defined benefit (DB) to defined contribution (DC) plans, with DC assets growing at 7.2% annually compared to 4.4% for DB assets. Systemic risks, particularly environmental and geopolitical, are likely to further challenge pension funds in the future.