Willis Towers Stock Price, News & Analysis

WTW (NASDAQ: WTW) has appointed Tyler Adkerson as Growth Leader for Private Equity and Transactional Solutions (PE&TS) in Corporate Risk and Broking, North America. Adkerson, who joins from Aon where he served as Global Co-Head for Corporate Client M&A, brings over 20 years of industry experience. In his new role, he will develop strategic client initiatives, strengthen M&A partnerships, and lead a client advisory board. His expertise includes previous roles at J.P. Morgan in syndicated finance and as an M&A attorney at Gibson, Dunn & Crutcher.

WTW's Wellbeing Diagnostic Survey reveals a significant mismatch between employer wellbeing programs and employee needs. While employers prioritize mental (73%) and physical (50%) wellbeing, 66% of employees identify financial wellbeing as their primary concern, which is employers' lowest priority (23%).

According to WTW's 2024 Global Benefits Attitudes Survey, 48% of U.S. employees struggle with moderate or major wellbeing issues, with 56% reporting above-average stress levels. Only 41% feel financially secure, yet employers rate lowest (19%) in financial wellbeing initiative effectiveness.

Companies are planning improvements, with 46% aiming to embed wellbeing programs into company culture, and 71% planning to enhance program communication. The employee net promoter score for wellbeing initiatives has improved from -45 in 2019 to -20 currently.

WTW reported strong Q3 2024 results with revenue increasing 6% to $2.3 billion. While the company recorded a diluted loss per share of $16.44 due to non-cash losses related to TRANZACT sale, adjusted diluted EPS grew 31% to $2.93. The Health, Wealth & Career segment revenue rose 4% to $1.33 billion, while Risk & Broking segment revenue increased 10% to $940 million. Operating margin was -33.5%, but adjusted operating margin improved 190 basis points to 18.1%. Cash flows from operating activities reached $913 million for the nine months ended September 30, 2024. The company maintains its full-year 2024 guidance targeting revenue of $9.9 billion or greater.

WTW (NASDAQ: WTW) has announced the expansion of its Corporate Risk & Broking business in Japan with a new insurance brokerage service through WTW Broker Japan Co., . The service will provide insurance solutions to commercial clients and wholesale facultative reinsurance placement services to partner brokers in Japan. The new retail brokerage operation, led by Tetsuro Nakazawa as Representative Director and COO, will employ over 10 brokers and risk advisors by early next year. The expansion focuses on specialty segments for large corporates and Japanese companies with overseas interests, including Natural Resources, Marine, Construction, Aviation, Crisis Management, and reinsurance business.

WTW (NASDAQ: WTW) has appointed Ashley Hart as Cyber Leader for Private Equity and Transactional Solutions in North America. Hart, who previously served as West Zone Region cyber insurance leader at Marsh, returns to WTW to strengthen the company's position in providing specialized cyber risk transfer solutions to private equity clients. Her role will focus on delivering guidance and counsel to private equity clients across North America, particularly addressing increased cybercrime losses across portfolio companies. Hart brings significant experience in cyber insurance and claims advocacy, holding both a B.A. from Richard Stockton University and a J.D. from New York Law School.

WTW (NASDAQ: WTW) has secured an insurance broker license in the Kingdom of Saudi Arabia (K.S.A.) and appointed Talal Omar Bahafi as Head of Insurance Broking for WTW Saudi Arabia. Bahafi, former CEO of Chubb Arabia Insurance Company and ex-Marsh McLennan executive, brings extensive experience in strategic growth and market development. This expansion aligns with WTW's global growth strategy and Saudi Arabia's Vision 2030 objectives, strengthening the company's international network and capabilities to serve clients in the region.

According to WTW's 2024 Pay Effectiveness and Design Survey, only about half of global employers effectively deliver on core pay program objectives, despite pay being the primary factor in employee attraction and retention. The survey reveals that 48% of employees cite pay as the main driver for attraction and retention, and 56% would consider another job offer for better pay.

The study highlights that fewer than one in four employers effectively communicate how employee pay is determined, while 58% report salary compression as an issue. Among companies updating their compensation philosophy, 69% cite enhanced attraction/retention as the primary reason, followed by improved employee experience at 51%.

According to WTW's Thinking Ahead Institute, total assets under management (AUM) of the world's 500 largest asset managers reached $128.0 trillion at the end of 2023, marking a 12.5% annual growth. This represents a significant recovery from the $18 trillion drop in 2022. Passive investment strategies now account for 33.7% of AUM among the largest firms, while core equity and fixed income comprise 77.3% of total AUM.

North America experienced the largest growth in AUM with a 15.0% increase, now accounting for 60.8% of the total AUM. BlackRock remains the world's largest asset manager with AUM above $10 trillion, followed by Vanguard Group at nearly $8.6 trillion. The research also highlights notable risers in the rankings, including Charles Schwab Investment and Geode Capital Management.

WTW (Nasdaq: WTW) has launched the Structured Auto Buffer London Excess (StABLE) facility, an innovative risk financing solution for fleet management. This new offering provides a dedicated structured Auto Liability solution that rewards organizations for effective risk management practices and favorable loss performance.

The StABLE facility allows clients to share in both the risk and reward of their fleet operations. It offers potential premium returns if losses remain below a predetermined threshold, with an option to commute the policy for additional returns. If losses exceed the threshold, additional premiums are capped, ensuring a balanced risk-sharing approach.

Key features include:

• Tailored terms and conditions
• Adjustments to premium structures supporting cash flow
• Options for policy reinstatement if limits are exhausted
• Multi-year structure for greater budget transparency
• Clearly defined limits on potential losses

The facility is primarily targeted at owners, lessors, and brokers of large or heavy fleets across various sectors, including delivery, construction, waste management, and public transport.