Willis Towers Stock Price, News & Analysis

WTW's latest Insurance Marketplace Realities report indicates stability in commercial insurance rates across North America. Jon Drummond, Head of Broking, North America at WTW, notes that the industry has taken micro-actions in response to emerging trends. New capital in reinsurance and retail markets has increased competition for premium market share, except in umbrella and excess liability.

The report highlights soft market conditions for financial lines due to increased capacity. The Cyber market projects flat to mid-single digit rate decreases for most renewals. Umbrella & Excess liability has seen significant disruption, with rising loss costs pushing renewal rates past high single digits. Despite facing evolutionary changes, the market is expected to deliver relatively stable renewal conditions across most lines as the year ends.

WTW's latest Insurance Marketplace Realities report indicates stability in commercial insurance rates across North America for 2024. Key findings include:

- New capital in reinsurance and retail markets has increased competition, except in umbrella and excess liability.
- Capacity remains a driving force for soft market conditions in financial lines.
- The Cyber market projects flat to mid-single digit rate decreases for most renewals.
- Umbrella & Excess liability faces disruption due to rising loss costs, with renewal rates pushing past high single-digit.

The report predicts relatively stable renewal conditions across most lines, barring major disruptions like hurricanes. Key price predictions for 2024 include variations in Property, Casualty, Executive risks, and Political risk categories.

WTW (NASDAQ: WTW) has announced a scientific partnership with the University of Colorado Boulder to leverage advances in seasonal climate prediction for the insurance and risk management industries. This collaboration aims to help WTW and its clients anticipate and prepare for weather-related impacts on their operations and portfolios.

The partnership focuses on harnessing the predictability of El Niño and La Niña phenomena, which significantly influence global climate patterns and can lead to severe weather events worldwide. Prof. Pedro DiNezio, a leading expert in long-term climate forecasts, will lead the collaboration at CU Boulder.

This initiative is expected to be particularly valuable for sectors heavily dependent on natural resources, such as energy, food and beverage, and transportation industries. The partnership aims to provide businesses with advanced warning of climate risks, enabling better preparation and risk management strategies.

WTW has acquired a stake in atomos, a UK-based advice-led wealth manager backed by Oaktree Capital Management. This investment follows a successful strategic alliance since 2022, where WTW's investment engine powered atomos' multi-asset investment solutions. The partnership aims to provide atomos' clients with access to a broader range of asset classes and investment choices.

The deal strengthens WTW's presence in the £2.2 trillion UK wealth market. It allows WTW to extend its investment capabilities to a wider audience and shape how the industry serves savers' needs. The investment is designed to support further growth for atomos and recognizes its growth potential in the competitive UK wealth management sector.

This move aligns with WTW's strategic focus on wealth markets, which has driven significant business growth in recent years. The partnership combines high-quality financial planning with institutional-quality investment portfolios to deliver sustainable financial outcomes for savers.

WTW (NASDAQ: WTW) has announced new leadership for its Corporate Risk & Broking (CRB) business in the Philippines. Gerald M. Dolina (Gary) will join as Head of Philippines and Head of CRB Philippines, effective January 2, 2025. James Matti, the current head, will transition to Managing Director, Health, Wealth & Career (HWC) Philippines.

Simon Weaver, Head of Asia Pacific and Head of CRB Asia Pacific at WTW, praised James Matti's 18-year leadership and emphasized the Philippines as a key market in their Southeast Asia business. Rupert Roberts, Head of CRB Southeast Asia, expressed excitement about Gary's addition, citing his extensive experience and commitment to exceptional client service.

The company aims to strengthen its position as the Philippines' and the region's best specialty broker, risk advisor, and client partner by investing in talent close to clients.

WTW (NASDAQ: WTW) has announced a co-brokerage agreement with The J. Morey Company, Inc., an Ori-gen family company. This partnership aims to provide customized risk management solutions for North American exposures of Japanese-headquartered companies. The collaboration leverages The J. Morey Company's influence in the Asian marketplace and WTW's extensive brokerage experience.

Key benefits include:

• Access to WTW's broad carrier relationships for Asian companies
• Alignment of WTW's Industry Vertical Divisions with The J. Morey Company's experienced brokerage team
• Enhanced expertise and industry knowledge for The J. Morey Company's Asian clients

This partnership supports WTW's Asian growth strategy and reinforces its commitment to serving Asian clients in the US marketplace.

GTCR and Recognize have announced an agreement to acquire TRANZACT, a leading direct-to-consumer insurance services company, from WTW PLC (NASDAQ: WTW) for $632.4 million. TRANZACT, headquartered in Fort Lee, NJ, provides marketing, sales, and technology solutions for insurance carriers. The company currently serves as the platform for several large insurance carrier partners and is the agent of record for over one million active insurance policies.

Andy Nelson, current President of TRANZACT, will become CEO of the standalone business after the acquisition. GTCR and Recognize plan to implement a strategy to drive continued innovation and expand TRANZACT's services. The transaction is expected to close by the end of 2024, subject to regulatory approvals and customary closing conditions.

WTW (NASDAQ: WTW) has announced an agreement to sell its TRANZACT direct-to-consumer insurance distribution business to GTCR and Recognize for $632.4 million, subject to adjustments. The divestiture aims to sharpen WTW's strategic focus on core business-to-business and business-to-business-to-consumer offerings, simplify its portfolio, and accelerate progress toward long-term free cash flow margin goals.

The transaction is expected to close by the end of 2024, pending regulatory approvals and customary closing conditions. WTW anticipates recording non-cash pre-tax losses and related impairment charges estimated between $1.6 billion and $2.1 billion in the third quarter of 2024, with updates until the closing date. BofA Securities and Lazard are serving as financial advisors, while Weil, Gotshal & Manges LLP is acting as legal advisor to WTW for this transaction.

WTW (NASDAQ: WTW) has announced the launch of a new China Client Division within Corporate Risk and Broking, North America (CRB NA). This division is part of the broader Asia Risk Division established in December 2023, which includes country-specific teams for Japan, South Korea, India, and China. The new division aims to address the unique cultural and economic dynamics of the Chinese market and its approach to risk management.

As part of this strategic expansion, Jie Yan has been appointed as China Client Division Leader, effective September 1, 2024. Yan brings over a decade of industry experience and cultural understanding of the Chinese market. Chris Condello, Head of the Asia Risk Division within CRB NA, is leading this expansion to deliver tailored solutions for Chinese clients with operations in North America.