Q3 2024 Willis Towers Watson PLC Earnings Call Transcript
Key Points
- Willis Towers Watson PLC (WTW) reported a strong quarter with 6% organic revenue growth, driven by 10% growth in risk and broking and 4% in health, wealth, and career (HWC).
- The company achieved a 190 basis point expansion in adjusted operating margin to 18.1%, attributed to operating leverage, cost discipline, and transformation program success.
- Adjusted diluted earnings per share increased by 31% to $2.93 compared to the third quarter of 2023.
- WTW generated $807 million in free cash flow for the nine months ended September 30, marking a 14% year-over-year increase.
- The company announced strategic partnerships and new solutions, such as a virtual captive for employee benefits and a workforce management proposition, enhancing its market position and client offerings.
- The GAAP results reflected a loss due to the accounting treatment of the pending sale of the TRANZACT business.
- There was a 70 basis point headwind on organic growth at the HWC level and 50 basis points at the enterprise level due to TRANZACT.
- Benefits delivery and outsourcing experienced a 1% decline in revenue compared to the third quarter of last year.
- The company faces headwinds from a $14 million book of business activity that occurred in Q4 of last year, impacting future comparisons.
- Foreign exchange was a headwind to adjusted EPS of $0.02 for the quarter, with an expected $0.06 impact for the year.
Good morning. Welcome to the WTW's 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 three 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. These forward-looking statements are subject to risks and uncertainties.
Actual results may differ materially from those discussed today and the company undertakes no obligation to update these statements unless required by law. For a more detailed discussion of these and other risk factors, investors should review the forward-looking statement section of the earnings press release issued this morning as well as other disclosures in the company's most recent form 10-K and other filings the company has made with the SEC.
During the call, certain non-GAAP financial measures will be discussed. For reconciliations of the non-GAAP measures as well as other
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