Willis Towers Watson, one of the leading global advisory brokers in solution companies, with 45,000 employees who are so small than one for the countries and markets, has outlined its “grow, simplify, transform” strategy.
The plan is to build from its strengths, unlock shareholders’ values, and achieve long-term financial leadership. Key drivers include growth at or above the market in priority, areas focused on core opportunities with the highest growth and return, including gaining market share in risk and broking and individual marketplaces and simplifying the business to increase effectiveness and agility and transforming operations to drive savings while enhancing the group’s client and colleague experiences.
The company-wide initiative is to gain market share in risk and broking, as WTW is eager to focus on core opportunities with the highest growth and return. Meanwhile, by the end of the fiscal year 2024, the Ireland-based group headquartered in the UK had the prospect of raising its revenues by more than 10 billion US dollars and delivering up to 6 billion US dollars in free cash flow. Improve margins to 24 to 25% through 300 million-plus US dollars net run rate savings driven by transformation and efficiency initiatives and operating leverage as the business grows. Combined with the after-tax proceeds from the sale of Willis Re and the current cash balance, free cash flow will give WTW as much as 11 billion US dollars of available cash by 2024.
Other financial targets include returning sufficient capital to two shareholders while maintaining the agility to invest in V on opportunities to accelerate growth, acquire industry-leading capabilities, and support its world-class team.
According to brokerage Giants, share buybacks in the 2021- 2022 fiscal year are worth more than 4 billion US dollars.
Achieve adjusted EPS of at least 18 to 21 US dollars per share and deliver industry-leading total shareholder returns.
The president and chief executive officer of the future, Carl Hess, said they are committed to a disciplined capital allocation policy, starting with a plan to return more than 4 billion US dollars to shareholders through share buybacks by the end of the year 2022. They have a world-class team to
execute their strategy and are energized and focused on completing their plan to capture the sufficient opportunities ahead. The central priority of their strategy is to simply grow and transform and build on our core strengths with a focus on driving sustainable revenue growth, improved
operating margins, and higher free cash flow conversion.
Chief executive officer of Willis Towers Watson, John Haley, said their distinctive mix of highly complementary businesses, scale, and global reach had delivered superior value to its clients, colleagues, and shareholders. He added that he is confident that under the leadership of Carl Hess and his highly accomplished global leadership team, the company’s strategy will set the courses to accelerate its performance as an independent company and position Willis Towers Watson as a bold new future. John has been with the company since 1977 and is retiring at the end of the year.
