Willis Towers Watson PLC Q2 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Robert Cox - Goldman Sachs Group Inc - Analyst : So I want to ask about HWC organic. I think you mentioned there's more positive signs of improvement as the quarter went on and there was guidance for acceleration in a couple of the businesses there. So net- net, are you thinking about HWC growth accelerating a bit from here and can you talk about the drivers?

Question: Robert Cox - Goldman Sachs Group Inc - Analyst : Awesome, thank you so much for the answer. Moving on to Risk & Broking, I think, high-single digits again core organic growth there. Are we basically at steady state contributions from the talent investments at this point and is growth -- does that make growth really a function of the core specialization strategy or would you say there's still an extra lift relative to normal from the timing of talent investments?

Question: Charlie Lederer - Bank of Montreal - Analyst : Andrew, you made some comments about free cash flow. I'm wondering if you can unpack second-quarter performance, and how we should think about the magnitude of free cash flow margin improvement over the balance of the year. Any puts and takes you could quantify would be helpful.

Question: Charlie Lederer - Bank of Montreal - Analyst : Thanks. That's helpful. I know you just touched on the impact of investments and talent, but I just wanted to follow up. It seems like we've been seeing headlines in the insurance media about heightened competition for insurance brokerage talent. I'm wondering if you guys would agree with that, being a theme in today's marketplace and how you're feeling about it and any actions you're taking.

Question: Elyse Greenspan - Wells Fargo Securities LLC - Analyst : My first question within the guidance, I saw you guys lowered the cost for the gain on Willis joint venture. I think it's now expected to be $0.20 for the year, right? And I think prior was $0.25 to $0.35. So I guess my question there is, are you guys behind original hiring plans or is there some other factor related to the change in guide there and will you guys be ready to transact with that entity by January 1, 2026?

Question: Elyse Greenspan - Wells Fargo Securities LLC - Analyst : And then my second question is just on margins. It sounds like the 100 basis points of margin expansion is the expectation for the full year within R&B. And then you just walk us through like the drivers that you see to achieve that that improvement. And then I'm assuming that you guys also at the enterprise level reaffirmed the overall margin improvement. So is there anything related to operating leverage or margin expansion that you would point out beyond -- now that we're beyond the transformation savings. Thank you.

Question: Mark Hughes - Truist Securities, Inc. - Analyst : You'd mentioned in health that outside of North America your growth was quite strong, up in the double digits. Was that attributable to any macro volatility tariffs, that sort of thing, or is that more just underlying momentum?

Question: Mark Hughes - Truist Securities, Inc. - Analyst : Very good. And then I think in HWC you mentioned the trajectory through the corridor was good. You saw a strengthening pipeline. Any similar observations about Risk & Broking, just how that progressed through the three months? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2025 / 1:00PM, WTW.OQ - Q2 2025 Willis Towers Watson PLC Earnings Call

Question: Katie Sakys - Autonomous Research - Analyst : I wanted to dial in on ICT growth expectations of the balance of the year. I understand it's just one of many moving pieces and that there can be a lot of lumpy transactions that influence growth in the line. But in terms of thinking about the rest of this year, what are you guys thinking might drive higher organic growth and what assumptions are you making about client spend management as you look into the next six months?

Question: Katie Sakys - Autonomous Research - Analyst : Got it. Okay. And then on the changing guidance on the reinsurance JV. Is it fair to frame the discussion there in thinking the additional upside to that guide would come from further improvement to the insight on expenses or could we potentially see some further upside into that guide over the next six months as you get a better sight line on potential growth expectations? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2025 / 1:00PM, WTW.OQ - Q2 2025 Willis Towers Watson PLC Earnings Call

Question: Brian Meredith - UBS AG - Analyst : Some other brokers in the quarter have talked about the impact of the rate environment, particularly large ticket property business on growth this quarter. I'm curious, was there any impact on CRB and maybe just remind us what the potential impact of just the pricing environment could have on your revenues.

Question: Brian Meredith - UBS AG - Analyst : That's really helpful. Thank you. And then just Carl, I wonder if you could just remind us of your view with respect to inorganic growth and then you talked about strategic acquisitions. A number of the other major brokers have made some very large acquisitions. Is your view that you're more focused on bolt-ons or do you have the capacity and the ability to do something of larger scale? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2025 / 1:00PM, WTW.OQ - Q2 2025 Willis Towers Watson PLC Earnings Call

Question: Mark Marcon - Robert W. Baird & Co Inc - Analyst : Thanks for squeezing me in. Two long-term questions. Carl, you mentioned AI in your prepared script. I'm wondering if you can elaborate a little bit more in terms of your efforts there in terms of increasing efficiencies, automating, and how you're thinking about that from a long-term perspective. And then Julie, health within HWC has been a key driver. Obviously, things are looking very good for this year. I'm wondering if you can talk a little bit about longer term in terms of the next three to five years and particularly, how much work you expect in terms of plan redesign given the healthcare inflation that's occurring. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2025 / 1:00PM, WTW.OQ - Q2 2025 Willis Towers Watson PLC Earnings Call