Re/insurance broker Willis Towers Watson (WTW) has outlined its strategy to drive long-term growth and value creation for shareholders at its Investor Day.
The broker plans to focus on core opportunities with the highest growth and return, including gaining market share in Risk and Broking and Individual Marketplace, along with innovating and evolving our offerings in markets such as defined contribution and wealth management.
It will also look at expanding its capabilities in fast growth markets like health insurance markets, cyber and climate; and bringing targeted solutions to clients reflecting more connected offerings.
The strategy also includes a streamline operational structure, develop a globally consistent client model and enhance growth operations to improve sales and retention outcomes.
Transform operations to drive savings while enhancing our client and colleague experiences. Drive $300+ million in expected cost reductions to contribute 300 bps of margin improvement toward a fiscal year 2024 margin target through maximising global platforms, right-shoring operations, rationalising real estate and modernising IT.
John Haley, Willis Towers Watson’s chief executive officer commented: “Our distinctive mix of highly complementary businesses, scale and global reach has delivered superior value to our clients, colleagues and shareholders.
“I am confident that – under the leadership of Carl Hess and his highly-accomplished global leadership team – our strategy sets the course to accelerate our performance as an independent company and positions Willis Towers Watson for a bold new future.”
Carl Hess, president and future chief executive officer, added: “The central priorities of our strategy – grow, simplify and transform – build upon our core strengths, with a focus on driving sustainable revenue growth, improved operating margins and higher free cash flow conversion.
“We are committed to a disciplined capital allocation policy, beginning with a plan to return $4+ billion to shareholders through share buybacks by fiscal year-end 2022. We have a world-class team and are energised and focused as we execute our strategy to capture the significant opportunities ahead.”