Willis Towers Watson PLC (WTW) 2023 Q3 法說會逐字稿

Good morning. Welcome to the WTW Third Quarter 2023 Earnings Conference Call. Please refer to wtwco.com for the press release and supplemental information that was issued earlier today. Today's call is being recorded and will be available for the next 3 months on WTW's website.

早安.歡迎參加 WTW 2023 年第三季財報電話會議。請參閱 wtwco.com，了解今天早些時候發布的新聞稿和補充資訊。今天的通話正在錄音中，並將在未來 3 個月內發佈在 WTW 網站上。

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.

今天電話會議中的一些評論可能構成 1995 年《私人證券改革法案》含義內的前瞻性陳述。這些前瞻性陳述存在風險和不確定性。實際結果可能與今天討論的結果有重大差異，除非法律要求，否則公司不承擔更新這些聲明的義務。

For a more detailed discussion of these and other risk investors should review the forward-looking statements section of the earnings press release issued this morning as well as other disclosures in the most recent Form 10-K and in other Willis Towers Watson's SEC filings.

如需對這些風險和其他風險進行更詳細的討論，投資者應查看今天早上發布的收益新聞稿中的前瞻性聲明部分，以及最新的10-K 表格和其他Willis Towers Watson 向SEC 提交的文件中披露的其他資訊。

During the call, certain non-GAAP financial measures may be discussed. For reconciliations of the non-GAAP measures as well as other information regarding these measures, please refer to the most recent earnings release and other materials in the Investor Relations section of the company's website.

在電話會議期間，可能會討論某些非公認會計準則財務指標。有關非公認會計原則措施的調節以及有關這些措施的其他信息，請參閱公司網站投資者關係部分的最新收益發布和其他資料。

I'll now turn the call over to Carl Hess, WTW's Chief Executive Officer. Please go ahead.

我現在將把電話轉給 WTW 執行長卡爾赫斯 (Carl Hess)。請繼續。

Good morning, everyone. Thank you for joining us for WTW's Third Quarter 2023 Earnings Call. Joining me today is Andrew Krasner, our Chief Financial Officer. We had a strong third quarter, delivering 9% organic revenue growth and adjusted diluted earnings per share of $2.24, maintaining our top line momentum as we continue to execute on our strategic priorities.

大家，早安。感謝您參加 WTW 2023 年第三季財報電話會議。今天加入我的是我們的財務長安德魯‧克拉斯納 (Andrew Krasner)。我們第三季表現強勁，有機收入成長 9%，調整後攤薄每股收益為 2.24 美元，在我們繼續執行策略重點的同時保持了營收動能。

Excluding book of business activity, organic revenue growth at the enterprise level would have been 10%. This solid result was fueled by the great efforts of our colleagues, the strength of our global client model, the investments we've made in talent and technology and the resiliency of our business. Notably, our bottom line performance this quarter was driven by 170 basis points of year-over-year adjusted operating margin expansion.

不包括業務活動帳面，企業層面的有機收入成長率將為 10%。這項堅實的成果得益於同事的巨大努力、我們全球客戶模式的實力、我們在人才和技術方面的投資以及我們業務的彈性。值得注意的是，我們本季的獲利業績是由調整後營業利潤率年增 170 個基點所推動的。

The positive impacts of both our recent cost saving measures and the growing productivity of our new hires led to a strong finish for the quarter. Additionally, we realized $23 million of incremental annualized savings from our transformation program during the third quarter. This brings the total to $300 million in cumulative annualized savings since the program's inception.

我們最近的成本節約措施和新員工生產力不斷提高的正面影響為本季度帶來了強勁的業績。此外，第三季我們的轉型計畫實現了 2,300 萬美元的增量年度節省。這使得自該計劃啟動以來累計年度節省總額達到 3 億美元。

We are well positioned for further adjusted operating margin expansion over the long term, driven by organic revenue growth from our unique offerings and strategic hires, the continued progress of our transformation program and a strengthened focus on cost discipline.

在我們獨特的產品和策略招聘帶來的有機收入成長、我們的轉型計劃的持續進展以及對成本紀律的加強關注的推動下，我們處於長期調整後營業利潤率擴張的有利位置。

In the near term, we expect year-over-year margin expansion for the fourth quarter and the full year as a result of operating leverage and increasing contributions from our expense management initiatives. We're pleased with our third quarter performance and our progress gives us confidence in our ability to drive profitable growth and create value over the long term.

短期內，由於營運槓桿和費用管理措施的貢獻不斷增加，我們預計第四季和全年的利潤率將同比增長。我們對第三季的業績感到滿意，我們的進步讓我們對推動獲利成長和長期創造價值的能力充滿信心。

As I touched on last quarter, our focus on specialization in our Risk & Broking segment has been one of the key drivers of our strong organic growth. We've generated substantial momentum by developing innovative products and services, engaging in strategic partnerships, and building platforms like MGAs, MGUs and affinity products. For example, one of our major client wins for the quarter included an affinity solution that delivers compelling insurance products via digital channels to customers of a major manufacturer of luxury vehicles. This showcased our specialized expertise in the automotive industry and high net worth personal lines of business as well as our successful track record in global affinity insurance programs.

正如我在上個季度談到的那樣，我們對風險與經紀業務專業化的關註一直是我們強勁有機成長的關鍵驅動力之一。我們透過開發創新產品和服務、建立策略合作夥伴關係以及建立 MGA、MGU 和親和產品等平台，產生了巨大的動力。例如，我們本季贏得的主要客戶之一包括親和力解決方案，該解決方案透過數位管道向豪華汽車主要製造商的客戶提供引人注目的保險產品。這展示了我們在汽車行業和高淨值個人業務領域的專業知識，以及我們在全球親和保險計劃中的成功記錄。

Our strategic focus on specialization continues to drive strong growth in our specialty lines, which continue to grow much faster than our average R&B growth. As we've mentioned last quarter, based on the strong market response we've seen to date, we're expanding our pursuit of these initiatives. For example, we recently announced that WTW will launch Verita, a new MGU focused on select industries which will further advance our specialization strategy and risk and broking in North America. Verita will initially focus on the industry verticals of real estate, hospitality and leisure, financial institutions and professional services.

我們對專業化的策略重點繼續推動我們的專業產品線的強勁成長，這些產品線的成長速度繼續遠遠快於我們的平均 R&B 成長速度。正如我們上季度所提到的，基於迄今為止我們所看到的強烈市場反應，我們正在擴大對這些舉措的追求。例如，我們最近宣布 WTW 將推出 Verita，這是一個專注於特定行業的新 MGU，這將進一步推進我們在北美的專業化策略以及風險和經紀業務。 Verita 最初將專注於房地產、酒店和休閒、金融機構和專業服務等垂直行業。

Our deep knowledge of these industries together with our insurance expertise will enable Verita to have a comprehensive understanding of our clients' risks. This will allow us to offer best-in-class holistic insurance solutions while maintaining underwriting discipline.

我們對這些行業的深入了解加上我們的保險專業知識將使 Verita 能夠全面了解客戶的風險。這將使我們能夠提供一流的整體保險解決方案，同時保持承保紀律。

The target customers for Verita are growing companies seeking more flexible, tailored insurance solutions. And overtime, we aim to expand Verita into more industries as we grow the platform.

Verita 的目標客戶是尋求更靈活、量身定制的保險解決方案的成長型公司。隨著時間的推移，我們的目標是隨著平台的發展，將 Verita 擴展到更多產業。

Our analytic tools and expertise in insurance advisory and brokerage give our clients confidence that they're getting the best value for their premium dollars. This quarter, our portfolio was expanded to include the global actuarial review for a leading P&C insurer and the brokerage of a global renewal energy program by a world-class player in the energy sector.

我們在保險諮詢和經紀方面的分析工具和專業知識讓我們的客戶相信他們的保費可以獲得最大的價值。本季度，我們的投資組合擴大到包括為一家領先的財產和意外傷害保險公司提供全球精算審查，以及為能源領域的世界級參與者提供全球再生能源計畫的經紀服務。

Data analytics and specialty expertise are also key growth drivers for our Health, Wealth and Career segment. For example, we've had record success for our compensation benchmarking participation in sales with more than 43,000 companies participating in our surveys at the end of September. And we've introduced new talent intelligence reports, which examine hot skills and high-demand jobs across industries to help our clients make better informed decisions on work and rewards issues.

數據分析和專業知識也是我們健康、財富和職業部門的關鍵成長動力。例如，截至 9 月底，我們在銷售薪酬基準參與方面取得了創紀錄的成功，有超過 43,000 家公司參與了我們的調查。我們也推出了新的人才情報報告，該報告檢視了各行業的熱門技能和高需求工作，以幫助我們的客戶在工作和獎勵問題上做出更明智的決策。

We've also continued to build our health care benchmarking and specialty services. Earlier this year, we enhanced our pharmacy offering with an expansion of our Rx Collaborative and a new product for mid-market organizations. This past quarter, we launched 2 new pharmacy partnerships to help plan members save on costs. Another key to our HWC success is the differentiated smart connections we're making across businesses and geographies. A client's simple request for data can lead to additional consulting opportunities for us. It's also done to enhance our solution systematically.

我們也繼續建立我們的醫療保健基準和專業服務。今年早些時候，我們透過擴展 Rx Collaborative 和針對中端市場組織的新產品來增強我們的藥房產品。上個季度，我們推出了 2 個新的藥房合作夥伴關係，以幫助計劃會員節省成本。我們 HWC 成功的另一個關鍵是我們跨企業和跨地區建立的差異化智慧連結。客戶對資料的簡單請求可以為我們帶來額外的諮詢機會。這樣做也是為了有系統地增強我們的解決方案。

Our updated workforce management offering, which combines financial analysis, health assessment and communication tools is but one example that led to millions of dollars of incremental revenue this past quarter. Another example is our LifeSight solution, our defined contribution pooled employer plan. We've expanded LifeSight to the U.S. earlier this year and are pleased to report that we've contracted with our first U.S. client while we added clients with $2.5 billion of asset value in Great Britain, Ireland and Belgium.

我們更新的勞動力管理產品結合了財務分析、健康評估和通訊工具，這只是上個季度帶來數百萬美元收入增量的一個例子。另一個例子是我們的 LifeSight 解決方案，即我們的固定繳款匯集雇主計畫。今年早些時候，我們已將 LifeSight 擴展到美國，並很高興地報告，我們已與第一個美國客戶簽訂了合同，同時在英國、愛爾蘭和比利時增加了資產價值 25 億美元的客戶。

Across WTW, the confluence of innovation and collaboration is driving consistent, sustainable growth. I'm energized by how our journey to 1 WTW is increasingly delivering new opportunities made possible by bringing together our diverse capabilities. Finally, I want to touch on capital allocation. As we've said in the past, we'll continue to take a balanced approach with a focus on allocating our capital to the highest return opportunities.

在整個 WTW，創新與協作的融合正在推動持續、永續的成長。我對我們邁向 1 WTW 的旅程如何透過匯集我們不同的能力而日益提供新的機會感到充滿活力。最後，我想談談資本配置。正如我們過去所說，我們將繼續採取平衡的方法，重點將我們的資本分配給最高回報的機會。

In the third quarter, we bought back $350 million of stock and expanded our repurchase authorization, demonstrating that share repurchases remain our top priority.

第三季度，我們回購了3.5億美元的股票，並擴大了回購授權，顯示股票回購仍然是我們的首要任務。

As we enter the fourth quarter, I'm encouraged by the strong client response to the hard work we've done growing, simplifying and transforming our business. We continue to see momentum building as our unique offerings help clients evaluate and manage their risks and opportunities in a complex macro environment. We are committed to harnessing this momentum to drive greater operating leverage over time. We believe that our transformation program and disciplined expense management, combined with consistent and sustainable growth opportunities will support near-term and long-term margin expansion.

當我們進入第四季度時，客戶對我們在發展、簡化和轉型業務方面所做的辛勤工作的強烈反應讓我感到鼓舞。我們的獨特產品可協助客戶在複雜的宏觀環境中評估和管理其風險和機遇，因此我們的勢頭不斷增強。我們致力於利用這一勢頭，隨著時間的推移提高營運槓桿。我們相信，我們的轉型計劃和嚴格的費用管理，加上持續和可持續的成長機會，將支持近期和長期利潤率的擴張。

I want to thank our colleagues for their performance this quarter. I'm truly appreciative of their dedication, service and continued commitment to our vision. Now before turning it over to Andrew, I'd also like to acknowledge the escalating conflict in the Middle East, the violence, devastation, loss of life and impact on innocent civilians are profoundly saddening. Our primary focus in times of tragedy is on the safety of our colleagues and their families. Thankfully, our colleagues who work in the region continue to be safe. We remain in regular contact and are providing the assistance they need. We support all of our colleagues and clients as well as their friends and family in the region as they cope with this difficult situation.

我要感謝我們的同事本季的表現。我非常感謝他們的奉獻、服務以及對我們願景的持續承諾。現在，在將其交給安德魯之前，我還想承認中東衝突不斷升級，暴力、破壞、生命損失和對無辜平民的影響令人深感悲痛。在發生悲劇時，我們的首要關注點是同事及其家人的安全。值得慶幸的是，我們在該地區工作的同事仍然安全。我們保持定期聯繫並提供他們所需的協助。我們支持所有同事和客戶以及他們在該地區的朋友和家人應對這一困難局面。

And with that, I'll turn the call over to Andrew.

然後，我會將電話轉給安德魯。

Thanks, Carl. Good morning, everyone. Thanks for joining us today. As Carl mentioned, our third quarter revenue was up 9% on an organic basis. And excluding book of business activity, organic revenue growth would have been 10%. This growth reflects the increasing productivity of our new hires and the impact of our strategic focus on specialization and risk and broking and increased demand from clients seeking solutions to manage the impact of inflation on health care costs, pensions, retirement plans and human capital in HWC.

謝謝，卡爾。大家，早安。感謝您今天加入我們。正如 Carl 所提到的，我們第三季的營收有機成長了 9%。如果不計入業務活動，有機收入成長率將為 10%。這一增長反映了我們新員工生產力的提高以及我們對專業化、風險和經紀業務的戰略重點的影響，以及尋求解​​決方案以管理通貨膨脹對HWC 醫療保健成本、退休金、退休計劃和人力資本影響的客戶的需求增加。

I'm very pleased with the progress of our transformation program, which delivered $23 million of incremental annualized savings during the third quarter. This brings the total to $151 million in cumulative annualized savings this year. Our progress on the transformation program and our strength and focus on cost management will help us drive continued operating leverage.

我對我們轉型計劃的進展感到非常滿意，該計劃在第三季度實現了 2300 萬美元的增量年度節省。這使得今年的累計年化節省總額達到 1.51 億美元。我們在轉型計劃方面的進展以及我們對成本管理的優勢和關注將幫助我們推動持續的營運槓桿。

I will now discuss our detailed segment results. Note that to provide comparability with prior periods, all commentary regarding the results of our segments will be on an organic basis, unless specifically stated otherwise. Health, Wealth and Career generated revenue growth of 9% on an organic basis and 8% on a constant currency basis compared to the third quarter of last year. We feel confident in our pipeline and anticipate that the segment will finish off the year with good results and in line with historical trends.

我現在將討論我們詳細的部門結果。請注意，為了提供與前期的可比性，除非另有明確說明，否則有關我們分部業績的所有評論都將基於有機基礎。與去年第三季相比，健康、財富和職業收入有機成長 9%，以固定匯率計算成長 8%。我們對我們的產品線充滿信心，並預計該部門將以良好的業績結束今年，並符合歷史趨勢。

Revenue for health increased 7% for the quarter or 8% without considering the impact of book of business activity. We delivered solid growth across all regions, driven by the continued expansion of our global benefits management client portfolio, new local clients, expanding consulting work for existing clients and increased brokerage income.

本季健康業務收入成長了 7%，如果不考慮業務活動的影響，則成長 8%。在全球福利管理客戶組合持續擴張、新的本地客戶、現有客戶諮詢工作的擴大以及經紀收入增加的推動下，我們在所有地區實現了穩健成長。

Wealth grew 7% in the third quarter. The growth was primarily attributable to strong momentum in return with increased derisking activity and consulting work in North America. Retirement also grew in Europe as a result of derisking work, regulatory compliance support and pension brokerage. Investments grew as a result of new client acquisitions and higher fees, which more than offset headwinds from the negative impact of capital market performance. Career delivered 8% growth in the quarter, driven by increased compensation survey sales, executive compensation work and other word-based advisory services, including paid transparency work, and change communication services.

第三季財富成長7%。這一成長主要歸因於北美去風險活動和諮詢工作增加所帶來的強勁勢頭。由於工作風險降低、監管合規支援和退休金經紀業務，歐洲的退休人數也有所增加。新客戶收購和費用上漲導致投資成長，足以抵銷資本市場表現負面影響所帶來的阻力。在薪資調查銷售、高階主管薪資工作和其他基於文字的諮詢服務（包括付費透明度工作和變革溝通服務）增加的推動下，職業生涯在本季度實現了 8% 的成長。

Benefits delivery and outsourcing generated 14% growth in the quarter. The increase was driven by strength in outsourcing for new clients and increased compliance and other project activity and individual marketplace with growth from higher volumes and placements of life and Medicare Advantage policies.

本季度福利交付和外包實現了 14% 的成長。這一成長的推動因素是新客戶外包的實力、合規性和其他專案活動的增加以及個人市場的成長，以及人壽保險和醫療保險優勢政策的數量和安置的成長。

As a reminder, we typically generate about 50% of the revenue for our individual marketplace business during the fourth quarter, and we expect the growth next quarter to be relatively in line with historical trends. HWC's operating margin increased 350 basis points from the prior year third quarter to 23.8%. This margin increase was attributable to both improved operating leverage and transformation savings. Operating leverage was driven by a positive spread with revenue outpacing expense growth and some timing between quarters.

提醒一下，我們的個人市場業務收入通常佔第四季的約 50%，我們預計下個季度的成長將與歷史趨勢相對一致。 HWC 的營業利潤率比去年第三季增加了 350 個基點，達到 23.8%。利潤率的成長歸因於營運槓桿的提高和轉型節省。營運槓桿是由收入成長超過支出成長以及季度之間的某些時間安排的正利差推動的。

Risk & Broking revenue was up 10% on both an organic and constant currency basis compared to the prior year third quarter. Excluding the $10 million year-over-year impact from book of business activity, risk and broking grew at an exceptional 12%.

與去年第三季相比，風險與經紀業務收入在有機收入和固定匯率基礎上均成長了 10%。排除商業活動帳面 1,000 萬美元的年比影響，風險和經紀業務成長了 12%。

As a reminder, there were about $10 million of book of business sales in R&B in the fourth quarter of 2022. We currently expect a similar amount of book of business settlements next quarter, and therefore, do not expect a meaningful year-over-year impact from book of business activity in Q4. However, the timing for settlements can be difficult to predict and may drag into the following year.

提醒一下，2022 年第四季 R&B 的業務帳面銷售額約為 1000 萬美元。我們目前預計下季度的業務帳面結算金額將與此類似，因此，預計同比不會出現有意義的變化第四季度業務活動帳面的影響。然而，和解的時間可能很難預測，可能會拖到下一年。

Corporate Risk and Broking had another strong quarter delivering organic revenue growth of 10% and continuing the positive growth trajectory we have seen over recent quarters. Excluding book of business activity, CRB grew at 12%. This result was primarily driven by strong new business growth and improved client retention. Pricing had a moderate positive impact on the quarter.

企業風險和經紀業務又一個強勁的季度實現了 10% 的有機收入成長，並延續了我們最近幾季看到的積極成長軌跡。不包括商業活動帳簿，CRB 成長了 12%。這項結果主要得益於強勁的新業務成長和客戶保留率的提高。定價對該季度產生了適度的積極影響。

Interest income was up $19 million for the quarter due to higher rates and the reclassification of interest income previously recorded in corporate. As noted last quarter, due to the cessation of the co-broking agreement with Gallagher, interest income directly associated with risk and broking fiduciary funds is now allocated to the segment.

由於利率上升以及先前記錄在企業中的利息收入重新分類，本季利息收入增加了 1,900 萬美元。正如上季所指出的，由於與加拉格爾的聯合經紀協議終止，與風險和經紀信託基金直接相關的利息收入現在分配給該部門。

The exceptional growth in Q3 was also driven by continued strong return on investment in our specialty lines. Globally, the strongest growth came from our facultative financial solutions, natural resources, surety and construction lines of business.

第三季的優異成長也得益於我們專業產品線持續強勁的投資回報。在全球範圍內，最強勁的成長來自我們的兼任金融解決方案、自然資源、擔保和建築業務。

Europe had an exceptional quarter with double-digit growth in a number of countries led by our P&C retail and direct business as well as construction, aerospace and financial solutions. International also contributed to strong organic growth led by Latin America.

歐洲季度業績表現出色，許多國家都實現了兩位數成長，其中以我們的財產與意外傷害零售和直接業務以及建築、航空航天和金融解決方案為首。國際也為以拉丁美洲為首的強勁有機成長做出了貢獻。

North America benefited from strong new business and increased client retention across most lines of business despite headwinds in our M&A business and from the impact of book of business activity.

儘管我們的併購業務面臨阻力以及業務活動的影響，北美仍受益於強勁的新業務和大多數業務領域客戶保留率的提高。

In the Insurance Consulting and Technology business, revenue was up 9% over the prior year period, driven by increased sales in technology solutions, including strong new business and higher project activity. R&B's operating margin was 15.7% for the third quarter, an increase of 200 basis points compared to the prior year third quarter. The expected ramp-up in production from our strategic hiring efforts drove greater operating leverage while tailwinds from increased interest income were offset by headwinds from gain on sale activity and foreign currency.

在保險諮詢和技術業務中，由於技術解決方案銷售額的增加，包括強勁的新業務和更高的項目活動，收入比上年同期增長了 9%。 R&B 第三季營業利潤率為 15.7%，比去年第三季增加了 200 個基點。我們的策略招募工作帶來的預期產量成長推動了更大的營運槓桿，而利息收入增加的有利因素則被銷售活動和外匯收益的不利因素所抵消。

Increased contribution from transformation as well as targeted expense management measures we put in place earlier this year also contributed meaningfully to margin expansion. We are beginning to see our expense management actions deliver results including coordinated efforts on reducing spend for internal travel and vendor spend. We continue to expect these actions to benefit our margin next quarter.

轉型貢獻的增加以及我們今年稍早採取的有針對性的費用管理措施也對利潤率擴張做出了有意義的貢獻。我們開始看到我們的費用管理行動取得了成果，包括協調努力減少內部旅行和供應商支出。我們仍然預計這些行動將有利於我們下個季度的利潤率。

Turning back to enterprise level results. Our adjusted operating margin was 16.2%, a 170 basis point increase over prior year. Excluding book of business activity, the margin would have increased 220 basis points year-over-year, benefiting from transformation savings as well as the impact of interest income. The net result was adjusted diluted earnings per share of $2.24.

回到企業級結果。調整後的營業利益率為 16.2%，比前一年增加 170 個基點。不包括業務活動帳面，受益於轉型節省以及利息收入的影響，利潤率將比去年同期增加 220 個基點。調整後攤薄每股收益為 2.24 美元。

Foreign exchange had a minimal impact on EPS for the third quarter. Assuming today's rates continue for the remainder of the year, we now expect a foreign currency headwind on adjusted earnings per share of $0.07 for the year. Our U.S. GAAP tax rate for the quarter was 15.5% versus 0.7% in the prior year.

外匯對第三季每股收益的影響很小。假設今年剩餘時間繼續維持今天的利率，我們現在預計今年調整後每股盈餘將面臨 0.07 美元的外匯逆風。本季美國 GAAP 稅率為 15.5%，而去年同期為 0.7%。

Our adjusted tax rate for the quarter was 24.3% compared to 16.8% in the prior year reflecting the nonrecurring nature of discrete tax benefits reflected in the prior year rate. We continue to expect the full year adjusted tax rate to be modestly above the prior year.

我們本季的調整後稅率為 24.3%，而上一年為 16.8%，反映了上一年稅率中反映的離散稅收優惠的非經常性性質。我們仍然預計全年調整後稅率將略高於上一年。

Our strong balance sheet gives us continued confidence in our ability to execute a disciplined capital allocation strategy that balances capital return to shareholders with internal investments and strategic M&A to deploy our capital in what we believe to be the highest return opportunities.

我們強大的資產負債表使我們對執行嚴格的資本配置策略的能力充滿信心，該策略可以平衡股東的資本回報與內部投資和策略併購，從而將我們的資本部署在我們認為回報最高的機會上。

During the quarter, we paid $88 million in dividends and repurchased approximately 1.7 million shares for $350 million. As Carl mentioned, we continue to view share repurchases as an attractive use of capital to create long-term shareholder value. Last month, we raised our repurchase authorization by $1 billion of which approximately $1.5 billion remains. In the first half of the year, we had about $450 million of share repurchases. We expect a similar amount for the second half of the year, subject to market conditions, among other relevant factors.

本季度，我們支付了 8,800 萬美元的股息，並以 3.5 億美元的價格回購了約 170 萬股股票。正如卡爾所提到的，我們仍然認為股票回購是一種有吸引力的資本利用方式，可以創造長期股東價值。上個月，我們將回購授權提高了 10 億美元，其中大約還有 15 億美元。今年上半年，我們回購了約 4.5 億美元的股票。我們預計下半年的金額將達到類似水平，具體取決於市場狀況和其他相關因素。

Additionally, we repaid $250 million of debt that matured during the quarter with a portion of the proceeds from our May debt issuance. Year-to-date, we have generated free cash flow of $707 million compared to free cash flow of $337 million during the same period in the prior year. The improvement of $370 million was due to the nonrecurrence of prior year headwinds, including realized losses on foreign currency hedges, payments made in the prior year for certain discretionary compensation and taxes for onetime gains recorded in connection with the Willis Retail and the deal termination payment. These tailwinds were partially offset by increased transformation program-related costs.

此外，我們也以 5 月債券發行的部分收益償還了本季到期的 2.5 億美元債務。今年迄今為止，我們產生了 7.07 億美元的自由現金流，而去年同期的自由現金流為 3.37 億美元。增加 3.7 億美元的原因是去年的逆風不再出現，包括外匯對沖的已實現損失、上一年為某些酌情補償支付的款項以及與 Willis Retail 和交易終止付款相關的一次性收益的稅收。這些有利因素被轉型計劃相關成本的增加部分抵銷。

We are very pleased with our improving business performance and expect this momentum to continue for the rest of the year. I am very proud of the leadership team and the resolve of our colleagues and the continued support of our clients. Our investments in talent, innovation and operational transformation have helped drive organic revenue growth, and we are confident that this will translate into sustained growth in margins, EPS and free cash flow.

我們對業務業績的改善感到非常滿意，並預計這一勢頭將在今年剩餘時間內持續下去。我為領導團隊、同事的決心以及客戶的持續支持感到非常自豪。我們對人才、創新和營運轉型的投資有助於推動有機收入成長，我們相信這將轉化為利潤率、每股盈餘和自由現金流的持續成長。

And with that, let's open it up for Q&A.

接下來，讓我們開始問答。

(Operator Instructions) Our first question or comment comes from the line of C. Gregory Peters from Raymond James.

（操作員說明）我們的第一個問題或評論來自 Raymond James 的 C. Gregory Peters。

Our next question or comment comes from the line of [Kristen Guethoff] from Wells Fargo Securities.

我們的下一個問題或評論來自富國銀行證券公司的 [Kristen Guethoff]。

A quick question on the -- so the full year R&B margin expansion for the full year. So if we do the math, that kind of implies over 30 bps expansion in the Q4. And assuming the math is correct on that, like what is going to be the biggest driver of that in terms of -- is it coming from organic revenue growth? Is it lower growth in expenses? And for that full year margin expansion, is that inclusive of the higher interest income?

一個關於全年 R&B 利潤率擴張的簡單問題。因此，如果我們計算一下，這意味著第四季度的擴張超過 30 個基點。假設數學是正確的，就像這將是最大的驅動力——它來自有機收入成長嗎？費用成長是否放緩？對於全年利潤率擴張而言，這是否包括較高的利息收入？

Yes. Thanks for your question. Yes, it is on a reported basis the full year margin expansion expectation and that is something that we still expect to see for the full year. That, we believe, will be driven by a number of factors. First of all, Q4 has the most operating leverage built into it. It's historically R&B's highest revenue quarter with the most new business opportunities, and we expect to continue with strong organic revenue growth for the rest of the year.

是的。謝謝你的提問。是的，這是基於報告的全年利潤率擴張預期，我們仍然預計全年會出現這種情況。我們相信，這將受到許多因素的推動。首先，第四季擁有最大的營運槓桿。這是 R&B 歷史上收入最高的季度，擁有最多的新業務機會，我們預計今年剩餘時間將繼續保持強勁的有機收入成長。

So the potential to drive operating leverage on our fixed expense base is greater.

因此，在我們的固定費用基礎上提高營運槓桿的潛力更大。

We also expect to see continued impact of our actions to mitigate some of the expense headwinds. The results of those we've already begun to see this quarter. There are also continuing benefits from our transformation program. And additionally, the strategic hires that we've made have begun to contribute to our performance in a very meaningful way, which you can see this quarter in organic growth. We continue to expect a ramp-up in production, which we anticipate will cover the increase in expenses, especially in Q4 when we seasonally have the most revenue.

我們也預期我們為減輕一些費用阻力而採取的行動將繼續產生影響。我們已經在本季開始看到這些結果。我們的轉型計劃也帶來了持續的好處。此外，我們進行的策略性招聘已經開始以非常有意義的方式為我們的業績做出貢獻，您可以在本季度的有機成長中看到這一點。我們繼續預期產量會增加，預計這將彌補支出的增加，特別是在我們季節性收入最多的第四季。

Makes sense. And then for my second question, there's been talk about Willis looking to get back into the reinsurance broking business. Can you comment on this or provide any color on whether or not you would consider reentering the business?

說得通。關於我的第二個問題，有傳言說威利斯希望重返再保險經紀業務。您能否對此發表評論，或就您是否會考慮重新進入該行業提供任何意見？

Sure. Thanks for the question. Reinsurance is a natural fit with retail broking businesses. And many of our peers operate these businesses. We did so successfully as well. And with our noncompete with AJG soon expiring, we are able to add reinsurance to the universe of capital allocations that we consider. We've remained well connected to the reinsurance markets. We have both a deep understanding of the strategic value of reinsurance brokerage for our business and a healthy appreciation for current market conditions as well.

當然。謝謝你的提問。再保險與零售經紀業務天生契合。我們的許多同行都經營這些業務。我們也成功地做到了這一點。隨著我們與 AJG 的競業禁止即將到期，我們能夠在我們考慮的資本配置領域中增加再保險。我們與再保險市場保持良好的聯繫。我們對再保險經紀業務對我們業務的策略價值有著深刻的理解，並且對當前的市場狀況也有健康的認識。

So I think I'll look at it this way, I'm not going to comment on any hypotheticals regarding capital allocation decisions or potential M&A transactions. And when evaluating our opportunity here, we look at it compared to any other opportunity we might have as a business, the full range of capital allocation opportunities we have, including share repurchases, as we've said in prior quarters, and we'll only pursue something if the expected returns and value creation potential for compelling versus other options we have. So I think I'll leave it at that.

所以我想我會這樣看待它，我不會評論任何有關資本配置決策或潛在併購交易的假設。在評估我們的機會時，我們將其與我們作為企業可能擁有的任何其他機會進行比較，我們擁有的全方位資本配置機會，包括股票回購，正如我們在前幾個季度所說的那樣，我們將只追求預期回報和價值創造潛力與我們擁有的其他選擇相比令人信服的東西。所以我想我就這樣吧。

Our next question or comment comes from the line of Mr. Gregory Peters from Raymond James.

我們的下一個問題或評論來自 Raymond James 的 Gregory Peters 先生。

Our next question or comment comes from the line of Mr. Rob Cox from Goldman Sachs.

我們的下一個問題或評論來自高盛的 Rob Cox 先生。

My first question on organic growth. Year-to-date organic growth is 8%, accelerated across the board in the quarter. And comments in the presentations were for expectations for the client pipeline momentum to continue. So in that context, should we be interpreting the mid-single-digit guidance for the full year as conservatism? Any more color on that would be appreciated.

我關於有機成長的第一個問題。年初至今的有機成長率為 8%，本季全面加速。簡報中的評論是對客戶管道勢頭持續下去的期望。因此，在這種情況下，我們是否應該將全年中個位數的指導解釋為保守主義？如果有更多顏色，我們將不勝感激。

Well, I mean, we're quite pleased with our progress and the growth we've shown this year. We see potential upside, and we feel optimistic about the path to achieve that upside to our originally stated objectives. We're looking to capitalize on momentum and there are a number of ways we're trying to do that. Our strategic focus on specialization in R&B continues to drive growth in our specialty lines that substantially outpaced R&B as a whole.

嗯，我的意思是，我們對今年所取得的進步和成長感到非常滿意。我們看到了潛在的上行空間，並且對實現我們最初設定的目標的上行路徑感到樂觀。我們正在尋求利用這一勢頭，並且我們正在嘗試多種方法來做到這一點。我們對 R&B 專業化的策略重點繼續推動我們專業產品線的成長，遠遠超過 R&B 整體成長。

We are seeing stronger growth in HWC, which is supported by increasing demand in a complex macro environment, for example, health care cost inflation that and the changing ways of working are fueling demand for what we offer in terms of smart advice, creative solutions, better data and analytics.

我們看到 HWC 的強勁成長，這是受到複雜宏觀環境中不斷增長的需求的支持，例如，醫療保健成本通膨以及工作方式的變化正在推動對我們提供的智慧建議、創意解決方案、更好的數據和分析。

And in our wealth business, right, the investment portion of these if capital markets remain relatively stable, we should see some improvement there as well.

在我們的財富業務中，如果資本市場保持相對穩定，我們的投資部分也應該會看到一些改善。

And just to add to that, in Q4, if you think about sort of the segment expectations, in HWC, we're expecting organic revenue growth in line with Q4 rates for the last several years. In Risk and Broking, again, we're confident that we'll continue with the robust organic revenue growth that we've seen so far this year. And of course, all of that feeds into margin.

除此之外，在第四季度，如果你考慮一下 HWC 的細分市場預期，我們預計有機收入成長與過去幾年的第四季成長率一致。在風險和經紀業務方面，我們再次有信心繼續保持今年迄今為止強勁的有機收入成長。當然，所有這些都會影響利潤。

Year-to-date, we've generated adjusted operating margin expansion of 70 basis points at the enterprise level. and we continue to expect adjusted operating margin expansion for the full year.

今年迄今為止，我們的企業層面調整後營業利潤率成長了 70 個基點。我們繼續預計全年調整後的營業利潤率將擴大。

Got it. I appreciate all the color. And then maybe just on buybacks. I think you had previously guided to a similar level of buybacks in the back half of the year. but you're running well ahead of that sort of thus far. Can you talk about how you view share buybacks from here, and kind of your updated outlook on buybacks in Q4 and beyond?

知道了。我欣賞所有的顏色。然後也許只是回購。我認為您之前曾在今年下半年指導過類似水準的回購。但到目前為止，你已經遠遠領先這一點。您能否談談您如何看待這裡的股票回購，以及您對第四季及以後回購的最新展望？

Yes, sure. We, going into the quarter, have a baseline of $100 million or so of share repurchase expectations, but we do constantly look for opportunities to deploy capital to the highest return opportunities. And depending on market conditions, et cetera, return profiles, we'll look to be opportunistic to do more if it's appropriate.

是的，當然。進入本季度，我們的股票回購預期基準為 1 億美元左右，但我們確實不斷尋找機會將資本部署到最高回報的機會。根據市場狀況等回報情況，如果適當的話，我們將尋求機會採取更多行動。

Our next question or comment comes from the line of Mark Hughes from Truist Securities.

我們的下一個問題或評論來自 Truist Securities 的 Mark Hughes。

The visibility for the derisking to continue, how much of a pipeline do you have there? And how are market conditions contributing to that?

繼續降低風險的可見性，你有多少管道？市場狀況如何促成這一點？

Yes, I mean, market conditions have been reasonable especially with respect to bulk lump-sum activity. And with pension funds in general, still better funded than they were in prior years, we are seeing people looking at annuity purchase and buyout options as well. Part of our strong results in BD&O during the quarter was a result of preparation with bulk lump-sum programs. And while those conditions may be more temporal, we do think that plan sponsors have more options and we'll consider their options, and we are fortunate that they use us to consider those options.

是的，我的意思是，市場狀況是合理的，尤其是在大宗一次性活動方面。總的來說，退休基金的資金狀況仍然比前幾年更好，我們看到人們也在考慮年金購買和買斷選擇。本季 BD&O 的強勁業績部分歸功於批量一次性計劃的準備工作。雖然這些條件可能更暫時，但我們確實認為計劃發起人有更多選擇，我們會考慮他們的選擇，我們很幸運，他們讓我們考慮這些選擇。

And then Verita, you talked about the meaningful expansion there. When will that be big enough to kind of influence organic growth?

然後 Verita，您談到了那裡有意義的擴張。什麼時候才能大到足以影響有機成長？

It's early days yet, right? We think we have a very good proposition. For Verita, we are launching it at a controllable size across a number of industry verticals. If the reception is as we hope, we'll be looking to expand that to additional industries and additional geographies over time.

現在還為時過早，對吧？我們認為我們有一個非常好的提議。對於 Verita，我們將在多個行業垂直領域以可控的規模推出它。如果反應如我們所願，我們將尋求隨著時間的推移將其擴展到更多行業和更多地區。

Our next question or comment comes from the line of Michael Zaremski from BMO.

我們的下一個問題或評論來自 BMO 的 Michael Zaremski。

I guess I'm back to the commentary about reinsurance. Clearly, we all appreciate that that's a great business. You're -- you guys did a great job in that business in the past. So it makes sense what you're saying. I guess my question is, given it's -- reinsurance has a great margin profile, it's seen by some investors as being maybe an expensive proposition to get into -- to grow into over time. Would -- so if that was the path Willis took, is it -- could it be done within the context of guidance -- for the '24 guidance? Or is that sacred? Or is this like a board-level conversation where you might be willing to change that guidance, if the decision was to go -- to make this a big commitment?

我想我又回到了關於再保險的評論。顯然，我們都讚賞這是一項偉大的業務。你們——你們過去在這項業務上做得很好。所以你說的有道理。我想我的問題是，考慮到再保險的利潤率很高，一些投資者認為它可能是一個昂貴的提議，隨著時間的推移，它會不斷發展。那麼，如果這是威利斯所採取的道路，那麼它是否可以在「24 小時指南」的指導範圍內完成？或者說那是神聖的？或者這是否像是董事會層級的對話，如果決定做出重大承諾，您可能願意改變該指導？

No, I think the way I would phrase is we -- it's within the context of the guidance we had, right? This is a strategic direction, and we look at what the potential path of spend and revenue might be in the context of our overall strategy. And yes, it's an attractive business, but there are other attractive possibilities as well. We just -- we want to be judicious how we approach any such decision.

不，我想我要表達的方式是我們——它是在我們已有的指導範圍內的，對吧？這是一個策略方向，我們會在整體策略的背景下研究支出和收入的潛在路徑。是的，這是一項有吸引力的業務，但也有其他有吸引力的可能性。我們只是——我們希望明智地做出此類決定。

Okay. That's helpful. And I guess switching gears a bit. There's a lot of -- we can clearly see that margins improved more than expected this quarter, which is great to see. And you had a lot of commentary about strengthened discipline on costs and -- but you've also had this expense program in place for a while. Just kind of -- did something change recently that you've put they're just more hitting the bottom line? Or is it really just the -- an operating leverage and the strategic hires and that dynamic really taking fold?

好的。這很有幫助。我想稍微改一下。我們可以清楚地看到，本季利潤率的改善超過預期，這是很高興看到的。你們有很多關於加強成本紀律的評論——但你們也已經實施了這個費用計劃一段時間了。只是——最近有什麼變化嗎？你認為他們只是更觸及底線了？或者它真的只是——營運槓桿和策略招募以及這種動態真正改變嗎？

Yes. It's actually all of that, right? So if you -- clearly, with the strong organic growth combined with the expense discipline and the transformation results, we generate strong margin accretion. We've been maintaining discipline with respect to our cost structure, especially as the inflationary environment has put pressure on some of our costs, right. We did take some specific actions regarding travel expenses, looking at vendor spend and some targeted management of marketing costs. In addition, as specifically related to the transformation program, now that we've optimized processes and improved our technology as part of that program, you've been able to take some workforce-related actions which enhanced, I think some of the levers that you're seeing come through.

是的。實際上就是這一切，對吧？因此，如果你——顯然，憑藉強勁的有機成長，加上費用紀律和轉型結果，我們將產生強勁的利潤成長。我們一直在維持成本結構方面的紀律，特別是在通膨環境對我們的一些成本帶來壓力的情況下，對吧。我們確實在差旅費用、查看供應商支出以及對行銷成本進行一些有針對性的管理方面採取了一些具體行動。此外，與轉型計劃特別相關的是，作為該計劃的一部分，我們已經優化了流程並改進了我們的技術，您已經能夠採取一些與勞動力相關的行動，這些行動增強了，我認為一些槓桿你看到了。

Our next question or comment comes from the line of Shlomo Rosenbaum from Stifel.

我們的下一個問題或評論來自 Stifel 的 Shlomo Rosenbaum。

I just wanted to ask a little bit about some of the comments on timing of expenses benefiting margins in health and welfare segment. Can you just give us a little bit more detail on what that was and how investors should consider that with regard to the fourth quarter expectations. And similarly, sometimes, there's timing items that benefit organic revenue growth, like the survey work can sometimes move between third and fourth quarter, where you end up with software sales or something. Was there anything unusual in terms of any of those things. So just kind of timing in both expenses and revenue.

我只是想問一些關於健康和福利部門利潤率支出的時間表的一些評論。您能否給我們更多詳細信息，說明這是什麼以及投資者應如何考慮第四季度的預期。同樣，有時，有些時間項目有利於有機收入成長，例如調查工作有時可以在第三季和第四季之間移動，最終您會獲得軟體銷售或其他東西。這些事情有什麼不尋常的地方嗎？所以只是支出和收入的時間安排。

Yes, sure. Why don't I take you through the pieces of HWC's organic growth, right? So it was 9% for the quarter. Across the segment, there was strong demand driven by the complex macro environment, our strategic focus on cross-selling and data and analytics. And we feel very confident about the pipeline that we'll be able to finish off the year with good results in line with recent historical trends for Q4 growth. Within BDO, which had 14%, there was organic growth driven by new clients and increased compliance and other project activity in outsourcing and growth from higher volumes and placements of life and Medicare Advantage and individual marketplace.

是的，當然。為什麼不帶您了解 HWC 有機成長的各個部分，對吧？因此該季度的成長率為 9%。在整個細分市場，複雜的宏觀環境、我們對交叉銷售以及數據和分析的策略重點推動了強勁的需求。我們對管道非常有信心，我們將能夠在今年結束時取得符合最近第四季度成長歷史趨勢的良好業績。在佔 14% 的 BDO 中，新客戶推動了有機成長，外包方面合規性和其他專案活動的增加，以及人壽和 Medicare Advantage 和個人市場的數量和安置的增加帶來了成長。

In wealth, 7% was generated from higher levels of retirement work in North America and Europe, along with new client acquisitions and higher fees and investments health, which was 7% or 8%, excluding the book of business headwinds. There was organic growth driven by continued expansion of our global benefits management client portfolio, new local clients, expanded consulting work for existing clients and increased brokerage income. Career, which was 8% had organic growth driven by increased compensation survey sales, executive compensation and other reward-based advisory services, including pay transparency and some change in communication services.

在財富方面，7% 是由北美和歐洲更高水準的退休工作、新客戶收購、更高的費用和投資健康產生的，不包括商業逆風的話，這一比例為 7% 或 8%。我們的全球福利管理客戶組合的持續擴張、新的本地客戶、現有客戶諮詢工作的擴大以及經紀收入的增加推動了有機成長。 Career 的有機成長為 8%，其驅動因素包括薪酬調查銷售、高階主管薪酬和其他基於獎勵的諮詢服務（包括薪酬透明度和溝通服務的一些變化）的增加。

Within BD&O, right, which had the 14% growth, I think, it's important to point out what was driving that and what we might expect going forward. So that was driven, like I said, by both project work and outsourcing as well as TRANZACT. TRANZACT's growth for the quarter is also timing related. And given that this is one of their lowest revenue quarters a year over a year impact becomes magnified. And again, the best way to think about TRANZACT growth is on a full year basis, and we expect that to be substantially similar to the full year 2022.

我認為 BD&O（右）成長了 14%，重要的是要指出推動這一成長的因素以及我們對未來的預期。正如我所說，這是由專案工作、外包以及 TRANZACT 推動的。 TRANZACT 本季的成長也與時間相關。鑑於這是他們一年中收入最低的季度之一，影響變得更大。同樣，考慮 TRANZACT 成長的最佳方式是按全年計算，我們預計該成長將與 2022 年全年基本相似。

A couple of points of color commentary in there to address sort of Q2, Q3, Q4 differential. I mean, you talked about our survey business, demand for there has actually stayed quite strong, and that's the fastest-growing area within career. Within health, right, the uptick in health care costs did cause quite a bit of activity during the quarter. I think that as you look to further out from managing health care costs will continue to be a priority for our client base.

其中有一些顏色評論來解決 Q2、Q3、Q4 的差異。我的意思是，您談到了我們的調查業務，對該業務的需求實際上仍然相當強勁，這是職業生涯中成長最快的領域。在健康領域，醫療保健成本的上升確實在本季引發了相當多的活動。我認為，當您尋求進一步管理醫療保健成本時，這將繼續成為我們客戶群的首要任務。

But now we're into sort of enrollment season and largely sort of build those design actions, which were taken during Q2 and Q3 in [participation] of enrollment that's not a Q4 activity typically for our client base. So -- and then in retirement, the business has an awful lot of delivery during the summer months and sort of effective strategic projects and some of the derisking activity we talked about earlier in the call. So we're very comfortable with longer-term prospects for the business.

但現在我們正處於招生季節，主要是在製定這些設計行動，這些設計行動是在第二季度和第三季度採取的[參與]招生活動，這通常不是我們客戶群的第四季度活動。因此，在退休後，該公司在夏季有大量交付，並且有一些有效的策略項目以及我們在電話會議之前討論過的一些去風險活動。因此，我們對業務的長期前景非常滿意。

What about the expense items, though? That's part of like the question. I see a lot of -- some of this you're discussing the revenue, but were there some expense items, it seems like we're moving back timing of something. Could you just discuss what exactly that meant?

那麼費用項目呢？這是問題的一部分。我看到很多——其中一些你正在討論收入，但是是否有一些費用項目，似乎我們正在推遲某些事情的時間安排。您能簡單討論一下這到底意味著什麼嗎？

Yes, not -- nothing of note. It was primarily the expanded growth in the top line that was really flowing through to the margin is what you're seeing.

是的，沒有——沒什麼值得注意的。正如您所看到的那樣，主要是營收的擴大成長真正流向了利潤率。

Our next question or comment comes from the line of David Motemaden from Evercore ISI.

我們的下一個問題或評論來自 Evercore ISI 的 David Motemaden。

I just had a question on the R&B segment organic growth. I'm wondering if you could just size the contribution to organic growth from the new hires or the ramp-up of the hiring that you guys have done over the last several years. And also just wondering, I think we're 9 to 12 months into the ramp-up period. So we kind of passed the peak incremental contribution of the new hires. And so we'll just continue to get contribution going forward, incremental contribution going forward, it will just be at lower levels? Or am I not thinking about that right?

我剛剛有一個關於 R&B 部門有機成長的問題。我想知道您是否可以衡量新員工對有機成長的貢獻或過去幾年您增加的招募規模。我也想知道，我們已經進入了 9 到 12 個月的準備期。所以我們已經過了新進員工增量貢獻的高峰。因此，我們將繼續獲得未來的貢獻，未來的增量貢獻，只是會處於較低的水平？還是我沒有考慮到這一點？

Yes. So we're not going to get into the specific contributions of recent hires. But to your latter point, we're 12 to 18 months in, if you think about for the first cohort of folks that we had hired and those are at or near expected production levels. However, we did hire right after that first round of hiring as well. It's been a continuous process. So we do expect increasing contributions from enhanced productivity from those hires as time progresses. So we do think there's more room to run there.

是的。因此，我們不會討論最近聘用的員工的具體貢獻。但就你的後一點而言，如果你考慮一下我們僱用的第一批人員，並且他們已經達到或接近預期的生產水平，那麼我們還需要 12 到 18 個月的時間。然而，我們也在第一輪招募後立即進行了招募。這是一個持續的過程。因此，隨著時間的推移，我們確實預期這些員工的生產力提高會做出越來越多的貢獻。所以我們確實認為那裡有更多的運行空間。

Got it. But the big cohort, I guess, is fully ramped as what it sounds like, is that correct?

知道了。但我想，這一大群人正如聽起來的那樣，已經全面升級，這是正確的嗎？

We -- the hiring process was a bit more continuous than that. So there's not just one big lump of people all hired in the same quarter, it was a more gradual buildup I think you (inaudible) sort of -- the way you're phrasing it. So I think we still, as we said, see potential for increased productivity from the group as a whole.

我們的招募過程比這更加連續。因此，不僅僅是在同一季度僱用了一大群人，而是一種更漸進的積累，我認為你（聽不清楚）有點——就像你所說的那樣。因此，正如我們所說，我認為我們仍然看到整個集團生產力提高的潛力。

Got it. Understood. And then just my follow-up. So I heard the commentary on the individual marketplace driving the Health, Wealth, Career, organic and the 14 in BDO was TRANZACT was a driver there. It didn't look like that had as adverse of an impact to free cash flow as I would have thought. So was there anything you did in the quarter to help minimize that impact? Or was it just too small of a revenue contribution number given what you said about it being a small base that it just didn't really have an impact on free cash flow in the quarter.

知道了。明白了。然後就是我的後續行動。因此，我聽到了有關推動健康、財富、職業、有機和 BDO 中的 14 的個人市場的評論，TRANZACT 是那裡的推動者。看起來這對自由現金流的影響並不像我想像的那麼嚴重。那麼，您在本季採取了哪些措施來幫助最大限度地減少這種影響？或者考慮到您所說的基數很小，它對收入貢獻數字太小了，它並沒有真正對本季度的自由現金流產生影響。

Yes. I think 2 things there. One, it is a relatively small contributor in that quarter overall. The second thing I'd say is one of our key focus areas has been to work to improve the free cash flow dynamics around TRANZACT. And that includes balancing our Medicare Advantage portfolio with the mix of products that have different or better free cash flow conversion profiles, things like life insurance policies. So reorienting the portfolio a bit has helped enhance that profile of that business, and that's one of the steps that we're taking to get that business to be free cash flow positive over the next few years.

是的。我認為有兩件事。第一，它在該季度總體上的貢獻相對較小。我要說的第二件事是我們的重點領域之一是努力改善圍繞 TRANZACT 的自由現金流動態。這包括平衡我們的醫療保險優勢投資組合與具有不同或更好的自由現金流轉換特徵的產品組合，例如人壽保險保單。因此，稍微重新調整投資組合有助於增強該業務的形象，這是我們為使該業務在未來幾年實現自由現金流而採取的步驟之一。

Our next question or comment comes from the line of Yaron Kinar from Jefferies.

我們的下一個問題或評論來自 Jefferies 的 Yaron Kinar。

I have a follow-up question on one of the comments you made on maybe curtailing T&E expenses and vendor spend. How do you -- obviously, one of the challenges you have as managers is balancing between organic growth, margin improvement and free cash flow. Ultimately, pushing that lever, I would think could impact organic growth to some extent. So how do you think about the 2 and the impact you would have on organic?

我對您關於可能削減差旅費用和供應商支出的評論之一有一個後續問題。顯然，身為管理者，你面臨的挑戰之一是如何在有機成長、利潤率提高和自由現金流之間取得平衡。最終，我認為推動這一槓桿可能會在某種程度上影響有機成長。那麼您如何看待這兩個因素以及您對有機產品的影響？

Yes, good question. And the answer is, we are balancing between things, but there are places that are just simply going to be easier to come than others, right? Internal travel isn't directly tied to client revenue, going to see clients is. So we've just asked people to be smart about how they spend their travel dollar and just being a bit better organized can help, right, tailoring several client visits together perhaps combined if you're a senior [management] with an office visit can be a far more productive spend. And I'm really pleased how our team has responded to the call for better discipline to spend.

是的，好問題。答案是，我們正在事物之間取得平衡，但有些地方只是比其他地方更容易到達，對嗎？內部旅行與客戶收入沒有直接關係，但會見客戶則與客戶收入直接相關。因此，我們只是要求人們明智地對待如何花費旅行費用，並且更好地組織一下就可以有所幫助，對吧，如果您是高級[管理人員]，並且需要進行辦公室訪問，那麼可以將多次客戶訪問結合起來，也許可以結合起來成為更有成效的支出。我真的很高興我們的團隊回應了加強支出紀律的呼籲。

That makes sense. And then maybe going back to the appetite for the reinsurance business or getting back into that business. I think one of the challenges that we've looked at from the outside is just scalability and also the absence of any very large assets that you could pursue inorganically. So assuming that it is something that you'd want to pursue, ultimately, does that have an impact on the business over the next few years? Or is it really going to be in build-out mode for a very long time before we actually see more substantial results.

這就說得通了。然後可能會回到對再保險業務的興趣或重新進入該業務。我認為我們從外部看到的挑戰之一是可擴展性，以及缺乏任何可以無機追求的非常大的資產。因此，假設這是您最終想要追求的目標，這會對未來幾年的業務產生影響嗎？或者在我們真正看到更實質的結果之前，它真的會在很長一段時間內處於擴建模式嗎？

Yes. If it's something that we decide to act upon that we would expect to do so in a very thoughtful manner, recognizing the obligations and commitments that we've made and we'll do so in a very disciplined fashion. And we recognize the -- what the inorganic options look like and have to balance that from a strategic perspective with what an organic build might look like and the time scale for that. We just got to be disciplined and thoughtful about how we approach that, if that is something that we decide to act on in the future.

是的。如果我們決定採取行動，我們希望以非常深思熟慮的方式這樣做，並認識到我們已經做出的義務和承諾，並且我們將以非常有紀律的方式這樣做。我們認識到無機選項是什麼樣子，並且必須從戰略角度平衡它與有機構建可能會是什麼樣子以及時間尺度。如果我們決定在未來採取行動的話，我們必須對如何處理這個問題保持紀律和深思熟慮。

Our next question or comment comes from the line of Michael Ward from Citi.

我們的下一個問題或評論來自花旗銀行的邁克爾沃德 (Michael Ward)。

I was just wondering if you could maybe unpack the sources of organic growth acceleration in CRB, which global lines you see as driving organic growth the most over the next 12 months?

我只是想知道您是否可以解析 CRB 有機成長加速的根源，您認為哪些全球航線在未來 12 個月內最能推動有機成長？

Yes. So if you look at our global lines, right, there -- in general, we're having great success in the marketplace. Probably the biggest differentiator is what's happening in rate. And I think it's pretty well known that D&O market, particularly, has seen significant rate reductions, which does have an effect on our overall revenue in the area. .

是的。因此，如果你看看我們的全球產品線，對吧，總的來說，我們在市場上取得了巨大的成功。也許最大的差別在於速率的變化。我認為眾所周知，D&O 市場尤其出現了大幅降價，這確實對我們在該領域的整體收入產生了影響。 。

So good results despite a headwind from rates in that particular line. We are seeing very good success across all our global lines. And I think, it's -- what we say is where we specialize, we win, and that's a good testament to that. Probably the other area I'd call out is facing a headwind has been in our M&A business, where simply there's been much less M&A activity.

儘管該特定行的利率存在阻力，但結果還是不錯。我們在全球所有業務領域都取得了非常好的成功。我認為，我們所說的是我們專注的領域，我們獲勝，這是對此的一個很好的證明。我要指出的另一個面臨逆風的領域可能是我們的併購業務，那裡的併購活動要少得多。

And so as a result, our revenues in the area along with everybody else, have been under pressure. Of course, this is a very interest rate-sensitive business. So we've seen some benefit on the interest income side of the balance sheet that mitigates that.

因此，我們在該地區的收入和其他人一樣都面臨著壓力。當然，這是一項對利率非常敏感的業務。因此，我們看到資產負債表的利息收入方面有一些好處，可以緩解這種情況。

Yes. And we did see solid performance across the broad portfolio across all geographies. We did have a large increase in new business, which we were very happy to see and -- versus prior year, and we also had really strong retention rates, which did contribute to the top line. And we do see very clearly the benefits of the specialization and focus. And we did see double-digit growth across almost all of our global lines of business this quarter.

是的。我們確實看到了所有地區廣泛投資組合的穩健表現。我們的新業務確實大幅增加，我們很高興看到與去年相比，而且我們的保留率也非常高，這確實對營收做出了貢獻。我們確實非常清楚地看到專業化和專注的好處。本季我們幾乎所有全球業務確實都實現了兩位數的成長。

Awesome. And then maybe the cash flow improvement in the quarter. It was up over $200 million, I think, with $75 million from working capital. Just wondering any actions you can call out and if you could quantify the transformation cash flow impact.

驚人的。然後本季的現金流可能會有所改善。我認為它增加了 2 億多美元，其中 7500 萬美元來自營運資金。只是想知道您可以採取哪些行動，以及您是否可以量化轉型現金流的影響。

Yes. So the improvement of [$370 million] was primarily due to the nonrecurrence of some of the prior year headwinds. We talked a little bit about the FX hedges. Discretionary comp payments made in the past and some taxes. And that -- those tailwinds were partially offset by the increased transformation program-related costs. We're continuing to expect an incremental increase of approximately $150 million in cash spend related to the transformation program, and that's for the full year.

是的。因此，[3.7 億美元] 的改善主要是由於去年的一些不利因素不再出現。我們討論了一些關於外匯對沖的問題。過去支付的酌情補償金和一些稅金。而且，這些有利因素被轉型計劃相關成本增加所部分抵銷。我們繼續預計與轉型計劃相關的現金支出將增加約 1.5 億美元，而且這是全年的情況。

Our next question or comment comes from the line of Mark Marcon from RW Baird.

我們的下一個問題或評論來自 RW Baird 的 Mark Marcon。

Carl, Andrew, followed you since the very first days of Watson [what]. I don't think I've ever seen a quarter where we had such a broad-based improvement with regards to the organic growth rates across every single line of business. I'm wondering, was there anything that has changed internally in terms of incentive systems discussions with regards to goals, objectives that led to such a broad-based improvement. You mentioned that you're becoming more disciplined in terms of T&E, but I'm wondering if that's part of a broader focus on operational discipline.

卡爾、安德魯從沃森誕生的第一天起就一直關注著你們[什麼]。我認為我從來沒有見過哪個季度我們的每條業務線的有機成長率都有如此廣泛的改善。我想知道，在激勵系統討論方面是否有任何內部變化，這些變化導致瞭如此廣泛的改進。您提到您在 T&E 方面變得更加自律，但我想知道這是否是更廣泛關注營運紀律的一部分。

We are trying to become a more disciplined organization. I think I've been saying that since we first announced the growth, Simplify and Transform program in late '21. We are -- I'm very proud of the efforts that our colleagues have made to produce these results. And that's not me and Andrew, right? That is 46,000-plus plus all pointing in the right direction. And it's nice when the stars align. But no, there's nothing in terms of underlying change in compensation programs, et cetera, that's driving this, it's 46,000 people's [heart].

我們正在努力成為一個更有紀律的組織。自從我們在 21 世紀末首次宣布成長、簡化和轉型計劃以來，我想我一直在這麼說。我對我們的同事為取得這些成果所做的努力感到非常自豪。那不是我和安德魯，對吧？超過 46,000 人都指向正確的方向。當星星排成一線時真是太好了。但不，薪酬計畫等方面的根本變化並沒有什麼推動因素，而是 46,000 人的[心]。

Always interesting when 46,000 all change over the course of a couple of quarters. So the second question is the guide for the full year basically implies a decel, you mentioned that is conservative. Obviously, BDO and TRANZACT or a huge swing factor with regards to the fourth quarter. Can you just discuss -- we only have 2 months and a few days left in this quarter. Can you just discuss how does the enrollment season look? What are the trends? Is that the biggest swing factor that is basically keeping you from raising the full year guide given the strong momentum that we currently have.

當 46,000 個數據在幾個季度內全部變化時，總是很有趣。所以第二個問題是全年指南基本上意味著減速，你提到這是保守的。顯然，BDO 和 TRANZACT 還是第四季的一個巨大的波動因素。您能否討論一下—本季只剩下兩個月零幾天了。能談談招生季的情況嗎？有哪些趨勢？鑑於我們目前擁有的強勁勢頭，這是基本上阻止您提高全年指南的最大搖擺因素。

Yes. I think it's still way too early enrollment season to make any predictions about trend, et cetera, we paid for some while, and I think it's a bit of a (inaudible). With respect to sort of how we think demand is for the -- within the businesses, I think we alluded to that at a reasonably detailed level earlier in the call. There is some activity that we enjoyed during the summer that especially with respect to, as I said, a benefit redesign and derisking that just we don't expect to be as big a force in Q4. And then BDO will do what BDO does in enrollment season.

是的。我認為現在對趨勢做出任何預測還為時過早，等等，我們支付了一段時間，我認為這有點（聽不清楚）。關於我們對企業內部需求的看法，我認為我們在電話會議的早期就相當詳細地提到了這一點。正如我所說，我們在夏天喜歡進行一些活動，特別是在福利重新設計和消除風險方面，但我們預計這些活動不會在第四季度產生那麼大的影響力。然後BDO將做BDO在招生季節所做的事情。

Our next question or comment comes from the line of Meyer Shields from KBW.

我們的下一個問題或評論來自 KBW 的 Meyer Shields。

1 have been a little bit lumpy today. I guess first question, with regard to TRANZACT, I understand it's still sort of generating negative cash flows. Do we have line of sight in terms of when the annual negative cash flows don't get worse on a year-over-year basis?

1 今天有點顛簸。我想第一個問題，關於 TRANZACT，我知道它仍然會產生負現金流。我們是否有預見年度負現金流何時不會比去年同期惡化？

When it won't -- sorry, I just to make sure I understood your question, when it won't get worse on a year-over-year basis?

什麼時候不會——抱歉，我只是為了確保我理解你的問題，什麼時候情況不會逐年變得更糟？

Right. In other words, there's -- I'm looking at 2 hurdles. One is obviously, ultimately, is cash flow positive. But before that, I would imagine that it generates negative cash flow, but not as much as the prior year.

正確的。換句話說，我面臨兩個障礙。其中之一顯然最終是現金流為正。但在此之前，我認為它會產生負現金流，但不會像前一年那麼多。

Yes, that's right. It's becoming incrementally better every year until we get to being cash flow positive. So we do expect positive trajectory from that business as we evolve the portfolio and take other actions.

恩，那就對了。它每年都在變得越來越好，直到我們實現正現金流。因此，隨著我們發展投資組合併採取其他行動，我們確實預期該業務將出現積極的發展軌跡。

Okay. And then I just want to clarify something because I may be misinterpreting it. But on the last quarter call, I think when you talked about some of the nontransformational expense efforts, the expectation was that would be clearer in the fourth quarter than in the third. And I just wanted to see whether that's still the case or whether it proved out faster than expected?

好的。然後我想澄清一些事情，因為我可能會誤解它。但在上個季度的電話會議上，我認為當您談到一些非轉型支出工作時，預期第四季會比第三季更加清晰。我只是想看看情況是否仍然如此，或者事實證明是否比預期更快？

Yes, I think some of it did prove out faster than expected, but we do expect that benefit to carry through to the fourth quarter and there may be a bit more to go there in some of the areas, but very happy with the progress that we've made so far.

是的，我認為其中一些確實比預期的要快，但我們確實預計這種效益將延續到第四季度，並且在某些領域可能會有更多的成果，但對所取得的進展感到非常高興到目前為止我們已經做到了。

Our next question or comment comes from the line of Brian Meredith from UBS.

我們的下一個問題或評論來自瑞銀集團 (UBS) 的布萊恩梅雷迪思 (Brian Meredith)。

Carl, just curious, like nominal GDP has stayed, I think, better than people kind of anticipated, although I know there are some people saying that it's going to slow down at some point next year. What are your clients saying? And what's your kind of crystal ball looking at, I don't know about GDP? And then how does that factor into your 2024 guidance? Maybe you can just remind us on that, particularly with respect to revenues.

卡爾，我只是好奇，我認為名目 GDP 的表現比人們預期的要好，儘管我知道有些人說明年某個時候會放緩。您的客戶在說什麼？你的水晶球在看什麼，我不知道GDP？那麼這對您的 2024 年指導有何影響？也許您可以提醒我們這一點，特別是在收入方面。

Yes. So I mean as a company, right, we are well positioned to weather macroeconomic uncertainty. And I think if you ask a prediction from me on GDP, I think I'll go with it's uncertain. But there's a range of actions that I think we're actually in pretty good shape to handle both WTW and our predecessor companies have been able to grow revenue during recessions.

是的。所以我的意思是，作為一家公司，我們有能力應對宏觀經濟的不確定性。我想，如果你問我對 GDP 的預測，我想我會給出不確定的答案。但我認為我們實際上已經採取了一系列行動來應對 WTW，而且我們的前身公司已經能夠在經濟衰退期間增加收入。

Our clients are facing many uncertainties in this macro environment, some of our clients have to navigate rising -- sustained rising commercial insurance rates that the industry has been enjoying amidst the current conditions, insurers are still pushing for premium increases, and that caused even greater challenges for our clients as they try and navigate complex risks, but right, our customized tools, our specialist approach in R&D ensures that the clients get the best return for their premium dollars across the entire portfolio risk. And I think that helps us positioned very well.

在當前的宏觀環境下，我們的客戶面臨著許多不確定性，我們的一些客戶必須面對商業保險費率不斷上漲的局面，在當前的情況下，保險公司仍在推動保費上漲，這造成了更大的影響。我們的客戶在嘗試應對複雜風險時面臨著挑戰​​，但正確的是，我們的客製化工具和我們在研發方面的專業方法可確保客戶在整個投資組合風險中獲得最佳的溢價回報。我認為這有助於我們很好地定位。

On the HWC side, these same economic issues can cause our clients to have a more intense need for sound advice and risk management solutions, whether it's pension derisking or coping with health care inflation. So our clients look for help in navigating these issues and that creates opportunities that drives demand for our services around benefits, pensions and workforce management.

在 HWC 方面，這些相同的經濟問題可能會導致我們的客戶更加迫切地需要合理的建議和風險管理解決方案，無論是降低退休金風險還是應對醫療保健通膨。因此，我們的客戶尋求協助來解決這些問題，這創造了機會，推動對我們在福利、退休金和勞動力管理方面的服務的需求。

Got it. And then my second question, there's been some chatter, I think, this quarter about some of the major brokers getting back in the wholesale insurance brokerage business. I'm just curious what your thoughts are with respect to -- is that an opportunity maybe for you all to get back into.

知道了。然後是我的第二個問題，我認為本季有一些關於一些主要經紀人重返批發保險經紀業務的討論。我只是好奇你們的想法是什麼——這對你們來說可能是一個重新獲得的機會。

We don't speculate about potential transactions and would sort of wholesale a transaction, not an extension of what we're doing.

我們不會猜測潛在的交易，而是會批發交易，而不是我們正在做的事情的延伸。

Our next question or comment comes from the line of Joshua Shanker from Bank of America.

我們的下一個問題或評論來自美國銀行的 Joshua Shanker。

I was wondering if you can give any color. I mean you have a bunch of different businesses on the broking side. How are things looking in middle market here in the United States? How are things looking in your, I guess, I would call them international businesses in some of your places where you're dominant and (inaudible) and whatnot. Can you give us a little color on the geographical differences in performance? I know you say it's broad-based, but I mean not everything is moving at the exact same gearing, I assume.

我想知道你是否可以給出任何顏色。我的意思是，你們在經紀方面有很多不同的業務。美國的中間市場狀況如何？我想，在你們主導的一些地方，我會把它們稱為國際企業，以及（聽不清楚）等等。您能為我們介紹一下表現的地域差異嗎？我知道你說這是基礎廣泛的，但我認為並不是所有事情都以完全相同的方式發展。

Yes, there are some differentiators in our results around the world, right? For the first point out, we don't have a dominant business anywhere, but we have strong businesses in many places. Growth has been, I think, quite good in both international and Europe.

是的，我們在世界各地的結果有些差異，對嗎？首先，我們在任何地方都沒有主導業務，但我們在許多地方都有強大的業務。我認為，國際和歐洲的成長都相當不錯。

And we are seeing our U.S. business performed very well in the revamp we've done over the last months to reorganize the business across industry lines. Andrew did talk a little bit that in the beginning of the call about relative performance in the geographies. But we do see that our specialty-led approach has really led to very good results in a number of countries within Europe, strong results in Latin America. And as I said, the North America revamp we've made is working well.

我們看到我們的美國業務在過去幾個月的跨行業業務重組中表現非常出色。安德魯在電話會議開始時確實談到了各地區的相對錶現。但我們確實看到，我們以專業為主導的方法確實在歐洲許多國家取得了非常好的成果，在拉丁美洲取得了強勁的成果。正如我所說，我們對北美的改造進展順利。

And just a quick modeling question. Should we assume in 2024 that the book of business sales are basically run their course?

只是一個快速的建模問題。我們是否應該假設 2024 年企業銷售額基本上達到預期目標？

Yes. I think that's a fairly safe assumption at this point in time. We do expect it to look like the historical average. I did mention in my prepared remarks that we did expect a bit in Q4. Some of that timing as always can be uncertain, and it can slip, but it should not make a material difference to 2024.

是的。我認為目前這是一個相當安全的假設。我們確實希望它看起來像歷史平均水平。我在準備好的發言中確實提到，我們確實對第四季有所期待。一如既往，有些時間安排可能是不確定的，也可能會推遲，但不會對 2024 年產生重大影響。

Our next question or comment is a follow-up from Mr. Shlomo Rosenbaum from Stifel.

我們的下一個問題或評論來自 Stifel 的 Shlomo Rosenbaum 先生。

I had a couple of just kind of housekeeping questions, probably for Andrew. Just first, just on the move up in interest rates in September. Is there kind of any update that we should think about in terms of pension income expectation for 2024. And then also, the nonoperating income line seemed to have spiked up a little to $66 million in the quarter. I don't know if that's from the gain of sale that got adjusted out of the net income. But is there something material in that line item that spiked it positively in the quarter?

我有幾個簡單的家事問題，可能是問安德魯的。首先，就是九月利率的調漲。在 2024 年退休金收入預期方面，我們是否應該考慮任何更新。此外，本季非營業收入線似乎略有上升，達到 6,600 萬美元。我不知道這是否來自淨利潤調整後的銷售收益。但該訂單項中是否有某些實質內容使其在本季出現正成長？

Yes. So first, on the pension side, as we've mentioned before, the increase in interest rates and declining capital market return did create a significant headwind to some of the pension income dynamics. We continue to expect pension needs of about $112 million in 2023. And for 2024, we'll update our expectations there on our fourth quarter call after the annual remeasurement process. However, based on current market conditions, we don't expect the pension headwinds to subside. And on your question related to the other income line item, the big component that you're seeing there is a gain on the sale of our Saville assessment business.

是的。首先，在退休金方面，正如我們之前提到的，利率上升和資本市場回報下降確實對退休金收入動態造成了重大阻力。我們仍然預計 2023 年退休金需求約為 1.12 億美元。對於 2024 年，我們將在年度重新衡量過程後在第四季度電話會議上更新我們的預期。然而，根據當前的市場狀況，我們預期退休金的不利因素不會消退。關於您與其他收入項目相關的問題，您看到的一個重要部分是出售我們的薩維爾評估業務帶來的收益。

I'm showing no additional questions in the queue at this time. I would like to turn the conference back over to Mr. Carl Hess for any closing remarks.

目前我在隊列中沒有顯示任何其他問題。我想將會議轉回卡爾·赫斯先生發表閉幕詞。

Thank you all again for joining us today. We do appreciate the continued support of all of our stakeholders. I especially want to reiterate my thanks to all WTW's colleagues around the globe for their continued hard work and dedication, the results of which are evident in this third quarter performance. I am proud of their results, and I look forward to working together to keep the momentum going as we finish the year strong. Have a great day.

再次感謝大家今天加入我們。我們非常感謝所有利害關係人的持續支持。我特別想再次感謝 WTW 全球所有同事的持續辛勤工作和奉獻精神，其成果在第三季的業績中得到了體現。我為他們的成果感到自豪，我期待著共同努力，在我們強勁地結束這一年的過程中保持這一勢頭。祝你有美好的一天。

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day.

女士們、先生們，感謝你們參加今天的會議。程式到此結束。您現在可以斷開連線。祝大家有美好的一天。