Management Meeting Takeaways on 1Q R&B Drivers, '26 Organic, Capital Return and

Research evidence excerpt

Management Meeting Takeaways on 1Q R&B Drivers, '26 Organic, Capital Return and

ke buybacks will be the primary use of excess

capital. WTW is still committed to M&A but the bid ask spread is wide as private market

values haven’t adjusted down yet. We have been surprised that WTW has not been more

aggressive buying back stock given the $1.9b ending cash balance at 1Q26 or $1.7b after

the Cushon acquisition. We think there is $900m-1b of excess cash on the balance sheet

so we hope that the closing of recent M&A clears the way for upside to the at least $1b

buyback guide for ‘26

◼ WTW is not seeing margin pressure from the war on talent as it is hiring from outside

the industry (Aon noted a similar strategy). Newfront tech helps ramp new producers

faster than the typical 3yrs, with better efficiency on non-traditional hires. While R&B

employee count growth was 2% in ’25, it sounded like producer growth is higher which

combined with productivity improvement underpins organic growth

◼ WTW front loaded ’26 hiring which weighed on R&B margin expansion in 1Q but

should result in building revenue contributions throughout the year. It also sounded

like WTW did not fully lower incentive comp because of 1Q performance as it sees

recovering growth in the rest of ’26.

◼ P&C cml market conditions continue to be competitive in property, and WTW is also seeing

a deceleration in casualty pricing.

◼ We thought the commentary on the HWC outlook was solid, with opportunities to expand in

Health’s US midmarket following a new offering launched 2 years ago that is resonating.

WTW was also upbeat on the multinational market where it is taking share

◼ In BD&O, competitor financial pressures could drive net new business wins in ’27 (BD&O

organic at LSD% in ’26, below MSD% medium term target).