Latest news with #WillisTowersWatson
Yahoo
5 days ago
- Business
- Yahoo
Pay raises plateau: Companies hold steady on salary budgets for 2026
Good morning. Salary increases for employees are expected to remain similar next year amid a flatter, but potentially volatile, economic outlook. For U.S. companies, the average salary increase budget is projected to hold steady at 3.5% in 2026, matching the actual increases seen in 2025, according to the Salary Budget Planning Report by Willis Towers Watson (WTW). About 31% of respondents plan to lower their salary increase budgets compared to last year, mainly due to concerns about a possible recession, weaker financial performance, and the need for tighter cost control. In contrast, the few organizations planning to raise their budgets cite a competitive labor market and inflationary pressures as key reasons. The global survey, conducted from April to June, included responses from 1,569 U.S. organizations. Employers are no longer simply reacting to economic signals regarding pay allocation, according to WTW. They're accounting for other labor factors. 'Just as they do with any other investment, the most forward-thinking CFOs that we speak with are looking holistically at all aspects of pay and benefits to better understand which programs resonate most with employees and provide the highest return on investment,' John Bremen, managing director and chief innovation and acceleration officer at WTW, told me. They treat 'total rewards' as a portfolio, which makes sense given that the largest companies spend billions on them, Bremen explained. CFOs reduce spending on the programs that have less impact and further invest in the ones that have the highest impact, he said. Another key finding of the report: Despite limited pay growth, employee turnover remains low. Fewer organizations now report challenges with employee stability compared to the past two years. Only 30% of surveyed organizations find it difficult to attract or retain employees, down 11 percentage points from 2023, WTW finds. More employees want to stay with their current employers (62% in 2024 vs. 49% in 2022), and fewer are open to offers (11% vs. 22%)—yet nearly 30% are still actively job hunting, Bremen said. Other reasons employees stay are structural, he said. U.S. Bureau of Labor Statistics (BLS) data shows that fewer job opportunities are available today compared with previous years, he explained. 'Even though there are still millions of open jobs in the U.S., there are far fewer available to potential job changers,' Bremen said. 'And the premium for changing jobs is lower today than it was in previous years.' In June, the unemployment rate dipped to 4.1% from 4.2%. While 147,000 new jobs were added, private sector job growth was the slowest in eight months, according to BLS. Additionally, 130,000 people left the labor force, and the unemployed are staying out of work longer, Fortune reported. In response to this stable yet challenging labor market, in which turnover is relatively low and burnout and disengagement remain concerns, WTW finds that companies are taking steps to support their workforce, including: —Improving the employee experience (47%)—Enhancing health and wellness benefits (43%)—Expanding training opportunities (40%) A commitment to employee well-being and engagement is essential. Sheryl This story was originally featured on Sign in to access your portfolio
Yahoo
07-07-2025
- Business
- Yahoo
What to Expect From Willis Towers Watson's Next Quarterly Earnings Report
London, U.K.-based Willis Towers Watson Public Limited Company (WTW) is a leading global advisory, broking, and solutions company. Its solutions include risk management, benefits optimization, and capability expansion. Valued at $30.4 billion by market cap, WTW operates through Risk & Broking and Health, Wealth & Career segments. The company is expected to announce its second-quarter results on Thursday, Jul. 24. Ahead of the event, analysts expect WTW to deliver adjusted earnings of $2.66 per share, up 4.3% from $2.55 per share reported in the year-ago quarter. While the company has missed the Street's bottom-line estimates once over the past four quarters, it has surpassed the expectations on three other occasions. Chevron Stock's 4.6% Dividend Yield and 1.67% One Month Short Put Yield Make CVX a Buy Tariff Dealine, Fed Minutes and Other Key Thing to Watch this Week SoFi Stock Is Betting on Crypto Again. How Should You Play SOFI Stock Here? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For the full fiscal 2025, WTW is expected to deliver an EPS of $16.55, down 2.2% from $16.93 reported in the previous year. While in fiscal 2026, its earnings are expected to rebound 14.1% year-over-year to $18.89 per share. WTW stock has gained 17.8% over the past 52 weeks, outpacing the S&P 500 Index's ($SPX) 13.4% returns but underperforming the Financial Select Sector SPDR Fund's (XLF) 28% surge during the same time frame. Willis Towers Watson's stock prices declined 5.7% following the release of its lackluster Q1 results on Apr. 24. Its organic revenues for the quarter increased 5% but due to the sale of TRANZACT, WTW's overall topline dropped by 5% year-over-year to $2.2 billion. This figure fell short of the Street's expectations by a notable 3.9%. Furthermore, the company's adjusted EPS for the quarter remained flat compared to the year-ago quarter at $ 3.13 and missed the consensus estimates by 2.2%, unsettling investor confidence. Nevertheless, the stock holds a consensus 'Moderate Buy' rating overall. Of the 19 analysts covering the WTW stock, opinions include 12 'Strong Buys,' one 'Moderate Buy,' five 'Holds,' and one 'Strong Sell.' Its mean price target of $364.70 indicates an 18.9% upside potential from current price levels. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Glasgow Times
03-07-2025
- Business
- Glasgow Times
Rachel Corsie honoured by Glasgow Caledonian University
Glasgow Caledonian University acknowledged two individuals on the second day of their summer graduation ceremonies at the Royal Concert Hall for their contributions to society. Rachel Corsie, former Scotland national women's football team captain and advocate for inclusion in sport, was awarded a Doctor of the University for her contributions to football and efforts in promoting gender equity and accessibility in sports. Read more: Scaffolding collapses into building shattering residents window Reflecting on her career, the Accounting and Finance graduate, who represented her country 155 times over an 18-year career, said: "Sharing this moment with you brings back very happy memories for me. "I first stood in a hall like this in 2011, when I graduated with an Accounting and Finance degree. "The 15 years since have brought experiences that were unthinkable back then." She also praised Glasgow, her second home, for its spirit and people, saying: "For those of you from here, you'll understand the inherent values of a city that abundantly knows the importance of people and strong relationships." The former footballer ended her speech by encouraging graduates to give their all and to let their Scottish roots guide them. Also honoured was Mike Hammond, a stalwart of the global insurance industry, who was awarded a Doctor of Business Administration for his transformative impact over a five-decade career. He is currently a non-executive director at Willis Towers Watson, a global leader in risk management, actuarial, and insurance services. Mr Hammond told graduates: "I was the first in my family to stay on at school after 16. "The confidence I gained from university gave me the courage to travel the road less travelled. 'Making a difference and providing opportunities for others to make a difference is very important to me. 'I've learned not to take education for granted. Opportunity through education is the greatest gift you can give someone. It was the most important gift given to me.'
Yahoo
24-06-2025
- Business
- Yahoo
Rising costs re-emerge as companies' top benefits issue
This story was originally published on To receive daily news and insights, subscribe to our free daily newsletter. With economic uncertainty seemingly entrenched for the time being, companies are looking hard at the increasing cost of employee health benefits. Among 696 U.S. employers that participated in Willis Towers Watson's 2025 Benefits Trends Survey, 90% identified the pressure on costs as a key business issue shaping benefits strategy. That was a leap from 67% of American employers who said the same in WTW's previous global benefits survey in 2023. As recently as 2021, cost was only their sixth-greatest benefits concern. WTW has projected that U.S. employers' costs for medical care will increase by 10.2% this year. Additionally, compared with just 8% of U.S. employers that reallocated or rebalanced their benefits spending over the prior 12 months, 63% of survey respondents — who were polled in March and April — said they planned to do so within the next three years. Competition for talent, always a key issue because benefits programs are designed in large part to attract and retain valued workers, was this year's #2 concern after leading the pack in 2023, with 52% of U.S. employers characterizing it as a key business issue. Next came employees' expectations for an enhanced benefits experience. Employees no longer want a single benefits package, WTW wrote in its survey report. Rather, they want the flexibility to address their personal circumstances and for benefits 'to be as individual as their needs.' 'The old rules of employee benefits are fundamentally changing,' WTW said. 'With rising costs, economic instability and employees demanding more support and personalization, organizations must transform how they think about benefits.' WTW counseled companies to renegotiate contracts with benefits vendors, use provider networks, explore new pricing models, push for transparency and seek partners that deliver measurable outcomes. A notable majority (73%) of U.S. survey participants said they plan to address high costs by enhancing value or switching to better-value vendors across health, retirement and risk benefits. More than a third (37%) are looking to adopt a network of preferred medical providers. Secondly, companies should address the most expensive health conditions 'through targeted programs that prevent avoidable claims and improve health outcomes,' WTW said. Mental health, cardiovascular issues, and cancer should be particular areas of focus. Almost half (44%) of those polled said they plan to tackle high-cost medical conditions, while 66% identified mental health as a top benefits priority. Meanwhile, 42% of U.S. employers said they're asking their benefits teams to enhance their skills in areas such as analytics, data and legislation. Recommended Reading Health care costs expected to jump by 9% in 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
14-05-2025
- Business
- Globe and Mail
BRK.B vs. AIG: Which Global Insurance Giant Can Offer Better Returns?
Better pricing, climate change, which exposes insurers to catastrophe losses, and accelerated digitalization are likely to have an impact on the insurance industry. Though the Fed has held the borrowing rate between 4.25% and 4.5% since December, a July or September cut is now more likely, per media reports. Yet Berkshire Hathaway Inc. ( BRK.B ) and American International Group, Inc. AIG — two insurance behemoths — are expected to stay strong. Pricing plays an important part in their profitability. Per a recent analysis by MarketScout's Market Barometer, the commercial insurance sector saw a composite rate increase of 3%. Per the report, the personal lines composite rate increased 4.9% in the first quarter of 2025, up from 4% in the fourth quarter of 2024. Given the increased adoption of technology, merger and acquisition (M&A) activity is projected to witness momentum in 2025, driven by a higher number of technology-driven deals, per a report by Willis Towers Watson's Quarterly Deal Performance Monitor. Yet, as an investment option, which stock, BRK.B or AIG, is more attractive for long-term insurance-focused investors? Let's closely look at the fundamentals of these stocks. Factors to Consider for BRK.B Berkshire Hathaway is a diversified conglomerate with over 90 subsidiaries spanning a wide range of industries, including insurance and consumer products, which helps mitigate concentration risk. Among its various operations, insurance is the most significant, contributing roughly one-fourth of the company's total revenues. This segment is well-positioned for sustained growth, driven by increased market exposure, disciplined underwriting and favorable pricing trends. The continued expansion of its insurance business boosts float, enhances earnings, maximizes return on equity, and provides the financial flexibility for strategic acquisitions. With substantial cash reserves, Berkshire Hathaway regularly acquires companies or increases its holdings in firms with consistent earnings and strong returns on equity. While large-scale acquisitions create new business opportunities, smaller bolt-on deals strengthen existing operations and improve profitability. Warren Buffett has consistently targeted undervalued assets with strong growth potential. His investments in companies like Coca-Cola, American Express, Apple, Bank of America, Chevron, and Occidental Petroleum reflect Berkshire's disciplined and strategic investment approach. Net margin, measuring a company's profitability, expanded 190 basis points in a year. It has strengthened its balance sheet with more than $100 billion in cash reserves, low debt, and a high credit rating. Berkshire's return on equity of 7.2% lags the industry average of 8% but this company has improved the same over time. BRK.B shares have gained 13% year to date. . Factors to Consider for AIG American International Group, better known as AIG, is a leading global insurance organization, providing a wide range of property casualty insurance, life insurance, retirement solutions, and other financial services to customers in more than 80 countries and jurisdictions. The company has been focusing on implementing stricter underwriting discipline, divesting non-core businesses, reducing debt, launching strategic transformation initiatives and modernizing operations and technology infrastructure, as well as investing heavily in data and digital strategies. These have led AIG to generate $2 billion annually in underwriting profit, on average, over the past three years. AIG is also benefiting from reinvesting assets at higher yields, including increasing asset allocation to private credit at attractive spreads. The company stated that the deconsolidation of Corebridge accelerated the AIG Next initiative, resulting in $450 million in exit run-rate savings for 2024. The company also expects to lower its expense ratio to between 1% and 1.5% of net premiums earned by the end of 2025. Net margin is yet to recover. Net margin was -7% in the first quarter of 2025 versus 24% in the first quarter of 2024. A solid capital deployment strategy supports growth and helps return wealth to shareholders. Last month, its board increased the share repurchase authorization to $7.5 billion and approved a 12.5% increase in quarterly dividend. Its return on equity of 7.1% lags the industry average. AIG has gained 14.9% year to date. Estimates for BRK.B and AIG The Zacks Consensus Estimate for BRK.B's 2025 revenues implies a year-over-year increase of 1% while that for EPS implies a year-over-year decrease of 6.9%. EPS estimates have moved 1.7% north over the past 30 days. The Zacks Consensus Estimate for AIG's 2025 revenues implies a year-over-year decrease of 16.3% while that for EPS implies a year-over-year increase of 26.1%. EPS estimates have moved 1.3% north over the past 30 days. Are BRK.B and AIG Shares Expensive? Berkshire is trading at a price-to-book multiple of 1.68, above its median of 1.39 over the last five years. AIG's price-to-book multiple sits at 1.6, above its median of 0.89 over the last five years. Conclusion Holding shares of Berkshire Hathaway adds dynamism to shareholders' portfolios. It gives the feel of investing in mutual funds while rewarding investors with higher returns. Above all, the company has Warren Buffett at its helm, who has been creating tremendous value for shareholders over nearly six decades with his unique skills. However, it remains to be seen how the behemoth fares when Greg Abel succeeds Warren Buffett as CEO of Berkshire, effective Jan. 1, 2026. Buffett will, however, remain the company's executive chairman. Meanwhile, strategic business de-risking, acquisitions, cost-control efforts, investment in digitalization and accelerated capital deployment drive AIG. Though AIG Next initiative is designed to save costs, the net margin is still in the red. However, it has a solid capital deployment strategy that enhances shareholders' value. On the basis of return on equity, which reflects a company's efficiency in generating profit from shareholders' equity as well as gives a clear picture of the company's financial health, BRK.B scores higher than AIG. Though Berkshire Hathaway and AIG carry a Zacks Rank #3 (Hold) each, BRK.B has an edge over AIG. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. American International Group, Inc. (AIG): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
