Towers Watson Company Overview and History

Towers Watson was founded in 1907 by Frederick W. Gates, who served as the chief executive officer of the company.

The company started as a small firm in New York City, with Gates as its sole employee.

Towers Watson is a global professional services company that provides solutions in the areas of talent management, rewards, and risk.

The company has undergone several mergers and acquisitions over the years, including the acquisition of Watson Wyatt Worldwide in 2007.

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Towers Watson's roots trace back to 1878 when Reuben Watson founded R. Watson & Sons. This marked the beginning of a long history in insurance broking and consulting.

The company's name has undergone several changes over the years. In 1934, Towers, Perrin, Forster & Crosby was established in the U.S. and later shortened its name to Towers Perrin in 1987.

In 1995, R. Watson & Sons formed an alliance with The Wyatt Company, which was founded in 1946 by Birchard E. Wyatt. This alliance eventually led to a merger in 2005, forming Watson Wyatt Worldwide.

Towers Watson was formed in 2010 through the merger of Towers Perrin and Watson Wyatt Worldwide, creating the largest employee-benefits consulting firm by revenue worldwide.

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Willis Towers Watson has been actively expanding its reach through strategic acquisitions and partnerships.

The company acquired 15 companies, with its latest acquisition being Butterwire on July 12, 2022.

Willis Towers Watson has also formed partnerships with various businesses, including Duco, a cloud-based data automation company, and Kroll, a global advisory and broking firm.

The company partnered with Duco on July 5, 2023, to implement Duco's data automation platform, while partnering with Kroll on June 20, 2023, to launch a Property Rebuild Assessment Service.

Here are some of Willis Towers Watson's key partnerships and acquisitions:

Willis Towers Watson has been quite active in the acquisition space. They acquired 15 companies in total.

Their latest acquisition was Butterwire, which took place on July 12, 2022.

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Willis Towers Watson has 10 strategic partners and customers.

One of their recent partnerships is with Duco, a cloud-based data automation company, which they partnered with on July 7, 2023, to automate intercompany reconciliations in their Insurance Accounting function.

Duco's no-code, self-service data automation platform was chosen by WTW to unlock strategic insights across their business.

WTW also partnered with Kroll on June 20, 2023, to launch a Property Rebuild Assessment Service, offering clients accurate valuations and advice to ensure proper property protection and avoid overpayment for insurance coverage.

Other notable partners include Bayes Business School and RIMS, both of which WTW partnered with in 2022.

Here are the 10 strategic partners and customers of Willis Towers Watson:

WTW also partnered with Atomos on November 8, 2022, on a multi-asset strategic alliance.

The company structure and team behind Towers Watson are quite impressive.

Towers Watson has 125 team members, including key leaders like the Chief Executive Officer and President.

One of the notable team members is Carl Hess, who currently holds the position of Chief Executive Officer and President.

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Willis Towers Watson has a relatively small team of 125 members.

The company's leadership is headed by Carl Hess, who serves as both the Chief Executive Officer and President.

This team size suggests a more agile and responsive organization, allowing for quicker decision-making and a more streamlined approach to problem-solving.

Carl Hess's dual role as CEO and President implies a strong sense of leadership and direction within the company.

Perrin was a key figure in the establishment of Towers Perrin, which was founded in 1934.

Towers Perrin acquired actuarial firm Tillinghast, Nelson & Warren in 1986, expanding its services.

The company shortened its name to Towers Perrin in 1987, marking a significant change in its branding.

Perrin's legacy continued through the merger with Watson Wyatt in 2010, which formed Towers Watson.

WTW operates in two main segments: Risk & Broking and Health, Wealth & Career.

Risk & Broking covers commercial insurance broking and risk advisory, accounting for 41% of revenue in 2024.

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Health, Wealth & Career provides benefits administration, health and benefits brokerage, retirement and actuarial consulting, and HR and rewards advisory, making up 59% of revenue in 2024.

Revenue from service offerings by geography was 55% from North America, generating US$5.27 billion in 2024.

The company operates the Willis Research Network, launched in 2006, which partners with universities on natural-hazard and risk science.

WTW's software products include the Radar pricing suite used by non-life insurers.

The company serves clients in more than 140 countries.

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Towers Watson's financial performance has been a mixed bag over the years, but let's take a closer look at their selected annual results.

Their revenue has been steadily increasing, reaching a high of $9.93 billion in 2024.

In 2016, the company's revenue was $7.88 billion.

Here's a breakdown of their revenue and net income over the years:

Their net income has also fluctuated, with a notable exception in 2021 when it reached $4.222 billion.

Willis Towers Watson has made significant moves in the mergers and acquisitions space. They acquired 15 companies, with their latest acquisition being Butterwire on July 12, 2022.

The company has also been on the receiving end of a proposed acquisition by Aon. In 2020, Aon announced an all-stock deal to acquire Willis Towers Watson valued at about US$30 billion.

The proposed acquisition was subject to regulatory approvals and other conditions, with the parties targeting completion in 2021. However, the deal was ultimately terminated due to uncertainty created by a civil antitrust complaint filed by the US Department of Justice in June 2021.

Aon paid a US$1 billion fee to Willis Towers Watson as part of the termination agreement.

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Aon announced an all-stock deal to acquire Willis Towers Watson valued at about US$30 billion in March 2020.

The combined group would have been the world’s largest insurance broker by revenue, with the parties targeting completion in 2021 subject to regulatory approvals and other conditions.

Competition authorities conducted in-depth reviews, with the European Commission opening a Phase II investigation in December 2020.

The Commission approved the transaction on 9 July 2021, subject to structural remedies that included the divestment of substantial Willis Towers Watson reinsurance and commercial risk broking activities to an approved purchaser.

Outside Europe, the Australian Competition and Consumer Commission outlined preliminary concerns in February 2021 relating to reinsurance broking and broking for large commercial clients in Australia.

In the United States, the Department of Justice filed a civil antitrust complaint on 16 June 2021 to block the merger.

Aon and Willis Towers Watson terminated their business combination agreement on 26 July 2021, citing the uncertainty created by the DOJ litigation.

Under the termination agreement, Aon paid a US$1 billion fee to Willis Towers Watson.

Willis Towers Watson completed the sale of its treaty reinsurance brokerage operations to Arthur J. Gallagher & Co.

On a similar theme: Aon Plc

Willis PLC was a major player in the insurance industry, with a significant presence in the market. The company's merger with Aon was a major deal that was challenged by the Biden administration.

The merger would have created a professional services, risk management, and insurance brokerage firm with over $8 billion in annual revenue. This would have made it a significant player in the industry.

Willis PLC had a complex history, with the company's CEO Joseph Plumeri calling it a "wonderful opportunity" to take the top spot among corporate insurance brokers. The company had previously been involved in scandals and controversies, including a probe that found bid-rigging and other improprieties in the sale of commercial insurance.

In 2007, Minnesota's Attorney General Mike Hatch made allegations against Willis Group Holdings, stating that the company might have cheated its commercial insurance clients. Willis denied these allegations, stating that they had attempted to cooperate fully with the investigation.

Here are some key facts about the proposed merger between Aon and Willis Towers Watson:

The challenges faced by Willis PLC are a reminder that even large and established companies can face significant obstacles in the market. The company's history of scandals and controversies highlights the importance of transparency and accountability in business.