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Willis Tower Watson: Solid Quarter And Potential Revival Of Reinsurance Deal


  • Earnings of $2.66 beat consensus est's of $1.98.
  • Organic revenue up 8%, 4% in constant currency.
  • 3 out of 4 business lines grew revenue mid to high single digits.
  • Deal to sell reinsurance practice to Arthur Gallagher rumored to be back on.
  • Raised dividend to $.80.

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The Quarter:

Willis Tower Watson (WLTW) reported a very strong quarter besting strong showings last week by Aon (AON) and Arthur J. Gallagher (AJG). The company had easy compares after underperforming a

This article was written by

CashFlow Hunter profile picture
I am a finance executive with over 25 years of experience in the markets, nearly 20 of them as a hedge fund portfolio manager. My broad and deep experience investing in debt and equity markets using cash and derivatives gives me unique insights into markets and a focus on risk/reward and liquidity. I have degrees from Wharton and MIT and love to continue learning, whether its market related or an outside interest.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of WLTW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (1)

Georgi K. Kolev, CA & CFA profile picture
In terms of valuation, I never know what company should trade at what multiples. Why is 16x, 20x, 25x, 40x, etc the correct multiple? It is a very risky game and I don't how to and I don't want to play it.
I do however know the game of DCF and according to this game WTW is probably overvalued and definitely very far away from a bargain. If we use 10% discount rate, which is allegedly what Warren Buffett uses, unless the long-term interest rate is higher than 10%, which has not happened recently.
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