Profile: Towers Watson & Co (TW.N)

TW.N on New York Stock Exchange

24 Oct 2014
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Towers Watson & Co. (Towers Watson), incorporated on June 24, 2009, is a global professional services company. The Company offers solutions in the areas of benefits, talent management, rewards, and risks and capital management. The Company offers its clients comprehensive services across four business segments: Benefits, Risk and Financial Services, Talent and Rewards, and exchanges Solutions. The Company delivers consulting services and solutions, which help organizations, anticipate, identify and capitalize on emerging opportunities in benefit and human capital management. The Company advises the insurance industry on a range of strategic and risks management issues, and the Company helps its clients in all industries mitigate risk through insurance, reinsurance and capital markets transactions. The Company provides investment advice and solutions to helps its clients develop and implement disciplined, efficient strategies to meet their investment goals. In November 2012, the Company acquired DaVinci Consulting Group. In November 2013, Towers Watson and Co announced the completion of its sale of the Company's reinsurance brokerage business to Jardine Lloyd Thompson Group plc. In November 2013, the Company acquired Liazon Corporation.

Benefits Segment

During the fiscal year ended June 30, 2013 (fiscal 2013), the Benefits segment generated approximately 57% of Towers Watson's revenue. The lines of business within the Benefits segment are technology and administration solutions; the benefits lines of business often work closely together on client assignments, along with consultants from the Talent and Rewards and Risk and Financial Services segments. Client assignments includes mergers and acquisitions, total reward program design, retiree benefit strategy, benefit program de-risking, benefits administration and benefit-related communication and change management.

The Company provides actuarial and consulting services for defined benefits and defined contribution plans, including consulting on plan design, funding and risk management strategies. The Company also helps its clients assess the effects of changing workforce demographics on their retirement plans, cash flow requirements, and retiree benefit adequacy and security. The Company offers clients a range of retirement consulting services to meet the needs of all types of employers, including those that continue to offer defined benefit plans and those that are re-examining their retirement benefit strategies. The Company's retirement consulting services include retirement strategy and plan design, actuarial services and related support, retirement plan financial management, compliance and governance strategies and defined contribution solutions. The Company provides perspective on the overall environment and helps its clients make plan design decisions. The Company also maintains extensive databases, which enable its clients to track and benchmark benefit plan provisions. The Company's retirement consulting relationships are long-term in nature.

The Company provides plan management consulting across the full spectrum of health and group benefits programs, including health, dental, disability, life and other coverage. The Company provides services to large and mid-size organizations. The Company's consulting approach in this business includes plan management and actuarial expertise; databases of plan designs and plan performance metrics used to diagnose program performance and inform solutions; investment in leadership to drive new market approaches; a continuum-of-service approaches, and specialty expertise in the areas of health management, pharmacy, absence and disability management, and benefit plan audit and measurement.

The Company manages a range of collective purchasing initiatives, whichenable employers to realize greater value from third-party service providers than they can on their own. The Company's newest offering in this regard is OneExchange Active, the Company's private health insurance exchange for active employees. This offering is integrated with other health insurance exchange offerings, OneExchange Retiree and OneExchange Access, which are provided within the Exchange Solutions segment. The Company has designed its health insurance exchange based on the same high performance plan principles underlying its advice to clients who choose to self-manage their health programs. The Company's clients now have the choice of continuing to self-manage and using the Company's consulting services or to access high performance on its private exchange platform. The Company's first OneExchange Active clients will go live in 2014.

The Company's services include program strategy, design and pricing; employee engagement in health benefits; health condition management consulting; pharmacy benefit management consulting; absence and disability management consulting; workforce well-being evaluation and wellness and health promotion consulting; performance measurement and monitoring; development of funding strategies and forecasting, budgeting and reserve setting; vendor evaluation, selection and management, and claims audits and pre- and post-implementation audits. The Company's Technology and Administration Solutions line of business provides benefits outsourcing services to clients across multiple industries. The Company's services are supported by the Company's platforms, including its BenefitConnect system in the United States, and its onshore benefits call centers. The Company provides pension and retirement plan administration, pension payroll administration, treasury and accounting administration, flexible benefits plan administration, health and welfare, health and welfare administration, private health insurance exchange and dependent eligibility verification.

Towers Watson provides international human capital management, as well as related benefits and compensation advice for corporate headquarters and their overseas subsidiaries. The Company's services include global actuarial services; global total rewards and benefit design; global workforce health and wellbeing; defined contribution plan oversight; defined benefit plan risk management and reduction strategies; financing of employee benefits through pooling and captives, and the optimization of global employee benefit management and spend. Towers Watson also has a global service offering with client-ready teams of M&A practitioners across all the Company's segments.

Risk and Financial Services Segment

This segment includes three lines of business risk consulting and software, investment, and reinsurance and insurance brokerage. Risk Consulting and Software serves the insurance industry. The Company's associates use analytical skills, consulting techniques and software solutions. The Company is a provider of financial modeling software to the insurance industry. The Company's Risk Consulting and Software services include financial and regulatory reporting, enterprise risk and capital management, M&A and corporate restructuring, product and market strategies, strategy and performance improvement, software solutions, and integrated consulting and risk transfer.

The Company's Investment services include investment policy, governance and risk assessment; investment strategy; structured products design; manager structure and selection; manager monitoring and evaluation, and delegated investment services. The Company's brokerage business serves as an intermediary between the Company's clients and the insurance, reinsurance and capital markets. The Company provides intermediary services for property and casualty insurance.

The Company's Brokerage services include reinsurance strategy, program review, design and placement; contract negotiation, claims and accounting; catastrophe exposure management and modeling; market security evaluation and monitoring; primary insurance intermediary services for corporations and public entities; programs, facilities and binding authorities; capital markets broker/dealer capabilities, and integrated consulting and risk transfer. In addition to the Company's insurance and reinsurance intermediary services and consulting, it provides capital market broker/dealer capabilities. The Company helps its clients make informed decisions about risk and capital management and executes comprehensive solutions.

Talent and Rewards Segment

This segment includes three lines of business executive compensation; rewards, talent and communication, and executive compensation. The Company advises its clients' management and boards of directors on all aspects of executive pay programs, including base pay, annual bonuses, long-term incentives, perquisites and other benefits. The Company helps clients understand market practices in these areas. The Company's services include executive compensation philosophy and strategy development, modeling and valuation of pay plan elements, performance measurement selection and calibration, board of director compensation and plan design, advice on change-in-control and severance programs, and total compensation assessment and benchmarking. The Company also provides clients with executive-pay-related support associated with various transactions, including mergers, acquisitions, divestitures, executive transitions and business restructuring.

Rewards, talent and communication line of business offers a range of advisory services focused on designing and implementing human resource (HR) programs and processes. The Company's solutions cover the employment lifecycle and help companies attract and deploy talent, engage them over time; manage and reward their performance, develop their skills, provide them with relevant career paths, communicate with them and manage organizational change initiatives.

The Company's primary practice areas are talent management, rewards, and communication and change management. The Company helps organizations develop integrated programs and processes to identifies and address their leadership and workforce needs; develop leaders and employees, and align roles, goals and incentives for employees and leaders. The Company provides the tools, advisory services and execution support to help organizations design and administer effective compensation programs. The Company's sales effectiveness and rewards service offering focuses on sales force productivity and incentives. The rewards practice also has focused teams who serve the health care, high technology and financial services industries.

The Company's communication and change management consultants helps its clients drive employee engagement and align employee behavior with business results.

Data, surveys and technology line of business combines data, analytics and software to enable the effective management of people and HR programs. This business includes the Company's global compensation databases; offerings in employee surveys, human capital metrics and analytics benchmarking and HR service delivery consulting, as well as software applications for talent, performance and compensation management. These services generate recurring revenue by leveraging data, technology and a pool of staff resources that is flexibly deployed.

The Company provides data on compensation, benefits, and HR policies and practices in 110 countries across six continents, covering over 50 functions/job families and 4,200 international general industry and 9,900 industry-specific jobs. The Company's survey data support global clients wherever they do business. The Company's HR service delivery consulting services help employers design and implement the human resource organizational structure, service delivery model, staff and technology. The Company supports clients in developing HR technology strategy, implementing Workday, and providing consulting support related to implementation of other platforms. The Company's capabilities include business case development, project planning, requirements definition, process design and implementation services supported by the Company's change management expertise. The Company also provides a range of technology solutions, including TalentREWARD, an integrated suite of applications for recruiting, performance management, global job leveling, compensation planning and administration, succession planning, career development, and learning management; total rewards portals and statements, and exchange solutions segment.

Exchange Solutions Segment

The Company is redefining the manner, in which employee and retiree health benefits is offered and delivered. The Company's solutions create the Company's employer clients and provide its customers with improved choice and control over their health benefits.

The Company's solution within this Segment, OneExchange Retiree, enables the Company's employer clients to transition their retirees to individual, defined contribution health plans, which provide individuals with a tax-free allowance or contribution to spend on health care services at an annual cost that the employer controls. The Company has helped retirees and their dependents navigates the individual retiree medical insurance market, and evaluate and choose a health plan using its exchange platform and decision support tools. In addition, this line of business is developing and expanding its solutions to address the pre-65 retiree, or early retiree, and are working on exchange opportunities for active employee.

This line of business provides solutions through a technology platform, which integrates call routing technology, Medicare quoting and an enrollment engine, a custom-developed customer relationship management (CRM) system and insurance carrier connectivity. Exchange Solutions services include analyzing and optimizing employer healthcare benefit subsidies and developing healthcare coverage strategies, which enables the Company's clients to predict their healthcare liabilities and realize significant cost savings by transitioning their retirees to defined contribution plans; managing an exchange of over 85 national and regional insurance carriers simplifying the complexities of Medicare by helping individuals navigate through a meaningful choice of health plans; offering enrollment services that match an individual's health status and financial resources to a specific plan while giving unbiased guidance about these expanded healthcare options, and providing lifelong advocacy and support services for all enrollees as they engage with insurance carriers beginning with their initial enrollment.

The Company competes with Marsh & McLennan company, Aon company, Deloitte, Accenture, PricewaterhouseCoopers, Milliman, Willis, Xerox Company and United Healthcare company.

Company Address

Towers Watson & Co

901 N. Glebe Road
ARLINGTON   VA   22203
P: +1703.2588000
F: +1212.6447432

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