Strategic Acquisitions Power Long-Term Growth for Willis Towers Watson

Willis Towers Watson Public Limited Company WTW remains focused on acquisitions to boost digital capabilities and market share. The growth of WTW depends on its ability to make acquisitions and execute other strategic transactions. Willis Towers, which was formed with the merger of Willis Group and Towers Watson in January 2016, is a testimony to its efforts to pursue strategic opportunities that will ramp up its growth profile by combining forces and leveraging strengths.

Willis Towers Watson leverages acquisitions to improve client technology, AI integration and wealth solutions, while expanding the insurer’s global footprint, particularly in high-growth sectors.

Its acquisition activity has spanned over countries, such as the United States, the United Kingdom and Canada, and also engaged across sectors, with the highest counts in Insurance Distribution, HR Tech and Employer Insurance. New business acquisition and geographic expansion generated growth across International and Europe.

Willis Towers Watson intends to increase its business mix in broking and wealth through mergers and acquisitions, which provides an opportunity to expand into high-growth, high-margin areas of the core business.

In April 2026, WTW acquired FlowStone Partners, LLC, which will expand the company’s ability to offer better access to private equity for individual wealth investors and bring advanced investment capabilities and innovation to institutional clients.

Willis Towers Watson closed the Newfront acquisition on January 27, which brings a modern technology-enabled approach to middle market broking, combining deep specialty expertise with a proprietary digital and AI-driven platform.

During the fourth quarter of 2025, WTW agreed to acquire Cushon, a cutting-edge U.K. fintech pensions and savings provider, which will strengthen its position in the fast-growing U.K. defined contribution master trust market. The deal is projected to see light in the first half of 2026. These transactions reflect a disciplined and deliberate approach to portfolio optimization and bolster WTW’s position as a leading global advisory and brokerage firm.

WTW has utilized significant liquidity, aided by strong free cash flow and strategic debt management, to pursue acquisitions as part of its growth strategy. A solid balance sheet and steady cash flow are expected to help the company engage in acquisitions and investments that drive growth. WTW generated free cash flow of $1.5 billion for the year ended Dec. 31, 2025, bringing free cash flow margin to 15.9%. This high level of cash generation provides the firm with the flexibility to pursue acquisitions.

What About Its Peers?

Arthur J. Gallagher & Co. AJG is growing through mergers and acquisitions. During 2025, AJG completed 31 new mergers, representing around $3.5 billion of estimated annualized revenues. Looking at the pipeline, AJG has around 40 term sheets signed or being prepared, representing around $350 million of annualized revenues. AJG’s current cash position and strong expected free cash flow position it well for its pipeline of M&A opportunities. Over the next couple of years, AJG expects to have $10 billion to fund M&A, before utilizing any stock.

Brown & Brown, Inc.’s BRO impressive growth is driven by organic and inorganic means across all segments. Also, strategic acquisitions and mergers help it spread its operations. Solid earnings have allowed the company to expand its capabilities, with buyouts extending the company’s geographic footprint. From 1993 through the fourth quarter of 2025, Brown & Brown acquired 717 insurance intermediary operations.

WTW’s Price Performance

Shares of WTW have gained 3.4% in the past year, outperforming the industry.

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WTW’s Undervaluation

The stock is undervalued compared with its industry. It is currently trading at a price-to-earnings multiple of 14.37, lower than the industry average of 15.21. It carries a Value Score of B.

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Estimate Movement for WTW

The Zacks Consensus Estimate for WTW’s first-quarter 2026 and second-quarter 2026 EPS has moved down 0.2% and 0.9%, respectively, in the past 60 days. The same for full-year 2026 and 2027 EPS has moved up 1.6% and 1%, respectively, in the past 60 days.

The consensus estimate for WTW’s 2026 and 2027 EPS and revenues indicates year-over-year increases.

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COIN stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Arthur J. Gallagher & Co. (AJG): Free Stock Analysis Report

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