Nate Stephenson's questions to WNS (Holdings) Ltd (WNS) leadership • Q1 2025
Question
Nate Stephenson from Deutsche Bank asked for an update on volume trends in the insurance vertical, particularly concerning clients exiting certain geographies, and the progress on the large insurance captive opportunity. He also inquired about the cadence of the share buyback and the overall capital allocation strategy, including M&A.
Answer
Executive David Mackey explained that insurance volumes were impacted by clients exiting unprofitable U.S. states and a strategic shift by a U.K. client, but he expects the vertical to be a growth engine going forward. He confirmed the large insurance captive opportunity is not in the guidance but remains a significant potential upside. An executive stated the current buyback program should conclude by Q2. CEO Keshav Murugesh reiterated that M&A remains a core pillar, along with share repurchases, CapEx, and debt repayment, expressing confidence that the stock is underpriced.