Free Cash Flow Margin Expectations
Q: What's the outlook for free cash flow margins?
A: Management aims to improve free cash flow margin to 16% or more after 2024, driven by greater profitability, abatement of transformation-related cash outlays tapering off by the first half of 2025, and the maturing of the TRANZACT business, which is expected to become cash-flow positive in the next few years.

Organic Growth in Health and Career
Q: Why do you expect better organic growth in Health and Career?
A: Management is confident that organic revenue growth will improve throughout the year in Health due to strong performance in global benefits management and a robust pipeline in North America. In Career, increased demand for compensation benchmarking and the impact of pay transparency legislation in the EU are expected to drive growth.

Impact of CMS Rules on TRANZACT
Q: How will CMS rules affect TRANZACT's business?
A: The final CMS rules for 2025 are less onerous than proposed, and management doesn't expect them to change their outlook for the year. They have engaged with carriers who reaffirm the valuable role WTW plays in Medicare Advantage distribution.

Potential Ban of Noncompetes by FTC
Q: What's the impact of a potential ban on noncompetes?
A: Management views the potential FTC ban on noncompetes as manageable. WTW uses non-solicit and nondisclosure agreements, which don't prevent employees from joining competitors. They believe they can continue to manage this effectively.

Margins in Risk & Broking
Q: Will R&B margins improve over the year?
A: Management expects continued margin expansion and operating leverage in Risk & Broking throughout the year, with improvements gaining steam in Q2 and beyond.

Talent Acquisition and Attrition Update
Q: What's the update on hiring trends and attrition?
A: Having replenished their talent base, management is now focused on strategic and opportunistic hiring. Attrition has returned to normal levels and is manageable. Recent staff reductions are part of the transformation program and normal business operations.

Rebuilding Talent Base
Q: Are new hires fully productive now?
A: Management is pleased with the progress of recent hires, who are contributing to success, but notes it takes 6 to 18 months for new hires to become fully productive.

TRANZACT Growth and Free Cash Flow
Q: Does lower TRANZACT growth affect free cash flow timing?
A: Slower growth in TRANZACT, which consumes cash, will accelerate its move to breakeven and positive free cash flow, aiding the free cash flow margin improvement toward the 16% target.

Global Specialties Growth Outlook
Q: What's the growth outlook for global specialties?
A: Management is pleased with the specialization strategy, noting that global lines grew more than double the rest of the portfolio. Despite challenges in some lines, they see strong growth across the portfolio.

Transformation Impact on Free Cash Flow
Q: How will transformation impact free cash flow in 2024?
A: Transformation-related cash investments will be marginally higher than last year and taper off through the first half of 2025. Management expects a net headwind for free cash flow margin in 2024 due to these investments.

Pricing Impact on Margin Expansion
Q: How is pricing affecting margin expansion?
A: In Risk & Broking, rate is a nonfactor; results are driven by retention and new business. Management emphasizes delivering value and charging fair value for services, maintaining high retention rates due to trusted relationships.

Client Outlook in Europe
Q: What's the client outlook in Europe amid geopolitical concerns?
A: Management sees the unsettled landscape as a driver for business, expecting opportunities to help clients manage complex risks related to natural disasters, social inflation, and geopolitical conflicts. They anticipate mid-single-digit organic revenue growth.

Loss of Large Client in BDO
Q: Is the loss of a large client in BDO a concern?
A: Management views it as a one-off situation due to the client's preference for self-service. They see the market generally moving towards outsourcing due to complexity, so they're not concerned about this loss.

Market Share in Risk & Broking
Q: Has market share in R&B recovered since 2020-2021?
A: Management believes there's room to grow market share in Risk & Broking. Their differentiated service offering and strong new business results indicate potential for continued growth.

Book Acquisitions and R&B Growth
Q: Are book acquisitions aiding R&B growth?
A: There's nothing meaningful from book acquisitions contributing to growth. Results are driven by new business and retention rates, with very little impact from rate.

Unallocated Expenses Expectations
Q: What's the outlook for unallocated expenses?
A: Management expects unallocated net expenses for the full year to be relatively consistent with 2023, as they reduce expenses at the corporate level by refining support models and managing discretionary spend.

Interest Income and Fiduciary Assets
Q: Any unusual factors in interest income?
A: Management expects the interest income yield to remain consistent, with asset levels varying quarterly but yields staying stable on an annual basis.

Timing Impact in Health on Expenses
Q: Does revenue timing in Health affect expenses?
A: Expenses are relatively even throughout the year, but revenue from project work is expected to pick up, leading to mid- to high-single-digit growth rates in upcoming quarters.