Willis Towers Watson Struggles in Fourth Quarter

Willis Towers Watson continued to underperform its peers in the fourth quarter, as the company deals with headwinds in its brokerage business following the failed merger with Aon. While the company still needs to move through a difficult period, we think the narrow-moat franchise can stabilize its results over time, viewing the year-over-year organic growth the firm generated during the quarter as a reasonable result given current circumstances. We will maintain our $219 per share fair value estimate.