Towers Watson
Former global professional services firm specializing in risk management, human resources consulting, actuarial services, and investment management.
Last updated August 21, 2026
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Overview
Towers Watson & Co. was a global professional services firm created on January 4, 2010, through the approximately $4 billion merger of Towers Perrin and Watson Wyatt Worldwide. The combination brought together two established consulting traditions: Towers Perrin, a U.S. firm with roots extending to the establishment of Towers, Perrin, Forster & Crosby in 1934, and Watson Wyatt, whose heritage included R. Watson & Sons, founded in 1878, and The Wyatt Company, founded in 1946. The merger was structured as a merger of equals and created one of the world's largest employee-benefits consulting businesses by revenue. The company served organizations through several connected areas of expertise. Its risk practice covered insurance, enterprise risk, property and casualty consulting, catastrophe and capital modeling, and related analytical work. Its human resources business advised employers on employee benefits, retirement programs, talent, rewards, organizational effectiveness, and human capital strategy. Towers Watson also provided actuarial services and investment management advice. Through acquisitions, it expanded into health-care insurance marketplaces, consumer-directed health-care administration, and specialist software for insurance pricing, reserving, spatial smoothing, capital, and risk modeling. Towers Watson operated internationally and reported a client base that included a large proportion of major global corporations, including 92 percent of Fortune Global 500 companies and 84 percent of Fortune 1000 companies. Its business model combined advisory services, actuarial and quantitative analysis, technology platforms, and marketplace administration. This mix enabled it to work with employers, insurers, pension sponsors, and other large institutions on both strategic and operational issues. After its formation, Towers Watson pursued a combination of acquisitions, divestitures, and technology expansion. In 2011 it acquired EMB Consultancy, strengthening its property-and-casualty consulting and modeling capabilities. In 2012 it bought Extend Health, which operated a large private Medicare insurance marketplace. It later acquired Liazon, operator of the Bright Choices private health insurance marketplace, Acclaris, a provider of consumer-driven health-care software and services, and Brovada Technologies. At the same time, it sold its reinsurance brokerage business to Jardine Lloyd Thompson and transferred its human resources service delivery practice to KPMG. The company ceased to exist as an independent brand following its 2016 combination with Willis Group. The transaction was described as a merger of equals and created Willis Towers Watson, a broader insurance brokerage, risk management, and human capital services group. Towers Watson's legacy therefore continued through the merged company's consulting, benefits, actuarial, and risk businesses rather than through continued standalone operations.
History
Towers Watson was created on January 4, 2010, when Towers Perrin and Watson Wyatt Worldwide completed an approximately $4 billion merger of equals. The transaction joined two firms whose histories were rooted in actuarial work, employee benefits, pensions, insurance, and human resources consulting. Towers, Perrin, Forster & Crosby had been established in the United States in 1934 and adopted the shorter Towers Perrin name in 1987. Watson Wyatt Worldwide traced its heritage to R. Watson & Sons, founded by Reuben Watson in 1878, and The Wyatt Company, founded by Birchard E. Wyatt in 1946. The Watson Wyatt organization was formed through an alliance in 1995 and a merger in 2005. The new company was positioned as a large-scale adviser to employers, insurers, pension sponsors, and institutional investors. Its capabilities included employee benefits, retirement and actuarial consulting, human capital and rewards, risk management, insurance consulting, investment management, and related analytics. The merger particularly strengthened its position in employee-benefits consulting and created what was described as the world's largest employee-benefits consulting firm by revenue at the time. Towers Watson expanded through targeted acquisitions. In February 2011, it purchased EMB Consultancy, a specialist in property-and-casualty consulting. EMB also supplied software for insurance pricing, reserving, spatial smoothing analysis, capital modeling, and risk modeling, making the transaction relevant both to advisory services and technology-enabled analytics. In May 2012, Towers Watson acquired Extend Health for $435 million. Extend Health operated a private Medicare insurance marketplace and provided health-care insurance services, giving Towers Watson a larger platform in retiree medical benefits. In September 2013, IBM agreed to use the Extend Health platform for insurance services for its U.S. retirees. The company also reshaped its portfolio through divestitures and further acquisitions. In November 2013, it sold its reinsurance brokerage business to Jardine Lloyd Thompson for $250 million and acquired Liazon for $215 million. Liazon operated the Bright Choices private health insurance marketplace, complementing Extend Health's marketplace capabilities. In May 2015, Towers Watson purchased Acclaris for $140 million. Acclaris provided software and services for consumer-directed health care and reimbursement arrangements, including health savings accounts. In July of the same year, Towers Watson sold its human resources service delivery practice to KPMG. In September 2015, it acquired Brovada Technologies for $15 million. Towers Watson operated in 37 countries and served many of the world's largest companies. Its stated customer reach included 92 percent of Fortune Global 500 companies and 84 percent of Fortune 1000 companies. The firm's combination of consulting, actuarial expertise, risk analysis, investment advice, and benefits technology allowed it to address both strategic workforce questions and complex insurance or retirement administration requirements. In 2016, Willis Group and Towers Watson completed a merger of equals. The resulting company was named Willis Towers Watson and combined Willis's insurance brokerage and risk-related activities with Towers Watson's consulting, benefits, actuarial, and investment capabilities. The transaction marked the end of Towers Watson as a standalone company. Its principal businesses and expertise continued within the successor organization.
- 2016
Willis Towers Watson is created
[1]Willis Group and Towers Watson completed a merger of equals, creating Willis Towers Watson and ending Towers Watson's standalone existence.
- 2015
Acclaris and Brovada Technologies are acquired
[1]The company expanded its consumer-directed health-care administration and insurance technology capabilities through acquisitions of Acclaris and Brovada Technologies.
- 2013
Portfolio changes in reinsurance and health marketplaces
[1]Towers Watson sold its reinsurance brokerage business to Jardine Lloyd Thompson and acquired Liazon, operator of the Bright Choices private health insurance marketplace.
- 2012
Extend Health is acquired
[1]Towers Watson acquired Extend Health and entered a larger role in private Medicare marketplace administration and retiree health-care services.
- 2011
EMB Consultancy is acquired
[1]The transaction expanded Towers Watson's property-and-casualty consulting, actuarial modeling, and insurance software capabilities.
- 2010
Towers Watson is formed
[1]Towers Perrin and Watson Wyatt Worldwide completed an approximately $4 billion merger of equals on January 4, creating Towers Watson.
- 2005
Watson Wyatt Worldwide is formed through a merger
[1]The earlier Watson-Wyatt relationship became a formal merger, creating Watson Wyatt Worldwide before its combination with Towers Perrin.
- 1995
Watson and Wyatt organizations form an alliance
[1]R. Watson & Sons and The Wyatt Company established an alliance that preceded the later formation of Watson Wyatt Worldwide.
- 1987
Towers Perrin adopts its shortened name
[1]Towers, Perrin, Forster & Crosby shortened its corporate name to Towers Perrin.
- 1946
The Wyatt Company is founded
[1]Birchard E. Wyatt founded The Wyatt Company, a predecessor of Watson Wyatt Worldwide.
Products and positioning
A global professional services firm combining human capital, employee benefits, actuarial, insurance, risk, and investment expertise for large employers and institutional clients.
Consulting
Human resources and human capital consulting
Towers Watson advised employers on workforce strategy, talent, rewards, organizational effectiveness, human capital management, and related employment practices. The business connected strategic consulting with data, benchmarking, and workforce analytics for large organizations. It also included an HR service delivery practice, which was later sold to KPMG in 2015.
Employee benefits · 2010
Employee benefits and retirement consulting
Employee benefits was a central part of Towers Watson's identity following the merger of Towers Perrin and Watson Wyatt Worldwide. Services covered retirement programs, pensions, health benefits, executive benefits, actuarial analysis, and broader benefit-plan strategy for employers and plan sponsors.
Risk management · 2010
Risk and insurance consulting
The risk business served insurers and other institutions with actuarial, enterprise-risk, property-and-casualty, capital, and insurance modeling expertise. Its work addressed pricing, reserving, catastrophe and capital analysis, risk quantification, and related strategic decisions.
Health-care services
Extend Health marketplace
Extend Health provided health-care insurance services and operated a private Medicare insurance marketplace. Towers Watson acquired the business in 2012, expanding its retiree medical and benefits administration capabilities. The platform was subsequently used by IBM for insurance services for U.S. retirees.
Health-care services
Bright Choices marketplace
Bright Choices was a private health insurance marketplace operated by Liazon. Towers Watson acquired Liazon in 2013 to strengthen its ability to help employers and employees navigate defined-contribution and exchange-based health benefit arrangements.
Health-care technology · 2015
Acclaris health-care administration services
Acclaris supplied software and services for consumer-driven health care and reimbursement accounts, including health savings accounts. Its 2015 acquisition added technology for administering employee health-care accounts and related benefit programs.
Insurance technology · 2011
Insurance analytics and modeling software
Through EMB Consultancy, Towers Watson offered specialist software and analytical capabilities for insurance pricing, reserving, spatial smoothing, capital modeling, and risk modeling. These tools supported insurers and risk professionals with quantitative decision-making and portfolio analysis.
Investment advisory
Investment management and advisory services
Investment management and advisory work formed part of the firm's institutional services portfolio. Towers Watson advised organizations such as pension sponsors and other large investors on investment strategy, manager selection, portfolio construction, and risk considerations.
Brand decisions
2016
Combine with Willis GroupM&ABackground
Towers Watson and Willis Group pursued a combination that would unite human capital, benefits, actuarial, and investment consulting with insurance brokerage and risk services.
Action taken
The companies completed a merger of equals and formed Willis Towers Watson.
Aftermath
Towers Watson ceased operating as an independent company, while its principal businesses and expertise continued within Willis Towers Watson.
2015
Expand health-care technology and insurance technologyM&ABackground
Towers Watson continued to build technology-enabled services in consumer-directed health care and insurance analytics.
Action taken
The company acquired Acclaris and Brovada Technologies while selling its human resources service delivery practice to KPMG.
Aftermath
The portfolio changes increased the relative importance of health-care administration, insurance analytics, and specialist consulting capabilities.
Acquisition and transaction values. Acclaris acquired for $140 million; Brovada Technologies acquired for $15 million (2015)
2013
Reshape the reinsurance and health marketplace portfolioM&ABackground
Towers Watson adjusted its portfolio by exiting reinsurance brokerage while adding a private health insurance exchange operator.
Action taken
The company sold its reinsurance brokerage business to Jardine Lloyd Thompson and acquired Liazon, operator of Bright Choices.
Aftermath
The moves shifted emphasis toward consulting, benefits technology, and health insurance marketplace services.
Transaction values. Sold for $250 million; Liazon acquired for $215 million (November 2013)
2012
Acquire Extend HealthM&ABackground
Towers Watson wanted to expand beyond consulting into retiree health-care insurance services and marketplace administration.
Action taken
The company acquired Extend Health, which operated a private Medicare insurance marketplace.
Aftermath
The acquisition broadened the firm's health benefits platform and later supported an agreement for IBM's U.S. retiree insurance services.
Acquisition price. $435 million (May 2012)
2010
Merge Towers Perrin with Watson Wyatt WorldwideM&ABackground
The two professional services firms sought to combine their employee-benefits, actuarial, human resources, risk, and investment capabilities at global scale.
Action taken
They completed an approximately $4 billion merger of equals and began operating under the Towers Watson name.
Aftermath
The combination created one of the world's largest employee-benefits consulting firms by revenue and established Towers Watson as a broad global advisory platform.
Transaction value. $4 billion (2010 transaction)
Recent events
- 2016
Towers Watson combines with Willis Group[1]
M&A · Other
Willis Group acquired Towers Watson in a merger of equals, creating Willis Towers Watson and ending Towers Watson's independent corporate existence.
- 2015
Towers Watson acquires Acclaris[1]
M&A
Acclaris expanded Towers Watson's consumer-driven health-care software and services, including administration for health savings and reimbursement accounts.
- 2015
Towers Watson sells human resources service delivery practice to KPMG[1]
M&A
The company transferred its human resources service delivery practice to KPMG, narrowing part of its service portfolio.
- 2015
Towers Watson acquires Brovada Technologies[1]
M&A
The acquisition added Brovada Technologies to Towers Watson's insurance technology and analytics capabilities.
- 2013
IBM contracts to use the Extend Health platform[1]
Other
IBM signed an agreement to use the Extend Health platform for insurance services for its retirees in the United States.
- 2013
Towers Watson sells reinsurance brokerage business to Jardine Lloyd Thompson[1]
M&A
The company divested its reinsurance brokerage business as part of a portfolio adjustment.
- 2013
Towers Watson acquires Liazon[1]
M&A
The acquisition brought in Liazon, operator of the Bright Choices private health insurance marketplace.
- 2012
Towers Watson acquires Extend Health[1]
M&A
Towers Watson bought Extend Health, a health-care insurance services provider and operator of a large private Medicare insurance marketplace.
- 2011
Towers Watson acquires EMB Consultancy[1]
M&A
The acquisition added property-and-casualty consulting expertise and software covering insurance pricing, reserving, spatial smoothing, capital, and risk modeling.
- 2010
Towers Watson is formed through the merger of Towers Perrin and Watson Wyatt Worldwide[1]
M&A · Other
The approximately $4 billion merger of equals created Towers Watson and combined two major consulting firms with deep employee-benefits, actuarial, human resources, and risk-management capabilities.
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