Willis Towers Watson PLC will conduct a strategic review of its reinsurance brokerage business and its CEO still expects to retire at the turn of the year, the chief said in his second second-quarter interview with analysts.
Willis Board of Directors has authorized financial advisors to initiate the review process for Willis Re, CEO John Haley said.
"We believe this is an appropriate time to explore strategic options for this business," he said.
Mr. Haley's comments come after a plan to sell much of Willis Re to rival Arthur J. Gallagher & Co. fell through when Aon PLC's much larger deal to buy the entire Willis collapsed in the face of government opposition. Recent market speculation has suggested that Gallagher may still buy Willis Re, but probably at a higher price than previously agreed.
Mr. Haley added that the termination of the Aon deal "is the right decision for Willis Towers Watson." Last week, Aon paid Willis the $ 1
Mr. Haley, who was expected to retire when the sale to Aon was completed, plans to stay until the end of 2021 but said the company's "intention" is not to extend his contract without identifying a successor within that time frame.
Mr. . Haley said that while Willis was "disappointed" to have lost staff recently during the merger process, the broker would go "aggressively … to replace some of the talent we've lost." He added that even if the total emission levels were in line with 2019, the merger process had made it more difficult to hire new staff. 19659002] Willis reported second quarter revenue of $ 2.59 billion, an increase of 5% over the previous year. On an organic basis, which excludes the effect of exchange rates and other variables, revenue increased by 4% for the quarter.
Net income for the second quarter was $ 736 million, more than double the result for the 2020 quarter.
Among Willis' operating segments, the benefits of administration and administration saw the largest revenue growth, up 24% to $ 287 million; corporate risk and brokers grew by 10% to $ 810 million; human capital and benefits increased by 3% to $ 875 million; and investment, risk and reinsurance fell 2% to $ 605 million. Catalog