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Willis reports higher revenue despite recent business disruptions



On Thursday, Willis Towers' Watson PLC reported third-quarter revenue of $ 1.97 billion, an increase of 7% on an organic basis, as the brokerage's top executives said the worst of the latest business disruption was behind them.

Staff resigns to rivals. While its proposed merger with Aon PLC is still being pursued, it has peaked, but growth in Willis' corporate risk and brokerage business will be compressed in the first half of 2022, the brokerage's senior executives said in a results interview with analysts.

Aon. terminated its $ 30 billion deal to acquire Willis on July 26 ahead of a review of the rules.

Willis' third-quarter revenue growth was "solid," said CEO John Haley in his final results interview with analysts ahead of his retirement at the end of the year.

Staff redundancies were most pronounced in business risk and brokerage in the second and third quarters of this year, causing the segment's organic revenue growth to "lag behind industry-expected averages until 2021

," said Mr. Haley.

During the third quarter, Willis focused on "picking up fatigue and hiring talent," he said. Corporate risk and brokerage operations have decreased by about 100 employees, or almost 1% on a net basis, compared with the third quarter last year.

The results for new business operations have remained "strong" for corporate risk and brokerage and Willis is "back on the cutting edge" with regard to employment that exceeded the departures for the segment during the quarter, Carl Hess, CEO and incoming CEO, said in the conversation.

for the third quarter was $ 903 million, an increase of 646%, Willis said in his income statement.

Willis said its results benefited from the $ 1 billion termination fee it received from Aon after the merger business collapsed in the third quarter. [19659002] Willis Corporate Risk and Brokerage Segments reported third-quarter revenue of $ 697 million, an increase of 7% from the third quarter of the previous year, and an increase of 6% on an organic basis.

North America's revenue increased by 12% on an organic basis during the third the quarter, thanks to new business, especially in mergers and acquisitions; financial, executive and professional risks; construction;

International and UK revenues increased by 4% and 2%, respectively, mainly due to growth in retail and finance, executive and professional risk insurance.

Revenues for Western Europe increased nominally as growth. In Poland and Sweden, the departure of senior staff was largely offset, which put pressure on operations in certain geographic areas, Haley said. ; human capital and benefits increased by 7% to $ 852 million; and investment, risk and reinsurance revenues fell 22% to $ 172 million.

Willis is "well positioned" to achieve its long-term goals as described in the brokerage house's recently announced investor day, CFO Andrew Krasner said during the interview. Willis has said they intend to deliver $ 300 million in cost reductions, a 25% margin expansion by 2024 and $ 4 billion in stock repurchases, among other goals.

Mr. Hess said that in the future, Willis will turn its real estate portfolio into a "partnership space" rather than a "come to the office space."

in Hess. Subject to the required regulatory approvals, the deal is expected to be completed by the first quarter of 2022, he said.


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