On Tuesday, Willis Towers Watson PLC reported fourth-quarter sales of $ 2.71 billion – an increase of just 1% in total, and 4% on an organic basis, from the last quarter of 2020 – as revenues from the company's risk and brokerage operations was hit by redundancies earlier in the year.
Brokers expect to deliver medium-term organic revenue growth by 2022.
Meanwhile, employment is at the highest level in recent history and staff redundancies continue to decline, Willis & # 39; CEO said in a results interview with analysts.
"Willis hired more people in the second half of 2021 than it employed in the entire year 2020 and the increased graduation levels we saw in 2021are behind us," CEO Carl Hess said.
Willis had lost a steady stream of staff following the announcement in March 2020 that Aon PLC had agreed to acquire the brokerage house. Aon closed the $ 30 billion deal on July 26, 2021, ahead of a review of regulations.
The fourth quarter's net profit was $ 2.4 billion, an increase of 405% from $ 476 million over the same period last year, Willis said in his income statement. Willis reported a profit of $ 2.3 billion in connection with the sale of its reinsurance business Willis Re, which was largely completed on December 1, Mr. Hess.
"Overall, our results were in line with our expectations, but they do not reflect the short- and long-term potential of this company to drive organic growth and marginal expansion," said Hess, who succeeded John Haley as CEO on January 1. of $ 882 million, a decrease of 1% from the previous year and an increase of 1% on an organic basis. Producer departures that occurred earlier in 2021, said Mr. Hess.
International revenues increased by 10%, with strong results in mergers and acquisitions in Asia and Australasia and natural resources in Eastern Europe. Central America, said Mr. Hess.
Britain's revenue fell by 5% due to lost business and the supply the effect of interruptions from earlier 2021.
Revenue. in Western Europe decreased by 5% due to senior staff leaving before the termination of the Aon deal, which continued to put pressure on operations in certain geographies.
"New customer gains include one of the largest commercial and retail banks in the region," said Hess of Western Europe. benefits and administration of benefits grew by 5% on an organic basis to $ 729 million, and investments, risk and reinsurance reported revenues of $ 199 million, an increase of 32% on an organic basis.
For the full year 2021, revenues amounted to 9, $ 00 billion, an increase of 4% over 2020 and an increase of 6% on an organic basis.
Corporate risk and brokerage trading reported full-year revenue of $ 3.18 billion, an increase of 7% over 2020, with an organic revenue growth of 5%.
Net profit for the full year was $ 4.22 billion, an increase of 324% from $ 996 million in 2020.
Willis reported restructuring costs of $ 26 million for 2021 when consolidating properties following the restructuring program announced in September.