Willis Towers Watson PLC reported $ 2.01 billion in revenue in the third quarter, up 1% over the same period last year, but organic revenue fell 1% as the broker continued to face "headwinds" in the middle of the COVID 19-pandemic, the company's top executive said Thursday.
The sales agent's wholesale business saw revenue increase by more than 10% during the 2020 quarter, as its event insurance business saw lower demand due to the pandemic. where it has a well-established market position, mature relationships and annuity or mandatory coverage, said John Haley, CEO of Willis Towers Watson, in a conference call with analysts on Thursday.
"We encountered some headwinds in areas where our revenues are more adapted to discretionary project expenditures," he said.
Willis Towers Watson's insurance brokers reported $ 649 million in revenue in the third quarter, a decrease of less than 1
The intermediary's investment, risk and reinsurance unit reported revenue of $ 331 million, an increase of 1.8% over the third quarter of 2019 and up 3% on an organic basis.
"Reinsurance, with growth of 7%, continued to lead the segment's growth with a combination of net new operations and favorable renewals," said Haley.
A 12% organic decline in wholesale business was due to pressure on all lines and lower investment returns, he said.
Willis Towers Watson continues to "evaluate strategic options" for the London-based wholesale unit Miller Insurance Services LLP and the unit suffered due to reduced demand for coverage for sporting events and other events during the pandemic, said Mike Burwell, CFO of Willis Towers Watson.
Its distribution and consulting unit reported $ 796 million in revenue in the third quarter, a decrease of 1.4% compared to last year, or a decrease of 2% on an organic basis, mainly due to a decrease in demand for his "talent and rewards" business during the pandemic, Haley said.
The agency reported $ 122 million in net profit for the quarter, an increase of 52.5% compared to the same quarter in 2019.
Mr. Haley declined to comment on an analyst question about possible divestments of companies related to the proposed acquisition of Willis Towers Watson by Aon PLC, which was announced earlier this year. However, he said that the broker continues to submit necessary antitrust applications and that the broker has not encountered anything "that has been any kind of big surprise" in discussions with regulators.
"When we put the combination together, we felt that there were some very good arguments for why the combination was meaningful and why we could go on without any restrictions, but it does not matter what we think, it matters what the regulators think, He said.  More insurance and risk management news about the coronavirus crisis here .