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Home / Insurance / WTW reports a small revenue increase in the fourth quarter

WTW reports a small revenue increase in the fourth quarter



Willis Towers Watson PLC on Thursday reported fourth-quarter revenue of $2.72 billion — up 1% overall and 5% on an organic basis, from the final quarter of 2021 — amid foreign exchange headwinds.

Net income for the quarter was $593 million, down 75% from $2.41 billion in the same period last year, WTW said in its earnings report.

For the full year 2022, WTW reported revenue of $8.87 billion, down 1% overall but up 4% on an organic basis, while net profit fell 76% to $1.02 billion.

Fourth-quarter and full-year net earnings last year reflected gains related to the sale of its Willis Re reinsurance business and included the $1 billion termination fee WTW received from Aon due to its failed acquisition bid, according to the income statement.

The fourth quarter was “a solid finish to a great year,”

; CEO Carl Hess said on an earnings call with analysts. “We are stronger, more resilient and better positioned than we were a year ago,” Mr. Hess.

WTW employed over 9,700 people last year. “Our investments have translated into revenue growth in 2022 and we expect this to continue throughout 2023,” said Mr. Hess.

Voluntary redundancies remained in line with macro trends and WTW ended the year with 46,600 employees worldwide, “an increase that has restored our headcount to 2019 levels, despite the disposals made since then,” Mr. Hess.

The brokerage house expects to deliver mid-digit organic revenue growth in 2023.

Willis’ risk and brokerage segment, which includes businesses previously focused on the firm’s risk and brokerage segment and insurance, consulting and technology businesses, reported fourth-quarter revenue of $952 million, down 2% year-over-year and up with 5% on an organic revenue basis.

Corporate risk and brokerage generated organic revenue growth across all geographies, primarily driven by high single-digit organic revenue growth in its global business areas, particularly construction and aerospace. However, its organic revenue growth was pressured by headwinds from book income in the previous year.

WTW’s Health, Wealth & Career segment, which includes businesses previously aligned to the Human Capital & Benefits segment, Benefits Delivery & Administration, and the Investments business, reported fourth quarter revenue of $1.72 billion, up 2% overall and 5% on an organic basis.

WTW realized $49 million of incremental annual savings related to its transformation program during the quarter, bringing the total savings to $149 million in cumulative savings since the program’s inception, Mr. Hess.

The current complex economic environment supports further growth, he said. Clients face many uncertainties, including inflation, rising interest rates, softer GDP growth, a tight labor market, ESG risk and potential recession, Hess said.

Many policyholders continue to navigate persistently rising commercial insurance rates and across lines insurers are pushing for premium increases, causing even greater challenges as they try to manage complex risks, he said.


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