WTW broking revenue rises 12% in Q3
WTW says its Risk and Broking division posted a 12% rise in revenue to $US855 million ($1.34 billion) for the third quarter from a year earlier and operating income rose 28% to $US134 million ($211 million).
The division’s Corporate Risk and Broking business generated solid organic revenue growth driven by strong new business, improved client retention and rate increases.
As a result, organic revenue growth excluding the impact of book-of-business settlement revenue was 12% for the three months to September.
WTW’s other division, Health, Wealth and Career, reported a 10% rise in revenue to $US1.28 billion ($2 billion) and 29% improvement in operating income to $US305 million ($480 million).
Overall revenue for the third quarter climbed 11% higher to US2.16 billion ($3.4 billion) but net income dropped 28% to $US236 million ($371 million). The weaker net income result reflects partly higher transaction and transformation items during the period.
WTW says it incurred $US120 million ($189 million) of restructuring/transformation-related charges in the September quarter.
“We continued to execute against our strategy and posted solid margins through growth, simplification, and transformation, as well as greater cost discipline,” WTW CEO Carl Hess said.
“Looking ahead, the continued strong demand for our differentiated services, the traction of our transformation program and expense control initiatives and the resilience of our business give us confidence in our ability to deliver on our commitments for the year and to drive profitable growth.”