Willis Towers Watson posts revenue growth but profits down 32% in Q2

Re/insurance broker  Willis Towers Watson reported a 5 percent revenue growth in the first half of 2020, but expects the COVID-19 pandemic to negatively impact its revenue and operating results for the remainder of the year, and potentially beyond.

Second quarter 2020 results for the company showed 3 percent overall growth with revenues standing at $2.11 billion (flat on organic basis), compared with $2.05 billion for the same period in the prior year. For the first half of 2020, revenue was $4.58 billion, an increase of 5 percent (2 percent increase on organic basis), compared with $4.36 billion for the same period in 2019.

Net income attributable to Willis Towers Watson for the second quarter of 2020 was $94 million, a decrease of 32 percent from $138 million for the prior-year second quarter. Net income for H1 2020 was $399 million, a decrease of 6 percent from $425 million for the same period in prior.

John Haley, chief executive officer of Willis Towers Watson, said: “I am pleased with our second quarter results. Our strong execution and our focus during this challenging environment helped us deliver another quarter of solid financial performance.

“We demonstrated the resilience of our overall business and diversified portfolio of offerings through continued revenue and earnings growth, robust free cash flow enhancement and a strengthened balance sheet. I would like to thank all the Willis Towers Watson colleagues for the outstanding commitment they have shown in the most difficult of circumstances. We are confident the actions we are taking in this challenging environment will enhance our agility and allow us to generate long-term value for all of our stakeholders.”

During Q2 2020, the COVID-19 pandemic had a negative impact on revenue growth, particularly in businesses that are discretionary in nature, but WTW said it generally had "no material impact" on the overall results.

However, the company expects that the pandemic will negatively impact its revenue and operating results for the remainder of 2020, and potentially beyond.

Due to the uncertainties caused by the pandemic, Willis Towers Watson had previously withdrawn (and consequently fully disclaimed) its full-year 2020 guidance.