WTW enjoys organic growth, but profit slumps 76% y/y

Global broker  WTW enjoyed healthy organic revenue growth in full year 2022, thanks to its hiring efforts, investments in technology and initiatives to simplify and transform the business under the leadership of CEO Carl Hess (pictured). Its profits, however, slumped around 76% year-on-year.

WTW’s organic revenue increased 5% for the fourth quarter and 4% for the year. The total revenue increased 1% to $2.7 billion for the quarter and decreased 1% to $8.9 billion for the year.

The net profit attributable to Willis Towers Watson for the fourth quarter was $593 million, down 75% compared to the profit of $2.4 billion in the prior-year period.

For full year 2022, net profit was $1.0 billion, down 76% compared to net profit of $4.2 billion in the prior year.

The company's Risk and Broking (R&B) segment reported a revenue of $952 million in the fourth quarter, a decrease of 2% (3% increase constant currency and 5% increase organic) from $968 million in the prior year.

On an organic basis, Corporate Risk & Broking generated organic revenue growth across all geographies, primarily driven by our global lines of business, most notably in construction and aerospace.

WTW said its Corporate Risk & Broking’s organic revenue growth rate was pressured by headwinds from book-of-business settlement revenue in the comparable period.

Insurance Consulting and Technology's organic revenue grew primarily due to favorable timing of software sales and increased advisory work.

Hess said: “The fourth quarter was a solid finish to a strong year for WTW. For the fourth quarter, revenue and operating margins increased over prior year. In addition, for the full year, we delivered results that were in line with our expectations, including healthy organic revenue growth and adjusted operating margin expansion.

“These reflected the benefits of our hiring efforts, investments in technology, initiatives to simplify our company and the successful execution of our transformation efforts. In a complex operating environment, our focus, agility and resilience allowed us to deliver on our commitments, including a substantial return of capital to our shareholders.

“We enter 2023 with momentum and remain focused on executing on our Grow, Simplify and Transform strategic priorities, accelerating cash flow conversion and achieving our long-term goals.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.