WTW organic growth accelerates 6% on ‘talent, tech and transformation’

Global broker  WTW (Willis Towers Watson) accelerated its organic growth and is maintaining its 2022 full-year targets despite 79% profit slump, thanks to its recent investment in talent, technology and transformation to help weather an otherwise volatile macroeconomic environment.

WTW reported a total revenue of $1.95 billion for the third quarter of 2022, a decrease of 1% as compared to $1.97 billion for the same period in the prior year.

However, on an organic basis, revenue increased 6% over prior year.

Net profit for the third quarter of 2022 was $192 million, down 79% compared to net profit of $907 million in the prior-year third quarter.

The company’s primary risk and broking (R&B) segment produced a revenue of $765 million, down 3% from $787 million in the prior-year third quarter. On an organic basis, Corporate Risk & Broking generated organic revenue growth across all regions, primarily driven by our global lines of business, most notably in aerospace, natural resources and FINEX. Insurance Consulting and Technology's organic revenue grew primarily as a result of new software sales.

WTW’s health, wealth & career segment had revenue of $1.16 billion, a decrease of 1% from $1.17 billion in the prior-year third quarter.

The company is maintaining its 2022 full-year targets for organic revenue growth of mid-single digit. Additionally, it expects to deliver approximately $110 million in cumulative run-rate savings from the transformation programme by the end of FY2022, up from $80 million previously.

Carl Hess, WTW’s chief executive officer, hailed its ‘Grow, Simplify and Transform’ strategy for its improving performance. He said: “Our organic revenue growth accelerated to 6% as the investments we’ve made in talent, technology, and transformation began to yield results. In addition, we have expanded our adjusted operating margins, with 110 basis points of improvement over prior year. Looking ahead, our strategic momentum, continued strong demand for our services amidst macroeconomic volatility, and the resilience and flexibility of our business give us confidence in our ability to drive growth, expand margins and create value for our shareholders over the long-term.”

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