WTW Q1 revenue down, profit up

Willis Towers Watson Plc Thursday reported first-quarter revenue of $2.22 billion, off 5% from the year-earlier period. Organic growth was 5%, as net income increased 23% to $239.0 million.

Revenue in the broker’s Risk & Broking segment increased 5% to $1.027 billion, with 7% organic growth. Corporate Risk & Broking was up 8% overall, WTW Chief Financial Officer Andrew Krasner said on the broker’s Thursday morning conference call

This represented the ninth consecutive quarter of high-single-digit growth, Mr. Krasner said, adding that, “In total, we continue to expect mid- to high-single-digit growth for the full year.”

In the Health, Wealth and Career segment, revenue decreased 13% to $1.165 billion, with 3% organic growth.

The segment remains on track to achieve full-year organic growth in the mid-single-digit percentage range, Mr. Krasner said.

Macroeconomic uncertainty helps drive demand, WTW CEO Carl Hess said on the call.

“Changing economic and regulatory conditions tend to drive demand for our services. The current heightened risk landscape and macroeconomic volatility create opportunities for us to help our clients manage their cost and risk profiles and lead their organizations through change in risk,” Mr. Hess said.

“Growing concerns about global trade, potential inflationary pressures and growing geopolitical risks have led to considerable uncertainty and elevated risk for many companies.”

Mr. Hess also noted the challenges created.

“The global trade landscape has changed significantly due to new American tariffs on steel and other industrial goods, leading to unexpected cost increases in the rebuilding and replacement of damaged property,” he said. “This poses a financial challenge for businesses dependent on insured property.”