WTW reports higher Q4 revenue, profit

Willis Towers Watson PLC Tuesday reported fourth-quarter revenue of $3.04 billion, up 4% overall and 5% on an organic basis from the year-earlier period.

For full-year 2024, revenue totaled $9.93 billion, up 5% overall and 5% on an organic basis from 2023.

Results were boosted by strong client retention and new business growth in its risk and broking business, top executives said on an earnings call Tuesday morning with analysts.

Net income for the fourth quarter doubled to $1.25 billion, from $623 million in the year-earlier period. But WTW reported a net loss of $88 million for the year, versus a profit of $1.06 billion in 2023, due to over $1 billion in impairment charges related to the sale of its direct-to-consumer health care business Tranzact.

Insurance markets further stabilized in the fourth quarter, with most lines showing positive outcomes for clients, CEO Carl Hess said on the call.

“Insurers are continuing to look for growth, and that’s leading to increased competition in the market,” he said.

Most property lines continue to be stable to improving, with some rate reductions available depending on the risk profile, Mr. Hess said.

“The global casualty market, in contrast, remains rather firm with the North American market, except for workers comp, still challenging overall,” he said.

WTW’s specialization strategy continues to generate “strong” results, and it is focused on “expanding existing specialty lines into new geographies,” Mr. Hess said on the call.

Fourth-quarter revenue for its risk and broking segment, which includes corporate risk and broking and WTW’s insurance consulting and technology business, was $1.14 billion, an increase of 6% overall and 7% on an organic basis.

Corporate risk and broking had a “solid quarter,” with organic revenue growth of 6%, driven by continued improved client retention globally and strong new business generation, Chief Financial Officer Andrew Krasner said.

“Our specialization strategy continues to lead the way, with facultative, surety and marine specialty lines having been major contributors to the strong growth performance this quarter,” he said.

New business activity across a wide range of lines drove double-digit growth in Great Britain and Western Europe, with particular strength in facultative, construction, natural resources, financial solutions, FinEx, marine and aerospace, he said.

North America corporate risk and broking business growth was supported by strong client retention and new business, Mr. Krasner said.

WTW’s international region had strong organic growth across the board, with notable double-digit increases in Latin America, Central Europe and Asia, in addition to many specialty lines, he said.

The brokerage is re-entering the reinsurance market this year through a joint venture with Bain Capital LP. The startup venture is expected to be a “25- to 35-cent headwind to adjusted earnings per share this year,” Mr. Krasner said.

WTW’s health, wealth and career segment reported fourth-quarter revenue of $1.85 billion, up 3% overall and 3% on an organic basis.

The brokerage’s transformation program, which launched in 2021 and has now concluded, delivered $27 million in incremental annualized savings during the quarter, bringing total savings over the life of the program to $473 million.