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Willis Towers Watson reports stable revenue in second quarter

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Willis Towers Watson P.L.C. on Thursday reported revenue for the second quarter of 2017 of $1.95 billion, essentially unchanged from the prior-year quarter.

Net income for the quarter was $33. million, down 54.2% from $72 million a year ago due to restructuring costs.

The broker said the results include pretax charges of $63 million in integration expenses and $27 million in restructuring costs. 

Commissions and fees increased 2% to $1.93 billion.

The human capital and benefits segment reported commissions and fees of $718 million in the second quarter, down 1.7% from a year ago. The corporate risk and broking segment reported commissions and fees of $624 million, essentially flat in comparison with a year ago. Investment, risk and reinsurance segment reported commissions and fees with $383 million, also essentially flat in comparison to a year ago.

For the first half of 2017, Total revenue was $4.27 billion for the first half of 2017, an increase of 2.2% from a year ago. Net income was $377 million, up 21.6% from a year ago. Commissions and fees totaled $4.23 billion for the period, up 2.9% from a year ago. 

Willis said that a significant number of renewals occurred in the first quarter that would normally occur in the second quarter of the calendar year. As a result of these timing differences, Willis said, the first half 2017 results should be compared with the first half of last year. 

The second quarter is also a seasonally weaker quarter due to the low levels of renewals for some lines of business, Willis said, primarily related to the wholesale businesses and Gras Savoye & Cie., which Willis Group Holdings P.L.C. acquired in December 2015 before merging with Towers Watson & Co. in January 2016.

“I’m pleased with the continued progress in the second quarter and the results for the first half of 2017,” John Haley, Willis Towers Watson’s CEO, said in a statement. “We continue to build momentum across our portfolio of businesses while work continues on our integration efforts. I want to commend our colleagues on their achievements to date. We still have work to do to attain our full potential, but the commitment and excitement I see across the company gives me great confidence in the power of a truly integrated Willis Towers Watson.”

During a Thursday conference call with analysts, Mr. Haley took time to thank Roger Millay, who announced in April that he intended to retire from his position as chief financial officer in October. He noted that Mr. Millay had been gracious to remain flexible about his retirement date to ensure a smooth transition with the new CFO. A successor has not been named.