Login Register Subscribe
Current Issue

Help

BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Willis Towers Watson boosts revenue, net income; merger costs 'material'

Reprints

Willis Towers Watson P.L.C. on Friday reported its first earnings since merging with Towers Watson & Co., saying its revenue rose 11.0% during the first quarter of this year.

Reporting on a pro forma basis for 2015 to reflect its merger early this year with Towers Watson, the insurance brokerage said it recorded $2.23 billion in revenue for the first quarter of 2016.

Net income increased 14.5% to $245 million, Willis Towers Watson said.

“We’ll continue to incur various merger and integration costs,” Chief Financial Officer Roger Millay said Friday during a conference call with analysts. “These costs will continue to be material as we work through the integration period, and we expect them to be approximately in the $150 million to the $175 million range. The level of spending will depend how quickly we move through some of the integration activities.”

Mr. Millay added: “We continue to expect organic revenue growth to be in the mid-single digits, but based on the first-quarter results, our expectations are a bit muted versus the beginning of the year.”

Segment results

Willis Towers Watson said the various segments of its business had mixed performance in the quarter.

• Willis’ international business had commissions and fees of $481 million, up 68% due in large part to last year’s acquisition of the rest of Gras Savoye & Cie.

• Willis’ North America business boosted its commissions and fees by 3% during the quarter, rising to $368 million, led by U.S. Northeast construction and financial institution business.

• Willis’ capital, wholesale and reinsurance business posted a quarterly gain of 12%, rising to $331 million, due in large part to last year’s investment in Miller Insurance Services L.L.P., Willis said.

• The Towers Watson benefits business recorded a 2% drop in revenue, which fell to $486 million.

• The Towers Watson exchange segment boosted revenue by 57% to $152 million.

• The Towers Watson risk and financial services segment’s revenue fell 8% to $144 million.

• Willis GB, which includes specialty, facultative and retail insurance businesses in Great Britain, saw a 2% drop in quarterly revenue to $139 million.

• The Towers Watson talent and rewards segment’s revenue dropped 11% to $124 million.