Willis Towers Watson revenue up 7% in Q3Posted On: Oct. 31, 2019 11:45 AM CST
Willis Towers Watson PLC on Thursday reported revenue of $1.99 billion in the third quarter of 2019, up 7% compared with the same quarter last year, and organic revenue growth of 6%.
This marks the fifth consecutive quarter in which Willis Towers Watson generated organic revenue growth of 5% or greater, along with improved margins, John Haley, Willis Towers Watson CEO, said during the analysts’ call.
“This has been another successful quarter for Willis Towers Watson. We continued to see solid performance in key areas,” Mr. Haley said.
Willis Towers Watson also completed the acquisition of Fort Lee, New Jersey-based direct-to-consumer health care organization MG LLC, which does business as Tranzact, which generated “measurable revenue growth in the two months that followed,” he said.
Net income and diluted earnings per share included pre-tax $6 million of transaction and integration expenses related to the Tranzact acquisition in the quarter, Willis Towers Watson said in a statement.
During the call, Mr. Haley said there is a “crucial need to better understand the risks posed climate change” and to “reflect proper pricing for climate risk in financial decision making.”
This will better direct investments toward infrastructures capable of withstanding a changing climate, he said.
Willis Towers Watson recently participated in the United Nations Climate Action Summit and continues to participate in various initiatives aimed at building climate resilience, he said.
Corporate risk and broking, its second largest business unit, reported revenue of $651 million in the third quarter of 2019, a 4.7% increase over the prior-year period.
Organic revenue growth for the unit was 7%, with North America’s revenue growing by 9% in the quarter, “primarily as a result of new business and improved retention,” Mr. Haley said during the call.
The international region’s revenue climbed 14%, compared to the prior year’s quarter. “There was notably strong performance in construction and natural resources in central and eastern Europe, Middle East and Africa, combined with continued momentum in Latin America, particularly in Brazil and central America and the Caribbean,” Mr. Haley said.
Western Europe contributed 2% revenue growth in the third quarter, with growth driven by “strong new business in France, Denmark and Iberia,” he said. Great Britain had 2% revenue growth, driven by new business in aerospace, construction and Finex, he said.
Willis Towers Watson’s investment, risk and reinsurance unit reported revenue of $325 million in the third quarter, up 2.5% from the prior-year period, and an increase of 3% on an organic basis.
There was “meaningful growth across all core businesses,” Mr. Haley said. Reinsurance, with growth of 3%, continued to lead the segment’s growth through a “combination of net new business and favorable renewals,” he said.
Insurance, consulting and technology grew by 4%, mainly from technology product sales, he said.
Wholesale revenue increased by 2% on an organic basis, driven by growth in specialty business, he said. Overall the wholesale business was up 14% including the results of London-based broker Miller Insurance Services LLP’s acquisition of Alston Gayler and Co. Ltd.
For the first nine months of 2019, Willis Towers Watson reported revenue of $6.4 billion, a 3.4% increase over the same period in 2018.
Corporate risk and broking reported nine-month revenue of $2.1 billion, a 1.6% increase over the same period in 2018.