Insurance and reinsurance broker Willis Towers Watson (WTW) has reported a 70% increase in net income for the third-quarter of 2019 to $75 million, while growth in all segments led to overall revenue of $1.99 billion, up 7% year-on-year.
The broker has reported organic growth of 6% for the quarter and 5% for the first nine months of the year, a period in which revenue hit $6.35 billion, compared with $6.14 billion a year earlier.
In the third-quarter of 2019, income from operations reached $107 million, or 5.4% of revenue, which is an increase of 450 basis points over the prior year. Adjusted operating income totalled $231 million, or 11.6% of revenue, which is up 120 basis points over the previous year.
John Haley, WTW’s Chief Executive Officer (CEO), commented: “I am pleased with our third quarter results. We delivered another solid quarter of financial results with strong total and organic revenue growth and continued margin expansion.
“The strength and consistency of our performance reflects our commitment to client service — as well as the continued successful execution of our growth strategy. We believe we will have a strong finish to the year and remain confident in our ability to continue delivering profitable growth and generating long-term value for all of our stakeholders.”
The global re/insurance broker’s Q3 results show that revenue growth was experienced in all business segments.
Starting with Investment, Risk & Reinsurance, revenue reached $325 million, an increase of 2% on the same period in 2018. On an organic basis, all lines of business contributed to growth, explains WTW. Reinsurance, wholesale, and underwriting and capital management expansion was primarily driven by net new business growth and also favourable renewal factors.
In Human Capital & Benefits, revenue increased by 4% to $807 million, including a 6% increase in organic growth.
The Corporate Risk & Broking segment’s revenue increased from the $622 million recorded in Q3 2018 to $651 million in Q3 2019, with 7% organic growth. WTW notes that this segment had solid growth across all geographies in the period.
At $179 million, WTW’s Benefits Delivery & Administration segment’s revenue increased by 42%, with 2% organic growth.
