Global insurance and reinsurance broker Willis Towers Watson (WTW) has reported its results for the third-quarter of 2018, which includes an increase in net income of $139 million and organic revenue growth of 5%.
Reported revenue increased 3% to $1.9 billion when compared with the same period in 2017, and net income increased to $85 million, or 4.5% of revenue. The broker states that these results are without the impact of the Accounting Standards Codification 606 (ASC 606).
The broker’s net income for the third-quarter of 2018 was $83 million, which is actually an increase of a huge 254% when compared with the net $54 million net loss reported a year earlier.
Each of the company’s segments performed well in the quarter, including its Investment, Risk & Reinsurance unit, which had revenue of $337 million, an increase of 5% over the same period last year.
The firm’s Corporate Risk & Broking unit produced revenue of $616 million during the third-quarter of 2018, which is a 3% increase on last year’s third-quarter.
Elsewhere, the broker’s Human Capital & Benefits segment saw its revenue increase 1%, year-on-year, to $738 million, and, its Benefits Delivery and Administration segment had revenue of $200 million in the quarter, which is up 10% year-on-year.
Commenting on the remainder of 2018, WTW said: “Without the impact of ASC 606 for 2018, the Company continues to expect constant currency revenue growth of around 3%, and 4% on an organic basis; and we are increasing our Adjusted Diluted Earnings per Share to be in the range of $10.12 to $10.32. We are also adjusting the Tax guidance from a range of 22% to 23% to a range of 20% to 21% for 2018.”
WTW’s third-quarter 2018 results show that all of the broker’s business segments performed well in the period, something highlighted by the firm’s Chief Executive Officer (CEO), John Haley.
“I’m extremely pleased with our third quarter results. Overall, our performance reflects strong organic revenue growth, continued margin expansion, and double-digit growth in our adjusted earnings per share and free cash flow. Our results indicate that we have made substantial progress toward our goals for 2018 and we expect a strong finish to the year as we head into one of our seasonally strongest quarters,” said Haley.