Re/insurance brokerage Willis Towers Watson (WTW) has recorded total revenue growth of 3% to more than $2 billion in the second-quarter of 2019, with net income up 138% year-on-year to $138 million.
Revenue increased across all business segments for the insurance and reinsurance broker in Q2 2019 when compared with the same period in 2018.
Human Capital & Benefits saw it revenue increase by 2% to $797 million, Corporate Risk & Broking by 2% to $690 million, Investments, Risk & Reinsurance by 6% to $409 million, and then Benefits Delivery & Administration by 6% to $126 million.
These figures, combined with $26 million of reimbursable expenses and other, resulted in overall revenues of $2.048 billion, compared with $1.99 billion in Q2 2018.
For the first-half of the year, all business segments, with the exception of Corporate Risk & Broking which remained flat, again recorded higher revenue when compared with H1 2018. Human Capital & Benefits saw its revenue increase by 1%, Investments, Risk & Reinsurance by 4%, and Benefits Delivery & Administration by 8%.
Overall, WTW’s revenue for the first-half of the year reached $4.36 billion, which is up 2% from the $4.282 billion recorded in H1 2018.
Organic revenue growth was also strong for the broker in Q2, up 6% on the previous year and up by 5% for the six-month period. Organic revenue growth occurred in all business segments in the period, at 5% in Human Capital & Benefits, 5% in Corporate Risk & Broking, 8% in Investments, Risk & Reinsurance, and 6% in Benefits Delivery & Administration.
WTW’s Chief Executive Officer (CEO), John Haley, said: “We are pleased with our financial results for the second quarter and first half of fiscal 2019. For the second quarter, we delivered 6 percent organic revenue growth, and each of our business segments demonstrated healthy growth in revenue and operating income margin, contributing to a double-digit increase in adjusted operating income growth for the overall Company.”
In total, WTW’s operating income increased from $304 million in Q2 2018 to $357 million in Q2 2019, with improvements witnessed in all business segments, including Investment, Risk & Reinsurance, which reported operating income of $109 million compared with $89 million a year earlier.
For the first-half of the year it was a similar story, with all segments recording an improved operating income when compared with the same period in 2018. WTW notes that the operating income margin improved by 540 basis points in Q2 2019 when compared with Q2 2018, and improved by 480 basis points for the first-half of the year, when compared with H1 2018.