Re/insurance broker WTW has posted 3% organic revenue growth for the second quarter of 2022, despite total revenues declining by 3% to $2.03 billion.
After posting 2% organic growth in Q1, the broker seems to remain slightly below its target of “mid-single digit” organic revenue growth for the full year, but maintains that it will still achieve this level by year-end.
Breaking down the Q2 figures, WTW also saw net income decline by 39%, from $186 million to $114 million, while income from operations likewise fell by 19% from $170 million to $137 million.
The Risk & Broking business segment had revenue of $852 million, a decrease of 4% from $885 million in the prior-year second quarter, but an increase of 3% on an organic basis.
On an organic basis, Insurance Consulting and Technology grew primarily as a result of new software sales as well as increased advisory work.
Meanwhile, Corporate Risk & Broking generated revenue growth across all regions, primarily driven by WTW’s global lines of business, principally from new business, most notably in Aerospace, Natural Resources and FINEX.
Operating margins in the R&B segment decreased 340 basis points from the prior-year second quarter to 19.7%, which WTW says was primarily due to ongoing investments in talent.
Turning to the Health, Wealth & Career segment, revenue was $1.16 billion, representing a decrease of 2% from Q2 last year, or an increase of 2% on an organic basis.
Organic growth was led by the Health business, but Benefits Delivery & Outsourcing revenue also increased, and Career contributed further strong growth, WTW reported.
“We continued to build momentum and execute on our strategic priorities in the second quarter, delivering results that were in line with our expectations,” said Carl Hess, WTW’s Chief Executive Officer.
“We are tackling our transformation with urgency and are raising our target for run-rate savings from $30 million to over $80 million in 2022 and expect to achieve in excess of $300 million by the end of 2024. We also continued to return capital to shareholders, repurchasing $471 million of WTW shares this quarter,” Hess continued.
“Looking forward, the progress we have made investing in new solutions and talent positions us well to accelerate our growth in the second half of 2022, and we expect our business to remain resilient in this unsettled economic environment. We remain focused on delivering on our long-term goals.”
