Re/insurance broker WTW has reported revenue of $2.16 billion for the first quarter of 2022, representing a decrease of 3% compared with the $2.23 billion it reported for the same period last year.
However, on an organic basis, revenue increased by 2%, and WTW continues to target “mid-single digit” organic revenue growth for the full year.
The broker’s income from operations also declined 15% YoY to $179 million in Q1, and its net income fell sharply from $736 million to $125 million, but increased on an adjusted basis from $284 million to $315 million.
WTW revealed that its decision to withdraw from Russia and transfer ownership of its subsidiary to local management resulted in a total loss of $138 million.
The broker’s operations in Russia were primarily within its Risk & Broking segment and comprised approximately 1% of consolidated revenue for 2021.
The company opted to realign its business into two main segments starting January 1, 2022, namely Health, Wealth & Career (HWC) and the aforementioned Risk & Broking (R&B).
R&B, which now includes the former Risk and Reinsurance segment, reported revenue of $891 million in Q1, a decrease of 4% from $924 million in the prior-year first quarter.
Operating margins in the R&B segment decreased 30 basis points from the prior-year first quarter to 21.6%, primarily reflecting a headwind from book-of-business sales recorded in the comparable period.
“The first quarter marked a solid start to the year for WTW with results that were in line with expectations and reflect improved momentum in our business,” said Carl Hess, WTW’s Chief Executive Officer.
“During the quarter, we continued to make significant progress across our strategic priorities. We launched innovative new products, hired at our fastest rate since 2019, simplified our reporting structure, and made headway on transforming our cost structure. As of today, we have executed on our capital allocation strategy, having repurchased $4.1 billion in shares and reaching our 2022 target ahead of schedule,” Hess continued.
“Going forward, we believe we are well-positioned for success, with our industry-leading solutions and teams helping our clients address their most pressing needs in a volatile economic environment. We believe we remain on track to achieve our 2022 financial targets and are confident in our ability to deliver on our long-term goals for the benefit of all our stakeholders.”