Willis Towers Watson delivers interim results – plan for Willis Re revealed

Willis Towers Watson delivers interim results – plan for Willis Re revealed | Insurance Business Asia

Willis Towers Watson delivers interim results – plan for Willis Re revealed

Results season rolls on with the turn of world number three insurance broker Willis Towers Watson (WTW) to reveal its financial results for the second quarter and first half of 2021.

In the three and six months ended June 30, here’s how the broking giant performed:

Metric

Q2 2021

Q2 2020

H1 2021

H1 2020

Revenue

US$2.29 billion

US$2.11 billion

US$4.88 billion

US$4.58 billion

Income from operations

US$260 million

US$163 million

US$712 million

US$523 million

Net income attributable to WTW

US$184 million

US$94 million

US$917 million

US$399 million

 

“We delivered very strong quarterly financial results, and I am proud of our results for the first half of 2021,” noted WTW chief executive John Haley, who is retiring at the end of the year. “In the second quarter we delivered broad-based revenue growth, continued margin expansion, and had significant earnings per share growth.

“I am encouraged by our growth momentum and the improving macroeconomic outlook. Our financial results reflect our talented colleague base, their perseverance, the strength of our client relationships, and our compelling value proposition.”

Revenue-wise, the group saw increases in human capital & benefits (9%), corporate risk & broking (12%), and benefits delivery & administration (16%) in the second quarter. Only the investment, risk & reinsurance segment posted a decline in revenue, at 3%.

In the first half, human capital & benefits enjoyed a 6% revenue jump; corporate risk & broking, 11%; and benefits delivery & administration, 20%. Again, it was investment, risk & reinsurance revenue that dipped (2%).    

Meanwhile, during WTW’s earnings call, Haley announced that the firm is conducting a review of strategic alternatives for its reinsurance operations. Willis Re was supposed to be sold to Arthur J. Gallagher & Co. (AJG) as part of a proposed regulatory remedy for WTW’s merger with Aon Plc. The AJG deal fell through when the Aon transaction didn’t come to fruition.

“There can be no assurance the strategic alternatives review process will result in a sale of Willis Re or other strategic change or outcome,” added the industry stalwart, as quoted in a Seeking Alpha transcript.

In WTW’s results release, Haley stated: “We are focussed on moving forward independently, with confidence in our ability to continue delivering significant value for all of our stakeholders. We are well-positioned to compete vigorously and independently across our businesses around the world and will continue to innovate and adapt to address evolving client needs.”