WTW Q3 profit rises on strong risk and brokerage business

Willis Towers Watson

31/10/2024 12:49

Oct 31 (Reuters) - Insurance broker WTW's  WTW.O 
third-quarter adjusted profit rose 27% on Thursday, helped by
robust performance in its risk and brokerage business.

WHY IT'S IMPORTANT
    Lower inflation, a strong labor market, wage growth and
expectations of a soft landing have spurred higher spending on
insurance by individuals and businesses.
    The firm, in an effort to concentrate on its long-term free
cash flow margin goals, agreed in October to divest its
direct-to-consumer insurance distribution business, Tranzact.
    The company reported pre-tax non-cash losses and impairment
charges exceeding $1.0 billion each, associated with the pending
sale.
    
BY THE NUMBERS
    Revenue from health, wealth and career - the company's
largest segment - grew 4% to $1.33 billion in the quarter ended
Sept. 30 from a year earlier, while revenue in the risk and
broking arm rose nearly 10% to $940 million.
    Total revenue for the company came in at $2.29 billion, up
from $2.17 billion a year earlier. 
    Adjusted net income was $299 million, or $2.93 per share, in
the July-September quarter compared with $236 million, or $2.24
per share, a year earlier.

 (Reporting by Vedant Vinayak Vichare; Editing by Vijay Kishore)
 ((Vedant.VinayakVichare@thomsonreuters.com;))