WTW Reports 48% Hike in Q2 Net Income With Organic Growth of 6%

WTW reported second quarter net Income of $142 million, an increase of 48% compared to net income of $96 million in the prior-year second quarter.

Q2 adjusted net income rose 20% to $263 million, from $219 million reported in the same period in 2023.

Diluted earnings per share were $1.36 for the second quarter, up 55% over Q2 2023, while adjusted diluted earnings per share were $2.55 for the quarter, up 24% from last year.

Q2 revenue increased 5% to $2.3 billion with organic growth of 6%, compared with revenue of $2.2 billion during Q2 2023 and organic growth of 7%.

First 6 Months

Net income for the first half was $336 million, an increase of 11.3% from $302 million reported during H1 2023. H1 adjusted net income was $604 million, compared with $525 million for the same period in 2023.

Diluted earnings per share for H1 2024 were $3.20, an increase of 11.3% from $2.77 per share in H1 2023. Adjusted diluted earnings per share were $5.84 for H1 2024, an increase of 19.4% from $4.89 per share in H1 2023.

Revenue for the half was $4.6 billion, a 4.6% increase from $4.4 billion reported during H1 2023.

Risk & Broking

The company’s Risk & Broking segment had revenue of $979 million in the second quarter of 2024, an increase of 9% from $900 million in the prior year. Q2 organic growth was 10%, compared with 6% in Q2 2023. The R&B segment comprises Corporate Risk & Broking (CRB) and the company’s Insurance Consulting and Technology (ICT) business.

CRB had organic revenue growth primarily driven by higher levels of new business activity, strong client retention and renewal increases across all geographies, said WTW, noting that ICT had flat organic revenue growth for the quarter primarily the result of lower demand for discretionary services.

“WTW delivered a strong second quarter, generating significant EPS growth and margin expansion through robust organic growth, operating efficiency and the continued execution of our Transformation program,” said Carl Hess, WTW’s chief executive officer, in a statement.

“These results show that our efforts to grow, simplify and transform WTW continue to create sustainable value for shareholders, clients and colleagues,” Hess added. “Given our strong performance and ongoing momentum, we are raising the low end of our full year 2024 target ranges for adjusted operating margin and adjusted EPS to 23.0%-23.5% and $16.00-$17.00, respectively.”

Source: Willis Towers Watson

Topics Profit Loss Willis Towers Watson