WTW – the business segments of which are health, wealth & career (HWC) and risk & broking (R&B) – has released its third quarter earnings report.
Here’s how the global brokerage fared in the three months ended September 30:
|
Metric |
Q3 2022 |
Q3 2021 |
|
Total revenue |
US$1.95 billion |
US$1.97 billion |
|
Income from operations |
US$154 million |
US$1.13 billion |
|
Adjusted operating income |
US$284 million |
US$264 million |
|
Net income |
US$192 million |
US$907 million |
|
Adjusted net income |
US$243 million |
US$224 million |
In a release, WTW explained that last year’s significantly higher income from operations and net income included the US$1 billion income receipt that was received as a result of the termination of the proposed merger with Aon.
As for segment performance, WTW’s HWC business posted a US$236 million operating income, which represents a 2% slide from 2021. The R&B unit, meanwhile, saw a 24% decline in operating income, to US$105 million.
“Our organic revenue growth accelerated to 6% as the investments we’ve made in talent, technology, and transformation began to yield results,” declared WTW chief executive Carl Hess. “In addition, we have expanded our adjusted operating margins, with 110 basis points of improvement over prior year.
“Looking ahead, our strategic momentum, continued strong demand for our services amidst macroeconomic volatility, and the resilience and flexibility of our business give us confidence in our ability to drive growth, expand margins, and create value for our shareholders over the long term.”
Based on market conditions, WTW is maintaining its full-year targets for organic revenue growth, adjusted operating margin expansion, and non-cash pension income. At the same time, the company is raising its full-year targets for run-rate cost savings and foreign currency headwind to adjusted earnings per share.
