Willis Towers Watson P.L.C. reported on Feb. 10 its results for the fourth quarter, noting a net loss of $24 million. The insurance brokerage and consulting firm was the result of a merger between Willis Group Holdings P.L.C. and Towers Watson & Co., and it is believed that the costs involved in integrating the two took their toll on the bottom line.
The Willis Group posted a profit of $76 million at around the same period last year.
According to the report, Willis Group’s expenses for the fourth quarter surged by 18.7%, to $972 million, which included $48 million of “merger and acquisition related expenses.”
On the other hand, the earnings statement noted that fourth quarter revenue for the brokerage increased by 1.7% to $974 million, with 3.0% organic growth.
Willis North America Inc., the company’s domestic unit, posted organic growth of 1.9% for the fourth quarter. Willis International Ltd. enjoyed 9.0% organic growth for the period, with all major regions posting positive developments.
“We couldn’t be more pleased with international business in 2015,” said Willis Towers Watson deputy CEO and president Dominic Casserley during a recent morning call with analysts. “The business turned in excellent growth and profitability despite facing significant challenges in key geographies.”
The report also posted Towers Watson & Co.’s earnings for the fourth quarter. The company’s revenue for the previous three months leading up to December 31 was down 0.1% to $919.4 million for the period.
Towers Watson & Co.’s net income for the quarter was $11.2 million, compared to the $110.1 million it had generated during the same time period the previous year. According to current quarter results, the company had about $81 million of transaction and integration costs.
