Global re/insurance brokerage firm WTW 4% has reported organic revenue growth to $8.866 billion, as net income for the year declined by 74% to $1.024 billion when compared with 2021
WTW has reported 5% organic revenue growth for Q4 2022 to $2.72 billion, although net income for the period fell by 75%, year-on-year, to $593 million.
Effective January 1st, 2023, the insurance broker realigned to provide its services and solutions across two business segments: Health, Wealth & Career (HWC) and Risk & Broking (R&B), and three geographies: Europe, International, and North America.
The new HWC segment includes businesses previously aligned under the Human Capital and Benefits segment, the Benefits Delivery and Administration segment, and the Investment business.
R&B includes businesses previously aligned under the Corporate Risk and Broking segment, as well as the Insurance Consulting and Technology business.
Starting with the company’s HWC division, in Q4 2022, total revenue increased by 5% on an organic basis to $1.72 billion, as operating income rose 4% to $672 million, leading to an operating margin of 39%, compared with 38.2% a year earlier. WTW says that organic growth was led by Benefits Delivery & Outsourcing, driven by Medicare Advantage sales.
For the full year, HWC’s revenue totalled $5.287 billion, reflecting organic growth of 3%.
In R&B, organic revenue growth of 5% resulted in a figure of $952 million for the quarter, while operating income fell by 7%, year-on-year, to $269 million, with an operating margin of 28.3% compared with 30.1% a year earlier.
Corporate Risk & Broking generated organic revenue growth across all geographies, primarily driven by the global lines of business, most notably in Construction and Aerospace. At the same time, Corporate Risk & Broking’s organic revenue growth rate was pressured by headwinds from book-of-business settlement revenue in the comparable period.
For the full year 2022, R&B’s revenue hit $3.46 billion, reflecting organic growth of 3% for the period.
Based on current market conditions, WTW expects to deliver mid-single digit organic revenue growth in 2023, as well as the delivery of adjusted operating margin expansion.
The company also expects to deliver approximately $100 million of incremental run-rate savings from the Transformation Program in 2023, as well as approximately $112 million in non-cash pension income for the year, and a foreign currency headwind on adjusted earnings per share of approximately $0.01 for the full year 2023 at today’s rates.
