WTW takes 8% growth in broking in Q1, remaining segments lag
Global insurance brokerage group WTW took 8% growth in its core risk and broking segment and expanded margins, but ended the quarter with a decline on the group bottom line.
CEO Carl Hess cited “a robust new business pipeline and our plans for realising operating efficiencies across the rest of the year” behind his “high confidence” that previously released 2024 targets will be hit, including for mid-single digit top-line growth for the group.
Risk and broking revenues of $978 million were up 8% against the prior year period in both reported and organic terms.
That gain included a 9% organic increase in corporate risk and broking which management said was “primarily driven by strong client retention across all geographies and higher levels of new business activity.” Segment revenues are not reliant on insurance rate growth, Hess insisted for the call.
The segment's insurance consulting and technology (ICT) operations had flat organic revenue for the quarter with management citing the timing of consulting and technology revenue between quarters. The segment is on track to hit high single digit revenue growth for the year, CFO Andrew Krasner noted.
Corporate and risk broking operating income of $203 million in the quarter increased by 13% on a 0.9 point increase in operating margin due chiefly to interest income, management said.
Gains in corporate and risk broking couldn't be matched by the rest of the group.
Following slower 4% organic growth for the health, wealth and career segment, the group laid claim to organic revenue growth at 5%, right at it’s full-yar target level for mid-single digit.
Group adjusted EBITDA earnings were still showing a year on year gain of 13% and a 1.9 point margin expansion, but that didn't hold by the bottom line which was down 6% year on year.
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