Willis Towers Watson CEO 'pleased' with Q3 results; highlights 'prudent cost management'
Re/insurance broker Willis Towers Watson reported an overall organic revenue decline of 1 percent in the third quarter of 2020, as it continues to see the negative impact of the global COVID-19 pandemic in all business segments.
Total revenue increased by 1 percent to $2.01 billion for Q3 2020, compared with $1.99 billion for the same period in the prior year. Organic revenue decreased 1 percent in Q3 2020.
WTW's net profit for the quarter was $122 million, an increase from the $80 million profit it generated in the prior-year third quarter. However, income from operations declined by 180 basis points to reach $73 million, compared to the third quarter of 2019.
The company's corporate risk & broking (CRB) segment posted a revenue of $649 million, a 1 percent decrease in constant currency and 1 percent decrease organic, from $651 million in the prior-year third quarter.
The investment, risk & reinsurance (IRR) segment saw a revenue of $331 million, an increase of 2 percent (flat constant currency and 3 percent increase organic) from $325 million in the prior-year quarter.
John Haley, chief executive officer of Willis Towers Watson, highlighted that the third quarter results are reflective of the company's "prudent cost-management and liquidity preservation efforts".
“I am very pleased with the Company’s financial results for the third quarter and year to date," Haley said. "Despite the challenging operating environment brought on by the COVID-19 pandemic, we delivered solid margins, strong free cash flow growth, and adjusted EPS growth.”
He added: "Though there is looming uncertainty around the duration and severity of business disruptions, I am encouraged by the resilience we have demonstrated to date, and we remain confident in our ability to drive improvements and deliver value for our clients and shareholders.”
