Willis Towers Watson enjoys organic growth but withdraws 2020 guidance over COVID-19
Broker Willis Towers Watson has withdrawn its full-year 2020 guidance due to "uncertainties" caused by the pandemic. Although it enjoyed a 4 percent organic revenue growth in the first quarter, supported by no material adverse impact from COVID-19.
WTW, however, expects COVID-19-related economic impact to negatively affect its revenues and operating results for the remainder of 2020. Hence, the broker has reinforced its focus on "maintaining a strong balance sheet, liquidity, and financial flexibility".
The company grew its revenue 7 percent to $2.5 billion, with constant currency growth of 8 percent and organic growth of 4 percent in the first quarter. This compares to the $2.31 billion it reported in the prior year quarter.
The net income attributable to Willis Towers Watson for the first quarter of 2020 was $305 million, an increase of 6 percent from $287 million for the prior-year first quarter. The net income included pre-tax $9 million of transaction and integration expenses mostly related to the pending business combination with Aon.
John Haley, Willis Towers Watson’s chief executive officer, highlighted that the company remains "well-positioned" and resilient during the pandemic.
“Willis Towers Watson executed well in the first quarter while navigating the unprecedented challenges brought on by the COVID-19 pandemic,” said Haley. “I would like to personally acknowledge and thank our colleagues for remaining steadfast in supporting our clients and each other through a very challenging environment.
"We are dealing with extraordinary times, but I am pleased to say our resilience, experience and business continuity plans have enabled us to operate at a high level globally, and we believe we remain well-positioned to manage through this difficult period, while continuing to serve our clients, engage our colleagues and deliver value for our shareholders."
