WTW 'well-positioned to compete vigorously and independently' says bullish John Haley
Re/insurance broker Willis Towers Watson is "well-positioned" to move forward independently and "compete vigorously" following the collapse of its mega-merger with rival Aon. That is the message of WTW chief executive John Haley (pictured), who is bullish on the company's growth prospects, shaking off the uncertainties and concerns flagged by analysts and the industry at large.
Willis Towers Watson has delivered a solid set of results driven by growth across all segments and most lines of business. The broker enjoyed an organic revenue growth of 8 percent in the second quarter and 6 percent in the first half of the year.
The company grew its revenue 8 percent to $2.29 billion in the second quarter of 2021, compared to $2.11 billion for the same period in the prior year. For the first half of 2021, its revenue was $4.88 billion, an increase of 6 percent on $4.58 billion reported in H1 2020.
The net profit attributable to Willis Towers Watson for the second quarter of 2021 was $184 million, an increase of 96 percent from $94 million for the prior-year second quarter. The net profit included pre-tax $51 million of transaction and integration expenses mostly related to the proposed Aon combination prior to its termination.
For the first half of 2021, the net profit came in at $917 million, an increase of 130 percent from $399 million for the same period in the prior year. This figure included pre-tax $75 million of transaction and integration expenses.
WTW stated that during 2020 and through the first half of 2021, the COVID-19 pandemic had a negative impact on its revenue growth, but otherwise it generally did not have a material impact on the overall results.
Chief executive Haley praised the results and highlighted that the company remains well positioned to move forward independently.
“We delivered very strong quarterly financial results, and I am proud of our results for the first half of 2021,” he said. “In the second quarter we delivered broad-based revenue growth, continued margin expansion, and had significant earnings per share growth. I am encouraged by our growth momentum and the improving macroeconomic outlook. Our financial results reflect our talented colleague base, their perseverance, the strength of our client relationships and our compelling value proposition."
He added: "We are focused on moving forward independently, with confidence in our ability to continue delivering significant value for all of our stakeholders. We are well-positioned to compete vigorously and independently across our businesses around the world and will continue to innovate and adapt to address evolving client needs.”
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