Willis Towers Watson (WTW) has reported a net income of $1.25bn for the fourth quarter of 2024 (Q4 2024), compared with $623m in the same quarter of the previous year.
Income from operations also saw an uptick, standing at $901m for Q4 2024, a 16% increase from the previous year’s $779m.
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Diluted earnings per share (EPS) for the quarter that ended on 31 December 2024 were $12.25, a 105% surge from $5.97 in the corresponding quarter a year ago.
The insurer generated revenues of $3.04bn in Q4 2024, a 4% increase from $2.9bn in Q4 2023.
The Health, Wealth & Career (HWC) segment contributed $1.85bn in revenue, up by 3% from $1.8bn in the prior year.
This growth was primarily driven by project work, retirement, investments and advisory services, although business development & operations (BD&O) declined due to moderating growth in TRANZACT.
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By GlobalDataThe Risk & Broking (R&B) segment also contributed $1.14bn in Q4, up by 6% from $1.08bn in the prior year.
The Corporate Risk & Broking sub-segment achieved organic revenue growth through new business activities and client retention, while the Insurance Consulting and Technology sub-segment benefitted from software sales.
For the full year of 2024, the company registered a net loss of $88m, as against net income of $1.1bn in 2023.
This loss includes more than $1bn in impairment charges related to the sale of TRANZACT.
Income from operations for the year were down by 54% to $627m from $1.36bn in 2023, and diluted EPS dropped to $0.96 from $9.95.
However, overall annual revenue increased by 5% to $9.93bn in 2024, versus $9.48bn in the previous year.
The HWC segment’s contribution was $5.8bn in 2024, a 3% increase from 2023, while the R&B segment’s revenue grew 8% year-on-year to $4.04bn.
WTW also repurchased $395m of its shares during Q4 and $901m over the full year.
Looking ahead, the company projects cash outflows in 2025 from settling accrued costs associated with the concluded Transformation programme.
It also plans share repurchases of nearly $1.5bn, contingent on market conditions and potential capital allocation for organic and inorganic investment opportunities.
WTW CEO Carl Hess said: “WTW is entering 2025 with considerable momentum after delivering on our 2024 financial targets through solid revenue growth, robust margin expansion and earnings growth. The successful completion of our Grow, Simplify and Transform strategy has primed all of our businesses to perform, and we are now stronger, more connected and more efficient than we have ever been.
“I am confident our new strategy to accelerate our performance, enhance our efficiency and optimise our portfolio will produce innovative solutions for our customers and create more value for shareholders. I am proud of our team’s dedication and look forward to executing on our strategic and financial goals in the years ahead.”
Last month, the company secured a licence to operate as a reinsurance broker in Saudi Arabia.
