WTW reports 5% organic growth as adj EPS beats consensus

By Scott Vincent

Feb 4 - (The Insurer) - WTW has reported adjusted diluted earnings per share of $8.13 for the fourth quarter of 2024, beating analyst consensus of $8.03.

The group generated revenue of $3bn for the quarter, an increase of 4 percent on the prior-year period.

WTW reported organic growth of 5 percent for the quarter, down from 6 percent in Q4 2023 and Q3 2024.

The risk and broking (R&B) segment accounted for $1.14bn of total Q4 revenue. Revenue in the segment was up 6 percent year on year, or 7 percent on both an organic and constant currency basis.

Within R&B, WTW said organic growth in its corporate risk and broking unit was driven by increased new business and strong client retention, while strong software sales in technology drove organic growth in the insurance consulting and technology business.

The R&B segment's operating margin increased by 60 basis points to 33.5 percent in Q4. At group level, the operating margin increased by 300 basis points year on year to 29.7 percent. WTW reported an adjusted operating margin of 36.1 percent for the quarter, up 190 basis points on Q4 2023.

For the full year, WTW reported revenue of $9.9bn, up 5 percent on 2023. This also represented growth of 5 percent on an organic basis.

Adjusted diluted earnings per share totalled $16.93 for the full year, a 17 percent increase on 2023. The full-year adjusted operating margin of 239 percent was up 190 basis points.

Carl Hess, WTW’s CEO, 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’m 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’m proud of our team’s dedication and look forward to executing on our strategic and financial goals in the years ahead.”