WTW Reports 6% Organic Revenue Growth for 2021

WTW, a re/insurance broker, reported organic revenue growth of 4% in the fourth quarter of 2021 and 6% year on year, boosted by positive organic results in its Investment, Risk & Reinsurance (IRR) segment.

Source: WTW | Published on February 8, 2022

WTW Q1 2024 earnings

Despite revenue shrinking by 2% to $199 million and 12% to $814 million for the same periods, the IRR segment posted a massive organic change of 32% for the quarter and 16% for the year.

It should be noted that IRR revenue now excludes the Reinsurance line of business, which has been reported as discontinued operations since the December sale of Willis Re to Gallagher.

This agreement was reached in August 2021, when WTW's merger with Aon was still in the works, and resulted in a total upfront cash consideration of $3.25 billion, plus a cash earnout of up to $750 million payable in 2025.

WTW's overall revenue increased by 1% to $2.71 billion in the fourth quarter and by 4% to $9.00 billion for the full year.

Income from operations was $690 million, or 25.5 percent of revenue, in the fourth quarter of 2021, up from $579 million, or 21.7 percent of revenue, in the fourth quarter of the previous year.

Meanwhile, net income (including discontinued operations) was $2.4 billion, a 405 percent increase from $476 million in the prior-year fourth quarter.

Income from operations was $2.2 billion, or 24.5 percent of revenue, up from $859 million, or 10.0 percent of revenue, the previous year.

And net income was $4.2 billion, a 324 percent increase from $996 million in the same period the previous year.

"The fourth quarter marked the end of a strong fiscal year at WTW," said Carl Hess, WTW's CEO. We delivered revenue growth and significant margin expansion for the year. While the results are in line with our expectations, they do not fully reflect the Company's near- and long-term potential."

"As we look ahead to 2022, we remain committed to doing the work required to improve performance." Our hiring levels have increased, and we anticipate that the effects of previous colleague departures will be mitigated, allowing us to deliver long-term organic growth and margin expansion in line with our Investor Day expectations," he added.

"As we look to execute on our strategic priorities, our new global leadership team has been working diligently on our new path forward." We are laser-focused on meeting our objectives, and I am confident that the steps we are taking will add value to our clients, colleagues, and shareholders."