Willis Towers Watson beat Wall Street estimates for second-quarter profit on Thursday, driven by a strong performance in its risk and brokerage business.
Despite rising premium costs, businesses increased spending on insurance products as they prioritized financial protection in response to the growing frequency and severity of extreme weather events.
Insurance brokers’ commissions are tied to the premiums insurers charge.
Revenue from its risk and broking unit, which advises clients on risk management and lets them negotiate and place policies with insurers, rose 7% to $1.05 billion.
Rising concerns about a potential trade war have also fueled demand for risk advisory and consulting services, a core area of expertise for WTW.
The company posted adjusted net income of $285 million, or $2.86 per share, for the three months ended June 30, compared with $247 million, or $2.39 per share, a year earlier.
Analysts on average were expecting earnings of $2.60 per share, according to data compiled by LSEG.
However, revenue from its health, wealth and career segment—the company’s largest—fell to $1.18 billion from $1.26 billion a year ago, due to the sale of TRANZACT.
Total revenue in the reported quarter remained flat at $2.26 billion.
WTW’s shares fell about 3.6% this year, compared to peers such as Aon and Marsh & McLennan, which lost 1.1% and 5.6%, respectively.
Was this article valuable?
Here are more articles you may enjoy.
Viewpoint: The Danger of Relying on the Insurance of Others 
Mississippi Insurance Dept. Top Examiner Named in $90M Credit Union Theft Suit 
AM Best: Data Centers Pose Risks Beyond What P/C Industry Has Experienced 
Claimants of 23andMe Data Breach to Get $46.75M in Settlement Deal 
