(Reuters) – Insurance broker WTW’s third-quarter adjusted profit rose 27% on Thursday, helped by robust performance in its risk and brokerage business.
WHY IT’S IMPORTANT
Lower inflation, a strong labor market, wage growth and expectations of a soft landing have spurred higher spending on insurance by individuals and businesses.
The firm, in an effort to concentrate on its long-term free cash flow margin goals, agreed in October to divest its direct-to-consumer insurance distribution business, Tranzact.
The company reported pre-tax non-cash losses and impairment charges exceeding $1.0 billion each, associated with the pending sale.
BY THE NUMBERS
Revenue from health, wealth and career – the company’s largest segment – grew 4% to $1.33 billion in the quarter ended Sept. 30 from a year earlier, while revenue in the risk and broking arm rose nearly 10% to $940 million.
Total revenue for the company came in at $2.29 billion, up from $2.17 billion a year earlier.
Adjusted net income was $299 million, or $2.93 per share, in the July-September quarter compared with $236 million, or $2.24 per share, a year earlier.
(Reporting by Vedant Vinayak Vichare; Editing by Vijay Kishore)
