WTW, FY2019: net income reached USD 1.0 billion, 50% more year-on-year

25 February 2020 — press.release
For year 2019, Willis Towers Watson (WTW) reported a net income (attributable to the company) of USD 1,044 million, up 50% year-on-year (FY2018: USD 695 million).

Diluted earnings per share were USD 8.02, and adjusted diluted earnings per share were USD 10.96 for the year ended December 31, 2019. Net income attributable to Willis Towers Watson and diluted earnings per share for the year ended December 31, 2019 included pre-tax USD 13 million of transaction and integration expenses related to the TRANZACT acquisition. For the year ended December 31, 2019, the U.S. GAAP income tax rate was 18.8%, and the adjusted income tax rate used in calculating adjusted diluted earnings per share was 20.3%.

Net income attributable to Willis Towers Watson for the fourth quarter of 2019 was USD 544 million, an increase of 44% from USD 378 million for the prior-year fourth quarter. For the quarter, diluted earnings per share were USD 4.18 and adjusted diluted earnings per share were USD 4.90.


Willis Towers Watson FY2019 (12 months) figures, y-o-y changes

  • Revenue: USD 9,039 million (+6%), of which:
    • Human Capital & Benefits: USD 3,298 million (+2%)
    • Corporate Risk & Broking: USD 2,946 million (+3%)
    • Investment, Risk & Reinsurance: USD 1,637 million (+5%)
    • Benefits Delivery & Administration: USD 1,035 million (+37%)
  • Segment operating income: USD 2,090 million (+13%), of which:
    • Human Capital & Benefits: USD 848 million (+7%)
    • Corporate Risk & Broking: USD 578 million (+9%)
    • Investment, Risk & Reinsurance: USD 420 million (+9%)
    • Benefits Delivery & Administration: USD 244 million (+69%)
  • Net income: USD 1,073 million (+8%)
  • Adjusted EBITDA and adjusted EBITDA margin: USD 2,300 million (+13%)


For the year ended December 31, 2019, revenue was USD 9.04 billion, an increase of 6% (9% increase constant currency and 5% increase organic) as compared to USD 8.51 billion for the same period in the prior year.

Net income was USD 1.07 billion, or 11.9% of revenue, an increase from net income of USD 715 million, or 8.4% of revenue for the same period in the prior year. Adjusted EBITDA for the year ended December 31, 2019 was USD 2.3 billion, or 25.4% of revenue, an increase from adjusted EBITDA of USD 2.0 billion, or 23.9% of revenue for the same period in the prior year.

At the end of 2019, operating income margin improved by 520 basis points to 14.7% from 9.5% for the same period in the prior year. Adjusted operating income margin improved by 220 basis points to 20.3% from 18.1% for the same period in the prior year.

Cash flows from operating activities for the year ended December 31, 2019 were USD 1.08 billion compared to USD 1.29 billion for the prior year. Free cash flow for the year ended December 31, 2019 and 2018 was USD 835 million and USD 1.02 billion, respectively.

The Company repurchased approximately USD 3 million of Company stock during the fourth quarter of 2019. For the full year, the Company repurchased approximately USD 150 million of Company stock.


More financial information about Willis Towers Watson can be found at investors.willistowerswatson.com.


Source: willistowerswatson.com
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