(Reuters) – Insurance broker Willis Towers Watson beat Wall Street estimates for fourth-quarter profit on Tuesday, driven by a strong performance in its risk and brokerage business.
Businesses increased spending on insurance products as they prioritized financial security to safeguard against risks, despite higher premium prices.
Insurance brokers’ commissions are tied to the premiums insurers charge.
Revenue from Willis Towers Watson’s risk and broking unit, which advises clients on risk management and lets them negotiate and place policies with insurers, rose 6% from a year earlier to $1.14 billion, on the back of higher new business activity and strong client retention.
The company’s largest segment – health, wealth and career – saw revenue rise to $1.85 billion from $1.80 billion a year earlier, boosted by increased project work and brokerage income in North America.
Willis Tower Watson posted adjusted net income of $827 million, or $8.13 per share, for the three months ended Dec. 31, compared with $775 million, or $7.44 per share, a year earlier.
Analysts on average were expecting earnings of $8.03 per share, according to data compiled by LSEG.
Total revenue in the quarter jumped 4% from a year earlier to $3.04 billion.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Krishna Chandra Eluri)
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