Willis Towers Watson beats profit estimates on risk, brokerage strength
Feb 6 (Reuters) - Willis Towers Watson reported a better-than-expected quarterly profit on Tuesday, helped by robust performance in its risk and brokerage business.
Steady demand for insurance products and higher premiums boosted the risk and brokerage unit, which advises clients on risk management and lets them negotiate and place policies with insurers.
Insurance brokers generally pocket a percentage of the premiums paid to insurers as commissions.
Willis Towers' risk and broking segment revenue jumped 13% to $1.08 billion in the fourth quarter, thanks to strong new business, improved client retention, and rate increases.
Revenue from health, wealth, and career - the company's largest segment - rose 4% to $1.80 billion from a year earlier, driven by higher volumes and placements of Medicare Advantage in its benefits delivery and outsourcing business.
Total revenue in the quarter jumped 7% to $2.91 billion.
The company posted adjusted net income of $7.44 per share for the three months ended Dec. 31, compared with analysts' average estimate of $7.05, according to LSEG data. (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Maju Samuel)
