August 4, 2017 by Canadian Underwriter
Willis Towers Watson plc reported Thursday its commissions and fees from corporate risk and broking were $624 million during the three months ending June 30, a slight drop from $627 million during the same period in 2016.
“North America organic revenues were flat as new business growth was offset by a decline in one-time projects versus the second quarter of 2016,” London-based Willis Towers Watson said of its fees and commissions from corporate risk and broking.
Willis Towers Watson – formed in January, 2016 from the merger of Willis Group Holdings plc and Towers Watson & Co. – said total commissions and fees in Q2 2017 were $1.903 billion, essentially unchanged from $1.892 billion in Q2 2016. All figures are in United States dollars.
In investment, risk and reinsurance, Willis Towers Watson reported commissions and fees of $383 million in the latest quarter, up slightly from $380 million in Q2 2016.
“As expected, wholesale revenues declined due to timing of renewals which brought revenue forward into the first quarter of 2017,” Willis Towers Watson said in a press release, adding that Q2 2016 revenue “included an approximate $40 million settlement” with commercial brokerage Jardine Lloyd Thompson Group PLC related to the fine arts and jewellery team.
Willis Towers Watson’s other commissions and fees were from the exchange solutions private health insurance business and human capital and benefits.
Prior to the merger, Towers Watson’s services include product development, predictive modeling, claims consulting and catastrophe modeling for the insurance industry. Towers Watson was formed in 2010 with the merger of Towers, Perrin, Forster & Crosby Inc. and Watson Wyatt Worldwide Inc. In September, 2015, Towers Watson agreed to acquire Rothesay, N.B.-based Brovada Technologies Inc., which provides workflow software for the insurance industry.
In Canada, Willis has offices in Toronto, Calgary, Montreal and Vancouver and places property insurance, cyber and surety, among others.
Willis Towers Watson’s executive officers include: CEO John Haley; Todd Jones, head of corporate risk and broking; Carl Hess, head of investment, risk and reinsurance; and head of North America Joseph Gunn.
Company-wide, Willis Towers Watson reported net income of $41 million in total revenue of $1.953 billion in the latest quarter, compared to net income of $76 million on total revenue of $1.949 billion in Q2 2016.
For the six months ending June 30, total commissions and fees were $4.185 billion in 2017, up 2% from $4.12 billion in 2016.
Commissions and fees from corporate risk and broking were $1.274 billion during the first half of this year, up 1% from $1.268 billion during the same period in 2016. Investment, risk and reinsurance, commissions and fees were $885 million in the six months ending June 30, 2017 up 1% from 878 million win the same period in 2016.