WTW has today announced financial results for the fourth quarter ended 31 December 2024.
“WTW is entering 2025 with considerable momentum after delivering on our 2024 financial targets through solid revenue growth, robust margin expansion and earnings growth,” said WTW CEO Carl Hess.
Revenue was $3.04bn for the 4Q2024, an increase of 4% as compared to $2.91bn for the same period in the prior year. Excluding the impact of foreign currency, revenue increased 5%.
On an organic basis, revenue increased 5%. Net income for 4Q 2024 was $1.25bn compared to net income of $623m in 4Q2023.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for 4Q2024 was $1.2bn, or 38.6% of revenue, an increase of 9%, compared to adjusted EBITDA of $1.1bn, or 37.1% of revenue, in 4Q2023.
Cash flow and capital allocation
Cash flows from operating activities were $1.5bn for the year ended 31 December 2024, compared to $1.3bn for the prior year.
Free cash flow for the years ended 31 December 2024 and 2023 was $1.4bn and $1.2bn, respectively, an increase of $184m, primarily driven by operating margin expansion, partially offset by cash outflows related to transformation and discretionary compensation payments.
Highlights
Health, wealth and career
The health, wealth and career (HWC) segment had revenue of $1.85bn in 4Q2024, an increase of 3% from $1.8bn in 4Q2023.
Health had organic revenue growth led by increased project work and brokerage income in North America and the continued expansion of the client portfolio in International and Europe.
Wealth generated organic revenue growth from higher levels of retirement work globally, an increase in the investments business and capital market improvements.
Career had organic revenue growth from increased advisory services and product revenue. Benefits delivery and outsourcing (BD&O) had an organic revenue decline for the quarter.
Operating margins in the HWC segment increased 140 basis points from 4Q2023 to 41.9%, primarily from transformation savings.
Risk and broking
The risk and broking (R&B) segment had revenue of $1.14bn in 4Q2024, an increase of 6% from $1.08bn in 4Q2023.
Corporate risk and broking (CRB) had organic revenue growth driven by higher levels of new business activity and strong client retention.
Insurance consulting and technology (ICT) had organic revenue growth for the quarter primarily due to strong software sales.
Operating margins in the R&B segment increased 60 basis points from 4Q2023 to 33.5%, primarily due in part to operating leverage driven by organic revenue growth and disciplined expense management.