WTW's Strong Q1 Performance Boosted by Risk and Broking Growth

Insurance broker WTW reported a 23% increase in first-quarter profit, driven by growth in its risk and broking unit. Concerns about economic downturns haven't deterred insurance spending thanks to a resilient labor market. This has increased demand for WTW's risk advisory services, raising risk and broking revenue by 7% to $1.03 billion.

Insurance firm WTW has revealed a 23% surge in its first-quarter earnings, fueled by significant growth in the company's risk and broking segment. This performance counters apprehensions about a potential economic slowdown affecting consumer spending on insurance.

A steady labor market paired with wage growth has helped sustain insurance expenditure, benefiting brokers like WTW who earn commissions based on the premiums set by insurers. The fears regarding a trade war have also expectedly heightened the demand for WTW's risk advisory and consulting services.

WTW's risk and broking operations reported a 7% revenue increase, reaching $1.03 billion. Consequently, the overall profit soared to $239 million, equivalent to $2.33 per share, up from $194 million or $1.83 per share from the prior year. The company's shares have appreciated by 4% this year, outpacing competitors such as Marsh & McLennan and Aon.

(With inputs from agencies.)