Willis Towers Watson has announced that revenue increased by 3% in both its full-year results and its fourth quarter, rising to $9.35bn (£6.76bn) and $2.76bn (£2bn), respectively.
Income from operations for the fourth quarter was $587m (£424m), or 21.2% of total revenue, marking a decrease of 430 basis points compared to the same period in the prior year, however.
Meanwhile, net income in the same period was $476m (£344m), a decrease of 13% from $544m for the same period in the prior year. This does however follow $45m (£33m) of transaction and integration expenses, largely related to the pending business combination with Aon, as well as $50m (£36m) of provisions for significant litigation.
In the full-year period, income from operations was $1.2bn (£867m), or 12.6% of revenue, a decrease of 210 basis points against the prior year, while net income fell by 5% to $996m (£720m).
Nonetheless, cash flows from operating activities soared by 64% to $1.8bn (£1.3bn) in the full-year, while free cash flow almost doubled to $1.6bn (£1.2bn), up by 86% from $835m (£603m) the prior year. According to the group, the increase in cash flows from operations was primarily due to positive cash flows from our improved working capital.
Looking ahead, the insurer noted that the extent to which Covid-19 continues to impact its business and financial position will “depend on future developments, which are difficult to predict, including the severity and scope of the Covid-19 pandemic as well as the types of measures imposed by governmental authorities to contain the virus or address its impact”.
In addition, it continues to expect that the pandemic will negatively impact its revenue and operating results for 2021, noting it has already had a negative impact on revenue growth in 2020.
John Haley, Willis Towers Watson CEO, said: “Our performance in the fourth quarter provided a strong finish to a good year in a difficult environment.
“We produced solid margins, almost doubled free cash flow, and delivered remarkable adjusted EPS growth. The results reflect the strong dedication and adaptability of our colleagues and their commitment to the values that underpin our company.”
He added: “I couldn’t be prouder of Willis Towers Watson’s accomplishments to date and I look forward to our continued momentum in 2021 as we move toward our planned combination with Aon.”