WTW beats profit estimates on strength in risk and brokerage unit

Feb 3 (Reuters) - Insurance ⁠broker WTW ⁠beat ‍Wall Street estimates for fourth-quarter profit on Tuesday, driven by a strong performance ‍in its risk and brokerage business.

Rising financial ​risks and natural disasters have prompted businesses to spend more ​on insurance, lifting the commissions of brokers like WTW that are tied to the premiums insurers charge.

Revenue from its ​risk and broking unit, which advises clients on risk management and lets them negotiate ​and place policies with insurers, rose 9.8% to $1.25 billion, driven by ‌strong new business activity and client retention.

In December, WTW had announced the acquisition of ​peer Newfront for $1.3 billion, aiming ⁠to expand its reach in the U.S. middle-market.

WTW posted adjusted net income ‌of $784 million, or $8.12 per share, for the three months ended December 31, compared with $811 million, or $7.97 per ‌share, a year earlier.

Analysts on average were expecting earnings of $7.94 ‌per share, according to data compiled by LSEG.

Revenue from its health, wealth and career segment fell to $1.65 billion from $1.85 ‍billion a year ago, driven by the sale of its TRANZACT business.

In ⁠2025, WTW's shares rose about 4.9%, outperforming peers such as Aon and Marsh & McLennan, which fell 1.8% and 12.7%, respectively.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Sahal Muhammed)

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