Willis Towers Watson announced financial results for the second quarter ended June 30, 2021.
“We delivered very strong quarterly financial results, and I am proud of our results for the first half of 2021,” said John Haley, Willis Towers Watson’s chief executive officer. “In the second quarter we delivered broad-based revenue growth, continued margin expansion, and had significant earnings per share growth. I am encouraged by our growth momentum and the improving macroeconomic outlook. Our financial results reflect our talented colleague base, their perseverance, the strength of our client relationships and our compelling value proposition. We are focused on moving forward independently, with confidence in our ability to continue delivering significant value for all of our stakeholders. We are well-positioned to compete vigorously and independently across our businesses around the world and will continue to innovate and adapt to address evolving client needs.”
Second Quarter Company Highlights
Revenue was $2.29 billion for the second quarter of 2021, an increase of 8% (4% increase constant currency and 8% increase organic) as compared to $2.11 billion for the same period in the prior year.
For the first half of 2021, revenue was $4.88 billion, an increase of 6% (3% increase constant currency and 6% increase organic) as compared to $4.58 billion for the same period in the prior year.
Income from operations for the second quarter of 2021 was $260 million, or 11.4% of revenue, an increase of 370 basis points compared to the second quarter of the prior year. Adjusted operating income was $409 million, or 17.9% of revenue, an increase of 390 basis points compared to the second quarter of the prior year. Net income attributable to Willis Towers Watson for the second quarter of 2021 was $184 million, an increase of 96% from $94 million for the prior-year second quarter. For the quarter, diluted earnings per share were $1.41 and adjusted diluted earnings per share were $2.66. Net income attributable to Willis Towers Watson and diluted earnings per share for the second quarter of 2021 included pre-tax $51 million of transaction and integration expenses mostly related to the proposed Aon combination prior to its termination. The U.S. GAAP tax rate for the quarter was 33.8%, and the adjusted income tax rate for the quarter used in calculating adjusted diluted earnings per share was 19.3%.
Income from operations for the first half of 2021 was $712 million, or 14.6% of revenue, an increase of 320 basis points compared to the first half of the prior year. Adjusted operating income was $988 million, or 20.3% of revenue, an increase of 240 basis points compared to the first half of the prior year. Net income attributable to Willis Towers Watson for the first half of 2021 was $917 million, an increase of 130% from $399 million for the same period in the prior year. For the first half of 2021, diluted earnings per share were $7.04 and adjusted diluted earnings per share were $6.30. Net income attributable to Willis Towers Watson and diluted earnings per share for the first half of 2021 included pre-tax $75 million of transaction and integration expenses mostly related to the proposed Aon combination prior to its termination. For the first half of 2021, the U.S. GAAP tax rate was 17.2%, and the adjusted income tax rate used in calculating adjusted diluted earnings per share was 20.0%.
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