Willis Towers Watson saw $85m in net income in Q3 2018, following a $35m loss for the same period last year. This is a startling 257% rise in fortunes for net income.
Reported revenue in the Willis Towers Watson Q3 2018 results was $1.9bn, an increase of 3% year-on-year. For the nine months ended September 30, 2018, net income was $621 million, an increase from net income of $339m for the same period in the prior year. Furthermore, organic revenue increased by 5%.
In addition, a record-high $1.6bn of non-life Insurance-Linked Securities (ILS) capacity was issued in Willis Towers Watson Q3 2018, highlighting the continued enthusiasm for ILS amongst issuers and investors. The total exceeds the former Q3 record of $1.4bn achieved in 2013.
“I’m extremely pleased with our third quarter results,” said John Haley, Willis Towers Watson’s chief executive officer. “Overall, our performance reflects strong organic revenue growth, continued margin expansion, and double-digit growth in our adjusted earnings per share and free cash flow. Our results indicate that we have made substantial progress toward our goals for 2018 and we expect a strong finish to the year as we head into one of our seasonally strongest quarters.”
Additional Willis Towers Watson Q3 2018 highlights:
- Adjusted EBITDA increased 14% to $368 million or 19.4% of revenue, a margin improvement of 200 basis points;
- Diluted Earnings per Share increased 258% to $0.63;
- Adjusted Diluted Earnings per Share increased 45% to $1.62;
- Cash flows from operating activities for the nine months ended September 30, 2018 of $753 million, and
- Free Cash Flow for the nine months ended September 30, 2018 increased 72% to $544 million.