WTW to focus on 'opportunistic' hires: Hess
International broking group increased its headcount nearly 2,500 to 46,600 employees during 2022, despite a number of divestitures last year including the sale of Willis Re to Gallagher
Broking giant books 5% fourth-quarter organic growth in its risk and broking division, driven by global lines including aerospace and construction
WTW will focus on “opportunistic” hires this year as last year’s pressing need to recruit staff has eased, the broking giant’s chief executive said.
Speaking to analysts, Carl Hess suggested 2023 would see a return to a more typical rate of hiring. “We continue to focus on expanding our talent bases as necessary to achieve our growth targets,” he said.
“But I think we’re in an opportunistic landscape, whereas coming into 2022… we had more pronounced needs across the organisation,” he added.
Despite its divestitures last year – including the sale of Willis Re – the company increased its headcount nearly 2,500 to 46,600 employees.
Hess was speaking after the global broking and consulting group published its fourth-quarter results.
The firm’s risk and broking division achieved organic revenue growth of 5% in the quarter, supported by growth in global insurance lines.
Revenues in risk and broking came to $952m in the quarter, compared with $968m in the same period a year earlier.
While this represented a 2% decline on a reported basis, revenues rose 3% in constant currency terms and were up 5% on an organic basis.
The corporate risk and broking segment generated revenue growth across all regions, primarily driven by global lines of business, most notably new business in aerospace and construction.
The risk and broking division’s operating margin decreased 180 basis points from the fourth quarter of 2021 to 28.3%, primarily as a result of “headwinds from book sales and investments in talent”, WTW said.
Hess said the results reflected the benefits of the firm’s hiring efforts, investments in technology, initiatives to simplify the company and the execution of its transformation programme.
The company achieved $140m in cumulative run-rate cost savings from transformation initiatives in 2022, which was well ahead of the initially planned savings of $30m.
Overall, the broking and consultancy firm reported consolidated fourth-quarter revenues of $2.72bn, up 5% on an organic basis. Operating income increased 3% to $708m.
“The fourth quarter was a solid finish to a strong year for WTW,” Hess said. “We enter 2023 with momentum and remain focused on executing on our ‘Grow, Simplify and Transform strategic priorities, accelerating cashflow conversion and achieving our long-term goals,” he said.
WTW expects to deliver mid-single-digit organic revenue growth and adjusted operating margin expansion for the full year.
In addition, the company is targeting approximately $100m of incremental run-rate savings from the transformation programme in 2023.
