Global reinsurance broker WTW’s fourth-quarter and full-year 2025 revenue fell slightly from the prior year, driven by the sale of TRANZACT, but revenue grew in both periods from an organic perspective.
In the fourth quarter of 2025, WTW achieved revenue of $2.9 billion, a year-on-year decrease of 3% as reported, but an organic growth of 6%. Operating income increased 13% to more than $1 billion, and operating margin was 34.6%, compared with 29.7% in the same period last year. Net profit in the fourth quarter of 2025 totaled US$736 million, a year-on-year decrease of 41%, and adjusted net profit fell by 3% to US$784 million.
In the company’s Risk & Brokerage segment, total revenue increased 10% and organically increased 7% to $1.3 billion, driven by higher levels of new business activity and strong global client retention. However, insurance consulting and technology organic revenue declined slightly during the quarter, reflecting clients remaining cautious about managing expenses amid ongoing economic uncertainty, WTW reported.
Risk and brokerage operating income increased 14% year over year to $435 million in the fourth quarter of 2025, with operating margin of 34.7% compared to 33.5% in the prior year period, driven primarily by operating leverage from strong organic revenue growth.
Within the broker’s Health, Wealth and Careers business, total reported revenue fell 11%, driven by TRANZACT sales, but organic revenue rose 6% to $1.7 billion. Operating income for the segment fell 6% to $729 million, with operating margin at 44.3% compared with 41.9% in the fourth quarter of 2024.
For the full year of 2025, WTW achieved revenue of $9.7 billion, down 2% year over year on a reported basis but growing 5% organically, also driven by TRANZACT sales. Full-year operating income increased significantly by 256% to US$2.2 billion, and operating profit margin increased from 6.3% to 23%. Net income in 2025 will increase from a loss of $88 million in 2024 to a gain of $1.6 billion, and adjusted net income will increase 1% to $1.7 billion.
Risk and brokerage revenue will reach $4.3 billion in 2025, representing 7% reported growth and 6% organic growth.
The Health, Wealth and Careers segment generates revenue of $5.3 billion by 2025, down 9% year over year on a reported basis and growing 4% organically.
In terms of financial considerations for the year ahead, WTW said it expects its Willis Re joint venture to be a headwind to adjusted diluted earnings per share of approximately $0.30, noting that the remaining equity investment in the associate’s earnings interest is not expected to have a material impact through 2026.
WTW also expects to repurchase $1 billion or more of its stock, depending on market conditions and potential capital allocations to organic and inorganic investment opportunities.
In addition, for the Newfront acquisition completed last month, WTW expects post-closing revenue of approximately $250 million in 2026 and an adjusted EBITDA margin of approximately 26%.
Carl Hess, CEO of WTW, commented: “WTW delivered strong performance across our business, driven by our team’s relentless focus and consistent execution of our strategy. We delivered on our financial targets and strengthened our business through strategic investments in people and innovation to accelerate performance, increase efficiencies and optimize our product portfolio. Our strong momentum and continued progress against our strategic goals give us confidence as we enter 2026.”
