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Willis Towers Watson LITHI ו - ויויו.ו Willis Towers Watson Reports Strong Second Quarter 2021 Earnings August 3 , 2021 • Total revenue¹ increased 8 % to $ 2.3 billion with constant currency growth of 4 % and organic growth of 8 % • Diluted Earnings per Share were $ 1.41 for the quarter , up 96 % over prior year • Adjusted Diluted Earnings per Share were $ 2.66 for the quarter , up 48 % over prior year • Income from Operations was $ 260 million or 11.4 % of revenue , up 370 basis points over the prior - year quarter • Adjusted Operating Income was $ 409 million or 17.9 % of revenue , up 390 basis points compared to the prior - year quarter • Announced 13 % increase in the regular quarterly cash dividend from $ 0.71 per common share to $ 0.80 per common share ARLINGTON , Va . and LONDON , Aug. 03 , 2021 ( GLOBE NEWSWIRE ) Willis Towers Watson ( NASDAQ : WLTW ) ( the " Company " ) , a leading global advisory , broking and solutions company , today 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 % . 1 The revenue amounts included in this release are presented on a U.S. GAAP basis except where stated otherwise . The segment discussion is on an organic basis . Net income for the second quarter of 2021 was $ 186 million , or 8.1 % of revenue , an increase from net income of $ 102 million , or 4.8 % of revenue for the prior - year second quarter . Adjusted EBITDA for the second quarter of 2021 was $ 557 million , or 24.4 % of revenue , an increase from Adjusted EBITDA of $ 441 million , or 20.9 % of revenue . Net income for the first half of 2021 was $ 922 million , or 18.9 % of revenue , an increase from net income of $ 415 million , or 9.1 % of revenue for the same period in the prior year . Adjusted EBITDA for the first half of 2021 was $ 1.29 billion , or 26.4 % of revenue , an increase from Adjusted EBITDA of $ 1.12 billion , or 24.5 % of revenue . Cash flows from operating activities for the six months ended June 30 , 2021 were $ 366 million , down 47 % compared to $ 685 million for the prior - year first half . Free cash flow for the six months ended June 30 , 2021 was $ 287 million , down 48 % compared to $ 550 million for the prior - year first half . The decrease in year - over - year free cash flow was due to net legal settlement payments of approximately $ 185 million for the previously - announced Stanford and Willis / Towers Watson merger settlements , higher incentive compensation and benefit - related items of approximately $ 249 million . Absent these items , free cash flow on an adjusted basis would have been $ 721 million or up 31 % versus the prior year . During the six months ended