- Adjusted operating margin was 18.5% for the quarter, a 150 basis point improvement over prior year, driven by strong organic growth and expense management.
- Free cash flow for the first half of 2025 was $217 million, down $88 million from prior year due to increased incentive costs, retirement program redesign, higher cash taxes, and absence of TRANZACT cash inflows.
- Health, Wealth & Career (HWC) segment revenue grew 4% with strong growth in Health at 8%, Wealth at 3%, Career at 1%, and flat growth in Benefits Delivery & Outsourcing (BD&O).
- HWC operating margin increased 190 basis points to 23.8%, and R&B operating margin improved 60 basis points to 21.2%, or 100 basis points excluding foreign exchange impact.
- Returned $591 million to shareholders via $500 million in share repurchases and $91 million in dividends during the quarter.
- Risk & Broking (R&B) segment revenue grew 6%, with Corporate Risk & Broking (CRB) growing 6% or 7% excluding book of business activity and fiduciary interest income.
- WTW delivered 5% organic revenue growth and 150 basis points of adjusted operating margin expansion in Q2 2025, with adjusted EPS of $2.86, up roughly 20% year-over-year.
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- Assets under management (AUM) reached a record $5.4 trillion, up 15% year over year.
- Expenses increased 5% year over year to $2.4 billion, driven by investments in technology and strategic initiatives, partially offset by productivity savings.
- FX trading revenue increased 16% and securities finance revenues grew 19% year over year, excluding notable items.
- Management fees rose 16% to a quarterly record of $612 million, supported by higher market levels and net inflows.
- Net interest income (NII) was $715 million, down 1% year over year, reflecting margin compression and deposit mix shifts.
- Pretax margin expanded by approximately 270 basis points to 31%.
- Return on tangible common equity rose about 160 basis points to 21%.
- Servicing fees increased 7% driven by higher market levels, net new business, and currency translation.
- Third quarter earnings per share (EPS) increased 23% year over year to $2.78.
- Total revenue grew 9% year over year to approximately $3.5 billion, with fee revenue up nearly 12% excluding notable items.
- Alternative investment income was $60 million below expectations due to lower private equity and real estate returns and a $50 million unfavorable impact from the annual assumption update process.
- Capital position remains strong with cash and liquid assets at $3.9 billion, above the $3 billion minimum liquidity target.
- Group insurance had one of its best earnings quarters recently with strong underwriting results and a benefit ratio improved to 80.9%.
- Individual Life sales grew 10% year-over-year with improved earnings results.
- Institutional Retirement delivered $9 billion in sales, including robust Longevity Risk Transfer transactions.
- International businesses sales were up 4%, driven by retirement and savings products in Japan despite surrender headwinds.
- PGIM's assets under management increased by 8% to $1.4 trillion, with total net flows of $400 million including $2.6 billion institutional inflows and $2.8 billion retail outflows.
- Pretax adjusted operating income was $1.7 billion or $3.58 per share, up 9% from the prior year quarter.
- Year-to-date return on equity was over 14%.
- Adjusted net income return on equity was 28.6% over the trailing 12 months.
- Auto insurance combined ratio was 86%, a 9.9 point improvement from the second quarter of 2024.
- Divestitures of Employee Voluntary Benefits and Group Health businesses generated $3.25 billion, representing a 25 times multiple of latest 12-month earnings.
- Homeowners business had an underlying combined ratio of 58.6 but was offset by $1.6 billion in catastrophe losses, leading to a combined ratio of 102 in the quarter.
- Investment income was $754 million in the quarter, representing a total return of 1.4% for the quarter and 5.4% for the last 12 months.
- Net income was $2.1 billion and adjusted net income was $1.6 billion or $5.94 per diluted share.
- Personal property-liability policies in force increased by 0.8 points.
- Property-Liability business generated nearly $1.3 billion of underwriting income with a combined ratio of 91.1%, a 10-point improvement from prior year quarter.
- Protection Services revenues were $867 million in the quarter, generating $60 million of income.
- Returned $1.1 billion in dividends and repurchased $445 million of common stock in the past year.
- Revenues were $16.6 billion in the second quarter, a 5.8% increase compared to the second quarter of 2024.
- Total policies in force increased by 4.2% over the prior year, led by Allstate Protection Plans.
- Allowance for credit loss was 160 basis points with an annualized net charge-off rate of 52 basis points.
- Approximately 604,000 shares were repurchased in the quarter at an average price of $74.49, totaling almost 1.9 million shares year-to-date.
- Liquidity remains strong with nearly $2.7 billion available, higher than last year.
- Loans and leases increased compared to last year, with commercial finance loan yields at 9.55% in the quarter versus 8.24% in the prior quarter.
- Net interest margin in the quarter was 7.43% and adjusted net interest margin was 5.98%, both expanded from last year's quarter.
- Noninterest income grew 11% from the prior year, driven by tax solutions, secondary market revenue, and card and deposit fees.
- Nonperforming loans increased due to three specific loans, including one related to fraud but well collateralized.
- Adjusted diluted EPS was $0.39 for the quarter.
- Declines were driven by lower U.S. agent count, broker fees, and revenue from previous acquisitions, partially offset by new revenue streams including RE/MAX Media Network and lead concierge initiatives.
- Revenue excluding marketing funds was $54.5 million, down 6.8% year-over-year due to negative organic growth of 5.7% and adverse foreign currency movements of 1.1%.
- Selling, operating, and administrative expenses decreased by $1 million or 2.8% to $33.9 million, primarily due to lower personnel expenses partially offset by severance and investments in flagship websites.
- Total leverage ratio was 3.58:1 as of June 30, consistent with March 31, with expectations to decrease in the second half of the year.
- Total revenue for Q2 2025 was $72.8 million, with adjusted EBITDA of $26.3 million and an adjusted EBITDA margin of 36.1%, up 30 basis points from Q2 2024.
Dafinchi