Willis Towers Watson (WTW) has warned the economic fallout from the pandemic will remain an indefinite drag on revenue as its risk and broking businesses posted muted earnings for the third quarter to September.

“We continue to expect that the COVID-19 pandemic will negatively impact our revenue and operating results for the remainder of 2020, and beyond,” the broker said in an earnings release.

“During the third quarter of 2020, the COVID-19 pandemic had a negative impact on revenue growth, particularly in our businesses that are discretionary in nature, but otherwise it generally had no material impact on our overall results.”

Overall net income rose 61% to $US121 million ($169 million) from a year earlier but revenue barely increased, inching up 1% to $US2.01 billion ($2.8 billion).

The Corporate Risk and Broking unit earned $US649 million ($905 million) in revenue during the quarter, down marginally from $US651 million ($908 million) a year earlier while the Investment, Risk and Reinsurance business posted a 2% rise to $US331 million ($462 million).

WTW also booked $US42 million ($58.6 million) in pre-tax transaction and integration expenses related mostly to its pending merger with Aon. The two businesses are set to become the world’s largest insurance broker when Aon’s takeover of WTW closes in the first-half of next year, pending clearance of regulatory and other conditions.

When Aon announced in March the all-stock offer to buy its longtime rival, the deal was valued at $US29.9 billion ($41.7 billion) at that time.