WTW has lifted its full-year operating margin and earnings targets after revenue rose 5% to $US2.27 billion ($3.47 billion) in the second quarter.

It now expects a 2024 operating margin of 23%-23.5%, up from 22.5%-23.5% previously, and earnings per share of $US16-$US17, up from $US15.40- $US17.

It has maintained its annual revenue target of more than $US9.9 billion ($15.12 billion).

“WTW delivered a strong second quarter, generating significant earnings per share growth and margin expansion through robust organic growth and operating efficiency,” CEO Carl Hess said.

He says the global trend on property insurance premiums is “stabilising to softening” and “natural catastrophe capacity is no longer the main driver of premium increases in this space”.

In the casualty market, there is reduced capacity and higher pricing.

“Looking at financial lines, we do see them continue to soften, but the rate reductions have slowed down this quarter,” Mr Hess told analysts. “Geographically, there’s a softening market in Asia, Australia, Latin America. In Europe, we see generally flat, same true for the UK, and premium rises in North America have slowed to stable.”

Mr Hess says cyber premiums are “softening faster” as insurers widen their appetites and new capacity enters the market.

“We’re not seeing the difficulty we might have had a few years ago with capacity in various markets. We’re able to achieve, I think, quite good results for our clients and anticipate that will be the case going forward.”

WTW’s net income for April to June rose 48% to $US142 million ($216.83 million).

Health, wealth and career revenue gained 4% to $US1.26 billion ($1.92 billion), driven by increased project work in North America and strong client retention.

Risk and broking revenue rose 9% to $US979 million ($1.5 billion).