Willis Towers Watson Public Limited Company (NASDAQ:WLTW) Q1 2019 Earnings Conference Call Transcript
May 01, 2019 • 09:00 am ET
there is no doubt we continue to see opportunity in that business. Todd Jones and the management team there are very focused on it. And we saw improvement in the first quarter in terms of overall margin improvement. We continue to think of opportunity that we'll see and continue to see that happening. So, as we look at the quarter, we are pleased with the progress, they're making. We still see more is about 50 basis points improvement is what we saw in the first quarter for CRB.
Okay, great. Thanks for (Multiple Speakers).
John J. Haley
And it's hard to compare that to other -- it's hard to compare that to the improvement in other segments because that HCB have some of the 606 changes and other things. So, we feel pretty good about the CRB. They're making -- as I said in my remarks, they're making good steady progress at the margin improvement exactly what we're looking for.
I have other questions, but I'll follow up offline.
John J. Haley
And our next question coming from the line of Elyse Greenspan with Wells Fargo. Your line is open.
Hi, good morning. Thank you. My first question. Just trying to get a little sense of the organic revenue outlook for HCB for the balance of the year. So, in the previous question you addressed the fact that we have some rev rec benefit coming back into numbers. But then that was offset this quarter by some timing issues in retirement and then also by the triennial valuation cycle. So, do either of those -- do the impact of either of those two items benefit you in the back three quarters? Are these things that we should be thinking about as being a headwind to organic within HCB for the balance of the year?
Yeah Elyse, we have -- we really purposely stopped giving segment guidance and really looking at the totality around the 4% overall, but we feel really good about the HCB business and their ability to continue to drive revenue growth. We're not overly concerned from the triennial impacts coming forward, they're very small.
But we feel very confident in the management team and what that business is going to continue to drive and really contribute as we said on an overall basis around that 4%.
John J. Haley
I would say that the impact of the triennial evaluations tends to be more pronounced in the first half of the year than in the second half.
Okay. And then in terms of IRR you guys called out that Wholesale organic was down around 6%, I believe due to reduced Marine business within Miller. Could you just provide a little bit more color there. And if that's something we expect to continue. And was that the driver of the margin deterioration within IRR in the quarter?
Yes. Elyse, I mean, we were just calling out the particular businesses that we had seen and we just not had seen as much continued growth in that particular business.