Feb 3 (Reuters) - Insurance broker WTW WTW.O beat Wall Street estimates for fourth-quarter profit on Tuesday, driven by a strong performance in its risk and brokerage business.

Rising financial risks and natural disasters have prompted businesses to spend more on insurance, lifting the commissions of brokers like WTW that are tied to the premiums insurers charge.

Revenue from its risk and broking unit, which advises clients on risk management and lets them negotiate and place policies with insurers, rose 9.8% to $1.25 billion, driven by strong new business activity and client retention.

In December, WTW had announced the acquisition of peer Newfront for $1.3 billion, aiming to expand its reach in the U.S. middle-market.

WTW posted adjusted net income of $784 million, or $8.12 per share, for the three months ended December 31, compared with $811 million, or $7.97 per share, a year earlier.

Analysts on average were expecting earnings of $7.94 per share, according to data compiled by LSEG.

Revenue from its health, wealth and career segment fell to $1.65 billion from $1.85 billion a year ago, driven by the sale of its TRANZACT business.

In 2025, WTW's shares rose about 4.9%, outperforming peers such as Aon AON.N and Marsh & McLennan MMC.N, which fell 1.8% and 12.7%, respectively.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Sahal Muhammed)

((Prakhar.srivastava2@thomsonreuters.com;))