Willis income falls 6.7% as UK and US suffer

Willis income fell 6.7% in the third quarter as commissions and fees fell in the UK, Ireland and North America.

Reported net income for the third quarter of 2011 was $60m compared with $64m in the same period a year ago. 

Willis suffered from a 4% drop in commissions and fees in North America, and described the UK and Ireland retail market as ‘down slightly’.

Despite those falls, Willis was lifted by its global performance, and reported an overall 4% growth and 2% organic growth in commissions and fees.

Total reported revenues increased 4% to $762m. The broker also reported one-time severance costs related to a broad cost-cutting project announced earlier this year.

Chief executive Joe Plumeri said: “We achieved steady 2% organic growth in commissions and fees in a quarter complicated by a number of factors, including the impact from our operational review charge, further deterioration in the results of the loan protector business we talked about last quarter, and some favourable factors, including tax-related adjustments.”

Plumeri said global growth was strong.

“Underlying all of this, however, organic growth within the Global and International segments came in strong – especially in light of the difficult markets.

“That growth was offset by negative 4% reported and organic growth in our North America segment driven by the disappointing Loan Protector results.  

“Excluding the impact from that business, reported and organic growth in North America would have been flat. Importantly, we continue to execute against our plan to reduce expenses while implementing revenue initiatives and we believe we are well positioned for growth in 2012,” he said.