Willis Group has reported strong results for the quarter and 2006 as a whole.
Net income for the quarter was $148m, compared with net income of $55m a year ago. Total reported revenues were $621m, compared with $562m for the same period last year, an increase of 10%. The effect of foreign currency translation increased reported revenues by 3%.
Net income for the year was $449m, compared with a reported net income of $281m a year ago. The results were significantly affected by the gain on the sale of the company's London headquarters, spending on Shaping Our Future initiatives and, for 2005, by regulatory settlements and related expenses, severance costs, other provisions and net gain on the disposal of operations.
Total reported revenues for the year were $2,428m compared with $2,267m for the same period last year, an increase of 7%.
Separately, the board of directors approved a 6.4% increase in the regular quarterly cash dividend on the company's common stock to $0.25 per share, an annual rate of $1.00 per share.
Commenting on the results, Joe Plumeri, chairman and chief executive, said, "Our results for 2006 were just what we said they would be: our organic revenue growth was strong, our operating margin expanded and our salaries and benefits to revenues decreased. In addition, earnings per share grew more than 18% for the year (excluding certain adjustments). We remain committed to executing the Shaping Our Future strategy because this focus has already served us well.”
