Willis struggles in US

Willis announced a 2% overall growth in commission and fees in Q3 but reported a 3% organic fall in North America countered by its acquisition of HRH. Reinsurance was a strong area.

Financial highlights (Q3 2008 in brackets)

• Commissions and fees $714m ($556m)
• Total Revenues $725m ($579m)
• Operating Income $82m ($66m)
• Income (cont. ops) before taxes $35m ($34m)
• Income from Continuing Operations $80m ($38m)
• Net income attributable to Willis Group Holdings Limited $79m ($36m)

Income growth by division

• Global $175m ($159m) 10%
• North America $320m ($175m) 83%
• International $219m ($222m) (1)%

Joe Plumeri, chairman and chief executive said: “Willis continues to maintain its growth momentum in spite of the difficult global economy and soft market conditions – and that’s a tribute to the strength of our diverse global business.”

“We continue to get strong contributions from each segment, despite the marketplace challenges we face, which are especially pronounced in the US, UK and Ireland.

“We continue to run the company with discipline and foresight, implementing strict cost controls, right sizing for the current environment, and investing in areas that will drive current and future growth.”

International

Growth came from new business that more than offset the soft rate environment and weakness in the UK and Ireland retail market. Outside of the UK and Ireland, the International business segment had high single-digit growth. There was strong growth across many regions, including Europe and Latin America.

North America

Decline reflected soft insurance market conditions as well as continued weakness in the US economy. North America remains focused on the integration of HRH and ongoing expense management.

Global

Each division - Global Specialties, Faber & Dumas and Reinsurance - recorded positive growth, led by continued high single-digit growth in reinsurance, together with strong performance in the aerospace, marine and financial and executive risks specialties.

Plumeri said: “I am proud of what we’ve been able to accomplish this quarter and over the first nine months of 2009. This is a strong, diverse business that is able to perform well even under the worst global economic conditions.”

“As always, we are rigorous about our expenses and keeping our company at the right size for the current environment. Importantly, we remain ahead of plan on achieving HRH integration synergies, and we continue to invest in Shaping our Future. Accelerating growth remains our number one priority.”