Global insurance broker Willis Group Holdings Limited is reporting strong revenue and earnings growth for the quarter and six months ended June 30, 2001. Revenues rose 8 percent to $337 million for the second quarter of 2001. On a constant currency basis, excluding the effects of foreign exchange, acquisitions and disposals, underlying revenues rose 12 percent.
For the quarter ended June 30, 2001, net income was $17 million, or $0.12 per diluted share, compared with a loss of $5 million, or $(0.04), last year. Cash net income, or net income excluding goodwill amortization, grew to $25 million in the quarter compared with $3 million a year ago. Cash net income per diluted share was $0.18 for the second quarter compared with $0.02 last year.
Operating margin in the second quarter doubled to 18 percent. Reported general and administrative expenses were 2 percent lower than the corresponding period last year. On a constant currency basis, adjusting for acquisitions and disposals, expenses rose by 4 percent.
For the six months ended June 30, 2001, revenues were $712 million, up 7 percent from a year ago. Revenues, on a constant currency basis, rose 11 percent in the first half of the year. Net income was $56 million, or $0.42 per diluted share, for the six months ended June 30, 2001 compared to $12 million, or $0.10, last year. Cash net income, or net income excluding goodwill amortization, rose to $73 million for the first half of 2001, from $29 million for the corresponding period of 2000. Cash net income per diluted share was $0.54 compared with $0.24 a year ago.
On June 12, 2001, Willis Group Holdings issued a total of 23 million shares in an initial public offering, priced at $13.50 per share. Proceeds from the offering, net of expenses, of $282 million have been used to repay all the $273 million preference shares outstanding. Further, as of June 30, 2001, Willis repurchased and cancelled approximately $26 million of outstanding 9 percent Senior Subordinated Notes. Willis has subsequently redeemed an additional $28 million of these notes.
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