Willis Reports 73% Rise in Q1 Operating Earnings

May 1, 2002

Global insurance broker Willis Group Holdings Limited reported record revenue and operating earnings growth for the quarter ended March 31, 2002 with operating cash earnings rising 73% to $83 million, or $0.50 per diluted share, compared to $48 million, or $0.36 per diluted share, in Q1 2001.

“Organic revenue growth, excluding the effects of foreign exchange, acquisitions and disposals, was 17% for the quarter ended March 31, 2002, accelerating from 14% in the fourth quarter 2001,” said the announcement. “Reported revenues increased 20% in the first quarter to $451 million compared to a year ago. EBITDA margin, or revenues less general and administrative expenses to total revenues, was 34% for the first quarter, up from 28% last year and 30% in the fourth quarter 2001.”

Joe Plumeri, Willis outspoken Chairman and CEO stated that, “I am pleased to report another strong quarterly financial performance. It reflects our efforts to build the sales culture and leverage the strengths of our global resources. Global, North America and International business units each contributed soundly to our success. Our performance demonstrates our ability to consistently grow revenues, maintain disciplined expenses, expand margins, and bring those revenues to the bottom line.”

“In this current insurance market,” Plumeri continued, “characterized by higher premium rates, reduced capacity and more restrictive terms and conditions, our role as broker and client advocate has been greatly enhanced as the profile of risk and risk management has risen. Our model, which focuses on the core brokerage business, encourages our associates to be highly responsive to clients’ needs and to deliver exceptional service.”

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