Willis Reports $89 Million Q4 Net Income; FY $455 Million

Willis Group Holdings reported increases in both fourth quarter and full year net income. For the quarter ended December 31, 2010 net income was $98 million, or $0.57 per diluted share, compared with $79 million, or $0.47 per diluted share, in the same period a year ago.

For the year ended Dec. 31 Willis reported net income from continuing operations of $455 million, or $2.66 per diluted share, compared with $436 million, or $2.58 per diluted share, in 2009.

The bulletin added that “reported net income from continuing operations in 2010 and 2009 were impacted by certain items, which are detailed later in this release. Foreign currency movements favorably impacted adjusted earnings per diluted share by $0.04 in 2010 compared with 2009. Adjusted earnings per diluted share from continuing operations were $2.75 for 2010 compared with $2.67 in 2009.

Willis earnings report also cited the following “highlights” for the fourth quarter:
• Reported and adjusted earnings per diluted share from continuing operations of $0.57, up 21 percent from a year ago, including $0.07 per diluted share unfavorable impact from foreign currency movements
• 2 percent reported growth in commissions and fees compared with the fourth quarter of 2009
• 4 percent organic growth in commissions and fees compared with the fourth quarter of 2009, with 8 percent growth in the International segment, 6 percent in Global, and flat in North America
• Reported and adjusted operating margin of 21.2 percent, up 20 basis points and 10 basis points, respectively, compared with fourth quarter of 2009

Highlights of the year ended December 31, 2010 included the following:
• Reported earnings per diluted share from continuing operations of $2.66; adjusted earnings per diluted share from continuing operations of $2.75, including $0.04 per diluted share favorable impact from foreign currency movements
• 3 percent reported growth in commissions and fees compared with 2009
• 4 percent organic growth in commissions and fees compared with 2009, with 6 percent in the International segment, 6 percent growth in Global, and flat in North America
• Reported operating margin of 22.6 percent, up 130 basis points compared with 2009; adjusted operating margin of 23.0 percent, up 120 basis points compared with 2009

“We delivered strong organic growth of 4 percent in the fourth quarter, consistent with the organic growth that we achieved for the full year 2010,” stated Chairman and CEO Joe Plumeri. “Adjusted earnings per share grew 21 percent in the fourth quarter, while adjusted operating margin remained solid as we continued to support our growth. Our Willis associates around the globe have done a great job in winning new business and supporting our clients through another year of rate and economic challenges,”

Willis reported total Q4 revenues of $835 million compared with $824 million for Q4 2009, an increase of 1 percent. Total commissions and fees rose 2 percent to $825 million from the fourth quarter of 2009. Investment income was $9 million in the fourth quarter of 2010, compared with $15 million in the fourth quarter of 2009, largely due to lower interest rates.

Willis’ total reported revenues for 2010 were $3.34 billion compared with $3.26 billion for 2009, an increase of 2 percent. Total commissions and fees were $3.30 billion, up 3 percent compared with 2009. Investment income was $38 million, down 24 percent from $50 million in 2009, primarily due to lower interest rates.

Source: Willis Group Holdings

Topics Profit Loss