With the global industry players beginning to release their June results, it’s obvious the fall-out from the Spitzer and other regulatory probes in the US is hitting brokers where it hurts – the bottom line.

No 3 broker Willis Group recorded revenues of  $US1.2 billion in the first half of this year, up 1.8% from the same period last year.

But profits are down, with CEO Joe Plumeri blaming a number of “regulatory settlements” as a leading reason for a 21.7% profit drop to $US191 million.

US brokerage Arthur J Gallagher also saw revenues increase 2.5% for the first half of this year, but even that was not enough to offset some $US160 million worth of losses incurred from litigation costs over compensation practices in the first quarter of the year. Overall Gallaghers recorded a $US22.2 million loss.

Things look far rosier for insurer Chubb, which recorded a 34.6% increase in half-yearly earnings, bringing its first half-year net income earnings to $US965.1 million.

Chubb CEO John Finnegan attributes its strong result to a drop in catastrophe losses and a rise in investment income.

Reflecting a similar strong result is US insurer St Paul Travelers, which saw a second-quarter profit of $US1.07 billion. CEO Jay Fishman said the company benefitted from a 22% increase in net investment income. Its net income for the first half was $US1.28 billion.