Fifteen months after abandoning its controversial contingency payment arrangements with insurers, London-based global broker Willis Group has posted a lower fourth-quarter result.

Net income for the last three months of 2005 fell to $US60 million ($81.4 million), down from $US108 million ($146.4 million) in 2004.

The company lost $US58 million ($78.7 million) in contingent commissions during last year but ended the period relatively flat with total revenues down less than 1% to $US2.27 billion ($3.08 million).

The drop in contingency payments was balanced out by a 6% net increase in new business and organic growth in other revenue of around 5%.

Chairman and CEO Joe Plumeri announced in October 2004 the company would abandon contingency payments. The firm co-operated with New York Attorney-General Eliot Spitzer’s inquiry into payment systems and denounced all types of bid-rigging activities.

At the same time, Mr Plumeri called on all insurance intermediaries to adopt a similar goal for a level playing field. He said that even if other brokers moved to reinstate contingency payments, Willis would not.

Willis rival Aon has also reported its fourth-quarter and full-year results for 2005.

It declared $US224 million ($303.9 million) in net income for the last three months, up $US143 million ($194 million) on the same period in 2004.

President and CEO Greg Case says the operating results show “strong underlying margin improvement”.