International broker Willis has posted a 2.7% drop in first-half earnings, as increased expenses offset rising commissions and fees.

Net income fell to $US324 million ($351 million) in the six months to June 30 from $US333 million ($361 million) in the corresponding period last year.

Revenues increased 4.6% to $US1.94 billion ($2.07 billion) as commissions and fees grew while investment income declined.

“We continued to build on our solid performance at the end of last year and through the first half of [this year], delivering our third consecutive quarter of robust top-line growth,” Willis Group CEO Dominic Casserley said.

“Across our company, our associates are looking forward to continuing our positive momentum throughout the remainder of [the year].”

In Willis’ second-quarter results, North American commissions and fees grew 6.1%, including a 0.6% impact from acquisitions and disposals.

Western Europe increased in the low single digits, while eastern Europe recorded low double-digit growth. UK operations declined.

Asia expanded in the “mid single digits”, Australasia declined in the mid single digits and Latin American operations grew in the high teens, driven by gains in some of the larger countries. Willis Global, which includes reinsurance, reported an 8.2% rise in commissions and fees.

Adverse foreign currency movements and increased salaries and benefits drove a rise in expenses.