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Willis second-quarter profit soars

Global broker Willis has reported strong growth in second-quarter income as benefits continue to flow from the acquisition of US firm Hilb Rogal & Hobbs (HRH).

Willis net profit “from continued operations” climbed 123% to $US87 million ($106 million) in the second-quarter compared with $US39 million ($48 million) for the same period a year ago.

The HRH business was a key contributor to the improved result following last year’s takeover of the eighth-largest US broker.

Total reported revenues for the quarter climbed to $US784 million ($959 million) from $US661 million ($809 million) in the second quarter of last year.

For the six months to June 30, reported net profit rose 36% to $US280 million ($342 million) on the back of an 18% increase in total revenue of $1.71 billion ($2.1 billion).

Willis recorded 2% organic growth in commission and fee income during the period. Reported operating margins improved to 25.6% for the first half compared with 20.7% in the first six months of last year.

“We continue to grow in the worst global economy the world has ever seen, and that’s a testament to our international diversity and specialist expertise,” Willis Chairman and CEO Joe Plumeri said.

The company has pledged to “defend itself vigorously” against charges brought by lawyers on behalf of investors in failed financial firm Stanford Financial Group, a Willis client.